Where Offshore Companies Are Cheapest to Maintain

What “cheapest to maintain” really means

The core recurring costs

When people talk about maintenance, they’re usually referring to:

Government renewal fees: Annual franchise tax or licence fee payable to the registry.

Registered agent/office: A legal requirement in most offshore jurisdictions.

Company secretary/filing agent: Preparing annual returns or confirmation statements.

Accounting and audit: Required in many mid-shore jurisdictions and increasingly in classic offshore hubs.

Economic substance filings: If your activity is “relevant” under local substance rules, expect recurring declarations and real local spend.

UBO/AML compliance: Periodic KYC refresh with your agent or service provider.

Bank/fintech costs: Account maintenance, periodic compliance reviews, and occasionally relationship fees for higher-risk jurisdictions.

A location with a rock-bottom government fee can still be expensive if it triggers audits, heavy accounting, or bank friction.

The non-obvious costs

Penalties: A cheap structure that risks a $25,000 late filing penalty isn’t cheap.

Bankable reputation: If banks keep rejecting your jurisdiction, you’ll spend time and money migrating or chasing new accounts.

Changes in rules: Jurisdictions that overhaul laws frequently can add surprise filings or costs midstream.

Substance creep: Some places start with “light” requirements but move toward economic substance demands for more activity types.

From experience, the sustainable “cheapest” structures balance small statutory costs with predictable compliance and decent bankability.

The short list: consistently low-cost picks

If your goal is pure maintenance cost and light compliance (with caveats to follow), these repeatedly come out near the bottom on yearly outlay:

New Mexico LLC (USA)

Typical annual: $100–400 if you self-file US Form 5472; $300–700 if you outsource it.

Zero state annual report; registered agent fee only. But a foreign-owned single-member LLC must file Form 5472 with a pro-forma 1120 each year.

Wyoming LLC (USA)

Typical annual: $300–650 including the $60 state fee, registered agent, and 5472 prep if foreign-owned SMLLC.

Bankable, transparent, straightforward compliance.

UK LLP (United Kingdom)

Typical annual: $700–1,500 for confirmation statement, registered address, and micro-entity accounts prep/filing.

Partnership taxation; no corporation tax at entity level if correctly structured with non-UK members and no UK trade.

Belize IBC

Typical annual: $350–700 (government fee plus registered agent/office).

Light reporting but must maintain accounting records and satisfy economic substance if conducting relevant activities.

Seychelles IBC

Typical annual: $350–800.

Very low government levy; requires keeping accounting records and providing basic annual information to the agent.

Nevis LLC (St. Kitts & Nevis)

Typical annual: $500–900.

Straightforward for holding/consulting; banking can be trickier than US/UK.

Panama SA

Typical annual: $650–1,100 (includes $300 franchise tax plus resident agent).

Requires maintaining accounting records; widely accepted by many banks in the Americas.

BVI Business Company

Typical annual: $1,000–1,600.

Not the absolute cheapest, but excellent bankability; since 2023 BVI requires a simple annual financial return to the agent.

A few mid-shore options stay competitive if you need better reputation or EU footprint:

Estonia OÜ: $600–1,500 a year if simple books; no tax on retained earnings, but accounting and annual report required.

Delaware LLC (USA): $300 state franchise tax; total often $500–900 including 5472 for foreign-owned SMLLC.

How global rules affect your “cheap” choice

The cheapest place to renew isn’t necessarily the cheapest to own over time.

Economic substance rules: Across BVI, Cayman, Bermuda, Seychelles, Belize, Nevis, and more, companies engaging in “relevant activities” (finance, distribution and service centre, IP business, holding, headquarters, shipping, fund management) may need local employees, expenditures, and directors. This can transform a $500 annual renewal into thousands in real local spend. If you won’t have that presence, avoid structures that trigger ESR.

Automatic exchange of information (CRS) and UBO transparency: Banks and agents typically need ultimate beneficial owner data. Low-cost secrecy is largely gone. Jurisdictions aligned with global standards have smoother banking, even if they cost a bit more.

Banking de-risking: Fintechs and banks routinely black-list or white-list jurisdictions. A cheaper jurisdiction with poor bank acceptance costs you time and opportunity. US LLCs and UK LLPs remain easy to bank for online businesses; some classic offshore jurisdictions require specialist banking relationships.

