Offshore Setup Cost & Compliance Checklist
Use this list before you appoint an offshore service provider. It separates the one-off costs of setting up a structure from the recurring obligations that decide whether the structure stays compliant — and cheap — after year one.
1. Purpose test (do this first)
- Write down the business reason for the structure in one paragraph — financing, holding, trading, IP, shipping or investment.
- Confirm that the reason is defensible in your country of residence, not only in the jurisdiction of incorporation.
- Check whether the same outcome could be achieved onshore; if yes, document why the offshore route is still chosen.
- Identify who the ultimate beneficial owners are and whether they must be disclosed locally.
2. One-off setup costs to budget for
- Incorporation or registration fee charged by the registry.
- Registered agent and registered office fee for the first year.
- KYC pack preparation: passports, proof of address, bank or professional references.
- Source-of-funds and source-of-wealth documentation.
- Legal drafting: constitutional documents, shareholder agreement, board resolutions.
- Notarisation, apostille and courier costs for paper jurisdictions.
- Bank introduction fee, if the provider charges one.
- Accounting system setup and opening balance sheet.
3. Recurring obligations (the part that gets forgotten)
- Annual government or registry renewal fee and its due date.
- Registered agent and office renewal.
- Economic substance filing, where the jurisdiction requires one.
- Annual return or confirmation of directors and shareholders.
- Accounting records and, where required, audited or reviewed financial statements.
- Tax return in the jurisdiction, even when the result is nil.
- CRS / FATCA classification and reporting by the entity and its bank.
- Beneficial ownership register updates within the statutory deadline.
- Director and shareholder meeting minutes, kept at the registered office.
4. Questions to put to every provider
- Are you licensed or registered, and with which regulator? Give me the licence number.
- What is the total cost for three years, itemised — not the year-one headline?
- Which banks have you successfully onboarded clients with in the last twelve months?
- Who prepares the substance filing and accounts, and is that included?
- What happens if I want to move to another agent — what does it cost and how long does it take?
- Do you keep copies of my KYC file, and can I get the whole file back?
5. Red flags
- A provider that cannot name its regulator or licence number.
- Advice to under-declare beneficial ownership, activity or turnover.
- Guaranteed bank account approval before KYC is complete.
- Fees quoted only for year one with no published renewal schedule.
- Pressure to use a nominee arrangement without explaining the reporting consequences.
Note: this checklist is general information, not legal or tax advice. Rules differ by jurisdiction and change often — verify current requirements with a licensed adviser in the relevant country before acting.