Quick guide to dormant companies

If you are one of those people who believe a dormant company is one of those which is considered closed or obsolete then we think you definitely need to take a look at this article which will clear up all your confusions and help you understand what is the proper proceedings behind it.

Any RAK offshore company which is officially registered with governing bodies and have carried out some trading or source of income since its date of establishment but haven’t done it in a while or even if they haven’t used the company for any kind of trading since its establishment is simply considered dormant.

But before you start establishing your definitions of trading, let us guide you about the meaning and reference of trading used in here. The basic idea of trading here is for a company which is actively participating in selling their goods and services, hiring and paying staff as well as employees, leasing properties or making investments, receiving payments and putting up their shares and paying legal fee and taxation.

With every year that your company passes in dormancy you will be facing some serious troubles with reopening your company’s registration as your assets will slowly start to dispose off and the chargeable gain will keep increasing. Tax interests would still be counted and annual payments will be due and pending.

But in case you have the following conditions then your company will not be considered dormant:

  • Your organization is basically a private club with commercial enterprise as its profits.
  • You’re registered as a social landlord for housing associations, thrift fund, holiday club, trade association, friendly society or charity club.

If you are wondering what the payment fees are and charges which governing bodies is looking for from a business in order to not consider it dormant, then take a look at the following ones; money invested in shares and their payments, fees paid to governing bodies in case of company change or re-registration of the name, annual returns and usual penalties which most companies get caught in.

Being a dormant company is not so bad at all as you can seek benefits from securing the brand name, starting up a business – taking the first steps, dealing with dooming business for the time being and a lot more.

Visit www.legalinz.com/difc-wills-fee-details/ for further details.

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