BVI: Strike-Off on 1 November. Why “Just Stop Paying” Is a Bad Way to Close a Company
🇻🇬 Companies incorporated in the British Virgin Islands between January and June must pay their annual fee by 31 May. If the fee and penalty remain unpaid, the company will be automatically struck off the register on 1 November. Less than two weeks remain until that date.
Many owners close an unneeded company exactly this way: they simply stop paying. And what does this lead to?
❗️What happens on strike-off
🔵 Since 2023, a BVI company is dissolved on the same day it is struck off the register
🔵Assets are lost: any remaining property passes to the BVI Government and can only be returned if the company is restored within five years
🔵Liabilities remain: strike-off does not release the company from debts that arose before dissolution, does not prevent creditors from bringing claims, and for five years does not relieve directors and shareholders of liability
🔵 The company can be brought back: within five years, restoration may be sought by the company itself, a creditor, a shareholder or a liquidator
✅ How to close a company properly
Voluntary liquidation with the appointment of a liquidator costs more, but it delivers the main thing: it closes the question of liabilities for good. Even a complex liquidation must be completed within two years.
📌 In any case, close the bank account and distribute the assets while the company is in good standing. And bear in mind: if you are the owner of a CFC, striking the company off the register does not release you from reporting obligations in your country of residence.
✉️ We will help you close or open a company in the BVI properly, or restore one that has already been struck off @PfserBot
🇻🇬 Companies incorporated in the British Virgin Islands between January and June must pay their annual fee by 31 May. If the fee and penalty remain unpaid, the company will be automatically struck off the register on 1 November. Less than two weeks remain until that date.
Many owners close an unneeded company exactly this way: they simply stop paying. And what does this lead to?
❗️What happens on strike-off
🔵 Since 2023, a BVI company is dissolved on the same day it is struck off the register
🔵Assets are lost: any remaining property passes to the BVI Government and can only be returned if the company is restored within five years
🔵Liabilities remain: strike-off does not release the company from debts that arose before dissolution, does not prevent creditors from bringing claims, and for five years does not relieve directors and shareholders of liability
🔵 The company can be brought back: within five years, restoration may be sought by the company itself, a creditor, a shareholder or a liquidator
✅ How to close a company properly
Voluntary liquidation with the appointment of a liquidator costs more, but it delivers the main thing: it closes the question of liabilities for good. Even a complex liquidation must be completed within two years.
📌 In any case, close the bank account and distribute the assets while the company is in good standing. And bear in mind: if you are the owner of a CFC, striking the company off the register does not release you from reporting obligations in your country of residence.
✉️ We will help you close or open a company in the BVI properly, or restore one that has already been struck off @PfserBot