LICENCE FEE INCREASES FOR 2005: Incorporation and licence fees for International Business Companies, (“IBCs”), will increase, with effect from 1 January 2005. The $300 licence fee will increase to $350, and the $1,000 licence fee, (for IBCs with authorised capital in excess of US$50,000), will increase to $1,100.

OUR FEES: Our fees will remain at present levels, but our annual invoices for 2005 will reflect the increased annual licence fees.

BEARE SHARE COMPANIES: IBCs that are incorporated after 1 January 2005 with the capacity to issue bearer shares will pay an increased incorporation and licence fee. This fee is anticipated to be $1,100. Any bearer share certificates for such IBCs must be immobilised by being lodged with a “recognised custodian”.

IBCs with bearer share provisions that are incorporated prior to 1 January 2005 will not be liable to these measures, (increased licence fee and immobilisation), until 1 January 2011.

NEW COMPANIES ACT: Effective 1 January 2005, a new BVI Business Companies Act will be introduced. The new Act will replace the existing IBC Act and the local Companies Act with effect from 1 January 2007 and is part of a package of measures designed to eliminate differences in the tax treatment of local companies and IBCs.

The new Act has nearly all the features and ease of use of the existing IBC Act, but also includes new features and options, (e.g. Segregated Portfolio Companies, Hybrid Companies, etc.), and will preserve the BVI’s status as the pre-eminent no-tax corporate jurisdiction.

Through 2005, Oxford Management Ltd will continue to incorporate IBCs for our international clients who are accustomed to do so. We will also utilise the new Act for those of our clients who wish to take advantage of the features in the new Act.

From 1 January 2006, all new companies will be formed under the new Act. On 1 January 2007, all existing companies, (IBCs and local), will automatically be converted to the new Act, with no action required on the part of our clients.

RELOCATION OF THE BVI REGISTRY: The BVI Registry of Corporate Affairs will be relocating to new custom-built premises during the weekend of 10th December 2004. As such, the Registry will be closed on Friday 10th December and Monday 13th December. Although inconvenient, we anticipate that this will ultimately result in better service from the Registry.