BVI Guidance On Economic Substance Requirements Expected In Draft Form In Late April 2019

As announced in our earlier eAlert, the Government of the British Virgin Islands (BVI) enacted the Economic Substance (Companies and Limited Partnerships) Act, 2018 (the Act) effective 1 January 2019.

The Act requires certain BVI entities carrying on specified activities to have 'adequate substance' in the BVI. The Act applies to "legal entities" carrying on "relevant activities", other than non-resident companies, non-resident limited partnerships and limited partnerships which have elected not to have legal personality. For additional particulars of the Act, please refer to our eAlert of 2 January 2019.

Since the Act was published, BVI's legal community has been awaiting the issuance of Government guidance to assist in determining if a particular entity is carrying on a relevant activity and, if so, whether it meets the applicable economic substance requirements (for instance, the definition of 'adequate' in the context of each "relevant activity" and in