If the Company’s licence is not renewed by the expiry date, the Company will fall into bad standing with ADGM.
Fines apply for failing to renew the commercial licence and file the annual confirmation statement by the due date. Operating without a valid licence can result in significant fines in excess of USD 20,000 and potential penalties including disqualification of directors. ADGM has the power to take action from their side and strike off any company which fails to renew their commercial licence.
If you do not want to renew the commercial licence for your ADGM company, we recommend that you instruct Clara to file a voluntary strike off application that will close your company rather than let the company's licence lapse and fall into bad standing.
We require that clients maintain the good standing of their company. If we do not receive instructions to renew or strike off, we will terminate our services and inform ADGM accordingly. This will mean that the Company will be in contravention of the ADGM Regulations for failing to renew its licence, submit its Data Protection renewal, maintain a registered office address in ADGM and have a Company Service Provider appointed.