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Tax Engineering

Setting up an offshore company


Question

If I decide to set up an offshore company, I understand that it is associated with a bank account. If by circumstances I can not pay what it costs to maintain the company every year, what would happen? The bank account will be closed and I will not be able to recover the money that I have deposited on that account? Could I continue to operate with the company? A greeting.

Answer

Setting up an offshore company is simple but you have to take into account the obligations contracted by the directors and shareholders of the company. If by your circumstances you cannot maintain the company, the money deposited in the bank will still be yours even if the company is not renewed. What can happen is the following: you stop paying the renewal fees of your company and at some point the bank, where you have your business bank account, asks you for a "Good Standing" certificate to verify that your company is up to date with the payment of your tax obligations. If you don’t present that certificate, that can be issued only by the government of the country where your company is registered and only after all the fees are paid, your business bank account can be suspended until you withdraw the money personally or present the certificate and unblock it. Even if you decide to continue to operate with your company without paying all the fees, at some point, sooner or later, you will be faced with this problem and then the fees will be higher because they will be summed up with the penalties. The most logical thing is to pay the renovations to avoid problems when setting up a company in another country.



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