Ras Al Khaimah: Best Region for Offshore Company Formation! Read Why
Ras Al Khaimah (RAK), one of the seven emirates of the United Arab Emirates (UAE), has rapidly gained recognition as a premier destination for offshore company formation. With its strategic location, business-friendly environment, and an array of advantages for international businesses, RAK offers numerous compelling reasons to consider it for your offshore company formation needs. In this blog, we will explore why Ras Al Khaimah has become the best region for offshore company formation and the key factors that make it an ideal choice.
What is an Offshore Company?
An offshore company in the UAE is a business entity established in one of the country's designated offshore jurisdictions. These companies are often set up for various purposes, including asset protection, tax optimization, and international business expansion. Here are some key points to help you understand offshore companies in the UAE:
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Jurisdictions: UAE offers several offshore jurisdictions, including Ras Al Khaimah (RAK) International Corporate Centre, Jebel Ali Free Zone (JAFZA), and Ajman Offshore, among others. Each jurisdiction may have slightly different regulations and benefits.
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Limited Liability: Offshore companies in the UAE typically have limited liability, which means the shareholders' liability is limited to the amount of their investment in the company.
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Tax Benefits: One of the main reasons for setting up an offshore company in the UAE is the potential for tax optimization. Offshore companies are often exempt from corporate and income taxes.
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Asset Protection: Offshore companies can hold and protect assets, such as real estate, intellectual property, and investments, shielding them from legal and financial liabilities.
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Privacy: UAE offshore companies may offer high privacy and confidentiality as the details of beneficial owners and shareholders are not publicly disclosed.
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Simplified Setup: Forming an offshore company in the UAE is straightforward and typically involves minimal bureaucratic red tape.
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Banking Facilities: UAE offshore companies can open bank accounts in the UAE and other international jurisdictions, making managing finances and conducting international business more accessible.
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Annual Reporting: While they enjoy tax benefits, offshore companies must often submit annual financial statements to the relevant authorities.
A Quick Guide to Ras Al Khaimah International Corporate Centre
Ras Al Khaimah International Corporate Centre (RAK ICC) is a prominent offshore jurisdiction within the emirate of Ras Al Khaimah, United Arab Emirates. Setting up a business in RAK ICC offers several compelling advantages, making it an attractive choice for entrepreneurs and companies. RAK ICC provides a tax-efficient environment with no corporate or personal income taxes, ensuring businesses can maximize profits. It also offers a high level of privacy and confidentiality for shareholders, minimal reporting requirements, and an expedited company registration process. Additionally, RAK ICC is well-regulated, compliant with international standards, and allows businesses to engage in various activities, including holding assets, intellectual property, and international trade. The combination of these factors, along with the UAE's strategic location and excellent infrastructure, makes RAK ICC a preferred destination for businesses looking to establish offshore entities that seek tax optimization and asset protection.
What are the advantages of RAKICC?
RAKICC is one of the most well-known jurisdictions for shareholders to incorporate offshore businesses.
The following are the key benefits of RAK ICC:
Control
RAKICC entities can be owned entirely by foreigners (100% foreign ownership). Owning shares in an RAK offshore business is open to anyone of any nationality. This gives stockholders complete control over the company's operations and management.
Flexibility
RAK ICC has several laws that give shareholders in RAK ICC enterprises the most flexibility. There are no minimum capital requirements, no audited financial statements are required, and corporate accounts can be opened with both local and foreign institutions. Shareholders will benefit from regulatory arbitrage as a result of this. Furthermore, because of RAK ICC's partnership with RAKEZ, an offshore firm can establish a subsidiary in RAKEZ, allowing it to conduct business onshore in the UAE.
Money-saving
While many governments allow for the incorporation of offshore businesses, they can be quite costly to shareholders. RAK offshore company formation, on the other hand, is incredibly cost-effective, with low business incorporation and renewal expenses. Furthermore, there is no need for a separate office because the registered agent's address is utilized as the company's registered office address.
Security
RAKICC gives access to common law jurisdiction courts of Dubai International Financial Centre ("DIFC") Courts and Abu Dhabi Global Markets ("ADGM") Courts; however, the UAE is subject to local courts based on UAE laws. The DIFC and ADGM Courts employ English as their official language. Therefore, proceedings are held in something other than Arabic, like in local courts.
Taxation Regime
Taxation is one of the most essential considerations for a shareholder when forming an offshore corporation. RAK ICC provides its shareholders access to its Double Tax Treaty (DTT) Network, ensuring they do not pay double taxation. RAK ICC is one of the few foreign jurisdictions that offers its entities a tax-free status. As a result, RAK ICC provides you with the benefit of tax arbitrage.
