ILS World, Isle of Man UK and Worldwide

Introduction | Services | Billing Guide | Due Diligence

ANNUAL RENEWAL FEE NOTES
A renewal fee note will include the provision of fixed fee services that are provided on an annual basis, for example, the provision of registered office and agent, provision of company secretary, directors, shareholders, etc. This fee note will also include annual disbursements such as Government licence fees, fixed rate taxes or duties and Annual Return filing fees where appropriate.

It should be noted that where we do not provide registered agent or company secretary, we will not include any annual taxes, duties or filing fees in the fee note as the filing of these are considered to be the responsibility of the registered agent or company secretary. Therefore, it would not be appropriate for us to receive the funds to attend to these matters but for the appointed agent or secretary to deal directly with the relevant authorities.

The currency of your renewal fee note will be either US Dollars or Sterling, depending on the country of incorporation, for example, BVI company fees are based in US Dollars; Isle of Man companies in Sterling.

What is included in my renewal fees?
Renewal fees are essentially "responsibility fees" for the provision of the "tools" in order for your company to function. These fees do not include any element of charges for ongoing administration work in respect of the actual operation of the company. Fees for this work are charged separately. However, there are exceptions to this rule as follows:

Where we provide registered agent our fee includes arranging the submission of the Annual Government Licence Fee.
Where we provide company secretary our fee includes the preparation and filing of the company's Annual Return where this is appropriate to the jurisdiction.
When do I need to pay my Renewal Fees?

Renewal fees are payable in advance. You will receive one renewal fee note each year which will be sent to you approximately six weeks before its due date. The due date depends on the country of incorporation of your company and the year that the fees cover will be indicated on the second page of the fee note. You should endeavour to pay the fees no later than the due date stated. Prompt settlement is essential in order to keep your company in good standing and avoid unnecessary penalties, as taxes and filing fees will not be disbursed until we are in receipt of settlement of your fees.

Upon settlement of this fee note our accounts department will provide you with a proper receipted VAT invoice. This is for your records only and requires no further action from yourselves.

ADMINISTRATION INVOICES
Work carried out on your company during its lifetime in respect of changes to its structure, the preparation or provision of documents, operation of its bank account, basic accounting, mail forwarding and other general day to day administration is normally charged quarterly in arrears. The type of charges levied will depend on the nature of the work carried out and the amount of activity of your company. Administration fees are normally charged in Sterling.

When can I expect to receive invoices for administration charges?
Invoices are raised at the end of each calendar quarter so you will normally receive no more than four administration invoices per year. If the amount that has accrued at the end of a quarter is less than Ł50 no invoice will be raised but the charges will be held over until the quarter in which the amount reaches a level above Ł50. However, please note that each March administration invoices will be raised for all amounts accrued whether or not the charges reach Ł50.

Additional invoices may be raised from time to time on the completion of a particular job if specifically requested by you or if it makes sense to do so.

Are fixed fees charged for administration work?
Much of the administration work we do is now charged on a fixed fee basis so you will often be charged a set amount regardless of the amount of time that is spent carrying out a task by our administrators.

Our General Administration Price List is available upon request, which includes fixed fees relevant for companies incorporated in any jurisdiction. Also available are price lists covering fixed fees specific to companies incorporated in the most popular jurisdictions.

What if ILS has no fixed fee for the work I require?
If a particular job is not included on our price lists it will usually mean that the work is carried out on a time-spent basis at the appropriate administrator's charge- out rate. The current rates can be found on the General Administration Price List referred to above and you can generally expect the rate charged to be between Ł75 - Ł88 per hour.

If you require more certainty with regard to the amount that you will be charged for a particular job, we will be happy to negotiate a fixed rate on a case by case basis. However, it should be noted that this will often work out less cost effective as in doing so we will usually have to make provision for any unforeseen matters that may arise which will be reflected in the fee agreed.

Can I expect to be charged for services that I have not specifically requested?
The law and our due diligence procedures require us to take an active role in those companies where we provide officers in addition to our basic services. This means there will sometimes be a need for us to take administrative actions on your behalf without specific instructions to do so. This is particularly the case where the company is registered for VAT, where we operate bank accounts or if we are obliged to maintain accounting records. We also make a charge for conducting an annual file review as required by law.

In discharging our duties professionally and in complying with local law and good practice, we must reserve the right to make reasonable charges for this work.

CLOSURE OR TRANSFER OF A COMPANY
If you no longer require your company then we will be happy to close the company down in the most efficient and cost effective way according to the laws of the jurisdiction of incorporation. Upon instructions to close a company, we will cancel an outstanding renewal fee note providing it is less than three months old. If the fee note has been outstanding for three months or more, we will normally require settlement of a pro-rated amount up to the date that you request closure.

A final invoice will also be raised for any fixed fee, time charges and disbursements that have accrued for services provided whilst the company was still active together with any formal dissolution fees or other charges connected with the closure of the company (if any).

We make a fixed charge for the transfer of a company out of our administration, details of which may be found on our General Administration Price List. Otherwise the invoicing position applicable to companies that are transferred out of our administration is the same as when the closure of a company is requested as described above.

What if I no longer have an interest in a company and I require ILS to deal with my client or another party directly?
We will be happy to make contact and deal with a new party in respect of a company on receipt of your instructions to do so. However, we would consider you to remain responsible for all fees due and outstanding in respect of a company up to the date of your withdrawal from the company. Once we have established a relationship with the new contact and they have satisfied our due diligence requirements, we will be in a position to continue to provide services to the company on their instructions and bill them accordingly as our new client.