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Certificate of Good Standing for existing company!

Discussion in 'Offshore Company formation' started by Nyep, Sep 13, 2018.

  1. Nyep

    Nyep New Member Entrepreneur

    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...
     
  2. Suzy Emerald

    Suzy Emerald Member Entrepreneur

    well, I have an Belize IBC and my bank asks for a certificate of good standing (COGS) every year.
     
    Nyep likes this.
  3. Nyep

    Nyep New Member Entrepreneur

    Do you only use one bank, or is it that only one bank asks? Which bank please? Any experience with EMIs and CoGS?
     
  4. Samuel Newman

    Samuel Newman Offshore Desk expert Mentor Group Business Angel

    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
     
    Nyep likes this.
  5. Suzy Emerald

    Suzy Emerald Member Entrepreneur

    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.
     
  6. Nyep

    Nyep New Member Entrepreneur

    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.
     
  7. Suzy Emerald

    Suzy Emerald Member Entrepreneur

    as mentioned, Rietumu required it every year.
     
    Nyep likes this.
  8. bullhorn offshore

    bullhorn offshore New Member

    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.
     
  9. atze

    atze New Member

    Do you need a COGS for a new bank account also if the corporation is brandnew? Or only when it is already a year old?
     
  10. Suzy Emerald

    Suzy Emerald Member Entrepreneur

    if the corporation is brand new, you dont need a COGS. After 1 year yes.
     
    atze likes this.
  11. Samuel Newman

    Samuel Newman Offshore Desk expert Mentor Group Business Angel

    It depends on bank
    Some of them requires it after 3-6 month
     
  12. Admin

    Admin Forum Moderator The Forum Cleaner

    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 !
     
    atze and David97255 like this.
  13. atze

    atze New Member

    Good to know, thanks!
    Would you still recommend a Belize corporation these days? If everything is "clean"?
    Do you still get bank accounts with it? Besides EMIs I mean.
     
  14. atze

    atze New Member

    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.
     
  15. Nyep

    Nyep New Member Entrepreneur

    After their fiasco, it's no wonder.
    EPayments is still using Rietumu as their provider, AFAIK, and they accept offshore. They have mixed reviews.
     
  16. 7889

    7889 New Member

    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:))
     
  17. blizz

    blizz Trusted Member Mentor Group Business Angel

    I have not been asked for one of these certificates yet! I had my bank account since Dec 17 do you think the bank will request it this year?
     
  18. 7889

    7889 New Member

    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.
     
  19. Internationaloff

    Internationaloff Corporate Services Business Angel

    Real Banks ask the COGS every year. Some EMIs started this year for the first time.
     
  20. Nyep

    Nyep New Member Entrepreneur

    Which EMI has asked you for a CoGS?