Akieman's non-operating write-off is not a multiple choice question.

Companies registered in the Akiman Free Trade Zone in the UAE may face legal risks, credit penalties and administrative penalties if they are not in operation for a long time. After Akiman ceased operations, write-offs were not an option, but a necessary step to cut off legal liability and avoid credit loss.

Akieman does not operate the company must write off the reason

1, the law compulsory cancellation clause.

According to Article 188 of the UAE Company Law and the regulations governing the Akiman Free Zone, the dissolution of the company requires the completion of liquidation procedures and cancellation of registration, otherwise the legal subject will not be eliminated. Specific situations include:

the term of operation stipulated in the articles of association expires;

resolution of the shareholders' meeting for dissolution;

the merger or division of the company results in the termination of the original entity;

the business license was revoked in accordance with the law.

2. Tax and credit risk

tax monitoring: uncanceled companies still need to declare zero tax forms, late declaration will result in late fees, the cumulative full 3 years will be permanently marked by the tax system.

Credit Disciplinary: Legal representatives and shareholders of the company may be included in the UAE Central Bank's credit system, affecting loans, visas and travel. A logistics company was blacklisted for not canceling, resulting in shareholders unable to apply for a Dubai property loan.

Akieman does not operate and does not write off the serious consequences.

1. Administrative penalties

revocation of license: according to Article 22 of the regulations on the Administration of Registration of Enterprise legal persons, the registration authority may revoke the license if the company fails to start business for more than 6 months without justifiable reasons, or suspends business for more than 6 months after opening business.

Fines: Companies that fail to write off late can be fined between dlrs 10000 and dlrs 100000. A technology company was fined 50000 dirhams for failing to write off in time, and shareholders' personal assets were frozen.

2. Continuation of legal liability

debt recovery: A company that has not been liquidated and written off, shareholders may be jointly and severally liable for the debt. A construction company has not paid off the supplier's payment before the cancellation, and the court ordered the shareholders to pay with personal property.

Litigation risk: During the period when the subject of the company is not eliminated, creditors may sue shareholders for compensation. After the cancellation of a trading company, the court still ordered the original shareholders to pay liquidated damages.

3. Occupation of social resources

long-term non-cancellation of the company's occupation of enterprise name, registration number and other resources, affecting the efficiency of free zone management. When the Akieman Free Zone cleaned up "zombie companies" in 2024, it forced the write-off of 1200 overdue companies.

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