Home-country tax: Controlled Foreign Company (CFC) rules, management-and-control tests, and anti-avoidance provisions can pierce the “offshore” benefit. If your tax residency and day-to-day management are in a high-tax country, you may owe tax locally regardless of where the company sits. That doesn’t change maintenance fees, but it can affect the viability of the entire plan.

Deep dives: what the yearly bills look like

New Mexico LLC

Why it’s cheap: No annual report, no state franchise tax for LLCs, only a registered agent fee.

Annual cost profile:

Registered agent: $35–100

Federal filing (if foreign-owned single-member): Form 5472 with pro-forma 1120; penalty for failure can be $25,000. DIY is free; outsourced $200–500.

Optional: Virtual address $100–300

Typical total: $100–400 if you manage 5472 yourself; $300–700 if outsourced.

Good for: Holding assets, online contractors/consultants, small e-commerce. Bankable with US fintechs (Mercury, Relay, Wise) even for many non-residents.

Watch-outs:

Foreign-owned SMLLC 5472 filing is easy to miss. Put it on a calendar.

Don’t treat it as a tax-free box. Your personal tax residency drives taxation of profits.

Some EU payment processors prefer an EU entity.

Wyoming LLC

Why it’s cheap: Minimal annual report ($60 minimum), strong privacy, business-friendly state.

Annual cost profile:

State annual fee: $60 minimum

Registered agent: $25–60

Federal 5472 (for foreign-owned SMLLC): $0 DIY; $200–500 if outsourced

Typical total: $300–650, depending on service levels.

Good for: Small service businesses, Amazon/e-commerce, SaaS with US clients. Bankable.

Watch-outs:

Beware nominee add-ons. Most solo founders don’t need them and they bloat costs.

If you have significant assets located in Wyoming, the annual state fee can exceed $60.

UK LLP

Why it’s cheap: Partnership taxation, micro-entity filings achievable, great reputation and bank access.

Annual cost profile:

Confirmation statement: £34 online fee

Registered office/service address: £50–150

Accounts preparation/filing: £400–900 for simple micro LLP

Person of Significant Control (PSC) requirements: administrative only

Typical total: $700–1,500

Good for: Agency, consulting, B2B services, affiliate marketing, joint ventures. UK and EU banking/fintech access is stronger than classic offshore.

Watch-outs:

Must file accounts annually even if no UK tax is due. Don’t skip this: late filing penalties begin around £150 and escalate.

You need two members. If both are offshore, ensure you don’t accidentally create a UK permanent establishment.

Belize IBC

Why it’s cheap: Low government levy, straightforward compliance for non-relevant activities.

Annual cost profile:

Government fee: roughly $150

Registered agent/office: $200–500

Accounting records: must be maintained and accessible; some agents request an annual financial summary

Typical total: $350–700

Good for: Simple holding or consulting where minimal reporting is helpful. Works as a cost-effective SPV.

Watch-outs:

Banking can be harder; pair with a separate, reputable banking jurisdiction or fintech.

Economic substance applies for relevant activities, which increases cost.

Seychelles IBC

Why it’s cheap: One of the lowest government fees and relatively light filings.

Annual cost profile:

Government fee: typically around $100

Registered agent/office: $200–450

Accounting records: maintain and provide periodic summaries to the agent

Typical total: $350–800

Good for: Holding companies, small service businesses with non-sensitive clients, investment SPVs.

Watch-outs:

Perception risk with some counterparties. Banking access is weaker than UK/US entities.

Periodic regulatory changes add small admin items; work with a responsive agent.

Nevis LLC

Why it’s cheap: Clean LLC legislation, modest renewal fees, decent asset protection reputation.

Annual cost profile:

Government fee: ~$250

Registered agent/office: $200–300

Add-ons (optional): manager services, compliance certifications

Typical total: $500–900

Good for: Asset holding, consulting, structures where asset protection is a priority.

Watch-outs:

Traditional banks may prefer BVI or Panama. Expect to rely on fintechs or boutique banks unless you have strong business documentation.

Panama SA

Why it’s cheap: Low, predictable franchise tax and strong regional banking relationships.

Annual cost profile:

Franchise tax: $300

Resident agent: $300–600

Accounting records: must be maintained; some agents charge record-keeping administration

Typical total: $650–1,100

Good for: Latin America trade, holding companies, shipping-related activity, conservative set-and-forget structures.

