Offshore Accountancy Services

Accounting for classical offshore companies – starting from 2000 USD

Despite all the possibilities and flexibility of offshore legislation in many countries, requirements for maintaining offshore accounting are now present in the vast majority of offshore zones. You may often be faced with a lack of requirements for filing audited or annual reports. However, all operations of your offshore companies need to be reflected in internal accounting that can be demanded for submission on request.

More demanding accountability rules have occurred due to a global tendency towards maximum transparency. Nevertheless there is also a need to minimize aggressive tax evasion, terrorist financing and other crimes. According to recommendations of the OECD, offshore legislation has introduced amendments to accounting that is now required for offshore companies.

If you do not need to submit them to the appropriate tax authorities, this does not mean that a requirement to keep and store accountancy internally can be ignored. If you fail to report to tax authorities of the country of registration of your offshore company and do not provide relevant documentation, you will face significant fines.

Attention! Reporting requirements for offshore. Non-compliance with the requirements will result in fines!

How to avoid penalties for the lack of accounting in offshore?

In order not to get into an unexpected situation when you are not able to meet the request of authorities with your offshore company, we recommend that you use our accounting services for your offshore company.

Let’s take a look at an example of offshore registered in in Nevis, consider what is required and how we can help you.

In Nevis you can establish either IBC or LLC company. Both structures are now required to have accounting.

For Nevis LLC, it is necessary to keep records of all company’s operations which are reflected in contracts, invoices, and other business documents. The list of required documents for Nevis LLC is more straigforward if you understand what is considered as accountable, and that is:

All receivables and payables by the company, as well as the reasons for income or expense;

All purchase and sale transactions, as well as other transactions, assets and liabilities of the company.

According to the law, all financial statements for Nevis LLC should: correctly explain all transactions, financial state of the company at any time and include detailed reports. Reports have to be kept in records for 5 years from the moment of its preparation, preferably at the address of the registered agent or in any other place that is suitable for verification of reports by company members at any time. In case of violation of these requirements, the company will face a fine of 5,000 USD.

Requirements for reporting on Nevis IBC are identical as for Nevis LLC, but in addition to the above, Nevis IBC is obliged to keep all minutes of shareholders meetings, records of measures taken by shareholders decision, minutes of directors’ meetings and records of measures taken by their decision. All records must be kept in writing or any other form, with a possibility of conversion to writing in a reasonable amount of time.

And this is only for offshore companies established in Nevis. You will find similar requirements in almost every reliable and respectable offshore jurisdiction.

Procedure for accounting and keeping records for your offshore company

In order to start accounting for your offshore company or use our services, please contact us directly at info@offshore-pro.info. Our experts will help you understand this issue and provide the appropriate service.

In order to provide you with accounting service, we will send you a form to fill in. This form will depend on your company’s activities.

Requirements for offshore companies with an investment portfolio

For companies that are engaged in investment activities and have an investment portfolio in bonds, stocks, shares, mutual funds and other, the following information must be provided:

  1. Company name;
  2. Reporting period;
  3. Activities of the company;

Simply put, by activities we mean the main the purpose of this company. For example, if the main activity of the company is to hold an investment portfolio, please indicate the following:

“The main activity of the company is to hold an investment portfolio.”

  1. Explanation on how the investment portfolio was acquired;

If the investment portfolio was acquired through a personal loan, you must specify the terms and conditions and the name of the lender. For example, if it was agreed to pay interest to the lender throughout the entire period, you must specify the interest rate and other conditions.

  1. Does the company have a bank account tied to its investment portfolio?

If the answer is yes you will need to provide copies of bank statements for the reporting period from all company accounts. If the answer is no, and the investment portfolio has its own cash account, you will need to attach copies of the annual cash flow of the cash account.

Also, in addition to having a bank account, you must provide the following:

Copies of all bank debit and credit notes;

Copies of all invoices;

Copies of all contracts for the company;

A detailed description of the company’s business activities.

  1. You must provide copies of monthly reports of the investment portfolio for the entire year. Reports of the investment portfolio should include the value of the securities, interest paid, dividends paid, details of the cash account.
  2. It is also necessary to provide a list of other property and debt obligations that relate to the company;

This can be any other property that belongs to the company, such as a car, furniture, etc. It is also needed to indicate their value, as well as potential debt obligations or loans that relate to the company. Full value at the beginning of the reporting period has to be included too.

  1. Other information that you consider to be important needs to be included too
Service Number of transactions (per year)
Initial data processing and first year Up to 40 41 to 150 151 to 200 201 to 250
Initial data processing $ 400 $ 400 $ 400 $ 400
Accounting on yearly incomes, expenses, obligations and assets at the end of the year $ 1,600 $ 3,000 $ 3,600 $ 4,600
TOTAL for 1 year $ 2,000 $ 3,400 $ 4,000 $ 5,000
Yearly service, starting from the second year
Accounting on yearly incomes, expenses, obligations and assets at the end of the year $ 1,600 $ 3,000 $ 3,600 $ 4,600
TOTAL for 1 year $ 1,600 $ 3,000 $ 3,600 $ 4,600

Offshore company financial statements preparation

At the first stage, you need to provide the company’s primary documentation in English for the relevant reporting period. Documents must be emailed to us in scanned copies. Primary documentation includes: bank statements and documents confirming transactions (contracts, invoices, etc.).

Depending on the number of transactions for the reporting period and on the basis of the provided supporting documents, the cost of reporting will be calculated. After the amount for payment is agreed, you will need to make a payment for the service according to the invoice.

The finished financial report is issued on the official form of the accounting company and is certified by the signature of the authorized person (accountant) and stamp.

Signed and sealed original financial report will be sent to your address by courier service.

Notarization of the financial report is available with additional fee – if required.

Frequently asked questions regarding the provision of accounting services by our company on the example of Nevis LLC:

  1. During the period 2013-2014, Management LLC did not conduct its business, did not have any transactions, and the documents were not processed. Is it necessary to file a corresponding letter about it?

Answer: No, jurisdiction does not require an audit, so there is no need to file this letter.

  1. Is it necessary to make zero reporting for the company?

Answer: Yes, if the members (LLC members) have made a down payment obligation, showing this in the form of capitalization in the balance sheet.

  1. The time frame to create a zero reporting for the company?

Answer: Financial reports should be compiled simultaneously with the operations they describe. We recommend that financial statements summarize operations of the LLC. Also, reporting the financial position of the company needs to be ready within 3 months after the end of the year in case of LLC.

  1. What is the level of confidentiality at the time of reporting?

Answer: All entries will be received and submitted by our office in Panama. Part of the service regarding the storage of accounts on behalf of the client will be carried out in accordance with the requirements of the legislation.

  1. What language is required for accounting?

Answer: In English or any other language. We can provide accounting in English or Spanish. Translation can also be made at an additional cost.

For accounting services for your offshore company please contact us at info@offshore-pro.info.