Developed by Vistra’s in-house legal team, the BVI Economic Substance Classification Questionnaire is an efficient and effective service for any BVI entity to gain clarity on their status, supported by detailed analysis and tailored solutions.

Simon Filmer, Global Lead, Company Formation, Vistra, says: “It is now mandatory for all BVI entities to comply with substance requirements and demonstrate good corporate governance. The first step to achieving these goals is to determine if one's entity is in-scope or out of scope, and Vistra is ready to help make this classification process as simple, direct and effective as possible for our clients.”

Designed with full consideration of the client’s compliance-related needs in mind, the Questionnaire is user-friendly, comprising a short list of questions for clients to fill in. Based on the questionnaire submitted, Vistra's subject matter experts will conduct a detailed analysis and produce a comprehensive report outlining reporting obligations and concrete suggestions on next steps to ensure substance compliance. The entire process is quick and streamlined, offering clients the peace of mind required to ensure business as usual.

Late last year, the BVI introduced the Economic Substance (Companies and Limited Partnership) Act 2018 in response to the European Union’s Economic Substance requirements, which address alleged concerns of entities generating too much pr
ofit and too little substance in low or zero-rate tax jurisdictions. As a result, all BVI entities need to understand their obligations, be compliant and where applicable, demonstrate and report economic substance.

Apart from classification, Vistra also provides a comprehensive range of substance services for BVI entities, including legal opinions, full portfolio review and advisory services, lodgement with regulators, and in-jurisdiction substance services, where required.

Vistra will continue to launch substance classification solutions for a number of other jurisdictions, including the Cayman Islands.