Watch-outs:

If you have Panamanian source income, you’ll face local tax and bookkeeping like any onshore company.

Expect KYC rigor from reputable banks.

BVI Business Company

Why it’s cheap-ish: Not the lowest fee, but you get excellent global familiarity and bankability.

Annual cost profile:

Government fee: ~$450 for up to 50,000 shares (higher for larger share capital)

Registered agent/office: $400–800

Annual financial return (since 2023): a simple summary to your agent; processing fees often $150–300

Typical total: $1,000–1,600

Good for: International holding, joint ventures, investment structures, entities needing broad bank acceptance.

Watch-outs:

Relevant activities trigger substance requirements.

Expect banks to ask for the new annual return and up-to-date accounting records.

Delaware LLC

Why it’s mid-cheap: Higher franchise tax but strong reputation and courts.

Annual cost profile:

Franchise tax: $300 flat for LLCs

Registered agent: $50–150

Federal 5472 for foreign-owned SMLLC: $0 DIY; $200–500 outsourced

Typical total: $500–900

Good for: Venture-facing startups, US client focus, and structures that value Delaware’s legal infrastructure.

Watch-outs:

For purely cost-driven setups, Wyoming is cheaper.

Estonia OÜ (not offshore, but cost-efficient)

Why it’s cost-efficient: No corporate tax on retained earnings; digital administration; good EU perception.

Annual cost profile:

Accounting: $500–1,200 for a small, uncomplicated business

State fees: negligible after setup

Audit threshold is high; most small OÜs avoid mandatory audit

Typical total: $600–1,500

Good for: EU-facing SaaS and online businesses that value legitimacy and access to European payment rails.

Watch-outs:

Dividends trigger corporate tax; VAT registration and payroll add admin if you hire in the EU.

Not a secrecy tool. It’s for clean, operational businesses.

Banking reality: pair your jurisdiction wisely

You can shave $200 off annual fees by choosing a more obscure jurisdiction and lose tenfold in delays when trying to open an account. A few pairing suggestions that keep maintenance low and banking workable:

US LLC + US fintech (Mercury, Relay, Wise USD): Smooth onboarding; low ongoing costs. Great for USD revenues.

UK LLP + UK/EU fintech (Wise, Revolut Business, Payoneer): Broad acceptance and card payment options; accountants are easy to find.

Panama SA + Latin American bank: If you have regional trade, Panama unlocks serious banking options; maintenance cost remains modest.

BVI Company + Asian/EMEA banks: Where the ticket size is larger or counterparties are institutional, the $300–600 extra maintenance over Seychelles/Belize often pays back in bankability.

If you must use a classic offshore jurisdiction with weak bank acceptance, consider holding-operating splits:

Offshore holdco (Belize/Seychelles/Nevis) + onshore opco (UK/US/EU) for banking and merchant accounts.

Your maintenance rises, but real-world usability improves dramatically.

Common mistakes that make cheap companies expensive

Ignoring mandatory filings: The US Form 5472 penalty is $25,000. UK late accounts penalties escalate up to £1,500. That wipes out years of savings.

Choosing a jurisdiction banks won’t touch: You’ll spend months chasing accounts or end up with high-fee EMI solutions.

Triggering economic substance by accident: Distribution and service centre, finance, IP—these can require real local presence. If you can’t meet it, pivot to a transparent, mid-shore option.

Overpaying for nominees: Unless your risk profile truly calls for it, nominees add hundreds yearly and more complexity.

No bookkeeping because “no audit”: Banks increasingly demand P&L, balance sheets, and invoices. Ad-hoc bookkeeping is costlier than a simple, steady process.

Letting agents auto-renew add-ons: Sanctions-screening subscriptions, mail forwarding you don’t use, or overpriced compliance “packages” can bloat costs. Review invoices line by line.

Step-by-step: how to keep offshore maintenance genuinely low

Map your activity and revenue flows

Who are your customers? Where are your suppliers? Which currencies?

Will you need a payment gateway, card acquiring, or only bank transfers?

Pick the least complex structure that satisfies those needs

If you can bank with US fintechs, a Wyoming or New Mexico LLC usually wins on cost and simplicity.

If you need EU credibility, a UK LLP or Estonia OÜ typically beats a cheap offshore jurisdiction plus banking headaches.

