Do you own or have you formed a tax-free Offshore Company or IBC or LLC?
Do you/the Company need to (or wish to):
1. Retain ownership of existing investments/assets; or
2. Purchase further assets in the next 12 months; or
3. Continue doing business or trading; or
4. Receive any investment returns owed to the entity; or
5. Avoid having the entity’s account closed and funds frozen; or
6. Avoid incurring any personal liability for debts incurred by the Company
then the Company’s annual operating license will need to be renewed.
If the annual operating license isn’t renewed by the due date (ie usually the anniversary of the Company’s Incorporation Date) the Registry will levy additional fees that increase with time.
Typically, if the Company’s annual operating license is not renewed within 12 months of the due date, the Company will be struck off the registrar.
Depending on where it is incorporated, the Company can be reinstated to the register (ie “brought back into Good Standing”) but usually only within 3 years of being struck off. Sometimes longer.
The main risks of not renewing your Company’s annual operating license are:
(a) Funds can be frozen by the Company’s Bankers
(b) You can be made personally liable for any debts incurred by the Company
(c) You may risk an asset sale contract falling through eg if you’re selling the Company, or some asset owned by the Company, and the seller finds out close to the settlement date/time that the Company is not in Good Standing the contract could fall over (especially if time is “of the essence” in the contract)
Would you like to know more? Then please Contact Us: