Offshore centers are often used for a variety of business purpose ranging from setting up business entities to owning overseas financial and real estate assets, inheritance planning, setting up holding companies and special purpose vehicles, ship registration and tax optimization.
The RAK Investment Authority (RAKIA) launched the International Business Company concept in January 2007. These IBC’s are regulated by the International Business Company Regulation 2006 – RAK investment Authority.
What are the UAE and RAK Offshore Uniqueness?
UAE is a ‘real’ country with ‘real’ economy. UAE is not a dependent or ‘overseas’ territory of another country and is white-listed. UAE has Double Taxation Avoidance Agreements (DTAA’s) with several countries, nowadays more than 40.
What are the requirements for RAK Offshore?
All offshore companies established in the UAE are required to have:
A Registered Agent – the registered agent will have to be one that is approved by the authority under which the offshore company is set up and the agent will have to be located either in the free zone itself or in the UAE. In addition we registered one Law Office in Cyprus and one in Nigeria A registered Office – this is the office of the registered agent. The registered office is where all the offshore company’s notices and correspondence will be addresses.
Therefore the clients must instruct a registered agent (lawyers, accountants and business consultants) for the offshore companies set up in order to receive and deal with any communications from the relevant authority.
What are the advantages of setting-up a RAK Offshore IBC’s?
100% foreign ownership of the offshore company is allowed and therefore there is no need for a UAE national to be a shareholder or sponsor.
The offshore company will be exempt from all corporate and income taxes. There are no foreign currency restrictions. Full repatriation of the offshore companies profits and capital is allowed. The setting-up costs are less that of an onshore company. There is no onshore office and accordingly, there are no employees and related costs. Only minimum capital is required to set-up an offshore company. The offshore company can own interest in real estate (as approved by the relevant authority where the offshore company is registered) in the UAE and can act as a Holding.
And the restrictions placed on Offshore Companies:
The offshore companies are restricted from carrying out activities in the UAE. The offshore company cannot carry on a banking business or undertake the business of an insurance or reinsurance company, insurance agent or an insurance broker. The offshore company cannot carry on any business which may be restricted by the relevant authority and its regulations under which the offshore company is established.
AS OF TODAY IN RAK OFFSHORE WE HAVE MORE THAN 50 REGISTERED AGENTS ON BOARD WITH MORE THAN 2500 IBC’S.
Besides this, RAK Offshore wants to offer their clients to register their private yacht and pleasure boats in Ras Al Khaimah. By registering yachts and boats with RAK Offshore, there will be lots of financial advantages, low initial registration & annual maintenance fees and easy registration process. We already signed a MoU with the RTA in Abu Dhabi.
In the next future, after the respective approvals, they will start offshore financial business activities, different kinds of trusts and foundations, as there is a huge growing demand for charitable trust, funds and foundations.
All these activities will be put together in Financial City which is expected to become a new generation Offshore Financial Center (OFC).
Ras Al Khaimah is then a centre combining with the benefits of a Free Zone, an Offshore Financial Center and Business Center.
For further details please contact
General Manager
RAK Offshore (RAKIA)
P. O. Box: 31291, Ras Al Khaimah, UAE
Tel : +971 7 244 40 36
Fax : +971 7 244 40 58
Web : www.rakoffshore.ae