Other Products

Portcullis TrustNet (BVI) Ltd is also able to assist clients with:

Offshore Banking
Offshore banking licences are available in the British Virgin Islands. They are governed by the Banks and Trust Companies Act, 1990. To be successful in an application the applicant will need to show evidence of banking experience and will also have satisfied extensive due diligence checks.

There are three categories of licence:

A general banking licence which allows the holder to carry on banking business within and outside the British Virgin Islands without any restrictions. The applicant company needs a paid up capital of not less than $2,000,000 and must invest $500,000 in a manner prescribed by the Governor.
A restricted class I licence which prevents the holder from taking deposits from or making investments with British Virgin Island residents other than another licensee or a company incorporated under the IBC Act. There is an exception where the transaction is with another licensee or the investment is the purchase of bonds or other securities issued by the Government. The applicant company is required to have a paid up capital of $1,000,000 and must invest $500,000 in a manner prescribed by the Governor.
A restricted class II licence which has the restrictions imposed on the class I licence and in addition prohibits the soliciting of funds from any undertaking which has not been specified in the application as an undertaking that the licencee will be receiving funds from. The applicant company is required to have a paid up capital of $1,000,000 and must invest $500,000 in a manner prescribed by the Governor. This additional restriction makes the licence more readily obtainable.

The above is only intended as a general outline of some of the significant features of BVI banking law. Should you require any further information including assistance in making an application for a licence, please contact Portcullis TrustNet (BVI) Limited.

International Partnerships
The Partnership Act ("the Act") was enacted on 6 June 1996. It includes many of the recent developments that have occurred in international partnership law. The Act governs both general partnerships and limited partnerships. International limited partnerships can be formed and must be registered under the Act. There is no restriction on the number of partners and the general partner can be a body corporate. The identities of the limited partners are not a matter of public record. Each international limited partnership must have a Registered Agent in the British Virgin Islands and are provided with the same tax exempt status as IBC's. The Act provides that an international limited partnership can reserve a name for up to 90 days. A specific feature of the Act which advisors will find useful is its detailed provisions enabling limited partners to retain a large degree of control over partnership affairs and yet preserving the partner's status as a limited partner.

Mutual Funds
Prior to the Mutual Funds Act, 1996 ("MF Act") legislation did not exist in the British Virgin Islands to deal with mutual funds. However, the MF Act and recent amendments provide those engaged in the fund industry with a straightforward regulatory regime to oversee funds and their managers. This new legislation combined with the British Virgin Islands' history as a preeminent offshore jurisdiction offers a wealth of opportunity.

The MF Act is designed, among other things, to supervise and regulate mutual funds operating in or from the British Virgin Islands. It is worthwhile to note that the Registrar of Mutual Funds has commented that any fund constituted as a British Virgin Islands' company whether or not it carries on business in the British Virgin Islands is required to be registered or recognised, as the case may be, under the MF Act.

The MF Act is short and consists of five parts and a schedule dealing with public funds, private and professional funds and managers and administrators.

Private Funds
Generally, private funds are those mutual funds that either:
- restrict the total number of investors to no more than 50; or
- the constitutional documents of the fund specify that the making of an invitation to subscribe in the fund will be made on a private basis only.
Professional Funds
Professional funds are those funds that require a majority of the subscribers to make an initial investment of not less than USD100,000 and;
- only permit subscriptions to be made by persons whose ordinary business is the acquisition or disposal of the same or substantially the same kind of property as the property of the fund; or
- only permit subscriptions to be made by persons who have signed a declaration stating that they (together with their spouse) have a net worth of USD 1,000,000 and they consent to being treated as a professional investor.
Public Funds
Public funds are those mutual funds that are neither private funds nor professional funds. As public funds will in general offer their shares or units to members of the public, the MF Act seeks to achieve a balance between free market forces and the need for regulation to protect investors and encourage investor confidence.

Accordingly the MF Act requires that registered public funds maintain adequate records, prepare annual audited financial statements, file and publish a prospectus, and file an annual certificate of compliance where they operate under the laws of another country.

Mutual Fund Managers and Administrators
The MF Act provides a flexible definition of mutual funds managers and administrators. Any person wishing to carry on business in or from within the British Virgin Islands as a manager or administrator of a mutual fund is required to apply for a license. The system of licensing is simple and flexible, with the essential requirement being an application to the Registrar of Mutual Funds accompanied by a statement of the financial and human resources available to the applicant

Fund managers and administrators who are qualified and authorized under the law of a recognized jurisdiction, may be permitted to operate in or from the BVI without the need to be licensed. This alternative is only available where such fund managers and administrators are not ordinarily resident or domiciled in the British Virgin Islands and receive the written permission of the Registrar of Mutual Funds, which may be subject to conditions.