Closing RAKICC offshore company

[Luislog]

Hi
In case anyone here is familiar with those structures from UAE, is that fine to just not pay the renewal and let the company get struck off or does one need to go through the proper dissolution process?
I ve gone the Non renewal way with a couple of companies in different juridictions where it is known to be fine but not sure about RAKICC offshore. Read that one needs to close onshore UAE companies properly but things seem to be easier with offshore UAE, i certainly Don t want any legal trouble in the UAE.
FWIW the registered agent has a very bad reputation on this forum and I ve had overall bad experience with them as well, so if I ask them, I doubt they offer the easiest process and am not even sure they would do the dissolution properly if paying for it.

Thanks in advance for all replies
Luis

 

[Luislog]

Also, the company bank account is already closed, Co has no activity, assets, nor liability

 

[bastard]

Do you frequently travel to the UAE or live there? if not, forget it, don't renew it and you won't hear anything from it. I don't even think they are able to take any legal actions if you don't renew and the company simply get stroke off.

 

[Luislog]

Thanks for your answer, yes, I still have investments in the UAE, under personal name and need + enjoy travelling there once in a while, I should have added that in the OP,
Before the RAK offshores were merged into RAKICC I'd understood one could just let them be struck off, not sure anything changed, there was an amnesty going on until 2018 regarding struck off RAKICC Cos because of non payment of renewal but it is not clear the amnesty had to do only with the companies, which could be restarted without fine, or also with the directors' standing in the UAE

 

[rowena]

Also, the company bank account is already closed, Co has no activity, assets, nor liability

Which bank is this ? I have RAKICC also and I recommend to close it properly. It shouldn't cost too much.

 

[Luislog]

Thanks Rowena, you are probably right and it wouldn t make a dent in my budget, but besides not trusting the agent I d rather burn the money than give them. Will ask them abt the process and cost anyway.
Not sure why you are asking but the bank was Emiratesnbd,I asked to close the account btw, wasn t forced into it.

 

[Martin Everson]

Close it properly if you can otherwise nothing really crazy happens to you other than entry and visa bans if that's important to you.

 

[Luislog]

Close it properly if you can otherwise nothing really crazy happens to you other than entry and visa bans if that's important to you.

Actually I read that happens to directors of onshore companies, particukarly Dubai FTZ, for which filing requirements and expenses are higher.
Have you witnessed or can you even link to similar issues encountered with owners/difectors of RAK ICC offshore Cos?
Can t say I found anything, good or bad

 

[Luislog]

Also would I have to close the company through the registered agent or can I use another company? There s at least 1 UAE based company apparently specializing in
Closing UAE corporations that advertises online, although they do seem to focus on onshore Cos

 

[Martin Everson]

Who is your registered agent firstly that you are currently using?

 

[Luislog]

Fwiw I went totally to the agent s office in Dubai. According to their rep, while one must close properly onshore UAE Cos, nothing bad happens if one let's a RAKICC offshore gets struck off. Otherwise they can manage the liquidation process for 2550euros.
Besides we had a chat about BVI Cos, as i ve let some get struck off over the years, but through other agents, and he claims to have received new info from BVI authorities stating that those who have let their companies there get struck off, back to 2016 or 2015, now need to go through a proper liquidation or face legal proceedings from? BVI. Not sure if anyone else has heard about this, the agent who took care of my BVI hasn't texted mentioned anything yet

 

[Martin Everson]

now need to go through a proper liquidation or face legal proceedings from? BVI.

Good luck to BVI enforcing that one if true . Only heard about substance test in BVI below.

http://www.mondaq.com/x/846360/Corp...n+Islands+BVI+Economic+Substance+Requirements

 

[Elitegold7]

Any RAK or Ajman or Fujairah Free Zone company is struck off if you do not renew the license. There is no harm in letting this happen and it does not create any headache for you unless you wanna go and set up a new entity with them again which i sincerely doubt as they are now closing bank accounts of all all companies located in Free Zone’s In UAE. ENBD has started closing accounts already. ADCB & ADIB & Mashreq are also initiating it.

 

[Andrei636]

Any RAK or Ajman or Fujairah Free Zone company is struck off if you do not renew the license. There is no harm in letting this happen and it does not create any headache for you unless you wanna go and set up a new entity with them again which i sincerely doubt as they are now closing bank accounts of all all companies located in Free Zone’s In UAE. ENBD has started closing accounts already. ADCB & ADIB & Mashreq are also initiating it.

wait, are you meaning even onshore freezone companies cant get access to banks ?

 

[Elitegold7]

wait, are you meaning even onshore freezone companies cant get access to banks ?

Not impossible. But difficult and u will get an AED account only to begin with. Gradually they will allow a USD or EUR account.

 

[Martin Everson]

Damn so even UAE banks are de-risking their services. The good days seem over it looks even Citibank UAE closed my account a while back as they no longer accept non-resident account holders.

 

[smartcard]

Due to Covid-19 situation even my RAK IBC company at the risk, where I am considering closing the company which is due to renew in June and the bank account.

If anyone can please share me with the correct procedure with regard to strike off / close a RAK International Company and the local bank a/c

 

[KJK]

Close it properly if you can otherwise nothing really crazy happens to you other than entry and visa bans if that's important to you.

Fwiw I went totally to the agent s office in Dubai. According to their rep, while one must close properly onshore UAE Cos, nothing bad happens if one let's a RAKICC offshore gets struck off. Otherwise they can manage the liquidation process for 2550euros.
Besides we had a chat about BVI Cos, as i ve let some get struck off over the years, but through other agents, and he claims to have received new info from BVI authorities stating that those who have let their companies there get struck off, back to 2016 or 2015, now need to go through a proper liquidation or face legal proceedings from? BVI. Not sure if anyone else has heard about this, the agent who took care of my BVI hasn't texted mentioned anything yet

Any RAK or Ajman or Fujairah Free Zone company is struck off if you do not renew the license. There is no harm in letting this happen and it does not create any headache for you unless you wanna go and set up a new entity with them again which i sincerely doubt as they are now closing bank accounts of all all companies located in Free Zone’s In UAE. ENBD has started closing accounts already. ADCB & ADIB & Mashreq are also initiating it.

Hi all, BUMPing this topic!

Can anyone please confirm if this is 1) true 2) still valid 3) applicable even now during COVID?

If someone has a FZE (RAK or other zones) that he/she does not wish to renew, is it fine to just leave it be, not pay renewals and do not officially "cancel" it? According to the FZ website and their documentation they request the owner(s) to come there personally, have a stamp, sign about 5 different forms, wait 15 days, provide them some documents etc. The company would be expiring in August and has no liabilities, no accounts and no activities right now, so my question is what will happen if the renewal is ignored.

 

[Fred]

Hi all, BUMPing this topic!

Can anyone please confirm if this is 1) true 2) still valid 3) applicable even now during COVID?

If someone has a FZE (RAK or other zones) that he/she does not wish to renew, is it fine to just leave it be, not pay renewals and do not officially "cancel" it? According to the FZ website and their documentation they request the owner(s) to come there personally, have a stamp, sign about 5 different forms, wait 15 days, provide them some documents etc. The company would be expiring in August and has no liabilities, no accounts and no activities right now, so my question is what will happen if the renewal is ignored.

Never heard about the mentioned requirements.

You simply have to pay for the cancelation - that's it.

Depending on the Freezone it's something around 1000,- EUR.

 

[KJK]

Never heard about the mentioned requirements.

You simply have to pay for the cancelation - that's it.

Depending on the Freezone it's something around 1000,- EUR.

Okay thanks for the information, what will happen if I don't pay?