Renewal costs, also called annual renewal fees or Follow-up costs, are the costs incurred after the first year of establishment of the offshore company. In the first year, usually only foundation costs are incurred and thus the expense of the foundation is compensated and usually applies for the first 12 months.
- The Renewal costs, including all fees incurred in the 2nd year, amount to € 1,120.00.
- The Renewal costs including all fees incurred in the 3rd year amount to € 1,000.00.
- The Renewal costs including all fees incurred in the 4th year amount to € 900.00.
- The Renewal costs including all fees incurred in the 5th year amount to € 800.00.
- The Renewal costs, including all fees incurred from the 6th year onwards, amount to € 750.00.
The annual renewal fees of the following years for the further operation of an offshore company are often not exactly or not at all shown or described on the Internet. This can have several serious as well as dubious reasons.
We have therefore given a lot of thought to how to show and calculate as fair, serious and transparent as possible the effort and the associated costs.
Theoretically therefore the costs should be the same as in the year of establishment, thus with us 1,399.00, thus likewise for the following years. The expenditure of the renewal is in approximately the same as with the establishment, thus we must prepare also here different documents again, the client after its current residence inquire (proof of address), a current consumption account of it request and a proof furnish, which did not change its business activity.
You also need to apply to the registration office, here in the Seychelles, for renewal so that they know that the offshore company will continue to be active for the next 12 months.
In addition, we provide an address for another 12 months, take over the postal service which consists of viewing incoming mail, scanning it and informing the client of its content.
In summary, costs are paid for these services and fees in subsequent years:
- Expenses for the preparation of documents for the extension of the offshore company
- communication with the client, requesting various documents
- Preparation of all documents received from the client and created by us
- Application for renewal at the registration office
- Payment of all fees resulting from the renewal at the registration office
- Provision of a local address for the next 12 months
- Postal service, such as reception, sighting, scanning and transmission to clients for incoming letters
The consequential costs of operating a Seychelles offshore company are often not transparent on the Internet. Costs from the 2nd year of an offshore company in the Seychelles, i.e. the costs incurred after the year of foundation, are transparent for us, as shown below.
However, the annual renewal fees often vary from offshore firm to offshore firm and from client to client. We cannot yet see this expense at the time of incorporation and therefore consider the first 12 months of each individual client to calculate the renewal costs. However, this does not sound transparent and arbitrary.
Therefore we make our cost calculation for the following years dependent as follows:
- How many letters reach us within the 12 months, which then have to be processed further
- What additional requests via email, phone or Skype come from the client that cannot be billed with other services
Therefore, the underlying and therefore theoretical follow-up costs for subsequent years are the same as at the time of incorporation, € 1,399.00
If the limit of 100 letters to be processed is not reached and there is no further expenditure for the offshore company within the last and first 12 months, the follow-up costs will be reduced by approx. 20% to exactly € 1,120.00.
Means the renewal costs including all fees incurred in the 2nd year amount to: € 1,120.00
If the limit of 100 letters is not reached even in the second year and the existing offshore company is commissioned with a further extension, the costs for the following year will be reduced by a further 10% to exactly 1,000.00 €.
Means the renewal costs including all fees incurred in the 3rd year amount to: € 1,000.00
The reduction of the further years amounts to then, with same conditions as described above, for the 4th and 5th year again approx. 10%.
Means the renewal costs including all fees incurred in the 4th year amount to: € 900.00
Means the renewal costs including all fees incurred in the 5th year amount to: € 800.00
All further renewal costs, including all fees incurred in 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.
You still have questions about the annual renewal fees or something unclear? Please get in touch with us.