Economic Substance - Services & Solutions

Vistra's Economic Substance Classification Questionnaire

What is Vistra’s Economic Substance Classification Questionnaire? 

Vistra’s Economic Substance Classification Questionnaire aims to help clients determine the classification of their BVI and/or Cayman Islands company as it applies to the substance legislation. In order to know if your company is fully compliant with the substance requirements, it is crucial to determine whether or not it is within the scope of the legislation, which depends on a range of factors, such as your company’s tax residence, activities and other aspects of its business model.
 
The Classification Questionnaire is designed specifically to help you assess your entities’ status in the most convenient and effective manner, as well as to gain a better understanding of what further action you should consider taking in order to ensure full compliance with the substance legislation. 

Why classify with Vistra? 

Vistra’s Economic Substance Classification Questionnaire is an efficient and effective service for any BVI and/or Cayman entity to gain clarity on their status, supported by detailed analysis and tailored solutions prescribed by our experts.

Legal expertise and tailored guidance

Developed by our team of in-house legal experts, the Questionnaire is designed with full consideration of the client's compliance-related needs and risks

Detailed report

We will provide a detailed diagnosis of the client's classification, identify reporting obligations and propose concrete suggestions for next steps to be taken

User-friendly

Simple, clear, and easy to use - the Questionnaire contains a short list of questions, requiring a minimum amount of time investment from the client

Quick turnaround

From submission of the Questionnaire to reception of Vistra's report, the entire process is quick and streamlined - supported by a team of Account Managers

What steps should you take to classify with us?

The process of classifying with Vistra is simple and direct. From reaching out to your Account Manager to receiving your report, getting a professional classification of your status with detailed solutions is no more than a few steps away. 

Once you determine whether your entity is in scope or out of scope, we can suggest follow up solutions that Vistra can provide to guide you through the entire compliance process.

What are the risks of substance non-compliance? 

It is imperative that entities comply with the substance legislation, as failure to do so could incur potentially severe penalties.

For BVI entities:

Fines Other penalties
Entities

On first determination of non-compliance:

Maximum penalty -

  • USD 20,000 or
  • USD 50,000 for a high-risk intellectual property entity

On second determination of non-compliance:

Maximum penalty -

  • USD 200,000 or
  • USD 400,000 for a high-risk intellectual property entity
Being struck off from the BVI Register of Companies
Individuals Maximum penalty of USD 75,000 Imprisonment for a term of up to 5 years

For Cayman entities:

Fines Other penalties
Entities

For the first year of non-compliance:

  • KYD 10,000

For each subsequent year of non-compliance:

  • KYD 100,000
Being struck off by the Registrar of Companies
Individuals Maximum penalty of KYD 10,000 Imprisonment for a term of up to 5 years
Contact us

To understand more about how the Classification Questionnaire can help you ensure substance compliance and minimise business risk, please reach out to your Account Manager or regular Vistra contact.

Alternatively, you may email BVIsubstance@vistra.com or CAYsubstance@vistra.com should you have any enquiries about the substance legislation and our related services.  You can also reach out to us via the enquiry button below: