With many entities approaching their fiscal year-end, entities incorporated in the British Virgin Islands ("BVI") that are at or are nearing the end of their life cycle should consider a voluntary liquidation. Knowing the steps and filing ahead of the relevant deadlines can save money, lessen administrative burdens and lend peace of mind as a company reaches its natural endpoint.
The BVI voluntary liquidation process need not be complicated. With some simple steps and considerations, firms with entities domiciled in the BVI can efficiently – and cost effectively – wind down a BVI company.
What are the deadlines for the voluntary liquidation of BVI companies incorporated during the second half of the year?
BVI companies that were incorporated or registered during the second half of a calendar year need to have the final notice filed by an appointed voluntary liquidator before 30 November in order to avoid paying unnecessary Registry fees.
To ensure there is enough time to get all related paperwork in order, we recommend beginning the voluntary liquidation process prior to mid-October.
Who can be appointed as a BVI voluntary liquidator?
At least one of the voluntary liquidators appointed by a BVI company must be resident in the BVI. In cases of joint voluntary liquidators, the BVI residency requirement only applies to one member of the team.
There are also guidelines for the qualifications of BVI voluntary liquidators: at least two years of liquidation experience and professional competency in liquidations; as well as an insolvency practitioner's licence issued by the BVI Financial Services Commission or an appropriate similar professional qualification.
Voluntary liquidators must also collect records kept and maintained by the BVI company and at the conclusion of the liquidation, send copies to the BVI company's registered agent.
What are the benefits of a BVI voluntary liquidation?
Leveraging our legal and specialised fiduciary and fund services teams, the Maples Group provides clients with comprehensive restructuring and liquidation services, including a team comprised of dedicated individuals with extensive experience who can act as voluntary liquidators to BVI companies. For a straightforward, no assets / no liabilities voluntary liquidation of a BVI company, we can generally complete the process within six to eight weeks.
The Maples Group has a dedicated Voluntary Liquidations team based in the BVI to meet all the compliance requirements of corporate dissolutions and liquidations in the jurisdiction. Our global Liquidations group works with the best practices for statutory processes across our follow-the-sun international network, providing that the wind down of any entity will be completed with objectivity and in keeping with local procedures.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
