1. What is the BVI IBC Act? #
A BVI IBC company is a company incorporated in the British Virgin Islands. A BVI incorporated company is a type of International Business Company that is registered under the International Business Companies Act, 1984 of the British Virgin Islands(BVI). The BVI IBC company is regarded as the optimal way to conduct business internationally due to its low cost and flexibility.
2. What are the consequences of a BVI IBC company being struck off from the register? #
When a BVI IBC company is struck off from the register, the consequences can be serious. The company, as an entity, is destroyed. The company will no longer be in existence. The directors and shareholders will also no longer be directors or shareholders. In addition, the company’s property will be transferred to the registrar, who will hold and manage the property for the benefit of the creditors. The registrar will distribute the property amongst the creditors and shareholders in the proportions set out in the company’s articles of association. The company’s property will then be distributed according to the articles of association.
3. What happens when a BVI company is struck off? #
When a BVI company is struck off, it is removed from the register of companies maintained by the BVI FSC’s Registry. This means that your BVI company is no longer legally incorporated.
Once a company is struck off, a notice is published in the BVI Gazette and the company is removed from the BVI Registry. This notice will contain the date on which the company is struck off.
After your company is struck off, your directorships with other BVI companies may be affected. If you are a shareholder of other BVI companies, your shareholdings may also be affected.
4. What if the BVI company wants to continue trading? #
If the BVI company is struck off the register will it still be able to trade? The BVI company is struck off the register and is not in good standing. The company will be unable to continue the business.
However, if the company is in good standing it can continue to trade. It is a rare occurrence, but it is possible. The directors must apply to the Registrar of Companies to have the company re-registered. A fee of approximately $500 must be paid to have the company re-registered. Once the company is re-registered, a director must make an application for a Certificate of Good Standing. Once the Certificate of Good Standing is issued by the Registrar of Companies, it must be presented to the bank to re-open the bank account.
If a BVI company is struck off, this will result in many consequences. Please make sure you are aware of these consequences before it is too late.