Swift & Reliable Processing
RAK ICC offers favourable rules and regulations for the incorporation of firms, making the process quick and efficient. A shareholder and director of an RAK offshore company might be a single person of any nationality or organization. The entire incorporation process takes a minimal period. In two two working days, the whole process can be finished.
Privacy
RAK ICC protects its shareholders' financial privacy from prying eyes. Shareholders benefit from the fact that corporate regulatory intrusion in their firm is kept to a minimum. As a result, unlike in other jurisdictions, you are not compelled to save and submit balance sheets, audited reports, or other financial documents, providing complete confidentiality.
Worldwide Network & Escalating Economy
RAK is a global network with a growing economy. Because ICC is based in the United Arab Emirates, its owners benefit from a rapidly rising economy and a stable currency.
Location
The UAE is strategically located in one of the world's most important geopolitical regions, making it easy for businesspeople to do business there. In addition, the UAE is the Middle East's sole jurisdiction that permits the formation of offshore companies.
For whom is the RAK ICC most beneficial?
While RAK ICC's services are beneficial to everyone looking for an offshore business, it is beneficial if you are:
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A businessperson looking to reach a worldwide audience.
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A company looking for a competitive advantage in trade restrictions
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A person who wants to diversify their holdings.
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An investor on the lookout for one of the most promising investment options: a corporation that wants to incorporate its subsidiaries, a family looking to arrange their inheritance, estate planning, and wealth management
RAK Offshore Company Registrations
RAK offshore corporations were incorporated at the RAKICC, a government-owned corporate registration centre in the Emirate of Ras Al Khaimah, United Arab Emirates. RAK ICC, along with the British Virgin Islands, Jersey, and the Cayman Islands, is one of the world's most well-known offshore company formation registries. The RAK ICC provides effective regulations for forming and maintaining offshore and international commercial entities.
RAK offshore corporations are formed to:
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Conduct international business outside the UAE.
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Operate as holding companies.
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own real estate in the Emirates of Dubai and Ras Al Khaimah
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Provide asset protection
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Conduct tax planning
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Conduct estate planning
Required Documents for forming an Offshore Company in RAK ICC
For the foundation of the RAK offshore company, copies of the following documents from all shareholders and directors are required:
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UAE Visa or entrance stamp copy (if available)
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Proof of Residence
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The most recent utility bill
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Passport Photocopy
Documents that You will Receive Later
Following your company's incorporation, you will obtain the following documents:
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Memorandum and Articles of Association
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Certificate of Incorporation
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Share certificate(s)
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Register of Directors
Our Straightforward Business Formation Methodology
The following steps will guide you through the process of forming a RAK Offshore Company:
Submit an Online Application
You must choose your preferred package and place an order with RAK ICC to form your company.
Preparation of Company Documents
We'll gather the necessary paperwork from you and draft the company formation documents for your signatures.
Signatures on Documents for the Company
You will be asked to sign corporate paperwork through email or in person at our headquarters in the Bank Street Building, Bank Street Road, Burjuman, Dubai.
Submission of application and establishment of company
We will submit your company documents to the RAK ICC to incorporate your RAK offshore business. The RAK ICC will issue your incorporation certificates in 2-3 business days.
Beginning Your Own Business
As soon as your RAK offshore company is formed, you may get started on your business. At the same time, you can open a corporate bank account.
Real estate in Dubai through an RAK Offshore Company
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RAK ICC and the Dubai Land Department signed a memorandum of understanding (MOU) in July 2019 that allows RAK ICC offshore firms (also known as RAK IBC companies) to own real estate properties in Dubai's freehold zones.
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This development means owning property in Dubai no longer necessitates forming a Dubai-based company. Companies from RAK ICC can now invest directly in Dubai's ever-expanding real estate market, which includes Dubai Marina, Downtown Dubai, Palm Jumeirah, Jumeirah Lake Towers, Emirates Hills, Meadows, Arabian Ranches, Dubai Sports City, and Jumeirah Village Circle.
Conclusion
For several compelling reasons, Ras Al Khaimah has emerged as the best region for offshore company formation. Its strategic location, competitive business environment, tax benefits, asset protection, privacy, and flexibility make it an ideal choice for entrepreneurs and businesses looking to expand their global footprint. An Offshore Company Formation in RAK ICC can be a viable and beneficial decision for your business. Thus, we hope this blog provides you with insightful information. For more information on other related aspects, check out our Website.
