How high are the follow-up costs of an offshore company?

4.9
(1246)

Follow-up costs, also known as annual renewal fees, extension or renewal costs

The follow-up costs of an offshore company (IBC)

Executive summary

  • The follow-up costs incl. all arising fees in the 2nd year are € 1.120,00
  • The follow-up costs incl. all arising fees in the 3rd year amount to € 1.000,00
  • The follow-up costs incl. all arising fees in the 4th year amount to € 900,00
  • The follow-up costs incl. all arising fees in the 5th year amount to € 800,00
  • The follow-up costs incl. all arising fees from the 6th year onwards amount to € 750,00

Detailed description

The consequential costs for the offshore company, the subsequent years for the further operation of an offshore company, are often not shown or described in detail or not at all on the Internet. This can have several serious as well as dubious reasons.

We have therefore put a lot of thought into how to show and calculate the effort and the costs involved in a fair, serious and transparent way.
Theoretically, the follow-up costs should therefore be the same as in the year of foundation, i.e. € 1399.00 for us, and thus also for the following years. The effort of renewal is about the same as for the foundation, so we have to reprocess various documents, ask the client for his current place of residence (proof of address), request a current consumption bill from him and provide proof that his business activity has not changed.

You also have to apply for renewal at the registration office, here in the Seychelles, so that they know that the offshore company will continue to operate for the next 12 months.

In addition, we provide an address for a further 12 months, take over the postal service which consists of screening and scanning incoming mail and informing the client of its contents.

In summary, you pay follow-up costs in subsequent years for this service including fees

  • Expenditure for the preparation of the documents for the extension of the offshore company
  • Communication with the client, requesting various documents
  • Preparation of all documents received from the client and our own
  • Application for renewal to the registration body
  • Payment of all fees arising from the renewal at the registration office
  • Provision of a local address for the next 12 months
  • postal services, such as reception, sorting, scanning and transmission to clients for incoming letters

The consequential costs of operating a Seychelles offshore company are often not transparently visible on the Internet. Costs from the 2nd year of an offshore company in the Seychelles, i.e. the costs incurred after the year of incorporation, are transparent, as shown below.

However, the effort involved often varies greatly from offshore company to offshore company and client to client. We cannot see this effort at the time of the foundation and therefore we consider the first 12 months of each client to calculate the follow-up costs. This does not sound transparent and arbitrary.

Our cost calculation for the following years depends on these factors

  • How many letters arrive within the 12 months, which then have to be processed
  • What additional requests by email, phone or Skype come from the client that cannot be charged with other services

Therefore, the underlying and theoretical follow-up costs for the following years are the same as for the foundation, € 1.399,00

If the limit of 100 letters to be processed is not reached and there has been no further effort for the offshore company within the last and first 12 months, the follow-up costs are reduced by approx. 20% to exactly € 1,120.00

Means, the follow-up costs including all arising fees in the 2nd year are

€ 1.120,00

If the limit of 100 letters is not reached in the 2nd year either and the existing offshore company is again commissioned with a further extension, the costs for the following year are reduced by a further approx. 10% to exactly € 1,000.00

Meaning, the follow-up costs including all arising fees in the 3rd year are

€ 1.000,00

The reduction of the further years is then, under the same conditions as described above, for the 4th and 5th year again approx. 10%

Meaning, the follow-up costs including all arising fees in the 4th year are

€ 900,00

Means, the follow-up costs including all arising fees in the 5th year are

€ 800,00

All other consequential costs including all arising fees for the following years from the 5th year, amount to € 750,00 until revocation or change of our price structure, which are always announced 6 months in advance.

Do you still have questions about the follow-up costs of an offshore company or is it still a little unclear? Please take with us Contact on.

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