Ras Al Khaimah (RAK), is one of seven emirates of the United Arab Emirates (UAE). RAK is regarded to have the highest degree of industrialization in the UAE. This location is a prospective destination for a large number of foreign investors and business owners because of the recent favourable legislation for foreign holding and financial companies. The RAK enacted a law allowing for the formation of foreign owned International Business Companies (IBC) called the “Ras al Khaimah International Corporate Centre Business Companies Regulations of 2016”.
A RAK IBC is a purely non-resident company which is fast becoming a popular option to foreigners seeking to create an offshore company in the UAE. Perhaps the main reason is to establish an asset protection platform in the Middle East in order to conduct business in a tax free environment.
A UAE RAK Offshore International Company (IBC) enjoys several benefits:
- No or Low Taxes: There are no corporate taxes, no capital gains tax, no income tax, no withholding tax, and no export or import taxes. However, U.S. taxpayers and everyone residing in a country which taxes global income must report all income to their tax authority. In January 1, 2018 UAE added a small value added tax (VAT). The only companies which are taxed are: foreign banks with branches in the UAE, and oil, gas, and petrochemical companies.
- Limited Liability: The liability of a shareholder is limited any amount unpaid on a share held by the shareholder.
- Privacy: The names of the shareholders are not part of any public records.
- One Shareholder: Only a minimum of one shareholder is required. The following types of shares can be issued: redeemable, preferential rights, and with or without voting rights. Bearer shares are not permitted. The minimum authorized share capital is 1,000 Dhs (currently, the Dirham is 3.67 per $1 USD).
- Numerous Business Activities: professional services, general trading, advisory and consulting services, investments, online business, and acting as a holding company for global assets.
- English: While not being the official language, all documents can be prepared in English which is a widely spoken language in the UAE.
Accounting
Standard corporate accounting practices are required. There are no requirements for audits. Accounting records or financial statements are not required to be filed with the government. The public does not have access to accounting and financial records.
RAK IBC formation is now high in demand since it allows you to carry out almost all types of business activities, especially for holding companies, consultancy, financial service companies, investment, or international trading.
Oracle Capital Group experts can facilitate new company registrations and manage start-up operations of offshore companies including the RAK IBC. Oracle Capital Group can also recommend and deliver complete packages for an already existing offshore entity. We shall provide guidance and execute a strategy that best suits your needs.
