Professional Engagement Letter Template for a 2026 BVI Corporate Setup
- Roger Pay
- Jan 9
- 8 min read
Professional Engagement Letter Template for a 2026 BVI Corporate Setup
This draft is a Professional Engagement Letter template for a 2026 BVI corporate setup. It reflects Bestar’s "Goldilocks" positioning: rigorous enough to satisfy 2026 AML/KYC laws, but clear and accessible for a High-Net-Worth client.
Letter of Engagement: BVI Corporate Services (2026)
To: [Client Name / Family Office Representative]
Date: [Current Date, 2026]
Subject: Engagement for BVI Incorporation and Ongoing Compliance Management
Dear [Client Name],
We are pleased to confirm our engagement to provide corporate and fiduciary services to you in relation to your proposed British Virgin Islands (BVI) structure. This letter outlines our scope of work, fee structure, and the regulatory obligations for the 2026 financial year.
1. Scope of Services
Bestar will act as your lead consultant for the following:
Incorporation: Formation of a BVI Business Company (BC) with tailored Memorandum and Articles of Association.
Registered Agent & Office: Providing a physical address and licensed agent services in Tortola, BVI.
Statutory Maintenance: Managing the Register of Directors, Register of Members, and Register of Charges.
2026 Compliance Package: Assistance with the Annual Financial Return (mandatory filing to the Registered Agent).
Economic Substance (ES) assessment and annual filing via the BOSS system.
Filing of Ultimate Beneficial Ownership (UBO) information.
2. Fee Structure (2026 Schedule)
Based on our "Goldilocks" value model, our fees are transparent and all-in for the first year:
Service Component | Fee (USD) | Frequency |
Incorporation & Government Fees | $1,650 | One-time |
Annual Registered Agent & Office | $850 | Annual |
Compliance & ES Filing Support | $450 | Annual |
BVI Annual Financial Return Management | $350 | Annual |
Total Year 1 Estimate | $3,300 | — |
Note: Out-of-pocket expenses (courier, notarization, apostille) are billed at cost.
3. Regulatory Requirements (AML/KYC)
In accordance with the BVI Anti-Money Laundering Regulations (Amended 2026), we require the following prior to incorporation:
Identity: Certified passport copies for all Directors and UBOs (>10%).
Address: Proof of residence (Utility/Bank statement) issued within the last 3 months.
Source of Wealth: A signed declaration outlining the origin of investment capital.
4. Terms of Performance
Bestar prides itself on agility. Upon receipt of a complete KYC package, the incorporation process typically concludes within 2 business days. Your dedicated account manager, [Manager Name], will be your direct point of contact for all BVI and Singapore-nexus queries.
Confirmation of Engagement
Please sign below to authorize Bestar to proceed with your BVI corporate setup.
For Bestar:
(Signature)
Managing Director,
Bestar
Acknowledged and Accepted:
(Signature)
[Client Name/Representative]
Next Step for You
To move this from a draft to a formal document, I can:
Draft a Source of Wealth (SoW) Declaration Form for your UBOs to sign.
Include a detailed "Economic Substance" questionnaire to determine if your specific activity requires a local physical presence.
Source of Wealth Declaration
In 2026, the BVI Financial Services Commission (FSC) and the International Tax Authority (ITA) have intensified their focus on Source of Wealth (SoW) verification. It is no longer enough to simply state "personal savings."
Below is the bespoke Source of Wealth Declaration Form template for Bestar clients. This form is designed to satisfy the 2026 AML/CFT Code of Practice while remaining streamlined for HNWIs.
SOURCE OF WEALTH (SoW) DECLARATION
Confidential – Prepared for Bestar Corporate Services (BVI)
SECTION 1: PERSONAL INFORMATION
Full Legal Name: ____________________________________________
Company Name (Proposed/Existing): ________________________________
Total Estimated Net Worth (USD): _________________________________
SECTION 2: PRIMARY ORIGIN OF WEALTH
Please check all that apply and provide the estimated amount/details.
