A related question, if anybody knows - assuming a classic offshore company already has bank/emi accounts and is operating, is there any sense in paying the annual renewal fees? Banks in my experience don't tend to ask for a "Good Standing" certificate after the initial KYC...
Certificate of Good Standing for existing company!
- Thread starter Nyep
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well, I have an Belize IBC and my bank asks for a certificate of good standing (COGS) every year.
Do you only use one bank, or is it that only one bank asks? Which bank please? Any experience with EMIs and CoGS?
it depends, they may ask for new Power of Attorney if you use nominee service
Good standing may be asked also from time-to-time
do not see the reason to leave alone company that works🙂
it's easier to pay annual fees instead of recovering deleted company, when your bank account is blocked because you can't renew documents
Well, Rietumu used to ask for it + apostille every year, else your funds were frozen, which happened to me once (besides the 'big freeze' at the beginning of this year. When opening bank accounts you need a COGS+ apostille anyways I found out. If they dont ask for it, they may ask for it all of a sudden and then you have to mobilize your agent etc and it can take several weeks then before all is sorted out. All 'n all it will cost you around a few hundred usd a year including courier.
Yes, that's a given. I'm curious about experiences with CoGS requests after the initial opening, specifically with EMIs, as I've never gotten any.
There is a risk of encountering evil Agents.
The director of an offshore company is the nominal, in case of non-payment. they put the client (the Beneficiary) as the director and leave the company.
I do not assert that this is what everyone does, but I have observed this practice.
The director of an offshore company is the nominal, in case of non-payment. they put the client (the Beneficiary) as the director and leave the company.
I do not assert that this is what everyone does, but I have observed this practice.
Usually banks request the certificate of good standing after the 1st year! It makes no sense to request it earlier since the first years fees are all paid and there are no liabilities to report anything (if at all) before after the first year !
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Interesting...Rietumu just wrote me that they don't offer accounts for offshore companies:
"We work only with the companies registered in the EU/OECD countries if they comply with the following conditions:
- company submits financial reports to the local tax authorities
- company has a real office in the country of registration with at least one employee
- company has a TIN number"
So even Cyprus wouldn't work there, if you are not actually there and have employees.
"We work only with the companies registered in the EU/OECD countries if they comply with the following conditions:
- company submits financial reports to the local tax authorities
- company has a real office in the country of registration with at least one employee
- company has a TIN number"
So even Cyprus wouldn't work there, if you are not actually there and have employees.
After their fiasco, it's no wonder.
EPayments is still using Rietumu as their provider, AFAIK, and they accept offshore. They have mixed reviews.
In my practice, i'd rather skip certificate of Good Standing and present certificate of incumbeny instead, it's best of both worlds, because it confirms good standing but also confirms that ownership structure has not changed, which is crucial for the bank. You will also have additional piece of mind seeing your own name on the certificate (in case it needs to be there of course🙂)
It might. It might not. It's jsut a good practice to get a new certificate every time you pay for renewal. Penny wise and pound foolish, you know.
Real Banks ask the COGS every year. Some EMIs started this year for the first time.
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