The number of new companies incorporated in the Virgin Islands bounced back in the first quarter of 2024 after slumping to a 25-year low in the previous 12 months.

The tally for the first three months of this year hit 6,142, up about five percent from 5,845 in the final quarter of 2023 and from 5,830 during the same period last year, according to figures released recently by the Financial Services Commission.

The territory had a total of 365,595 registered business companies as of March 31, 2024, which is up from the 361,491 recorded at the end of December but still well down from the peak of 481,002 at the end of 2011.

However, Robert Briant, partner and head of VI corporate practice at Conyers, said the relative stability of the totals is encouraging.

“The five percent increase over the last quarter is just part of the swings and roundabouts of the incorporation business,” Mr. Briant stated. “However, more of interest is the relatively stable number of active business companies, which has held steady in the 360,000 range for several years now. This reflects a maturing of the BVI business company, requiring more sophisticated value-added services.”

The incorporations sector has faced a slow but steady dip in demand in recent years.

In total, 22,317 new companies were incorporated during 2023 — 45 fewer than the 22,362 recorded for 2020, which had previously been the poorest performing year in recent times.

Trying to diversify

In response to that pressure, the territory’s financial services industry has put a lot of stress on diversifying beyond incorporations and expanding into other areas, such as limited partnerships and trademarks.

However, the latest figures show just 61 new LPs were formed in the first quarter of 2024, down from the 66 recorded in the final quarter of 2023 and the 65 created in the same period last year.

Meanwhile, the 62 new applications to register a trademark for the first three months of this year represented a 12.6 percent drop from the 71 put forward in the previous quarter, but it was up 12.7 percent from the 55 submitted in the first quarter of last year.

Since the enactment of the Trade Marks Act in September 2015, a total of 2,591 new applications to register a trademark have been filed.

The past three-year period has seen 270 trademarks registered in 2021; 345 in 2022; and 278 in 2023, according to the FSC figures.

Licensing

The FSC numbers also showed a total of 221 matters before the Licensing and Supervisory Committee in the first three months of this year, a drop from 252 in the previous quarter.

The LSC grants approvals and authorisations for specified initial licensing and ongoing applications under any financial services legislation.