From 1st of January 2023, most BVI Business Companies must file an annual financial return (“annual return”) with their registered agent.
The return is short: income statement and balance sheet; no audit is required.
File within 9 months after your financial year end (FYE). First reportable year is FYEs on or after 31 December 2023.
Listed companies, FSC-regulated entities that already submit financial statements to the FSC, BVI tax filers that submit annual tax returns with financial statements to Inland Revenue, and companies in liquidation where the liquidation commenced before the return became due are exempt from filing the FAR/AFR.
Registered agent must notify the Registrar within 30 days of a missed deadline; penalties are USD 300 (first month or part), then USD 200 per month (or part) up to USD 5,000; strike-off is possible at the cap.
What Is the BVI FAR/AFR?
From 1st of January 2023, most BVI Business Companies — including those commonly used as offshore companies — must submit an annual financial return to their registered agent.
The Act uses “annual return”; industry materials also say “FAR” or “AFR” (they mean the same filing).
The return is short and simple:
- Income statement
- Balance sheet
- No audit or notes are required by law.
Your registered agent usually provides a template aligned with the BVI Business Companies (Financial Return) Order 2023.
The FAR/AFR is not filed with the public registry. Your registered agent retains it and must produce it to the BVI Financial Services Commission (FSC) or other competent authority if requested.
Which Companies Are Exempt From Filing?
You do not need to file a FAR/AFR if your company is one of the following:
- A listed company on a recognised stock exchange.
- An FSC-regulated entity that already files financial statements with the FSC.
- A BVI tax filer that submits annual tax returns and financial statements to the BVI Inland Revenue.
- A company in liquidation, provided the liquidation started before the annual return became due.
There is no published exemption just because a company is an ultimate parent entity filing OECD Country-by-Country Reports. Unless it clearly falls within one of the statutory categories above, you should assume the FAR/AFR is still required.
All other companies must file the FAR/AFR every year.
Due Date for the Annual Financial Return
BVI companies must submit the FAR/AFR within 9 months after the financial year end (FYE). The first reportable year is any FYE on or after 31 December 2023.
Deadline Examples
- Calendar year FYE (1 Jan to 31 Dec 2024): file by 30 September 2025.
- May-April FYE (1 May 2023 to 30 April 2024): file by 31 January 2025.
- June-May FYE (1 June 2023 to 31 May 2024): file by 28 February 2025.
The FSC granted a one-time extension for initial filings, which ended on 30 June 2025. Normal 9-month deadlines now apply going forward.
If your registered agent does not receive the FAR/AFR by the due date, the agent must notify the Registrar within 30 days.
Forms and Format Required for BVI Financial Return Filing
Companies that are not exempt must submit a Financial Return in the format prescribed under the BVI Business Companies (Financial Return) Order 2023.
The filing must include basic financial information—income statement totals and balance sheet totals—in the currency of your choice. No audit is required.
The completed Financial Return must be submitted to your registered agent, and the information remains confidential and off the public register.
If your company forms part of a group, consolidated figures may be used provided the company’s own numbers are clearly identifiable.
Check with your registered agent for any formatting requirements.
Consequences of Late or Missed FAR/AFR Filing
If your FAR/AFR is not filed on time:
Registered Agent Notice
Your registered agent must notify the Registrar within 30 days after the due date.
Once this happens, your company will no longer be in good standing.
Monetary Penalties
- USD 300 for the first month (or part of a month) overdue.
- USD 200 for each additional month (or part) overdue.
- Cap: Total penalties are capped at USD 5,000. At that point, the Registrar may strike the company off the register.
Risk for Registered Agents
Registered agents can face their own regulatory penalties if they fail to notify the Registrar.
Restoring Good Standing
Once the registered agent receives the overdue FAR/AFR, they must file a confirmation that it has been submitted to restore your company’s status.
Expect additional administrative fees from the agent for late handling.
Final Thoughts
The new BVI FAR requirement highlights the government’s focus on transparency and accountability. BVI companies must understand the rules, meet deadlines, and keep records accurate to stay in good standing and avoid steep penalties.
Review your company’s financial year-end and prepare your FAR filing now to ensure full compliance with the new BVI reporting rules.
Reach out to Air Corporate for guidance or support with the process.
FAQs
For non-calendar FYEs, the first reportable period starts the day after the prior year ends. If your FYE was 30th of June 2023, the first FAR/AFR covers 1st of July 2023 to 30th of June 2024. The filing deadline is 31st of March 2025.
The statute requires only the income statement and balance sheet on the prescribed form. Your books should support the figures.
Economic Substance reporting depends on incorporation date or a chosen reporting period. The FAR/AFR is due within 9 months after FYE. If you want both to align, ask your registered agent to help set an FYE and reporting calendar.
Yes, if liquidation started before the annual return became due. If the due date passed before liquidation began, the FAR/AFR is still required.
The directors set the FYE by board resolution based on the needs of the business or group. Inform your registered agent and keep the date on record.
