If your offshore company is no longer needed, you may not just drop it, since the law of different countries sets forth specific procedure for liquidation of the company and liability for violation thereof.
The UAE in this part fully complies with international regulations. For liquidation of the company you will have to pay company annual maintenance fee and notify the agent of the company of your intention to liquidate the company. Thereafter the agent commences liquidation process. The company that has been removed from the register may not be registered again. Furthermore, in case of violation of terms and conditions of liquidation, penalties may be imposed.
In case of onshore companies the situation is practically the same. The difference is that if resident visa was obtained through the company in the UAE, before commencing liquidation procedure such visas shall be cancelled, and only upon that the liquidation procedure may be commenced.
In both cases, company’s account in the bank shall be closed in the course of liquidation.
