Ras Al Khaimah Offshore
Posted on June 11th, 2013Ras Al Khaimah (RAK) is one of the fastest growing emirates of the United Arab Emirates. It is renowned for being a transparent, tax-free and corruption-free location. Ras Al Khaimah’s booming economy and proximity to other major international centers has attracted hundreds of large, medium and small international businesses.
RAK Offshore now makes it possible for non-resident corporations, entrepreneurs and individuals worldwide to start and operate an offshore business with the easiest and most cost effective ways. It provides a strong yet flexible regulatory framework based on global best practices, along with other numerous advantages:
1 SIMPLE INCORPORATION PROCESS
- The incorporation process of RAK Offshore International Business Companies (IBC) is usually completed in one working day and at very low costs.
- RAK Offshore IBC must be limited liability companies. The liability of the shareholders in such companies is limited to their shares in the company’s capital.
- A minimum capital is not required for the incorporation of RAK Offshore IBC. AE Dirham and US Dollars are the currencies that may be used as the denomination of the capital.
- RAK Offshore IBC must have a minimum of one director, one shareholder and one secretary. Shareholders or directors may be corporate entities.
- There are no restrictions whatsoever regarding the nationalities of the shareholders or directors of RAK Offshore IBC. A 100% foreign ownership is allowed.
- The shareholders in RAK Offshore IBC are not required to visit RAK in order to sign the incorporation documents.
- There are no public registers of shareholders and directors in RAK Offshore IBC.
- Accounts of RAK Offshore IBC must be audited and distributed to the shareholders without the requirement of submitting the Annual Audit Reports to the authorities.
- RAK Offshore IBC must however maintain a local registered agent approved by the local authorities and a local registered office which is usually provided by the registered agent.
2 TAX FREE ENVIRONMENT
- RAK Offshore IBC benefit from one of the most comprehensive lists of non-double taxation treaties in the world (more than fifty countries) including China, India, Italy, France, Germany, Belgium, Canada, Lebanon and Singapore…
- RAK Offshore IBC also benefit from a 100% income tax exemption, a 100% corporate tax exemption, a 100% exemption on capital and profit gains tax, no value-added tax and no withholding tax.
3 ABSOLUTE CONFIDENTIALITY
- RAK Offshore sets the bar very high in terms of internal, local, federal and international compliance but keeps however companies' confidentiality at the heart of the system.
- Confidentiality is ensured by the legislation of RAK Offshore. All documents and information related to RAK Offshore IBC are strictly kept confidential.
- RAK Offshore also guarantees absolute privacy and a full protection of companies’ assets.
4 NUMEROUS ACTIVITIES THAT MAY BE HELD INSIDE UAE
- RAK Offshore IBC are allowed to hold assets and to maintain bank accounts and deposits in the UAE. They may also hold shares in other UAE companies.
- RAK Offshore IBC are permitted to own real estate in the UAE with the prior authorization of the RAK Investment Authority.
- RAK Offshore IBC do not need to have physical offices in the UAE.
It is to be noted that RAK Offshore IBC may not however:
- Carry on businesses in the UAE
- Obtain UAE Residency Visa
- Do banking and insurance businesses within the UAE without a special license
- Rent local premises in the UAE
5 NUMEROUS ACTIVITIES THAT MAY BE HELD OUTSIDE UAE
- RAK Offshore IBC may hold various types of activities outside the UAE including but not limited to general trading, consulting and advisory services, owning properties outside UAE, holding shares in worldwide companies, international business services, professional services, shipping and ship management companies, etc…
- RAK Offshore IBC may maintain bank accounts and deposits worldwide.
In addition to being a tax haven, RAK Offshore is characterized by its political and economic stability in comparison to other countries in the region that suffer from political unrest, instability or asset protection issues. RAK Offshore is therefore the ideal location for international business operation and asset protection schemes.
This “Entrepreneur’s Paradise” was designed to help your business succeed by making it easier and more cost-effective to start and operate on offshore business.
By Aline El Sayed - Senior Associate - Al Misnad Law - In Association with the Law Offices of Khalifa Al Misnad