What you need to know about the annual renewal of the offshore
There are some peculiarities of the annual offshore renewal. To clarify the nuances of offshore renewal in 2021, contact our experts at IT-OFFSHORE. We will help you find answers to your questions.
Why renewal is necessary
After registering a business, it is required to fulfill all obligations and pay fees, otherwise the firm can be removed from the country's commercial register with the loss of the rights to work. Renewing offshore in 2021 means sort of acquiring the legitimate status of a fee-exempt company by paying a flat fee.
In the first 12 months after registration of the company, clients receive business management services with management support and work with the bank. After the period ends, renewal services are available based on the client's needs.
The fee for the completed work can vary depending on the scale of the business, existing taxes and the country of incorporation. There are several basic types of fees.
The state fee involves renewing the business by paying the amount of the fee, which is levied according to the law. Depending on the country, the fee may have another name - offshore fee, registration fee, etc.
The professional fee is paid to the agent. An additional fee is credited for certain services that promote the business - nominal service, mail processing, secretarial services, etc.
What happens if you don't renew offshore?
Fees must be paid regularly and all requirements must be met. Failure to pay on time may result in an automatic fine. Each country has its own rules and penalties for late payment. If the fees are not paid on time, there is a risk of removal of the company from the Commercial Register.
The offshore in such a case may lose its positive reputation. If the fee is not paid on time, there is a risk of litigation. In the case of exclusion from the Registry, the offshore can be restored through the payment of fees under the law.
Necessity of obtaining certificates
The certificate of good standing proves that the company operates legally, all requirements regarding registration with the Registry are fulfilled and all duties and fees are paid. This certificate is used to confirm the prolongation of the offshore activities.
Many financial organizations periodically request new documents on offshore companies, if last have registered bank accounts. Therefore, it is recommended to update documentation after renewal. You can request a certificate from the Registry.
Another important certificate of current offshore status shows when the business was created, what structure the company has. The documentation includes data on the country of incorporation, office address, there is information about the directors, shareholders.