This BVI BC Act supersedes the existing legislation on International Business Companies (IBC’s) known as “The International Business Companies Act Cap 291”, as well as the BVI Domestic Companies Act known as “CAP 285 Companies Act.”

As from January 2006, companies may be incorporated only under the BVI BC Act. The IBC Act will continue to be in effect until 1 st January 2007, when it is scheduled to be repealed. All IBC’s not reregistered as BVI BC’s by the 31 st of December 2006 shall be deemed to be re-registered under the BVI BC
Act on 1 st January 2007.


Types of Companies
A BVI BC may be incorporated as
1. a company limited by shares;
2. a company limited by guarantee and not authorised to issue shares;
3. a company limited by guarantee and authorised to issue shares;
4. an unlimited company not authorised to issue shares;
5. an unlimited company authorised to issue shares;
6. a segregated portfolio company.
7. a restricted purpose company.

Please note that IBC’s were incorporated as companies limited by shares.
Incorporation Procedure

The Memorandum of Association and the Articles of Association (M&A) of a BVI BC can only be filed by its registered agent, who shall act as the incorporator of the company.

Amendments to the Memorandum and Articles of Association
The Memorandum and the Articles of Association (M&A) of a BVI BC may be amended by resolutions passed by the members or by the directors when authorised to do so by the M&A. A notice of amendment or a restated M&A is then to be filed before the Registry


Objects
With the exception of Restricted Purposes Companies, a BVI BC is not required to specify its objects or purposes in the Memorandum of Association, although it is not required to do so. A Restricted Purpose Company must state the purposes for which it is incorporated.

Limitations
A BVI BC may carry out business within or outside the BVI.

Company names
Endings:
· The name of a company limited by shares or by guarantee shall have a name ending consisting of
either the words “Corporation” or “Incorporated”, the words “Société Anonyme” or “Sociedad Anónima”;
or the abbreviations “Ltd”, “Corp”, “Inc” or “S.A.”
· The name of an unlimited company shall end with the word “Unlimited” or the abbreviation “Unltd”.
· The name of a segregated portfolio company shall end with the phrase “Segregated Portfolio Company Limited” or the phrase “Segregated Portfolio Company Ltd”; or the phrase “SPC Limited” or the phrase “SPC Ltd”
· The name of a segregated portfolio company that is also a restricted purpose company shall also include the acronym “(SPV)”
· The name of a restricted purpose company shall include the acronym (SPV)
As opposed to an IBC, a BVI BC may use, and be legally designated by, either the full word or group of words or the acronym thereof as part of its name.
The name of a BVI BC may include the expression “BVI Company Number” followed by its company number in Arabic figures and the ending required as indicated above.
The name of BVI BC may have an additional name in foreign characters upon approval by the Registrar of Corporate Affairs.


Directors and Liability
The Registered Agent of a BVI BC shall appoint a director within 6 months to be counted as from the date of incorporation of the company.
A person appointed as a director of a BVI BC must consent to said appointment and submit the consent in written form.
A BVI BC shall have one or more directors. The number of directors may be fixed by its Articles of Association of a BVI BC.
A Reser ve Dir ector may be appointed for a BVI BC that has a sole member who is also the director, provided that such an appointment is authorised by its M&A. The reserve director will act in place of the sole director in the event of the death of the latter. A director of a BVI BC is not liable for the company’s debts or obligations. Nevertheless, a director may be liable for his own conduct or acts.
If at any time there is no member of a BVI BC, any person doing business in the name of or on behalf of such company shall be personally liable for the payment of all the debts incurred by such company during the time when said person is so acting.

Power of Attorney
The directors of a BVI BC may appoint any person to act as an agent of such company. An agent shall have no power or authority:
1. to amend the memorandum or articles nor to designate committees of directors,
2. nor to delegate powers to a committee of directors, nor to appoint directors,
3. to appoint an agent, nor to approve a plan of merger, consolidation or arrangement,
4. to make a declaration of solvency,
5. nor to approve a liquidation plan.

Shares and authorised capital
In a BVI BC there is no such thing as “authorized capital” and “share capital.”
A BVI BC will be required to contain a statement of the maximum number of shares that it is authorized to issue, but is not required to state the par value of its shares nor the currency of denomination.

A BVI BC authorised to issue bearer shares shall appoint a Custodian of its bearer shares. In the event that a voluntary liquidator or a liquidator is appointed for a BVI BC limited by guarantee under the Insolvency Act, the guarantee member shall contribute assets to the BVI BC up to the amount he
agreed to guarantee.

Books and Records
A Registered Agent of a BVI BC is required to keep the following documents at is office:
· The Memorandum and Articles of Association of the company,
· Copies of all notices and document filed by the company,
· Register of Director or a copy of the register of directors,
· Register of Members or a copy the register of members.
If a company keeps a copy of the register of members or of the register of directors at the office of its registered agent, it shall, within 15 days of any change in the register, notify the change to the registered agent in writing, and provide to such registered agent a written statement of the precise address of the place where the records are being kept. If the location is changed, the directors shall, within 14 days, notify the change and provide a written statement of the precise address where the records are found.
The directors of a BVI BC may resolve to keep the minutes of meetings and resolutions of members and the minutes of meetings and resolution of directors in any place within or outside the British Virgin Islands other than at the office of its Registered Agent. In this case and every time the address where the records are being kept is changed, they must provide a written statement of the precise address of the location of the records to the registered agent within 14 days.
A BVI BC shall keep sufficient records to show and explain its transactions, and to allow the financial position of the BVI BC legislation to be determined with reasonable accuracy.
A company that contravenes the obligation of keeping records as required by the BVI BC ACT commits an offence and is liable to a fine of US$10,000.

Continuation
A company incorporated in a foreign jurisdiction may continue under the jurisdiction of the BVI, as a BVI BC provided that evidence satisfactory to the Registrar is not disqualified from continuing in the BVI.
Once a company incorporated in a foreign jurisdiction and continued under the jurisdiction of the British Virgin Islands as a BVI BC will no longer be treated as a company incorporated under the laws of a jurisdiction other than that of the British Virgin Islands.