Specialist in British Virgin Islands (BVI) Offshore Company Incorporations
Lifespan of a BVI company.
The lifespan of a BVI company from incorporation to dissolution. All the time between those two points can be viewed as the life of the company. Some BVI companies have a long life and some have very short lives. It all depends on the usefulness of the company during its life.
The date of incorporation of the company at the BVI Companies Registry is where it begins. All the ideas and plans for the company have now been set into motion and all stakeholders hope that the company will accomplish its goals. After incorporation, efforts are made to move the company towards its objectives and adjustments are made to address unforeseen issues that are encountered. Depending on the type of business the company is involved with, an evaluation is made about its sustainability going forward. Sometimes the original idea did not materialize and based on the level of success, a decision is made about the future of the company. If there is success the company normally lives on for a future evaluation. When business failure comes, or it is foreseen, the decision to end the company is made. This is the time clients ask about the cost to dissolve the company or what happens when they stop paying the BVI government annual renewal fees. The end is basically the same in both cases. Filing a dissolution with the Companies Registry and them issuing a Certificate of Dissolution, or after about seven years of not paying the annual renewal fees the BVI Companies Registry deems the company dissolved and removes the company name from the register. No Certificate of Dissolution is issued in this case.
Given the above, there is no specific or average lifespan for a BVI company in terms of time. From incorporation to dissolution can be as little as months and it can be many positive years. However, most clients will make a decision about the life of the company when they receive the invoice for the first annual renewal.