Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the Commission's licence, including banking and payment rails.
Get a payment license in the British Virgin Islands.
The British Virgin Islands license payment business under the Financing and Money Services Act 2009, Revised Edition 2020, in seven classes set out in section 8(1) - money transmission including electronic and mobile payments, money orders and cheque cashing, financing business, financing leases, ATMs, peer-to-peer international lending, and a residual class for whatever the Regulations later add. Fees are set per class: $500 to apply and $10,000 a year for Class A, $250 and $2,000 for Classes B, C and D. Section 19C requires customer money received for transmission to be segregated exclusively in a separate customer account, and leaves the licensee liable for funds it fails to deliver. Two financing and four money services licensees held permissions at 31 December 2025.
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The British Virgin Islands in brief
Seven classes, a segregation duty in the statute, and a capital figure the Act does not print.
The Financing and Money Services Act 2009, in its Revised Edition 2020, splits the field into seven licence classes in section 8(1). Class A is transmitting money in any form, including electronic and mobile payments. Class B is issuing, selling or redeeming money orders or travellers' cheques, cheque cashing and currency exchange. Class C is financing business and Class D financing lease business; Class E is operating automated teller machines; Class F is international financing and lending in the peer-to-peer market; Class G is whatever the Regulations later specify. The fee schedule prices them apart, in US dollars: Class A costs 500 to apply and 10,000 a year, Class F the same, Class E 300 and 5,000, and Classes B, C and D 250 and 2,000. Section 9(1) lets a BVI business company or a foreign company apply, and applications go through an authorised registered agent or legal practitioner with an undertaking to establish physical presence in the Territory. Section 19C(1) is the customer-money rule: a licensee receiving money for transmission must segregate the money exclusively and establish a separate customer account, and section 19C(2) keeps it liable for the payment of funds not delivered.
One point has to be stated rather than papered over. Section 12(1) prints no capital figure - it requires capital resources in such amount as may be prescribed, and the prescription sits in Part VI of the Regulatory Code 2009, sections 168 to 172, covering the over-riding capital resource requirement, minimum capital resources, the criteria for a letter of credit or guarantee, and the regulatory deposit a foreign money services business makes. The Commission's site does not serve those sections as readable text, so we obtain and confirm the figure for your class before any work begins rather than repeat a number from a secondary summary. The Act sets no decision period either, and the Commission publishes processing targets only for banking and trust licences. The register is small: two financing business licensees and four money services business licensees at 31 December 2025. Tax is the other half of the case. There is no income tax, no corporate income tax and no VAT; payroll tax runs at 10% for a Class 1 employer and 14% for a Class 2 employer, with a $10,000 annual exemption for each employee.
Section 8(1) of the Financing and Money Services Act 2009 sets seven classes: A money transmission including electronic and mobile, B money orders and exchange, C financing, D financing lease, E ATMs, F peer-to-peer lending, G as prescribed. Fees run from $250 and $2,000 to $500 and $10,000.
Section 19C requires exclusive segregation in a separate customer account and keeps the licensee liable for undelivered funds. Section 12(1) sends capital to Part VI of the Regulatory Code, which the Commission's site does not serve as readable text - we confirm it for your class. Six licensees at 31 December 2025.
The routes
Class A for money transmission - and six more classes beside it.
Section 8(1) gives seven classes and the fee regulations price each one separately, so the class decision sets both the scope and the annual cost. We fix the route first, then build once.
Class A for transmission; six further classes priced separately.
01 - CLASS A
Money transmission, including electronic and mobile
The class for transmitting money in any form, with electronic and mobile payments named inside it. Application $500 and $10,000 a year, with the section 19C duty to segregate customer money exclusively in a separate customer account and continuing liability for funds not delivered.
The class for transmitting money in any form, with electronic and mobile payments named inside it. Application $500 and $10,000 a year, with the section 19C duty to segregate customer money exclusively in a separate customer account and continuing liability for funds not delivered.
- ✓Transmitting money in any form (s. 8(1) Class A)
- ✓Electronic and mobile payments named in the class
- ✓Application $500 · annual $10,000
- ✓Separate customer account, exclusive segregation (s. 19C(1))
- ✓Continuing liability for undelivered funds (s. 19C(2))
- ✓Capital resources per Part VI of the Regulatory Code
02 - CLASSES B TO G
From $250 to applyMoney orders, financing, leases, ATMs and peer-to-peer
Class B for money orders, travellers' cheques, cheque cashing and currency exchange; Class C for financing business and Class D for financing leases; Class E for ATMs; Class F for international peer-to-peer lending; Class G for services the Regulations later specify.
Classes B to G: money orders and exchange, financing, leases, ATMs and peer-to-peer lending, from $250 to apply and $2,000 a year.