Source | Details (Employer, Company Name, etc.) | Estimated Amount (USD) |
[ ] Employment Income | Position held and years of service: | $ |
[ ] Business Ownership | Sale of shares or dividend distributions: | $ |
[ ] Real Estate Sale | Property address and date of disposal: | $ |
[ ] Inheritance/Gift | Relationship to donor and date received: | $ |
[ ] Investment Returns | Portfolios, crypto-assets (VASP), or dividends: | $ |
[ ] Other | (e.g., Lawsuit, Divorce Settlement, Lottery): | $ |
SECTION 3: 2026 DOCUMENTARY EVIDENCE REQUIREMENTS
To ensure your BVI entity remains in "Good Standing," please attach one of the following based on your selection above:
For Business Owners: A copy of the latest audited financial statements or a recent Certificate of Incumbency.
For Professionals: Most recent tax return or a LinkedIn profile/CV (for non-high-risk profiles).
For Real Estate: A copy of the signed Sale & Purchase Agreement.
For Crypto/Virtual Assets: Transaction history from a regulated exchange or a wallet holding report (mandatory under 2026 VASP guidelines).
SECTION 4: DECLARATION & SIGNATURE
I, the undersigned, hereby declare that the information provided in this form is true and accurate to the best of my knowledge. I confirm that:
The funds used for this BVI structure are derived from legitimate sources.
The assets are not linked to any criminal activity, money laundering, or terrorist financing.
I authorize Bestar to conduct independent verification if required by BVI regulatory authorities.
Signature: ____________________________ Date: _________________
Expert Note from Bestar
In 2026, the BVI's "legitimate interest" test means that while this information is kept private by Bestar and the Registered Agent, it must be available for production to the FSC within 24 hours upon request. A well-documented SoW is your best defense against administrative freezes.
"Economic Substance" Questionnaire
In 2026, the BVI International Tax Authority (ITA) has moved from a "voluntary disclosure" phase to a "strict audit" phase. As a Bestar client, we ensure your entity is properly classified to avoid the automatic $5,000+ penalties for misreporting.
Below is our bespoke 2026 Economic Substance Questionnaire, categorized by the risk profile of your entity.
Phase 1: Entity Classification (The "Relevant Activity" Test)
Every BVI entity must complete this section annually.
1. Did the company receive any gross income during the financial period?
[ ] No (If no, you may be eligible for a "Nil Return," but still must file).
[ ] Yes
2. Which of the following "Relevant Activities" did the company perform? (Check all that apply)
[ ] Holding Business: Does the company only hold equity participations (shares) and earn only dividends/capital gains?
[ ] Finance & Leasing: Does the company provide credit or loans to any person/affiliate for a fee/interest?
[ ] Fund Management: Does the company provide investment management services to a fund?
[ ] Intellectual Property (IP): Does the company hold intangible assets (patents, trademarks, copyrights) and earn royalties?
[ ] Distribution & Service Centre: Does the company buy goods from foreign affiliates for resale, or provide services to foreign affiliates?
[ ] Headquarters: Does the company provide senior management or risk management services to its group?
[ ] Shipping / Banking / Insurance: (Specific high-regulation activities).
Phase 2: Tax Residency (The "Carve-Out" Test)
3. Is the company tax resident in a jurisdiction outside the BVI?
[ ] No
[ ] Yes (If yes, you must provide a Tax Residency Certificate (TRC) or a formal tax assessment to be exempted from BVI substance requirements. Note: Jurisdictions on the EU "Blacklist" are not eligible for this carve-out in 2026).
Phase 3: The "Adequacy" Test (For In-Scope Entities)
If your entity performs a Relevant Activity and is NOT tax resident elsewhere, please provide the following:
4. Managed & Directed in the BVI:
How many Board Meetings were held during the period? ______
How many of those were held physically in the BVI? ______
5. Core Income Generating Activities (CIGA):
What was the total expenditure incurred in the BVI? $ ______
How many qualified employees are physically based in the BVI? ______
Does the company maintain a physical office/premises in the BVI? (Yes/No) ______
2026 Strategy Guide: Bestar’s "Goldilocks" Solutions
If your activity is... | Your 2026 Substance Status | Bestar's Expert Action |
Pure Equity Holding | Reduced Substance | We confirm you have a Registered Agent and valid Office in the BVI to satisfy the law. |
Non-Financial (Nil Income) | Nil Return | We file your "Nil Return" to prevent the $5,000 late fee. |
Active Service/Finance | Full Substance Required | We assist in documenting your CIGA or introducing you to BVI-based directors/staff. |
Out-of-Scope (Real Estate) | No Substance Required | We file your status as "Non-Relevant" to keep your entity in Good Standing. |
Critical 2026 Update: Under the new VIRRGIN System transition (Jan 2026), all Economic Substance filings must be accompanied by the Annual Financial Return. Bestar’s integrated team handles both filings simultaneously to ensure data consistency.
