business activities.docx

RELEVANT ACTIVITIES:

(a) banking business;

(b) insurance business;

(c) fund management business;

(d) finance and leasing business;

(e) headquarters business;

(f) shipping business;

(g) holding business;

(h) intellectual property business;

(i) distribution and service centre business.

In this Act, unless the context otherwise requires:

“distribution and service centre business” means the business of either or both of

the following

(a)   purchasing from foreign affiliates:

(i)                 component parts or materials for goods; or

(ii)               goods ready for sale; and

(iii)            (iii) reselling such component parts, materials or goods;

(b)   providing services to foreign affiliates in connection with the business,

but does not include any activity included in any other relevant activity except

holding business;

THE EXPRESSION “CORE INCOME-GENERATING ACTIVITIES” INCLUDES, IN

RELATION TO RELEVANT ACTIVITIES:

In respect of distribution and service centre business

(i) transporting and storing goods;

(ii) managing stocks;

(iii) taking orders;

(iv) providing consulting or other administrative

services;

In respect of shipping business

(i) managing the crew (including hiring, paying and

overseeing crewmembers);

(ii) hauling and maintaining ships;

(iii) overseeing and tracking deliveries;

(iv) determining what goods to order and when to

deliver them;

(v)organising and overseeing voyages;

in respect of headquarters business

(i) taking relevant management decisions;

(ii) incurring expenditures on behalf of affiliates;

(iii) co-ordinating group activities;

“holding business” means the business of being a pure equity holding entity;

P.S. A pure equity holding entity, which carries on no relevant activity

other than holding equity participations in other entities and earning dividends

and capital gains, has adequate substance if it:

1)     complies with its statutory obligations under the BVI Business Companies Act, 2004

2)     has adequate employees and premises for holding equitable interests or shares and,

where it manages those equitable interests or shares, has adequate employees and premises

for carrying out that management