Over time various offshore financial centers incorporated a substantial number of offshore companies for a global clientele. Like any corporate activity, the business of an offshore company may also stop at any moment. Corporate closures have many reasons. The reactivation or reinstatement of a company have just as many motives. Yet, the offshore financial industry has a distinct company law and considers the possibility to re-activate or restart the lapsed activities.
When offshore companies and International Business Corporations incorporated in offshore jurisdictions enter into agreements, they do so under their unique identifiers. These identifiers are the company name and company registration number. The company is a legal person with a singular identity. A company name is reserved for initial incorporation. To avoid confusion and IP violations, lapsed companies see their name ad registration number reserved for possible future use by the same beneficiary.
International Business Company Laws in the applicable jurisdiction define the rules for reactivation or reinstatement of offshore companies. As a general rule, reactivation relates to the original incorporated legal person with the identical company name and registration number. This is the company that entered into contractual agreements, is part of a will, or is all of a sudden part of legal proceedings.
Based on the above, the reactivation of reinstatement of an offshore company requires the beneficiary, or its successors to awaken the original legal person. This means that all annual fees, penalties, and other outstanding debts to the registrar must be paid first. Some jurisdictions even require offshore companies that are struck of the registry for non-payment to be reactivated by the court. This is mostly for grace periods exceeding two years. The answer to the question whether a court must approve activation of an offshore company therefore depends on the applicable jurisdiction and the bridging terms. Both can be easy to establish by a professional. Therefore, feel free to contact us for straightforward and appropriate assistance.