Bestar Professional Engagement for a 2026 BVI Corporate Setup
Professional Engagement Letter Template for a 2026 BVI Corporate Setup
In 2026, the BVI Business Companies Act and the Economic Substance (Amendment) Act have transformed the British Virgin Islands into a "transparency-first" jurisdiction. For High-Net-Worth Individuals (HNWIs) and Family Offices, the era of "set-and-forget" offshore entities is over.
Bestar provides the specialized oversight required to manage these 2026 mandates, ensuring your structure remains a "safe haven" and not a regulatory liability.
1. 2026 BVI Compliance Roadmap: The New Gold Standard
The transition to the VIRRGIN Registry 2.0 and the BOSS(ES) Digital Portal in early 2026 has made reporting instantaneous and non-negotiable. Bestar manages this entire lifecycle for you.
Quarter | Milestone | Bestar’s Active Management |
Q1 | UBO & ROM Filing | Finalizing the private filing of Registers of Members (ROM) and Beneficial Owners (>10%) via the BVI Registrar by Jan 1, 2026. |
Q2 | AEOI / FATCA / CRS | Managing Automatic Exchange of Information filings for financial entities to meet the May 31 deadline. |
Q3 | Annual Financial Return | Preparing and submitting the mandatory Annual Financial Return (AFR) to your Registered Agent by Sept 30. |
Q4 | Economic Substance | Conducting the "Relevant Activity Test" and filing the Substance Declaration to avoid 2026 ITA audits. |
2. Strategic "Economic Substance" Questionnaire (2026 Version)
Under the 2026 audit-focused phase, every Bestar engagement begins with this critical assessment to determine if your entity is In-Scope or Out-of-Scope.
Section A: The Activity Test
Holding Business: Does the company only hold equity participations? (Reduced substance required).
Intellectual Property (IP): Does the company earn income from trademarks/patents? (Caution: 2026 High-Risk IP penalties reach $400,000).
Fund Management: Are investment decisions documented as occurring in the BVI?
Section B: The Residency "Carve-Out"
Non-Resident Claim: If you claim tax residency in another jurisdiction (e.g., Singapore or UAE), Bestar will assist in securing and filing the Tax Residency Certificate (TRC) required to exempt you from BVI substance rules.
3. Bestar vs. The Giants: Why "Goldilocks" Wins in 2026
Investors often choose between large automated firms or low-cost agents. Bestar occupies the optimal middle ground.
Feature | Bestar (Boutique Expert) | Global Giants |
Response Time | Direct WhatsApp/Email to Senior Consultant. | Ticket-based system / Junior account staff. |
2026 AFR Handling | Accounting-led review of your Balance Sheet. | Automated data entry with no sanity check. |
Audit Defense | Proactive preparation of "Substance Evidence Folders." | Reactive support only after an ITA inquiry. |
Fee Transparency | Flat-fee 2026 Compliance Packages. | Complex billable hours for "regulatory advisory." |
4. Custom Bestar Engagement: What’s Included?
When you appoint Bestar as your 2026 BVI partner, your Engagement Letter covers:
Direct Registered Agent Access: Seamless filing with the BVI Financial Services Commission.
The "Succession Shield": Customizing your Memorandum and Articles for private wealth transfer (VISTA Trust integration).
Financial Integrity: Professional management of the Annual Financial Return, ensuring your company avoids the "Strike-Off" list.
BVI-Singapore Nexus: For clients utilizing Singapore's 13O/13U tax incentives, we align your BVI holding company to be compliant in both jurisdictions.
Investor Warning: As of January 9, 2026, any BVI company that has not filed its Register of Members is in breach of the Act. Struck-off companies are now dissolved within 90 days, significantly increasing the risk of asset forfeiture.
Secure Your BVI Standing Today
The BVI remains a premier hub, but only for the compliant. Bestar ensures your structure is audit-proof and tax-efficient.
Would you like a bespoke Service Quote for transitioning your current BVI portfolio to Bestar’s 2026 Management Suite?
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