Offshore Company in Ras Al Khaimah provides a number of benefits – tax free status, low registration fee, etc. At the same time all countries, offering registration of offshore companies, including the UAE, prescribe compulsory requirement relating to annual renewal of companies.
If the countries with standard tax regime regularly do not charge companies any yearly fees, for offshore jurisdiction in is compulsory requirement. This fee is designed to cover the expenses of the country and register of companies. It, in essence, replaces the taxes, but with one important difference - the amount of the annual fee paid by offshore companies is minimal and does not depend on the amount of the company's profit.
In case of failure to pay annual fee for offshore in Ras Al Khaimah, the company will be strike off from the registry and will not be able to continue its business.
The bank, where the account of such company is opened may, in case of failure to renew the company, blocks the account of the company.
For this reason, proper payment of annual fee constitutes and essential requirement for a company as main prerequisite for its existence.
