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Closing IBC Structure

dxbkk

New member
I have been quoted $23k by the provider to dissolve the structure, and threats of legal action if I don't pursue. My belief was that I can simply choose to not pay the renewal fees?
 
Last edited:

Alex115

New member
In most jurisdictions - yes, but in order to give you a more concrete answer, I'll need to know more about your structure.
 

Alex115

New member
The jurisdictions are Belize, Seychelles, Cyprus. There has been no trading activity.
In Seychelles and Belize, you can simply not pay the fees and the companies will be struck off due to non-payment.
In Cyprus, you can file the documents to close the company yourself.
17k is just.....let me put it this way - some service providers really don't seem to know how pricing works.
 

Admin

Forum Moderator
Staff member
Elite Member
I have been quoted $23k by the provider to dissolve the structure, and threats of legal action if I don't pursue. My belief was that I can simply choose to not pay the renewal fees?
So far I have not seen anyone getting trouble with just avoiding to renew a company and let it go. I have personally done that many times and never heard a single word from any authority.

If I was you I would let it go and just ignore the service provider. Most of these providers are pretty much in troubles because the industry is not what it was used to be for just a year ago. Now they try to get the last pennies out of all the clients that give up their companies.

You can Google Search the forum for more information, we already had this topic here a few times before.
 

onemansomewhere

BANNED MEMBER
Seychelles and Belize - just stop paying a renewal fees.

Cyprus? This is something else. Cyprus will not strike off your company just for not paying a fees. There are some legal obligations which you have to fulfill. It is not just about filling one paper ase Admin wrote, here. Cyprus is very strict about all formalities. If you will just stop paying and stop answering, the best case is just to be blacklisted in Cyprus and maybe in all EU for the business for a next 10 years. The worst scenario is, that not fulfilling a formal obligations is a criminal offence. And cyprus authorities can issue arrest warant after some time. But to be honest, I never seen such case. They usualy just blacklist you. And all EU countries has a common blacklist. If you will want to incorporate a company in any EU country in a next 10 years, it will be not possible. And you will be not able to travel to the Cyprus for next 10 years.

Usual costs of closing a structure: Belize and Seychelles - less than 1000 USD each.

Cyprus - 5000-8000 Eur. Depends on many factors.

It can not cost more than 10K in total.
 

ffbkdavid

Offshore Agent
I have been quoted $23k by the provider to dissolve the structure, and threats of legal action if I don't pursue. My belief was that I can simply choose to not pay the renewal fees?
would be nice to see this funny "invoice"... what on earth might be behind a fee quote of $23k...

thank you for any reply :cool:
 

ffbkdavid

Offshore Agent
Seychelles and Belize - just stop paying a renewal fees.

Cyprus? This is something else. Cyprus will not strike off your company just for not paying a fees. There are some legal obligations which you have to fulfill. It is not just about filling one paper ase Admin wrote, here. Cyprus is very strict about all formalities. If you will just stop paying and stop answering, the best case is just to be blacklisted in Cyprus and maybe in all EU for the business for a next 10 years. The worst scenario is, that not fulfilling a formal obligations is a criminal offence. And cyprus authorities can issue arrest warant after some time. But to be honest, I never seen such case. They usualy just blacklist you. And all EU countries has a common blacklist. If you will want to incorporate a company in any EU country in a next 10 years, it will be not possible. And you will be not able to travel to the Cyprus for next 10 years.

Usual costs of closing a structure: Belize and Seychelles - less than 1000 USD each.

Cyprus - 5000-8000 Eur. Depends on many factors.

It can not cost more than 10K in total.
how and from where do they know who is behind a PROFESSIONALLY structured legal entity... never heard of any government agency checking an "european blacklist" when filing documents to form an uk, german or swiss company... never ever...
 

onemansomewhere

BANNED MEMBER
how and from where do they know who is behind a PROFESSIONALLY structured legal entity... never heard of any government agency checking an "european blacklist" when filing documents to form an uk, german or swiss company... never ever...
Cyprus law required registered agent to know details of UBOs and have certified copies of their IDs. It is very easy for cypriotic authorities to know how is behind. Cyprus is just a small island. It takes them less than hour to visit office of any registered agent and have a complete copy of a file.

European blacklist check is done automaticaly by all european authorities. In the most countries, this authorities are courts. They will just not tell you. But if you read business law of the european countries carefully, you will find a lot of details about it.
 
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