If the RAK offshore company ceased to be necessary, and the economic or commercial activities are discontinued, one should not forget that the current UAE corporate legislation provides for mandatory liquidation of the business with the appropriate publication in the local media. Besides, the liquidation can be both voluntary or forced.
There is a mistaken opinion that if a company is abandoned, and the annual payment of the state fee for the prolongation of activities is not made, it will be automatically excluded from the state register without any consequences for the owner. However, it is not true. It should be noted that on the territory of the Emirates, after the exclusion of the RAK ICC (former RAK IBC) company from the register, the liability of the business owners is not ceased.
Thus, the leaders and owners of the abandoned offshore company are fully responsible for the remaining financial and debt obligations of a legal entity. The violation of the corporate law of UAE on the liquidation of companies and the actual timing of the liquidation in its turn may result in serious consequences for the leaders and founders of the company.
In this situation, the most correct solution is to contact a specialized company, which will help you to cease the economic activities within the legal frameworks. When you try to save some money on the liquidation procedure of your RAK ICC company, you run the risk of getting significant penalties from the regulatory authorities.
