- Common mistakes which may occur when working with UAE offshore companies

Common mistakes which may occur when working with UAE offshore companies

Common mistakes which may occur when working with UAE offshore companies

There is a number of rules that must be strictly followed to when working with the offshore companies as well as with other legal entities. Let us see the most common mistakes that may occur when working with such companies and the ways of preventing such well in advance.

Choosing the inappropriate type of an offshore company in the UAE

Yes, that is correct. You should know that nowadays there are 2 major types of the offshore companies in the UAE: offshore companies in Dubai and offshore companies in Ras Al Khaimah. Each of these types has its own special features and significant differences in terms of administration and associated expenditures. Mistake in choosing the appropriate company type may lead to the unforeseen expenditures and company's noncompliance with the necessary requirements.

Choosing the unreliable registration agent for registering an offshore entity

If you choose an agent for registering your company solely on the basis of the lowest costs, you are very likely to face a company registration delay. There is also a high probability of happening difficulties with its administration and the absence of the necessary legal support, which you may require when working with your bank or altering the company registration documents.

Opening a bank account without assistance — a mistake that can hurt

Banking system of any country has its own unique characteristics. The same applies to the UAE. We suggest not take any actions without the professional assistance if you do not know what banks provide the necessary services, what documents are required when opening a bank account, and how to control the account opening process. Even though these particular services require a lot of time and efforts from our side, we strongly recommend using our assistance at this stage of opening an offshore company in the UAE.

If you have decided to open a bank account without assistance, it is highly recommended to stay in the UAE all the time while the bank is processing the UAE bank account opening application. The Bank may request additional information or ask for signing additional documents. Besides, the procedure of opening a bank account for the Dubai or Ras Al Khaimah offshore companies may take a couple of weeks or even more. You are most likely to have no opportunity to stay in the UAE this long. And if this is the case, the account opening procedure may be stopped as soon as the bank will request for additional documents and you will not be on the territory of the country. Then you will have to come back to the UAE. All in all, it is not the best scenario. Take the advantages of our services for support on the bank account opening process in order to avoid this mistake when opening a company.

Non fulfilment of the requirements for the company renewal and payment of the annual fees

The timely annual company renewal is the obligatory requirement for any Dubai or Ras Al Khaimah offshore company that should be fulfilled in order not to fail on the company’s legal validity. If you work with a professional and qualified registration agent, you will receive a timely reminder on the necessity to renew the company and pay annual fees in advance. In this case, you will only have to transfer the necessary amount of money to your registration agent in due time. And he will carry out all the necessary steps to renew your offshore company, and after this, he will send you the official confirmation about the company’s renewal.

If you will not follow this rule, such mistake will lead to the loss of the legal status of your company. And, after some time, your company will be struck off the register. At the same time, it is very important to understand that it does not mean that the company will be dissolved. Means you will remain fully liable for all the obligations related to this company.

These are the most common mistakes made by the customers. In fact, many other situations may also occur, for example, giving access to the company bank account to the third parties that often leads to unpleasant consequences, and other circumstances.

We recommend you to follow the advices of your professional registration agent in order for you to use the UAE offshore company effectively and safely. Then you will definitely make no mistakes. If you do not feel comfortable when working with your agent, you can always change it for an agent you can rely on.