Not-Renewed Company License and EMI Account

[rowena]

Hello,
I have a company account at some EMI and monthly turnover of that company is around $20k. I need to renew the license of the company next month but I am planning not to renew and close it because renew cost is high($4k). EMI and companies country are different. I will continue to use EMI account.

Should I expect any problems?

 

[Nyep]

Not unless the EMI asks for a CoGS. Most don't.

 

[Bmw850]

You may got problem.
For example Leopay group ( icard, mypos ) or Transferwise will‌ block your account until you show them that you renewed even if there is money‍ in.

 

[rowena]

How they can know my company is expired ?⁠

 

[Bmw850]

I have no clue I just answer you from my own experience.

 

[Nyep]

Transferwise asked you to show CoGS? They specifically answered someone here that they‌ will not ask for one.

 

[rowena]

I don't understand the relationship between not-renewed license and CoGS. 😕

 

[Nyep]

CoGS proves that you paid renewal fees, among other things.

 

[Martin Everson]

Don't risk it. Just because an EMI today does not ask for a CoGS does‌ not mean it will not tomorrow morning 🙁.

 

[Bmw850]

@Nyep by cogs you mean certificate of‍ good standing I understand. In fact Cogs mean another thing in accountant language. Anyway they⁠ blocked TW and Leopay one of my business account because I haven't renewed my company⁤ , I used an agent, he done the job and the account has been released⁣ and the money too.

 

[Bmw850]

@rowena just curious, Wich jurisdiction needs 4k for renew company?

 

[Nyep]

Where was the company registered, if you don't‍ mind me asking?

 

[Bmw850]

UK

 

[rowena]

Thanks. It is better to pay $4k fee for $250K yearly turnover company.

@Bmw850
It is the UAE jurisdiction. Which document they asked exactly and how much time after you‌ register/expire?

 

[Nyep]

That sort of makes sense. The UK has a‌ public registry where they can easily track the validity of the company, most offshore jurisdictions‍ don't expose such tools. Additionally TW is pretty UK oriented (and licensed there) so it⁠ makes sense that they will have higher scrutiny for UK entities.

I don't believe this⁤ will be a problem for classic offshore anytime soon, but I suppose we'll know more⁣ as we get more testimonials here.

 

[Bmw850]

It was a numbered document, don't remember exactly I⁠ can have a look but it was for UK not for UAE.
My company was⁤ out since a month.

 

[Tepesch]

Is it a freezone company? Do you get visa⁠ to live in UAE with it? Looking for the cheapest/best option for UAE company with⁤ visa for 2 persons. Do you know which freezone is cheapest?

 

[rowena]

I have UAE visa from my other company and I live in there. You can‌ get a visa with FZ company but you should check all FZs to find the‍ right one for your also proper setup with everything(like insurance, hidden extras) it will cost⁠ around $8-10K per year.

 

[TurnedToRobot]

If you make that much money per year why are you at all considering to‌ give up the company?! If someone ask you for a Certificate of Good Standing the‍ game is over and you won't be able to use the company for anything after⁠ that.

you are going off topic!

 

[rowena]

@kanakke
I agree. I will renew it.