Tuesday, February 10, 2009

Registry of Corporate Affairs Publishes User Guide on CapCos Re-registration

The Registry of Corporate Affairs of the BVI Financial Services Commission has published user guide providing information on re-registration of Companies Act Companies (CapCos) under the BVI Business Companies Act. The User Guide #6 is one of a series of user guides informing about different aspects of the BVI Business Companies Act.

Under the BVI Business Companies Act, which replaced in 2004 the International Business Companies Act and the Companies Act, all IBCs have already been re-registered, and all the CapCos which do not re-register voluntarily go through the automatic procedure. From the re-registration moment, both CapCos and IBCs are named BVI Business Companies.

The deadline of BVI Companies Act Company re-registration was postponed a year ago, from January 1, 2008 to January 1, 2009 for automatic re-registration, and from November 30, 2007 to November 30, 2008 for voluntary applications. The purpose of the User Guide #6 is to inform CapCos directors and shareholders about the difference between automatic and voluntary procedures, which is very significant in the way how the Act applies to CapCos re-registered. So, the Guide clarifies the re-registration process for CapCos and the consequences of voluntary and automatic re-registration. Also, the document contains summary of statutory provisions governing re-registration.

The Guide names the reasons for the requirement to appoint Registered Agent for re-registered BVI BC, taking into consideration that CapCos have never been required to have Registered agent, and states the obligations on CapCos with respect to the appointment of the Agent.

With the purpose to make companies’ directors and shareholders more informed on all the issues of re-registration, on February 9, 2009 the Commission published FAQ on re-registration of former local companies.

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