Notice to Grand-Fathered Entities

“Savings of right and benefits

Notwithstanding the repeal effected by section 2, the rights and benefits conferred upon International Business Companies under the International Business Companies Act, Cap. 77 are saved or shall cease as is hereinafter provided:

an international business company that does not hold intellectual property assets but holds a valid licence issued prior to 17th October 2017 shall be entitled to receive its benefits until 30^th June 2021;

an international business company that does not hold intellectual property assets but holds a valid licence issued on or after 17^th October 2017 shall cease to be entitled to any benefits after 31^st December 2018;

without affecting paragraphs (a) and (b) an international business company that holds a valid licence issued on or before 30^th June 2018 and also holds intellectual property assets acquired after 17^th October 2017 but before 1^st July 2018 where the intellectual property assets were already benefitting from a back-end regime; or the intellectual property assets were acquired from an unrelated party the company shall be entitled to receive those benefits in respect of those intellectual property assets until 30^th June 2021.”

Pursuant to the above excerpt from the International Business Companies (Repeal) Act, 2018-40 (and an identical provision in the Societies with Restricted Liability Amendment Act 2018 – 47 with respect to International Societies With Restricted Liability) all companies/societies desirous of applying for a Foreign Currency Permit  under the Foreign Currency Permits Act, 2018-44 please be advised as follows:

• All Grandfathered IBCs and ISRLs will cease to be so grandfathered after June 30^th
• All applications for the Foreign Currency Permit relating to the IBCs and ISRLs that were grandfathered and earn one hundred percent of their annual income in foreign exchange, must be submitted to the Ministry of International Business and Industry between June 1^st and June 15^th 2021 to ensure quick processing.
• All applications will attract the usual fee as prescribed in the Foreign Currency Permits Act.
• Where possible, applicants are encouraged to make payments utilizing Government’s EZpay Portal.
• All applications must be accompanied by all required documentation in support pursuant to the Foreign Currency Permits Act.
• All Foreign Currency Permits issued to these to be previously grandfathered entities will be dated July 1^st

Please be reminded that the economic substance requirements will be applicable to all of the now grandfathered IBCs and ISRLs from January 1^st 2021 providing that those grandfathered entities remain under the grandfathered regime for the remainder of 2020. Should any grandfathered entity surrender its grandfathered status between October 15^th and December 31^st 2020, the economic substance requirements will be applicable from the date of surrender.

Finally, kindly note that in order to continue to be eligible for benefits under the grandfathered regimes until June 30, 2021, please complete the Annual Form and pay the prescribed annual fee of (Bds$1,000.00) by December 31^st 2020. If the licensee fails to pay the prescribed annual fee by that time, the licensee should pay the prescribed annual fee (Bds$1,000.00) in addition to a pecuniary penalty for the late payment (equal in the amount of the annual fee $1,000.00) by 1st February of 2021. If the fee remains unpaid after 1st February of 2021, the licensee will not be considered as having its licence renewed and will no longer be under the rubric of the grandfathered regime.

Ministry of International Business and Industry

International Business Unit

October 15, 2020