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

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. Business companies registered in the BVI are not obliged to prepare and file financial statements, annual reports and other types of returns. 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 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.

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