Year End Review

In this episode, we break down the essential end-of-year steps every offshore company owner should take to stay compliant and avoid costly surprises. It’s a quick, practical guide designed to protect your structures and give you peace of mind heading into the new year. 

Transcript

Speaker: 0:04

Hello everyone and welcome back to Icaza, González-Ruiz Alemán's Legal Insider podcast where we break down the real world legal issues that matter for your business, your structures, and your peace of mind. I'm your host, Zared Tempro, and today we're tackling something that most people only think about when it's too late. Year-end compliance for offshore companies. If you have a company in Panama, the BVI, Nevis, Bahamas, or any other international jurisdiction, stick with me. This is the episode that's going to save you from penalties, delays, and those "Why didn't anyone tell me this earlier" moments? Compliance is a shared responsibility, and the end of the year is the perfect time to make sure your company is up to date and fully aligned with the laws of the jurisdiction where it operates. So let's get right into it. A lot of people think that offshore companies run an autopilot and they just don't. Even though you already have a registered agent and a registered office, that part is covered. You still have responsibilities each year to make sure everything stays compliant. You'd be surprised how many issues we catch every year that could have been avoided with a 10 minute review. Think of this as your quick annual health check. It's painless, I promise. Now, let's start with the big one. Renewals. Even with a registered agent handling renewals, it's essential that your internal accounting team confirms payments were scheduled and processed correctly, especially if you change banks, if someone left your team, or if the approval workflow changed this year. Because once a company loses good standing, things, snowball and reinstatement becomes really expensive. So your first task, make sure your internal team has the renewal schedule documented and aligned with us. Here's the part everyone loves, and yes, I'm using air quotes. Updating Due Diligence. As your registered agent we're required by law to maintain current KYC and due diligence documents. That means updated passports, updated proof of address documents that are not older than three months, changes in beneficial ownership, new corporate structures, and even changes in your business activities. If your passport expires soon, or if you've changed residency, let us know. If your company started receiving income from a new source or entered a new sector, tell us. Compliance rules don't care if the company is big or small, updates are mandatory and the reality, most regulatory fines around the world today happen because of outdated KYC, not because the company did anything wrong. Help us keep your file in order so we can keep your company in compliance. Every year companies evolve, sometimes quietly. Maybe you opened a new investment account, bought property abroad, started using the company for consulting income, or added a new asset to the structure. If the activity changed even slightly, we need to update your corporate profile. A two line email to us can avoid issues with the jurisdiction's regulator. Now, different jurisdictions have different obligations, but two things are universal: you must maintain accounting records even if the company is not operating. You must also comply with economic substance filings, if applicable. If your company falls under substance requirements, for example, in BVI, Bahamas or Anguilla, we'll tell you what information we need. But we can only file accurate reports if you keep your internal documentation organized. If you're unsure whether your entity has substance obligations, reach out. Part of our job is guiding you through that. Here's something people forget constantly. At all times you must keep corporate records current. That includes resolutions or minutes of directors and shareholders, updated registers of directors, shareholders, or beneficial owners, and properly issued share certificates. These documents prove ownership, safeguard your rights, and protect your company during audits or legal reviews. We maintain the statutory records in compliance with each jurisdiction's requirements, that's covered, but we rely on you to tell us when something changes. If there were changes during the year, we need to record them within legal deadlines. International tax transparency. If you receive CRS or FATCA requests, for example, a W-8 form or a self-certification form, don't ignore them. These are legal obligations and non-compliance can lead to penalties or withholdings on your accounts. Make sure you have complied with any requests you have received during the year. This matter can become complex. Therefore, we encourage you to contact our Icaza Trust Corporation team to assist you, if necessary. And finally, does this structure still make sense for you today? Year end is perfect for reorganizing structures, planning succession, or exploring a better jurisdiction for your goals. If you want us to review your structure, we're here. It's part of the value of having a firm that can actually advise and not just renew companies. Compliance is not about making your life complicated, it's about protecting your assets, your business, and your reputation. And the truth is simple. Companies that stay updated cost less to maintain, work better with banks and avoid legal issues. If you need help with your year end compliance review, updating your documents or evaluating your offshore structure, our team is here to assist you. Your peace of mind is our priority, and compliance is the foundation of that. And if you know someone who manages offshore companies and needs proper guidance, especially in Panama, BVI, or Nevis, feel free to share this episode with them. And thank you for listening. Until next time, stay compliant, stay protected, and as always, we're here to support you.