Why You Need to Renew Your Company Annually with BVML
There are several reasons why renewing your company's registration annually is essential. These include the following:Ensuring Up-to-Date and Accurate Information
Annual renewal helps ensure that your company's information remains current and correct. Companies must provide details such as their registered office address, director information, and share structure. By renewing annually, you can confirm and update this information as needed.
Compliance and Regulation
Renewal allows regulatory bodies to monitor and regulate companies to ensure compliance with the law. The information provided during the renewal process helps identify companies that may be at risk of breaching their obligations. This prevents fraudulent activities and ensures that companies operate within legal boundaries.
Maintaining Legal Status
Renewing your company’s registration maintains its legal status, which is crucial for ongoing operations. Failure to renew can result in deregistration, leading to the loss of legal status, assets, and contracts.
Solvency Verification
The annual review allows company directors to verify their ability to pay debts on time and pass a solvency resolution. This step ensures the financial health and credibility of the company.
Payment of Annual Fees
During the annual review, companies must pay their annual fees to regulatory authorities. This step is mandatory for maintaining active status.
How the Company Renewal Process Works
After receiving your company's annual statement, follow these steps:- Annual Company Review Fee Payment
Pay the annual review fee as outlined in the invoice included in your company’s annual statement. The fee amount depends on the type of company you have. For example, a public company pays $1,346, while a proprietary company pays $290. You can also make advance payments for future annual reviews. - Updating Your Company Details
Review the annual statement to ensure all details are accurate. If any information is outdated or incorrect, update it online using your company’s corporate key provided by the regulatory authority. - Passing a Solvency Resolution
Within two months of the review date, company directors must pass and store a solvency resolution. This resolution declares whether the company can repay its debts on time. If a negative resolution is passed, notify the regulatory authority immediately. Failure to pass a resolution within the specified timeframe also requires notification.
Consequences of Not Renewing Your Company
Failure to renew your company can lead to several consequences:- Late Fees: Late payment of the annual review fee incurs additional charges. For instance, a late fee of $87 applies if payment is up to one month late, and $362 if more than one month late.
- Deregistration: Your company can be deregistered, resulting in the loss of legal status, assets, and contracts.
- Legal Action and Penalties: Non-compliance with renewal requirements can lead to legal action and financial penalties.
How BVML Can Help
At BVML, we offer comprehensive assistance to ensure your company’s annual renewal is completed efficiently and on time. Here’s how we can help:- Timely Completion: We ensure your annual renewal is completed on time to avoid late fees.
- Hassle-Free Process: We handle the paperwork and submit the necessary documents on your behalf.
- Compliance Assurance: We ensure your company meets all legal requirements and stays compliant.
Next Steps
In conclusion, annual renewal is a crucial requirement for all companies. It ensures legal compliance, maintains accurate information, and prevents the risk of deregistration. At BVML, we provide the support and tools needed to complete the renewal process seamlessly. If you have any doubts or need further assistance, our team is here to help.CONTACT US TO RENEW YOUR COMPANY NOW!