The Act requires certain BVI entities carrying on specified activities to have ‘adequate substance’ in the BVI. The Act applies to “legal entities” carrying on “relevant activities”, other than non-resident companies, non-resident limited partnerships and limited partnerships which have elected not to have legal personality. For additional particulars of the Act, please refer to our eAlert of 2 January 2019.

Since the Act was published, BVI’s legal community has been awaiting the issuance of Government guidance to assist in determining if a particular entity is carrying on a relevant activity and, if so, whether it meets the applicable economic substance requirements (for instance, the definition of ‘adequate’ in the context of each “relevant activity” and in various circumstances).

We are pleased to advise that BVI Finance announced on 29 March 2019 that, with the assistance of external draftsmen, progress is being made with the drafting of the BVI Government’s guidance, termed the Economic Substance Code (the Code). BVI Finance anticipates that the draft Code will be published in late April 2019. This is to be followed immediately by an education campaign in the BVI, followed by a similar campaign in Hong Kong for the Asian market. Publication of the Code in finalised form is expected shortly after the conclusion of these campaigns.

Once the draft Code has been published, we will be in touch with more information about how we expect our client base to be impacted by the legislation, as clarified by the guidance. In the meantime, if you have any questions, please reach out to your usual Appleby contact or a member of the team above.

Key Contacts

Jeffrey Kirk

Managing Partner: BVI

T +1 284 393 5318
E Email Jeffrey

David Clark

Partner: Bermuda, BVI

T +1 441 298 3583
E Email David

Andrew Jowett

Group Partner: BVI, Jersey

T +1 284 393 5316
E Email Andrew

Twitter LinkedIn Email Save as PDF
More Publications
6 Sep 2021 |

Lexology chapter: Private Equity (Transactions)

The Lexology Private Equity (Transactions): Global overview is an easy-to-use reference guide that p...

11 Jun 2021 |

Trust Disputes and the BVI Trustee (Amendment) Act, 2021

In the Trustee (Amendment) Act 2021 (the “Amendment Act”) the BVI legislature has made a number ...

Contributors: Crystal Au-Yeung
25 Mar 2021 |

Full Steam Ahead at the Jersey Ships Registry

Against a backdrop of uncertainty surrounding Brexit and the difficulties created by the global pand...

12 Mar 2021 |

Material adverse change clauses in light of the Covid-19 pandemic

Experts from each of our key global offices provide jurisdiction specific advice and answer question...

8 Mar 2021 |

Appleby Celebrates International Women’s Day

International Women’s Day is celebrated annually in support of gender equality and equal participa...

14 Dec 2020 |

Technology & Innovation Update Q4 2020

Technology & Innovation Update Q4 2020

Contributors: Peter Colegate
14 Dec 2020 |

Economic Substance update Q4 2020

Economic Substance update Q4 2020

27 Nov 2020 |

NAV Facilities: A Promising Vaccine for Funds in the Era of Covid-19?

The spotlight has been on NAV facilities and other bespoke financings as an area poised for growth, ...