BVI agent bulls**t

[Dagobert Duckson]

I am so pissed off. I've had a BVI registered company for many years now. Never actually had much benefit from it because things didn't work out the way I had imagined. I'm still pondering whether I should keep it or not.

Now I just received an email from the registering agent informing me that due to changes in the law last year, my name as Director must be filed with a BVI government registry. I don't mind this since I never intended to use the company for concealment anyway.

But what pisses me off is that a deadline of Mar 31, 2017 was set for companies to file this information, and that after the deadline has passed, a fine of $25 per day applies. My agent wants me to pay $350 for the service of filing (even though I could have filed the information for free by myself last year) plus the $25 / day fine. This is absolutely insane.

I am sorely tempted to ignore all correspondence with them, refuse to pay any further fees and let the company expire. Any downside to doing this?

 

[negon]

They can't do anything if you let the company expire. However, if you can use the company for business in your plans I would pay the $350 and move on. It's not worth to let this go and register a new company with another agent! The process to incorporate a new BVI company is insane.

 

[Dagobert Duckson]

Auric, my understanding is that they want me to pay $350 + $25 for each day that has passed since April 1. I'm still asking for confirmation that I'm understanding this right.

In any case, I do not insist on having a BVI company. How is that better from a company in a different jurisdiction? I can get a company in Anguilla set up for a thousand bucks and Anguilla's reputation is not worse than that of the BVI. Better, if anything.

 

[negon]

Auric, my understanding is that they want me to pay $350 + $25 for each day that has passed since April 1. I'm still asking for confirmation that I'm understanding this right.

This I would get confirmed, I don't believe that is the case, otherwise forget about the company, it's not worth to proceed with it.

Anguilla may be fine, you mind to share the service provider? I'm actually looking into that as well as Labuan.

The only thing I can think of is that BVI is considered to be EU and for that reason when it comes to payment processing and merchant accounts it's possible to go for EU merchant accounts. There may be other tax benefits too like no accounting and filing of tax reports (as far as I remember) but that's typically not something that count here.

 

[Dagobert Duckson]

I just googled it, link below. Anguilla, like BVI, is a British overseas territory and has a much cleaner, or at least more neutral reputation than BVI.

Anguilla Offshore Company

 

[happyjohn]

If it's per day it Means $1400 already forget the company, don't pay the fee!!

 

[Dagobert Duckson]

Right. Maybe the total is $350 only, their email is somewhat ambiguous about this. But if it is, then I would consider that a strong indication that they let this happen intentionally, and that the government of the BVI is using this as an opportunity to push a little extra income to these agents. Considering that I pay $800 / year for renewal services I would have expected them to make repeated efforts at reaching me, including by registered mail and multiple emails. But I got nothing. So I think this is an attempt at systematic extortion of all their clients.

 

[JohnSeed]

I would have expected them to make repeated efforts at reaching me, including by registered mail and multiple emails. But I got nothing. So I think this is an attempt at systematic extortion of all their clients.

agree... but registered mail to the company owner I don't hope this is the next s**t undergoing our destiny

 

[adoffshore]

Why not St.Kitts, Seychelles or Belize company? much easier to setup and cheap each year?

 

[Dagobert Duckson]

@adoffshore I don't know about St Kitts but Seychelles and Belize have terrible reputations and some financial institutions refuse to open accounts for entities from there. BVI doesn't have a very good reputation either but Anguilla seems OK.

@moneynetwork Why? The agent knows your name so what's wrong with registered mail for important matters like this? I would certainly have appreciated it in this case.

 

[adoffshore]

@adoffshore I don't know about St Kitts but Seychelles and Belize have terrible reputations and some financial institutions refuse to open accounts for entities from there.

hmmm, I have Seychelles company with Cyprus bank account.. never faced any troubles.

 

[JohnSeed]

moneynetwork Why? The agent knows your name so what's wrong with registered mail for important matters like this? I would certainly have appreciated it in this case.

I prefer that they never ever send anything to me! Why would you risk attention from anyone if not needed.

 

[Dagobert Duckson]

@adoffshore Like I said, *some* institutions, not all. Maybe not even many. If you are happy with your Cyprus bank account, and if your clients/customers don't care about the place where your company is registered then good for you. There are businesses where people do care about these things, and the bigger the money, the more important it becomes.

 

[Dagobert Duckson]

@moneynetwork That totally depends on your situation. I have no need to conceal my identity in this case (although I may have that need in a new business line I'm thinking about starting).

Besides, registered mail can also be received by a mail box service so it's not any way to identify you.

 

[negon]

There are businesses where people do care about these things, and the bigger the money, the more important it becomes.

I totally agree with you. If you are doing serious business in the real world you can't ask people to deal with a Seychelles company and pay any money to a Cyprus bank account I know some investors and business angels that have a Cyprus company with Cyprus banking which is acceptable as much as BVI is.. still for clean business you need a company registered somewhere "legit" i.e. Germany, UK, USA and so on.

 

[Dagobert Duckson]

@auric Funny enough, US companies in my view are not necessarily more credible than many offshore companies. Just think of a New Mexico LLC with no need to identify the owners or directors.

 

[Dagobert Duckson]

Or a tax exempt Nevada LLC with a nominee director, owned by an offshore entity.....

 

[negon]

@auric Funny enough, US companies in my view are not necessarily more credible than many offshore companies. Just think of a New Mexico LLC with no need to identify the owners or directors.

I agree, but it's the USA and people tust them and in the eyes of investors and professionals a US corp is legit

 

[Dagobert Duckson]

The hypocrisy is astonishing. But - it opens up opportunities. As it always does.

 

[JohnLocke]

I would contact the registered agent and ask them what the situation is with this fee, upon their response I would decide to either terminate (leave) the company or continue using it. It sounds to me that it still can be useful for you.