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Economic substance refers to new legislation introduced in the BVI which derives from an EU-based unfair tax practices initiative that requires certain entities that are incorporated or registered in the BVI, and which conduct one or more of a set list of nine relevant activities, to comply with local requirements and demonstrate adequate ‘economic substance’. The BVI legislation follows closely the approach taken by the Crown Dependencies of the UK (Jersey, Guernsey and the Isle of Man) and the other UK Overseas Territories including the Cayman Islands and Bermuda.
The legislation requires companies incorporated or registered in the BVI (and limited partnerships) which conduct one or more of a setlist of relevant activities to comply with local substance requirements known as ‘economic substance’.
Individuals
Our smart online solution helps simplify the classification process to help you determine whether or not your entity is required to comply with economic substance requirements.
Why use this product?
Our Economic Substance Classification Solution provides a cost-effective way for BVI companies and limited partnerships to demonstrate formally that they have considered their position under legislation on economic substance. Our automated classification solution provides tailored real-time legal advice and is accessible through our online platform, at your convenience.
Need to establish and demonstrate substance?
For clients that do need to establish and demonstrate substance in the British Virgin Islands or in the Cayman Islands, we are perfectly positioned to provide bespoke and integrated legal and administrative substance solutions. We provide a full suite of governance, resident director, and accounting services. We can also work with you to obtain the relevant licences, work permits, premises, specialist equipment, or dedicated human resources.
Related content
Tune in to our Substance on Substance podcast series delivering hot takes on critical topics around economic substance legislation. Each bulletin gives the very latest updates on this ever-changing environment, with an aim to provide consistency and certainty for our audience.
Visit our Regulatory blog for up-to-date news and information on key regulatory developments.
Registered agents/Intermediaries
We have developed an Economic Substance Reporting Solution to assist registered agents and intermediaries with their BVI Economic Substance reporting obligations.
Why use this product?
Our Economic Substance reporting solution is designed to help registered agents and intermediaries:
- Assess the position of all of the entities in their portfolio
- Determine which entities are in-scope
- Identify the additional information that is required for each entity
- Gather any missing data
- Registered agents can conduct bulk data upload into BOSS(ES)
The Economic Substance reporting solution allows for the information to be collected in one seamless step. All the data is stored in a secure, confidential and encrypted format and can easily be downloaded to allow the registered agent to update their records and to allow for a simple bulk upload into the BOSS(ES) portal.
Related content
Tune in to our Substance on Substance podcast series delivering hot takes on critical topics around economic substance legislation. Each bulletin gives the very latest updates on this ever-changing environment, with an aim to provide consistency and certainty for our audience.
Visit our Regulatory blog for up-to-date news and information on key regulatory developments.
How it works
Learn more about how the Economic Substance Classification Solution assists registered agents and intermediaries with their BVI Economic Substance reporting obligations.
Pricing
Our Economic Substance Classification Solution is designed to simplify the classification process and help you determine whether or not your entity is required to comply with economic substance requirements. You can choose to purchase individual sessions using the solution on an ad hoc basis or you can purchase multiple sessions at a discounted price.
Individual session
You can purchase up to 40 sessions using our credit card payment portal.
Registered agent/intermediary
Registered agents or intermediaries can reach out to our team for more information about discount prices for bulk purchases.
User reviews
These are a few examples of what users of the Economic Substance Classification Solution have said about our online solution.
The Harneys classification system is best in class and is a thoughtful response to a regulatory change that might otherwise cause a large administrative compliance burden on clients.
[I] must congratulate you on creating such a comprehensive and user-friendly online solution. I think Harneys should be given an award for this.
The solution is easy and intuitive to use and neatly distils a complex regulatory regime into targeted and relevant guidance, with useful worked examples.
Case study
Economic Substance Classification Solution
Faced with the somewhat daunting task of classifying and reporting on the economic substance status of all the BVI entities in their portfolio, our client asked us to use our innovative online Economic Substance Classification Solution and Data Reporting Tool. Our Economic Substance team were able to provide the client with their own secure and encrypted client portal, from which they could send their clients a link to the classification solution, monitor progress, collect the results of classification and report results to BOSS(ES) – all in an automated and seamless way.
Related content
Learn more about how we can help with local substance requirements for entities incorporated in the British Virgin Islands and the Cayman Islands.
