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.
Submit Your Query For a Legal AdviceFor rapid response you can also submit your Query at WhatsApp on +92 321 205 7582 For a Legal AdviceIrfan Mir Halepota & AssociatesLaw Firm in Pakistan dealing with Civil Litigation, Commercial, Intellectual Property, Real Estate and Family Laws of Pakistan.E-26, Glass Tower, CliftonKarachi, SindhPKinfo@irfanlaw.comPhone: +92 321 205 7582