Weird clause to sign for SVG company

[johnstevenson637]

Hi,

I've started the process of creating an offshore company in SVG and despite the fact that the agent told me many times I wasn't required to do accounting in SVG, and that no annual financial report was needed, they want me to sign a weird clause, that specify they can fine me 30KUSD if I fail to submit my financial records every year. Is it usual? I refused to sign for now and looking for a refund if the agent refuses to proceed without this document. It doesn't make sense to me.

The full document is below;

Declaration

(Insert LLC Name)​

In accordance with the Financial Laws (Miscellaneous Amendment) Act No. 10 of 2014



I/We the Manager(s)/Beneficial Owner(s) of (Insert LLC Name), Hereby declare:

• At the end of each financial year of the above named limited liability company, we will furnish to the Registered Agent, Euro-Caribbean Trustees Ltd., a return in the form of a declaration that the company is keeping accounting records in accordance with the above named Act and that such records will be made available through Euro-Caribbean Trustees Ltd, its registered agent, and that such records:
• 
  
• – are sufficient to record and explain the transactions of the company for the pervious financial year
• – will at any time enable the financial position of the company to be determined with reasonable accuracy
• – will be retained for a period of no less than seven years from the date on which they are prepared
• – are kept in original format at
• 
  
• INSERT ADDRESS HERE
• 
  
• We understand that financial penalties may be levied against the company if we fail to comply with this requirement, as it is an offence under the above Act. Such a company in default would then be subject to a fine of USD 20 000 for the corporate body and USD 10 000 for the individual.
• 
  
• We understand that accounting records means all books, vouchers, invoices, contracts, financial statements, and any other relevant records pertaining to the financial affairs, including the assets and liabilities of a limited liability company.

 

[Sols]

You were told something that isn't true. Now you are faced with reality: accounting is required.

 

[Fred]

@Sols told you already the story.

Whole Caribbean except BVI and Nevis require accounting.

Same goes for Panama, Seychelles and so on.

Beside of BVI and Nevis only Marshall Islands and Samoa without accounting are left and of course the UAE.

But honestly speaking, Banking anywhere?!

If you wanna achieve Banking for a classic Offshore Company with 0% Tax and No Audit or Accounting requirements - no way around Dubai, UAE in 2022. That's why we are here.

 

[johnstevenson637]

Yeah, everything always looks simpler with these incorporation service providers... and once you have paid, the hidden details are revealed.

Dubai seems indeed a great solution, for a highly profitable business. For me, it's just a small project that I will cash 50-100K profits and it won't last more than 1-2 years.. so not gonna spend 10K++ just to build the offshore company.

 

[JohnnyDoe]

Yeah, everything always looks simpler with these incorporation service providers... and once you have paid, the hidden details are revealed.

Dubai seems indeed a great solution, for a highly profitable business. For me, it's just a small project that I will cash 50-100K profits and it won't last more than 1-2 years.. so not gonna spend 10K++ just to build the offshore company.

Some people (in no way this is intended to be a solicitation to commit crimes) setup a UK company with darks, and abandon it to its fate once the time comes.
Those people often setup multiple companies.

 

[Fred]

Yeah, everything always looks simpler with these incorporation service providers... and once you have paid, the hidden details are revealed.

Dubai seems indeed a great solution, for a highly profitable business. For me, it's just a small project that I will cash 50-100K profits and it won't last more than 1-2 years.. so not gonna spend 10K++ just to build the offshore company.

It's way below 10k but fair enough.

So it seems you need banking then you can only bank your mentioned profits with "no accounting requirements" jurisdictions with some kind of EMI or really bad Offshore Banks like Caye Bank Belize / Hamilton Reserve Nevis etc.

 

[johnstevenson637]

It's way below 10k but fair enough.

So it seems you need banking then you can only bank your mentioned profits with "no accounting requirements" jurisdictions with some kind of EMI or really bad Offshore Banks like Caye Bank Belize / Hamilton Reserve Nevis etc.

I remember having received a quote and it requires a 5-day trip to Dubai and a long process. That wasn't a good fit for me, unfortunately.

For a bigger business, I would have considered it for sure..

 

[blizz]

Isn't the accounting the same as in Seychelles and Belize etc. you just need to sign a document that accounting is kept in the companies office, but in reality, no one will ever ask for it?

 

[Sols]

It's unlikely that the government of SVG, Belize, or Seychelles will ask for the books of a company like this. But because it's well known that these accounting records are required, other governments (such as your own, if/when you get caught for attempting tax evasion) and also banks and payment processors can demand to see the accounting records.

The governments of these old fashioned tax havens have enacted accounting requirement legislation specifically to appease foreign governments and organisations like OECD and FATF. Don't think of the accounting as something for their sake. It's for everyone else's sake.

And for your own sake as a business owner.

 

[Jerry1911]

Whole Caribbean except BVI and Nevis require accounting.

What about Belize and Cook Islands LLCs?

 

[Fred]

What about Belize and Cook Islands LLCs?

Belize requires accounting and has meanwhile 3% Tax Rate.