WOJ assists funds and companies situated or domiciled in the British Virgin Islands. The legislative structure and the overall business environment in the British Virgin Islands makes the islands one of the most attractive localities for creating a fund. The regulatory structure of the BVI grants solid rules by a well-established legal system, which makes this ideal location for private, professional and public funds to operate.
BVI rules (the Act) require that investment funds be registered with the BVI Financial Services Commission. Additionally, such funds must file annual returns. There are three categories of regulated funds that are most commonly used, including:
- Private fund – This is understood to mean that that funds will not exceed 50 investors or that the invitation to invest-subscribe or purchase shares is made on a private basis. Private funds do not need to have their accounts audited and they do not need to file with the Commission.
- Professional fund – This is understood to be funds that are available to professional investors. These professional investors cannot invest less than $100,000 into the fund. Professional funds to not need to be audited. Additionally these funds to not need to file with the Commission. Important: a Professional Fund must be registered within 14 days of issuing its prospectus/offering memorandum.
- Public fund – This is understood to be a fund that must file a duly approved copy of its prospectus/offering with the Commission prior to soliciting or offering the shares to the public. Public funds must have an independent custodian. Public fund must also create audited financial statements.
For all funds seeking to do business or operate in the British Virgin Islands, the BVI Financial Services Commission requires that all functionaries , including the administrator, must be incorporated in either the British Virgin Islands, or a “recognized jurisdiction”, which includes Gibraltar.