RAK International Corporate Centre, the leading offshore company registry in the UAE has recently re-introduced its "Amnesty Programme" for companies that haven't renewed their licenses.
With today's dynamic global economic environment and market changes, it is commonly understood that companies experience upturns and downturns. Entrepreneurs and business owners may not be in a position to ensure the timely maintenance of their companies and leave their companies inactive.
However, leaving the company in a limbo status wouldn't help to solve any problems but even lead to penalties or other outstanding liabilities. It is in a business' best practice to ensure that either an entity is renewed in time for continuous operation, otherwise to proceed formal liquidation and ensure that all outstanding liabilities are resolved.
What is the Amnesty Programme?
Existing RAK ICC companies, which have postponed on maintaining its renewal or liquidation for various reasons, can benefit from the "Amnesty Programme" by paying the renewal fee of the current year (2019-2020) and the following year (2020-2021) to avail an active company with history.
The program will be valid until 18th April 2020, during this period:
- Companies under the program will not be required to pay the renewal fees for the past years.
- Companies under the program will not pay restoration fees.
- Penalties for late-renewal or non-renewal will be waived.
How to renew the RAK ICC Company?
The renewal procedure of RAK ICC companies is simple and straight-forward. Business owners shall follow the guidance of its registered agent of the company to provide all necessary documents and pay the annual license fees to RAK registry.
Normally, the renewal applications shall be submitted 30 days before the date of expiry. If the renewal is applied in 180 days from the date of expiry, a penalty will be charged for each month after the grace period.
Why renew the RAK ICC Company?
No matter which company types, it is mandatory to renew its license with the registry every year to continue operation and comply with regulations. In case if it is not renewed or formally liquidated, the company would stay inactive or strike-off with outstanding liability in the registrar. Furthermore, it would be impossible to maintain the corporate account if the company is dormant.
Usually, the RAK ICC Company is set-up to hold assets (shares, properties, etc.) or for general trading/consulting business which intends to establish an international presence. Maintaining a RAK ICC company would allow you to keep the benefits of:
- 0% Corporation tax, 0% VAT and no income tax
- No requirement for the owner or director to visit the UAE in person
- 100% full foreign ownership
- Confidentiality is preserved; there is no public record of shareholders or directors
- No audit requirement or requirement to submit financial statements
- Bank account in Dubai and other international banks
- A registered office in Dubai (through the registered agent)
Can you create substance for the RAKICC Company?
Yes this is very much possible. In the world of increasing compliance; check and balances substance is key I am afraid. You can provide substance for your RAKICC company through different options in RAKEZ, an onshore free zone jurisidiction located within the same emirate of Ras Al Khaimah.
From a fully serviced flexi- desk to full fledged offices; RAKEZ can provide the necessary substance you need depending on the activity you pursue and your banking requirements. RAKEZ can be most effective in having office premises rather than Dubai for your company.
What is this about? RAKICC itself alone doesn't have such provisions, you seem to be referring to RAKEZ/ Premium Product? Is this what you're talking about? If so, should we specify it as such?
What about activating a previous bank account that the RAKICC had?
That depends where the bank account was based and the banks terms and conditions. In most cases the bank account can be opened and certificates of good standing and incumbency will be required as well as the signatory's visit with banking officials.
Feel free to contact us and get a free consultation.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.