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BVI company audit, financial statements, accounting, consulting in the British Virgin Islands

The British Virgin Islands is perhaps the most famous offshore in the world so-called “classic offshore”. Despite the introduction of compulsory registry of beneficiaries, buying a company in the British Virgin Islands is still popular. Companies registered in the British Virgin Islands have no obligation to file financial statements with the state authorities. In addition, it is not required to prepare and file income tax returns. However, under the legislation on controlled foreign companies (CFCs) adopted in the Russian Federation, the controlling persons of such companies are obliged to report to the Russian tax inspectorate (provided they are tax residents of the Russian Federation).

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Service packages Legislation Tax System Audit Services
Checking whether the provided information is complete and preparing the annual return
350 USD
Checking whether the provided information is complete and preparing the annual re

Please note that the return preparation rates may be increased in the 2 months preceding the deadline due to the urgency of orders: 2 months to the deadline, the multiplying factor is 1.5, 1 month to the deadline – 2

100-150 USD per hour, but not less than 500 USD
Keeping of an annual return by the registered agent
290 USD
Preparation and submission of dormant accounts (for a dormant company)
from 550 USD
Preparation and submission of accounts
from 2 700 USD
Apostille of financial statements (if necessary)
from 585 USD

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General requirements

All business companies registered in the BVI should keep accounting records in such form and volume that may reflect the company’s activity and truthfully show financial status of the company.

BVI Business Company’s Act provides minimum obligations for submission of any statements and returns. Commercial companies registered in the BVI are not required to file financial statements, annual reports or other types of reports with the BVI government authorities. The exemption is made for private, professional and public funds and other licensed structures.

Under the law the companies are obliged to keep accounting records and attesting documents for 5 years starting from the date of relevant transaction. All documents supporting company’s activity should be kept at the office of the company’s registered agent or at any other place (on the territory of the BVI or outside it) determined by the directors of the company.

If the records are kept with the registered agent, no further action is required. If the records are not kept with the registered agent, the companies serviced by the registered agent must notify the registered agent in writing (including by email) of the location where the accounting records are kept.

If the records are maintained exclusively electronically, the location of the server on which they are maintained is sufficient for purposes of meeting these requirements; if they are maintained on a virtual server, the location of the primary access points to those records.

The notion of storing "accounting records" implies that such records:

  1. explain all transactions in a correct manner;
  2. make it possible to determine the financial position of the organization with a sufficient degree of accuracy at any given time;
  3. make it possible to prepare financial statements;
  4. are accompanied by primary documents (such as invoices and contracts) that:
  • contain information about the amount and amounts of receipts and expenditures,
  • contain information on all sales and purchases and other financial transactions,
  • identify the assets and liabilities of the respective organization.

The retention of general information, such as accounting policies, is not sufficient to meet these requirements.

As of January 1, 2023, commercial companies are required to file an annual financial return (Annual Financial Return) with their registered agent in the BVI - within 9 months of the end of the fiscal year to which the return relates. Accordingly, the first reports must be filed by September 30, 2024.

The registered agent must, on request from the British Virgin Islands Financial Services Commission (BVI FSC) or other competent authority, provide a copy of the financial statement of the company for which the request is made. In addition, the registered agent must notify the FSC if the company report is not received - no later than 30 days after the date of delay (i.e. if the report is not received by 30 September, the registered agent must notify the FSC by 30 October).

The rules regarding controlled foreign companies are stated in Chapter 25 of Tax Code of the Russian Federation.

Types of statements

  • Audited financial statements
  • Management statements


As a general rule companies don’t have a liability to undertake financial audit and to submit audited accounts to state authorities. Financial statements cannot be publically accessed.

However under the Securities and Investment Business Act, 2010 («SIBA») and Mutual Funds Act («Funds») all private, professional and public funds, as well as all licensed organizations («Licensees»), must appoint an auditor and prepare an audit of their financial statements, unless explicitly exempted from this requirement.

According to the rules regarding controlled foreign companies (CFC) financial statements should be prepared under International Financial Reporting Standards (IFRS). A positive audit opinion of an independent auditor is also required

Terms of preparations and submission of financial statements

All funds and licensees must submit audited financial statements to the BVI Financial Services Commission during 6 months from the end of the fiscal year.

Under the new rules, for-profit companies must file reports with their registered agents within 9 months of the end of the fiscal year.

Under the CFC rules the deadline for submission of the accounts to the Russian tax authorities – April 30

Liability for non-compliance with law requirements

If a company does not comply with law requirements to keep accounting records and attesting documents a penalty in amount of 50 000 USD will be imposed.

In cases a company does not provide accounting records and documents on international request which is made according to one of the agreements on exchange of tax information set by the BVI the penalty increases to 100 000 USD.

In addition to the fine, the law also provides for imprisonment for the period up to 5 years.

Failure to comply with the new obligation to prepare and submit an annual report with financial indicators may result in penalties of up to USD 5 000 and even removal of the company from the Registry. There is also provision for liability of registered agents who will not fulfill their obligations with respect to collection and storage of such reports.

In case financial statements for a Controlled Foreign Company will not be submitted then a penalty of 500 000 rubles will be charged. The penalty is imposed on a person with control.

Consolidated financial statements

There are no requirements to prepare consolidated financial statements.

Frequency Asked Questions

Does a BVI company need an audit?
It depends on the size and nature of the BVI company. In general, a the British Virgin Islands company is not required to have an audit if it qualifies as an exempt company. However, if it is not an exempt company, it may be required to have an audit depending on its annual turnover, total assets, and number of employees. BVI companies are required to maintain accurate financial records regardless of whether or not they are required to have an audit. It is recommended seek professional advice to determine their specific audit requirements.
Do BVI companies have financial statements?
Yes, BVI companies are required to prepare financial statements, which include a balance sheet, income statement, and cash flow statement. However, the level of detail required depends on the size of the company and whether it is publicly traded. Small and medium-sized companies may be exempt from certain reporting requirements, while larger companies must provide more detailed financial statements. BVI companies are also required to keep proper accounting records and to file an annual return with the British Virgin Islands Registrar of Corporate Affairs.
What are the reporting requirements for BVI companies?
BVI companies are required to maintain adequate accounting records and prepare financial statements that give a true and fair view of their financial position. However, there is no requirement for BVI companies to file their financial statements or undergo an audit with the British Virgin Islands authorities. Nonetheless, if the company is subject to certain regulatory requirements, such as being licensed under financial services legislation, it may be required to submit financial statements and undergo an audit.
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