BVI Business Companies Amendment Act 2012: Reuse of company names

06.08.2012 In July 2012 crucial amendments were introduced into the Business Companies Act 2004. In particular, it’s important to draw attention to changes concerning the reuse of company names.
In accordance with section 9 of the Business Companies Amendment Act, the reuse of names previously used by companies is possible in 2 cases:
-    First, it is permitted to reuse the names of companies which are or have been registered under this Act or a former Act, that have changed their name, have been struck off the Register, but not dissolved, or dissolved.
-    Second, the reuse is provided for the names of companies, in respect of which, the Registrar has issued a certificate of discontinuance under section 184(4)(a).

It should be also noticed that previously only the first option was possible.

Expert’s opinion

It should be clearly understood that in contrast to the Russian legislation which doesn’t prohibit registration of the legal entity on the ground of coincidence of the claimed name with the name already registered, the legislation of BVI contains a general restriction on the reuse of company names. In connection with this the expansion of the exhaustive list of cases which provide the reuse of company names is definitely a positive amendment.

To add, this amendment eliminates the legislative gap by allowing the legal entities to reuse “inactive” company names without fear of claims from the entities registered before.

If You have any doubts whether the company You are using as the incorporator in Your business is in the active status or whether Your company has a valid name, contact Your consultants. Or commission the audit of documents in our company.

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

Julia Akhmetova ( Paralegal of Moscow office of Honest & Bright Ltd)