Registration of an additional foreign character name for a BVI company

In July this year a Bill to amend the BVI Business Companies 2004 (“the BC Act”) and the BVI Business Companies Regulations 2012 (“Regulations”) have been introduced. The resulting BVI Business Companies (Amendment) Act 2012 (“Amendment Act”), along with the Regulations, is expected to come into force towards the end of this year. One of the key changes is amendment to the article, regulating firm name of companies in BVI. Thus, now it is possible that a company may have an additional “foreign character name”. A company that wishes to register a foreign character name must ensure that its full name and foreign character name is clearly stated in every written communication sent by or on behalf of the company and every document issued or signed by or on behalf of the company that evidences or creates a legal obligation of the company. Any company may apply to register an additional “foreign character name”. New rules will require a notarized statement by a “person with the necessary competence” confirming the translation and meaning of the foreign character name when applying for registration. So, an application to register a foreign character name shall be in the approved form and must be accompanied by a certificate made by a person with the “necessary competence”. The certificate must confirm whether or not the foreign character name is a translation of, or has a meaning equivalent to, the name or proposed name of the company and specify the meaning of the foreign character name. It appears to be the case that the foreign character name is not required to have the same meaning in the foreign language as the company name. Also, the main condition is the presence in the Memorandum and Articles of Association links to foreign name. Note, that The Registrar has a wide discretion to reject a foreign character name. A company shall not be registered with a foreign character name that is identical to the foreign character name of another company or so similar to the foreign character name of another company that it is likely to confuse or mislead (although similar foreign character names are expressly permitted if both companies are part of the same group). However, The Registrar will now have more flexibility going forward to approve names which would otherwise be too similar when the companies are affiliated companies. Also, there are other grounds for refusal of registration of a company with a foreign name, so for example if the name does not comply with the law or this is an offensive / objectionable or contrary to public order.

Expert’s opinion

British Virgin Islands continues to increase the attractiveness for the introduction of business in their country. And as we see, they are in the right direction - to amend the legislative framework governing the activities of companies!
Agree that the new rules will facilitate the registration of companies, namely, expand the range of possible company names. Especially, it is very convenient for those who already carries on business in another country, and now can register a new company under the same firm name in the British Virgin Islands!
This feature is common in a number of offshore financial centers. For example, in Hong Kong, many companies have a dual title: in English and in Chinese.
So, we are sure that the new rule would create a greater degree of flexibility with respect to trade names, and it will be welcomed by partners, particularly in Asia, the Middle East and Eastern Europe.
Develop your business, and we will always support to you!

On the basis: http://www.bvifsc.vg/

Natalie Dambieva ( the paralegal of Moscow office of Honest & Bright )