- ✓Class B - money orders, cheque cashing, exchange: 250 / 2,000
- ✓Class C - financing business: 250 / 2,000
- ✓Class D - financing lease: 250 / 2,000
- ✓Class E - automated teller machines: 300 / 5,000
- ✓Class F - peer-to-peer international lending: 500 / 10,000
- ✓Class G - as prescribed in the Regulations
Costs and timelines are confirmed for your case before any work begins. Section 12(1) sends the capital requirement to Part VI of the Regulatory Code, which the Commission's site does not serve as readable text - we obtain and confirm the figure for your class before the file is built, and it is itemised in your quote.
Why the British Virgin Islands
A segregation duty in the Act, and classes priced from $2,000 a year.
The BVI is the only one of the four Caribbean routes that writes a customer-account duty into the payments statute itself, and the only one that lets a small class in for four figures a year.
✓
Customer money in the statute
Section 19C(1) requires exclusive segregation and a separate customer account for money received for transmission. Section 19C(2) leaves the licensee liable for the payment of funds not delivered.Separate customer account under s. 19C.
✓
Seven classes, priced apart
Annual fees run from $2,000 for Classes B, C and D to $10,000 for Classes A and F. A cheque-cashing or exchange business does not subsidise a transmitter's supervision.Priced from $2,000 a year.
✓
Electronic and mobile named in Class A
Section 8(1) says transmitting money in any form, including electronic and mobile payments, so digital models sit inside the existing class rather than in a gap.Mobile payments named in the text.
✓
A class for peer-to-peer lending
Class F covers international financing and lending in the peer-to-peer market - a named licence for a model most jurisdictions still treat by analogy.Class F for P2P lending.
✓
Six licensees
Two financing business licensees and four money services business licensees at 31 December 2025, against six commercial banks. The Commission's whole banking, financing and money services register runs to 18 entities.At 31 December 2025.
✓
No income tax and no VAT
The Inland Revenue Department administers no income or corporate income tax head and no value added tax. Payroll tax at 10% or 14% is the operating charge, with $10,000 exempt per employee.Payroll tax 10% or 14%.
How it compares
How the British Virgin Islands differ from the other Caribbean routes.
The BVI trades a published capital figure for a real segregation duty and the lowest annual fees in the group. The honest comparison is below.
British Virgin Islands vs other jurisdictions
| Feature |  British Virgin Islands | Other jurisdictions |
|---|---|---|
| Licence classes | Seven, A to G (s. 8(1)) | One licence in Cayman and Bermuda |
| Client money | Segregated customer account (s. 19C) | No rule in Cayman · barred in Bermuda |
| Capital | Prescribed in Part VI of the Regulatory Code | $30,000 in Cayman · B$100,000 in The Bahamas |
| Annual fee | $2,000 to $10,000 by class | CI$20,000 in Cayman · $6,460 in Bermuda |
Licence classes
British Virgin IslandsSeven, A to G (s. 8(1))
Other jurisdictionsOne licence in Cayman and Bermuda
Client money
British Virgin IslandsSegregated customer account (s. 19C)
Other jurisdictionsNo rule in Cayman · barred in Bermuda
Capital
British Virgin IslandsPrescribed in Part VI of the Regulatory Code
Other jurisdictions$30,000 in Cayman · B$100,000 in The Bahamas
Annual fee
British Virgin Islands$2,000 to $10,000 by class
Other jurisdictionsCI$20,000 in Cayman · $6,460 in Bermuda
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| British Virgin Islands | Financing and money services (FSC) | No CIT · payroll 10-14% | Seven classes · s. 19C segregation |
 Cayman Islands | Money services business (CIMA) | No direct taxes | Net worth $30,000 · 4-6 weeks |
 The Bahamas | Payment institution (central bank) | No CIT · VAT 10% | B$100,000 · 45-day decision |
 Bermuda | Money service business (BMA) | 15% above EUR 750M | No client money held (s. 11(3)) |
British Virgin IslandsLicense typeFinancing and money services (FSC)
TaxationNo CIT · payroll 10-14%
RequirementsSeven classes · s. 19C segregation
Cayman IslandsLicense typeMoney services business (CIMA)
TaxationNo direct taxes
RequirementsNet worth $30,000 · 4-6 weeks
The BahamasLicense typePayment institution (central bank)
TaxationNo CIT · VAT 10%
RequirementsB$100,000 · 45-day decision
BermudaLicense typeMoney service business (BMA)
Taxation15% above EUR 750M
RequirementsNo client money held (s. 11(3))
Before you apply
Requirements for the FSC licence.Requirements for the licence.
The Act sets the classes, the customer account and the six matters the Commission must be satisfied on; the Regulatory Code sets capital and conduct. The checklist below is what a passing file contains.
01
A BVI business company or a foreign company - section 9(1) allows either, and section 7 makes the licence a condition of carrying on the business at all.