Screen for mandatory audits and heavy accounting

Avoid jurisdictions that force audits for small entities. That alone can add $800–$2,500 a year.

Micro-entity filings or basic annual returns keep maintenance predictable.

Pre-verify banking

Get pre-acceptance from at least one viable bank/fintech before you form the company. No point in the “cheapest company” if you can’t get an account.

Plan for filings

Build a compliance calendar: state fees, confirmation statements, 5472 deadlines, annual returns. Use reminders.

Keep your accounting records updated quarterly. It makes bank reviews and filings trivial.

Keep the ownership clean

Simple single-member or two-member structures are cheaper to maintain and verify. Complex chains invite extra KYC and fees.

Use a responsive, transparent agent

A slightly more expensive agent who warns you about regulatory changes can save big downstream costs.

Scenario-based recommendations and expected annual costs

Solo consultant with international clients, needs USD and EUR accounts

Pick: Wyoming LLC or New Mexico LLC + Wise Business and a US fintech.

Maintenance estimate:

WY: $300–650 (state fee + RA + 5472 prep)

NM: $100–400 if self-filing 5472; $300–700 if outsourced

Tips: Keep engagement letters and invoices tidy for bank reviews. Consider a separate EUR receiving account to cut FX costs.

Two-partner marketing agency serving EU clients

Pick: UK LLP for legitimacy and banking access.

Maintenance estimate: $700–1,500 (confirmation statement, registered address, micro accounts)

Tips: Ensure no UK permanent establishment if both partners are non-UK; document where work is performed.

E-commerce brand with Amazon and Shopify

Pick: Wyoming LLC (US marketplaces love US entities) + dedicated US payment stack.

Maintenance estimate: $300–650

Tips: If selling in the EU/UK, handle VAT properly. The US entity’s low maintenance can be offset by VAT compliance if ignored.

Crypto investment holding/SPV

Pick: Nevis LLC or Panama SA depending on banking and counterparty perception.

Maintenance estimate:

Nevis: $500–900

Panama: $650–1,100

Tips: Wallet KYC trails matter; maintain transaction logs. Some exchanges prefer onshore entities.

Holding company for global assets or JV

Pick: BVI Business Company for bankability and familiarity with institutional counterparties.

Maintenance estimate: $1,000–1,600

Tips: Prepare simple annual financial returns and keep board minutes. This smooths bank due diligence.

EU-facing SaaS with a lean team

Pick: Estonia OÜ if founders are comfortable with EU compliance and need credible payment rails.

Maintenance estimate: $600–1,500

Tips: Keep invoices and subscriptions neatly categorized; consider e-Residency to streamline filings.

Quick cost comparison by category

True minimal admin

New Mexico LLC: $100–400 (self-managed filings)

Wyoming LLC: $300–650

Low-cost classic offshore

Belize IBC: $350–700

Seychelles IBC: $350–800

Nevis LLC: $500–900

Mid-cost, higher bankability

Panama SA: $650–1,100

BVI Company: $1,000–1,600

UK LLP: $700–1,500

Delaware LLC: $500–900

Estonia OÜ: $600–1,500

Not cheap, notable for context

Hong Kong company: $1,200–3,500+ yearly once you include audit

UAE free zone company: $3,000–5,000+ renewal; substance can add more

Singapore company: $1,500–4,000+ depending on accounting and possible audit

Reputation, risk, and the “hidden interest rate” on your structure

Think of jurisdiction reputation like a hidden interest rate on your operating costs. Poor reputation raises the “rate” by:

Limiting banks and payment processors you can use

Slowing down KYC and onboarding

Triggering more frequent reviews and document requests

That friction can easily cost more than the $200–500 you saved on the renewal. If you sell to regulated or enterprise clients, or need card acquiring, it’s usually smarter to spend a little more on a jurisdiction with strong perception.

From repeated client work, these heuristics hold:

For purely cost-driven, bankable setups with US-facing revenue: a US LLC wins.

For EU-facing service businesses: a UK LLP or Estonian OÜ keeps both compliance and perception in balance.

For holding/investment with institutional touchpoints: BVI or Panama over ultralow-fee islands, even if the sticker price is higher.

What to confirm before you decide

Economic substance exposure: Are you engaging in relevant activities? If yes, can you meet local staff and spend?

Banking pre-approval: Will at least one reputable bank/EMI onboard you?

