BVI Mutual Funds Service

The law of partnership

The BVI is governed by the Partnership Act 1996. This legislation accomplishes two goals, firstly, the codification of the law of partnership generally and, secondly, the Act provides for the establishment of limited partnerships.

The Act combines elements from the UK Limited Partnership Act 1907 and the Delaware Revised Uniform Limited Partnership Act 1983. International clients who choose the BVI for this vehicle will enjoy all the usual tax and limitation of liability benefits, with the added advantage of being offshore, as well as the option of using a BVI International Business Company as the general, or limited, partner.

Tax treatment

One of the main advantages of operating through a BVI limited partnership, rather than a company, relates to the peculiar tax treatment of partners. In a company, for instance, members are effectively taxed twice, once at the corporate level and again at the personal level. In a partnership, the flow-through provisions remove the first level of taxation, so that the general and limited partners are taxed only once. Because the BVI offers a tax exemption for non-BVI limited partnerships, the partners are not taxed at all, while the limited partners enjoy the further advantage of their limited liability.

Non-BVI or International Limited Partnerships are also attractive vehicles for use as mutual funds or other arrangements traditionally housed in a corporate structure. There are no company law rules governing matters such as maintenance and return of capital, meetings, dividends, and duties of directors, and these rules can be established in the Articles of the Limited Partnership.

Coverdale provides incorporation and maintenance services in relation to general and limited partnerships, as well as the International Business Companies (and its successor, the BVI Business Company), which can be used as the corporate entity to act as the general partner of the member partners. We are also able to provide all registered agent and registered office services for all forms of partnerships, as well as full administration services, including banking and accounting services.

To join or find out more about BVI limited partnerships email us at This email address is being protected from spambots. You need JavaScript enabled to view it. or call + 284 494 6727. Alternatively, visit our Contact Us page for more options.

Mutual Funds Regulation

In the British Virgin Islands, open ended mutual funds are regulated by the Mutual Securities and Investment Business Act  2010 as amended (“SIBA”). SIBA classes open ended mutual funds in three classes: private funds, professional funds and public funds. In the British Virgin Islands, the Financial Services Commission through its investment business arm regulates BVI mutual funds.

 About Public Fund

A public fund is one that offers its shares to the public. The Act requires public mutual fund investment vehicles to be licensed. Generally, public mutual funds are subject to the highest level of regulation under the Act. A private fund is one with less than 50 investors that offers its shares for sale on a private basis. A professional fund is one that may only offer and sell its shares to professional investors. Under the Act private and professional funds are subject to lesser requirements of recognition. Also regulated within the Act are fund managers and administrators.

Coverdale and O'Neal Webster

Together with our colleagues in O’Neal Webster, we can assist you with the formation of your mutual fund vehicle, fund manager and fund administrator and the relevant license or recognition applications. Our services include:

  • Formation of a company (or other legal entity) to act as the vehicle for the fund. The BVI Business Companies Act allows the Segregated Portfolio Company, a vehicle which is used extensively with Mutual Funds.
  • Provision of Registered Office and Registered Agent facilities.
  • Submission of applications for licenses and liaison with the Director of Investment Business at the Financial Services Commission.
  • Legal assistance with the creation of the Offering Document for the new mutual fund.
  • Assisting with compliance and license renewals.
  • Fund Administration services (including investor relations and fund valuations), provided by a highly respected fund administrator based in the UK.

Through Coverdale Trustees Limited, we offer a complete range of services to take advantage of the Territory’s innovative and flexible trust laws. These include:

  • Creation and administration of trusts.
  • Provision of all aspects of trustee and administrative services
  • Acting as the executors of estates
  • Incorporation of Private Trust Companies

BVI Trusts can be used for a variety of reasons including the following:

  • To legitimately mitigate or avoid taxes during an individual’s lifetime and after.
  • For estate planning by entrusting assets to professionals who will respect the terms of the trust deed.
  • To avoid the inconvenience, expense and disruption many families experience after the death of the settlor.
  • To ensure that a family business or wealth can be maintained in the absence or during the minority of appointed beneficiaries.
  • To protect assets during an individual’s lifetime.
  • To avoid forced heirship provisions under an individual’s home law that may impose unwelcome demands upon the terms of succession.
  • To provide for charitable causes or non-charitable purposes.
  • To preserve confidentiality.

We work to ensure that, at all times, we remain at the cutting edge of developments in Trust law to enable us serve our clients effectively. Through our association with O’Neal Webster, we have ready access to appropriately experienced and qualified Attorneys who offer a full service for the formation and administration of trusts and trustee controlled companies, from discretionary to non-discretionary trusts, trusts for charitable causes to purpose trusts (including the new Vista Trust) and beyond. We are able to identify the most suitable structure and accommodate its settlement, depending on the settler’s circumstances, including more involved estate-planning arrangements, where appropriate. 

Get more information on Trustee Services

VISTA Trust Private Trust Companies

 

 

 

Coverdale Trust Services Limited provides incorporation and administration services for BVI Business Companies BBCs) incorporated under the BVI Business Companies Act as amended 2004 ("BBC Act").

BVI Business Companies (hereinafter referred to as BBCs) are exempt from all forms of taxation in the BVI and also have a number of other advantages including:

  • Limited information only is held on public record. This does not include details of directors and shareholders. Such details are required to be kept in registers at the registered office of the company.
  • BBCs may issue registered shares or bearer shares (although these must be held by an Authorised or Recognized Custodian).
  • The BBC Act introduced additional types of company including those limited by guarantee, with the option to issue or not issue shares. Thus there is now no minimum issued capital. 
  • A BVI Business Company may have only one director and one shareholder and the same individual or corporate body may be both. They are no residency requirements for directors or shareholders
  • Annual government fees are US$450 per annum (or companies that can issue a maximum of 50,000 shares For companies that can issue more than 50,000 shares, the annual Government fee is $1,200.  The sole statutory residence requirement is the appointment of a local trust company as a Registered Office and Registered Agent.

Our team provides the following services:

Incorporation Services

  • Approval of required names available via direct access to the Registry of Corporate Affairs.
  • Incorporation documents dispatched to the Registry of Corporate Affairs immediately upon receipt, subject to satisfactory completion of all due diligence requirements. Documents are dispatched by courier directly upon receipt from the Registry. A copy of the Certificate of Incorporation and the Memorandum of Association are then sent by email as a PDF document.
  • Provision of Shelf Companies for immediate purchase.

BVI Business Company Online Application Form

Download BVI Business Company Application Form

Administration Services

  • Provision of Registered Office and Registered Agent.
  • Maintaining confidential Registers of Charges, Directors and Shareholders.
  • Filing of all statutory documents and fees at the Registry of Corporate Affairs.
  • Provision of Corporate Directors through our licensed subsidiary
  • Provision of nominee shareholders through our licensed subsidiary, assisting with solvent voluntary liquidations. It is our recommendation that where a company has served its purpose and is no longer required, it be formally wound up, and not allowed to be struck off. Companies that have been struck off can be reactivated, without necessarily the knowledge of either the members or directors.

Where Coverdale is requested to act as Director of a company, we will require control of all liquid assets of the company, including any bank and investment accounts. We will only agree to issue a limited Power of Attorney. The due diligence requirements where we are to be directors will be more extensive.