02
The class fixed first: Class A for money transmission including electronic and mobile payments, Class B for money orders, travellers' cheques, cheque cashing and currency exchange, Class C or D for financing and financing leases, Class E for ATMs, Class F for peer-to-peer international lending.
03
Capital resources at the level Part VI of the Regulatory Code prescribes for that class under section 12(1) - sections 168 to 172 cover the over-riding requirement, the minimum, letters of credit and guarantees, and the regulatory deposit a foreign money services business makes.
04
A separate customer account and exclusive segregation of money received for transmission under section 19C(1), with the continuing liability in section 19C(2) reflected in the operating model.
05
Application through an authorised registered agent or legal practitioner, with the undertaking to establish physical presence in the Territory that the Commission requires.
06
The six matters in section 9(2) addressed in the file, including that the applicant will be in compliance with the Act on the day the licence issues.
07
Fit-and-proper evidence for the applicant, its directors and its senior officers.
08
A compliance manual under section 46 of the Regulatory Code, with the Part VI duties on management and control, record keeping and customer assets applied to the class held.
09
The application and annual fees budgeted by class - Class A and Class F at $500 and $10,000, Class E at $300 and $5,000, Classes B, C and D at $250 and $2,000.
10
Economic substance assessed where the business falls within finance and leasing, with the report filed within six months of the end of the financial period.
01
BVI business company or foreign company (s. 9(1)).
02
Class fixed first - A to F.
03
Capital per Regulatory Code Part VI.
04
Separate customer account (s. 19C).
05
Filing through a registered agent.
06
The six matters of section 9(2).
07
Fit-and-proper directors and officers.
08
Compliance manual (Code s. 46).
09
Fees budgeted by class.
10
Economic substance where it applies.
Reflects the Financing and Money Services Act 2009 (Revised Edition 2020) with its 2018 to 2023 amendments, the Regulatory Code 2009 Part VI, the Financial Services (Fees) Regulations and the Economic Substance Act 2018, as of 2026.Financing and Money Services Act 2009 (Rev. 2020); Regulatory Code 2009 Part VI; Financial Services (Fees) Regulations; Economic Substance Act 2018.
How it works
From first call to the FSC register.
01
Class and strategy
Which of the seven classes fits the model, what it costs to apply and to hold - route and budget fixed in writing.Which of the seven - in writing.
02
Capital confirmed
Part VI of the Regulatory Code obtained for your class, the capital resources figure confirmed, and the company formed through a registered agent.Part VI obtained; company formed.
03
The application file
Section 9(2) matters, fit-and-proper evidence, compliance manual, customer account arrangements and the physical presence undertaking - complete before filing.Section 9(2), manual, customer account.
04
Commission review
No statutory period and no published target for this Act, so question rounds set the pace - plan on six to nine months end to end.No clock; 6-9 months realistic.
05
Licence and launch
Licence issued for the class, customer account opened, annual fee calendar set and economic substance reporting scheduled.Account opened; fees calendared.
Quick facts
RegulatorBVI Financial Services Commission
LawFinancing and Money Services Act 2009 (Rev. 2020)
ClassesA to G (s. 8(1))
CapitalRegulatory Code Part VI, ss. 168-172
Client fundsSeparate customer account (s. 19C)
FeesClass A $500 · $10,000 a year
Timeline6-9 months realistic
TaxNo income tax · payroll 10-14%
The Commission publishes processing targets for banking and trust licences only, so there is no service standard to hold it to here. Six licensees held financing or money services permissions at 31 December 2025.
Your BVI desk
Run from our Caribbean desk.
Prifinance - Caribbean desk
London · coordinating BVI mandates
7 Bell Yard, London
01
BVI company formation
A BVI business company, or the foreign company route under section 9(1), with the registered agent through whom the application must be filed.Business company via registered agent.
02
The capital figure
Sections 168 to 172 of the Regulatory Code obtained and confirmed for your class before the file is built, so the number in your budget is the number the Commission applies.Code ss. 168-172 confirmed for your class.
03
The FSC file
The six matters of section 9(2), fit-and-proper evidence, the compliance manual under section 46 and the customer-account arrangements under section 19C.Section 9(2) answered in order.
04
Presence in the Territory
The undertaking to establish physical presence honoured in practice, and economic substance planned where finance and leasing applies.Undertaking honoured; substance planned.
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Good to know
Taxation of payment companies in the British Virgin Islands.
No income tax, no corporate income tax and no VAT. What a BVI employer does pay is payroll tax, and what a BVI licensee does file is an economic substance report.
No income or corporate tax
No income tax, corporate income tax or capital gains tax appears among the heads the Inland Revenue Department administers. The Department publishes no page stating the negative, so we confirm the position for your structure.No corporate tax head at all.
No VAT
There is no value added tax in the Territory. Government revenue comes from fees, customs duty and payroll tax - the financial services sector produced $252.40 million in fee revenue in 2023.Revenue from fees and duty.