Home-country tax position: CFC rules, place-of-effective-management, and reporting obligations (e.g., 5472) can change your real cost.

Accounting expectations: Even if not statutory, will your bank or payment processor demand yearly financials?

Agent transparency: Ask for a line-item renewal quote—government fee, registered agent, mandatory filings, and optional extras.

Red flags that inflate maintenance over time

FATF grey/black list status shifts: Grey listing can spook banks. Watch for updates and have a Plan B bank ready.

Sudden “compliance packages” from agents: When rules change, some providers upsell. Ask what’s mandatory versus optional.

Overly complex ownership: Layering foundations, trusts, and multiple jurisdictions can triple KYC and fees. Keep it lean unless you have a clear legal need.

Realistic annual budgets (all-in) for common profiles

Lean solo consultant with US clients (Wyoming LLC): $300–650

Global freelancer wanting minimal admin (New Mexico LLC): $100–400 if self-managing 5472; $300–700 if outsourcing

Two-partner EU services LLP: $700–1,500

Low-profile holding SPV (Belize/Seychelles): $350–800

Asset protection tilt (Nevis): $500–900

Latin America trading or conservative holdco (Panama): $650–1,100

Institutional-facing holdco (BVI): $1,000–1,600

EU SaaS micro (Estonia): $600–1,500

These numbers assume no mandatory audit, modest transaction volumes, and no in-house payroll. Add $600–$2,500 for yearly accounting/audit if your scale or jurisdiction demands it.

Practical examples from the field

A content creator based in Southeast Asia moved from a Seychelles IBC to a UK LLP. Annual cost rose from ~$500 to ~$1,100, but Stripe onboarding and EU partnerships unlocked 3x revenue. Net-net, cheaper was costing her growth.

A US-nonresident consultant set up a New Mexico LLC to save on state fees but missed the 5472 filing. A $25,000 penalty erased savings for a decade. After that, he moved to Wyoming with bundled compliance from a CPA at ~$450/year. Not the absolute cheapest, but sustainably cheap.

A small crypto fund tried a Nevis LLC + offshore bank. Banking friction consumed months. They re-domiciled to BVI and opened with a boutique bank; annual costs went up ~$600, but investor onboarding speed improved dramatically.

How to compare provider quotes like a pro

Ask for the renewal broken into:

Government fee or franchise tax

Registered agent/office

Mandatory annual filings (e.g., BVI annual financial return processing, UK confirmation statement)

Accounting/bookkeeping (if provided)

Compliance/KYC refresh charges

Optional services (nominees, virtual office, mail forwarding)

Disbursements (couriers, apostilles, registry extracts)

Then benchmark across two or three providers. You’ll quickly see who leads with a teaser government fee and who’s quoting transparently. Choose the provider who will answer “why” a fee exists and what’s optional.

When cheapest is the wrong question

If you need:

Merchant acquiring (cards) in the EU

Enterprise procurement clearance

Regulated-industry clients (finance, health, government)

Venture investment and due diligence

…you’ll often be better served by a mid-shore or onshore-easy structure (UK LLP, Estonia OÜ, Delaware LLC with proper US presence). Your maintenance will be a few hundred dollars higher, but your conversion rates, payment options, and partner trust will save far more than that difference.

A simple decision framework

Need pure minimal maintenance, USD banking, and simple compliance? US LLC (New Mexico or Wyoming).

Need EU credibility and painless fintech access? UK LLP or Estonia OÜ.

Need conservative holding with American banking ties? Panama SA.

Need global bankability for investment/holdco? BVI Business Company.

Need asset protection flavor with modest cost? Nevis LLC.

Want the absolute lowest headline fees and light filings for a small SPV? Belize or Seychelles IBC, provided you solve banking elsewhere.

Final thoughts

“Cheap” is a strategy, not a single location. The sweet spot is the lowest yearly spend that still lets you bank smoothly, meet regulatory obligations without drama, and avoid costly penalties. For many small online businesses, that’s a US LLC or a UK LLP. For holding or investment plays, Panama and BVI remain hard to beat on cost versus acceptance. If you’re set on the absolute lowest sticker price, Belize and Seychelles deliver—but plan your banking in parallel so the savings stick.

Do the math with your actual needs, pre-clear your banking, and keep your compliance tight. That’s how an offshore company stays cheap to maintain year after year.