Companies need to obtain a financial license in BVI in order to conduct certain financial activities. Several categories of licenses are in place and applicants need to observe the conditions for issuance as set forth by the Financial Services Commission.
Entrepreneurs interested in BVI company formation can reach out to our local team of incorporation experts for complete information about the licensing requirements.
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Licensed financial services in the British Virgin Islands
Companies that engage in the provision of certain financial services, such as trust and/or company management business, banking activities and others need to be properly licensed by the British Virgin Islands Financial Services Commission.
The following are subject to licensing and control include the following:
- Banks and trust companies;
- Fiduciary services;
- Financing and money services;
- Insurance;
- Investment businesses.
The financial license in BVI is issued according to a class and subclass in many cases, when the said activity has different categories. Examples include:
- The General Banking License, the Restricted Class I or Restricted Class II Banking License;
- The classes of trust licenses: Class I, Class II, Class III; Classes II and III also being restricted ones in some cases.
The BVI company formation process for financial companies will thus include two essential phases: the registration process to create a new BVI-registered legal entity, and the licensing process.
Preparing to obtain a financial license in BVI is important and the company that will be licensed by the Financial Services Commission will first schedule a preliminary discussion during which essential suitability issues will be dealt with.
Conditions for obtaining a financial license in BVI
The Financial Services Commission looks at certain key aspects of the business when determining if a company should be licensed. Some of these include:
- Meeting the fit and proper criteria which are based on reputation and integrity, competence, capability and financial soundness;
- The issuance of the license should be in the best interest of the public;
- The company meets the regulatory codes and the Banks and Trust Companies Act.
As previously mentioned, a preliminary discussion is scheduled before submitting an application. Any concerns will be highlighted during this initial phase. Once the company is sure that it meets the requirements, the registered agent will submit the application.
The acknowledgment period for new applications submitted to the Commission is one week. Our team can give you more details about the licensing timeline.
Licensing documents
Some of the supporting documents applicable in the case of companies that apply for a license or certificate as a financial services business provider include:
- A detailed business plan that also includes the ownership structure and the organizational chart;
- Information about the key persons including any resident directors;
- Details on how the company will provide added-value to the economy;
- Information on the physical office in the BVI;
- Other details, as may be required on a case-by-case basis;
- Proof of paying the non-refundable license application fee (please see below for some details).
In addition to meeting the fit and proper requirements and the other conditions for obtaining a BVI financial license, investors should also be mindful of the following fees:
- Class I trust license application fee of US$ 1,000;
- Restricted Class II Trust License application fee of US$ 500;
- The annual licence renewal fees of US$ 12,000 for the Class III Trust License or US$ 14,000 for the Class II License.
Company creation in the British Virgin Islands is at the core of our activities. However, our lawyers in BVI can give you details about other important matters, such as those related to residency rights for foreign investors and more.
Contact us for more information about the financial license in BVI and details on BVI company incorporation.