Payroll tax 10% and 14%
A Class 1 employer or self-employed person pays 10% of the tax base; a Class 2 employer or self-employed person pays 14%, under the Payroll Taxes Act 2004.Class 1 and Class 2 employers.
The $10,000 exemption
Each employee carries an annual exemption of $10,000 from the tax base, in force since 1 January 2007. The thresholds separating Class 1 from Class 2, and the employee's own share, are not published on the pages we read, so payroll is modelled on your headcount and confirmed.Per employee, per year.
Economic substance
Nine relevant activities under the Economic Substance Act 2018, finance and leasing among them. The entity must be directed and managed in the Virgin Islands with adequate local board meetings, employees, expenditure and premises.Finance and leasing included.
Substance reporting
Reports fall due within six months following the end of the financial period, under Rule 6 of the ITA Rules version 4 of April 2024. The Rules describe substantial fines and liquidation without printing the figures.Within 6 months of period end.
Tax summary
Corporate income taxNone
VATNone
Payroll tax10% Class 1 · 14% Class 2
Payroll exemption$10,000 a year per employee
Dividend withholdingNo rate identified
Economic substanceReport within 6 months of period end
*Figures as of 2026 per the Inland Revenue Department and the International Tax Authority. Treaty and regime positions are assessed per structure.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: BVI business company, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, licensed money services business.
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Request a free conclusion →FAQ
The BVI financing and money services licence, answered.
What licence does a payment business need in the BVI?+
A licence from the BVI Financial Services Commission under the Financing and Money Services Act 2009, Revised Edition 2020. Section 8(1) sets seven classes, from Class A money transmission to Class G for services the Regulations later specify. Section 7 makes the licence a condition of carrying on the business.
Which class covers electronic and mobile payments?+
Class A. Section 8(1) describes it as transmitting money in any form, including electronic and mobile payments, so a digital wallet or remittance app is licensed under the same class as a counter operation. Application $500, annual fee $10,000.
How much capital is required?+
Section 12(1) does not print a figure. It requires capital resources in such amount as may be prescribed, and Part VI of the Regulatory Code 2009 prescribes them in sections 168 to 172. The Commission's site does not serve those sections as readable text, so we obtain and confirm the figure for your class before any work begins.
How must customer money be held?+
Section 19C(1) requires a licensee receiving money from a customer for transmission to segregate the money exclusively and establish a separate customer account. Section 19C(2) keeps the licensee liable for the payment of funds it has not delivered. Percentage and placement rules are not in the Act.
How long does the Commission take?+
The Act sets no decision period, and the Commission publishes processing targets only for Banks and Trust Companies Act licences. Section 9(2) lists six matters it must be satisfied on. Plan on six to nine months from first call, driven by how complete the first filing is.
What do the classes cost?+
In US dollars, application and annual: Class A 500 and 10,000; Class B 250 and 2,000; Class C 250 and 2,000; Class D 250 and 2,000; Class E 300 and 5,000; Class F 500 and 10,000. Class G is priced when the Regulations specify the service.
Who may apply?+
Section 9(1) allows a BVI business company or a foreign company to apply. Applications generally go through an authorised registered agent or legal practitioner, and the applicant gives an undertaking to establish physical presence in the Territory.
How are licensees taxed?+
There is no income tax, corporate income tax or VAT among the heads the Inland Revenue Department administers. Payroll tax is 10% for a Class 1 employer and 14% for a Class 2 employer, with an annual exemption of $10,000 for each employee.
Does economic substance apply?+
It applies to nine relevant activities under the Economic Substance Act 2018, including finance and leasing business. The entity must be directed and managed in the Virgin Islands with adequate employees, expenditure and premises, and the report is due within six months of the financial period end.
Why the British Virgin Islands rather than the Cayman Islands or Bermuda?+
The BVI writes a customer-account duty into section 19C and prices small classes at $2,000 a year, which neither of the others matches. Cayman prints its $30,000 net worth in the Act and answers in four to six weeks; Bermuda charges $6,460 a year but forbids holding client money at all. The BVI costs you a capital figure you have to obtain rather than read.
Which licence?+
FSC licence, one of seven classes.
Electronic payments?+
Class A - named in section 8(1).
Capital?+
In the Regulatory Code; confirmed for your class.
Client funds?+
Separate customer account (s. 19C).
How long?+
No clock; 6-9 months realistic.
Fees?+
Class A $500 and $10,000 a year.
Who may apply?+
BVI or foreign company, via agent.
Taxes?+
No income tax; payroll 10% or 14%.
Substance?+
Report within 6 months of period end.
vs Cayman / Bermuda?+
Segregation duty; cheapest small classes.
Client notes
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Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of the British Virgin Islands Financial Services Commission or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.