Int’l community tightening screws on local businesses — Fraser
Third District Representative Julian Fraser has suggested that the international community is making things more difficult for local businesses in the BVI.
Speaking in the House of Assembly (HOA) during the debate on the BVI Business Companies Amendment Act recently, Fraser said there is no ‘one size fits all’ when it comes to legislating for BVI registered businesses.
He bemoaned the fact that everyone is lumped in the same category — including both local and foreign companies — whenever legislation needs to be amended for businesses registered in the territory.
“The international community has been tightening the screws on businesses, year after year, after year,” Fraser said.
He added: “When they tighten the screws on these international businesses, they’re tightening the screws on local businesses too, or companies too, because we are in the same boat.”
Fraser said if he looks at the bill, he would be sure to find things that will bring added costs to doing business in the BVI.
Fraser said that because of the bill, companies are required to have a registered agent which is usually at an additional cost of $400.
Furthermore, they are required to file annual financial returns which also has an additional cost attached.
“I am not sure how many local businesses have annual financial statements,“ Fraser said.
He said while some may see this as a good business practice, those persons are likely not the ones paying the extra cost.
The Third District Representative said he’s looking for a system that allows local companies to benefit from the same set of protections that one gets as a registered company, inclusive of personal liabilities.
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It would be helpful and more meaningful if you could provide more details regarding what you mean by internatiional businesses “tightening the screws”. Do you mean they are raising prices? Don’t local businesses do the same? Or, are you suggesting international business raise costs more than local businesses?
In your assertion that the international community is making things harder for local businesses, have you considered that BVI rules don’t exactly make it easy for them either. Have you sought to have meaningful dialogue with the stakeholders?
BTW, IMHO All businesses (local or otherwise) should, if they’re properly managed, generate an annual financial statement. That many local businesses do not speaks to lack of financial acumen, fomented by (to use your terminology) “years and years and years” of underinvestment in education.
why do I need to generate an annual financial statement when I know how much money my company has made with a POS system, its nobodies business but mine we do not pay corporate tax
Fraser is the man!!!
Who is in need of a good Barber ASAP
I think what he’s alluding to is that he is of the opinion that although offshore registered companies world wide including those in the BVI are now under pressure to be less opaque about their financial business dealings tax profit beneficiaries etc once again Belongers for what ever reason holding those same entities should be exempt, big surprise there then.
So what’s good for the goose Fraser is no good for the gander? You make your money off these offshore companies so why should they be treated differently from local businesses. Once again the BVI is racist and apartheid!! There should be one set of standards for all. Not one for the “clear” businesses and one for the “negro” businesses. By the way old man why don’t you sit down and just wait for your investigation and trial.
Just Politician Speak again. All Businesses registered in the BVI have to follow the same rules. You can’t have your cake and eat it too. The only reason we do not pay any income taxes/Corporate Taxes is because of the exemption for ALL Businesses registered in the BVI, to make registering a business in the BVI attractive.
The only reason you don’t have to pay corporate tax/Income tax is that all businesses registered in the BVI do not have to pay Corporate Tax to make registering a business in the BVI attractive for International clients. You don’t have to pay taxes because of the kindness of our politicians hearts.
A financial statement is not anything that needs to be made public unless you’re a publically traded company, or are a govt financed busines. It is also not just about taxes. It’s a tool that can be used in financial planning, could be used in business performance analysis, and is often necessary if a business has to borrow money. If you ever wanted to sell your business, producing annual financial statements will help to document that your business is sound and viable, and will help you secure a better price. BTW The concept of financial statements dates back to about the 14th/15th century.
Wow to the lack of insightful comments. Every single business on earth wants their government claiming their intellectual data and profits as their own as little as possible unless they are gaining profits or security from that partnership.
One size does not fit all. For some;
The purpose of a business is to make a living,
For others its to make a profit.
should the road side seller or rural farmer be burdened with more taxes and paper work? The system already works so what does tightening the screws mean?
In fact we would benefit from designing public market areas to encourage proliferation of local small businesses.
Other commentors are happy with tightening the screws while not knowing what it means. Monthly paperwork and fines for late submissions is already stupid. What more can they demand?
These requirements are for companies. However, how much you make at the till (POS/earnings/turnover) is not the same thing as your profit. You need to deduct all expenses to know whether your business is truly viable. If you want a bank loan, or a business partner, or to sell your business in the future, financial accounts will also be required.