One of the common characteristics of an offshore company is that the good standing of the company is directly related to the payment of yearly registration fees. Strict customer due diligence and Know Your Client (KYC) regulation ensures that financial institutions keep their customer files up to date. The result is that most banks and payment processors require beneficial owners of (offshore) companies to submit fresh company documents and certified copies of identification papers to fulfil its compliance function.
Inactive companies and unresponsive beneficiaries often see their bank account blocked and eventually closed. The account balance is reserved and paid out to the company when it gets reactivated. This situation can occur in bankruptcy, liquidation and winding up of the financial institution where creditors are required to submit its proof of debt and proof of claim, as well as in situations where the dormant (offshore) company is transferred to another owner by sale or even inheritance. Beneficiaries and next of kin are required to comply with severe administrative procedures to avoid that corporate assets are transferred to the incorrect beneficiary.
The administrative burden for those new to the offshore industry is often complex and difficult to grasp. Therefore, Legal Floris LLC and Equation Corporate Services Ltd. created tailor made reactivation packages for the most common offshore (and onshore) jurisdictions to ensure a smooth transaction allowing creditors to act within a reasonable time. Diligence and experience in this industry is the driving force behind a swift reactivation procedure that allows our customers to file their claims at the appropriate time before the final deadlines arrive.