Name of the company
RAK offshore International Business Companies ( IBC ) must use the suffix Limited or Ltd. to denote limited
RAK offshore IBC can have minimum one shareholder and no maximum limit whose liability is limited to their shares in the company’s capital. 100% foreign ownership of the company is allowed. There is no public register of shareholders and directors. Shareholders don’t need to visit RAK to sign the incorporation documents.
The minimum share capital
Minimum capital is not required for the incorporation of an offshore company But it has to be mentioned on the MOA.
Share capital may be divided into different classes. Bearer shares are not allowed. Shares may be issued fully, partly or nil paid. AE Dirham and US Dollar can be used as the denomination for the capital. Any foreign currency is acceptable but prior consent has to be approved by the RAK Authority.
Directors of the company and secretary
A minimum of one directors and one secretary are required and they can be bodies corporate. The director can also be a secretary. A register of directors must be held at the Registered Office, but it is not a matter of
Registered office and local agent
Rak offshore IBC must maintain a local Registered Agent approved by the local authorities and a local registered Office, which is usually provided by the Registered Agent.
Rak offshore IBC don’t pay taxes on profit and capital gains, No Value-added tax, No Withholding tax.
Audit and financial returns
No annual reports or accounts need to be filed. Accounts must be audited and accounts must be distributed to shareholders (but NOT filed with the authorities). Rak offshore IBC may retain their accounting records wherever in the world the directors deem appropriate.
What is a Tax Free Jurisdiction?
- 50 years ago special legal financial system created by Monaco, Luxembourg, Liechtenstein, Panama,
- Hong Kong and Switzerland.
- BVI joined.
- Allows wealthy individuals to move their wealth, or at least part of it, out-with their home country where they were being taxed.
- The wealthy benefited from low taxes and financial privacy. Nowadays, anyone can use and benefit from this system.
- The term ‘offshore’ is now recognized widely in most sectors of the economy.
- Companies and individuals take advantage of the seclusion of wealth.
- Very low or no tax burdens are levied.
- International business can be less complicated allowing profitability to increase.
To Save Tax
An offshore company can form part of an overall taxation reduction strategy for certain individuals or entities.
Combined with an offshore bank account or trust, for example, an offshore company can save an individual or company tax.
If an offshore company is set up in a low/no tax area then profits can be realized in a tax efficient way increasing profitability.
Favorable Local Legislation Relating to Reporting
The amount of company information and accounting data that needs to be submitted and held on file is far reduced in the majority of offshore centers which goes hand in hand making an offshore company that much easier to manage and run.
Time needed for formation
Usually it is one working day.
A RAK Offshore IBC is an excellent corporate structure because:
- The IBC is tax-free;
- The IBC portrays a good image to your Clients and suppliers.
- There is no public register of shareholders and directors.
- The RAK Offshore IBC is quick to incorporate.
However, our Clients should note the following:
- The RAK Offshore IBC is not permitted to trade in the United Arab Emirates (UAE).
- The RAK Offshore IBC cannot rent local premises in the UAE.
- Rak Offshore? Yes, thanks to the new EU directive takes effect RAK is becoming the better place incorporate your offshore company.
UAE looks set to reap the rewards of a recent EU ruling under which banks are now forced to reveal information to tax authorities.
The EU Savings Directive, which came into effect on July 1, obliges financial institutions in all EU member states to either disclose tax and bank information to the relevant tax authority, or charge clients a hefty withholding tax.
Though the new directives will specifically affect EU residents, a number of banks in ‘tax havens’ have also agreed to exchange customer information, including Jersey, Guernsey, the Isle of Man, the British Virgin Islands, the Cayman Islands, Switzerland, Liechtenstein, Monaco and San Marino.
The reputation of discretion for some of these countries is being eroded. Since July 1, in order to keep details of their wealth private, bank customers now have the option of paying a withholding tax which will be levied directly in the country in which their savings are held. This will be charged at a rate of 15 per cent for the first three years, 20 per cent for the following three years, and 35 per cent from 2011 on wards.
UAE has long enjoyed a reputation as a secure, tax-free jurisdiction for international banking and company incorporation. With this latest development from Europe, RAK company registration and corporate and personal banking options are becoming more popular with international businesses and high net worth individuals.
Since UAE is neither a signatory to this directive, nor agreeing to cooperate with the Organization of Economic Cooperation and Development (OECD), it looks set to gain even further.
What is an Offshore IBC?
- It is a company which does not conduct substantial business in its country of incorporation.
- It is formulated in a tax free jurisdiction.
- It legally minimizes any type of tax burdens.
- It improves one’s wealth management.
What is an Offshore IBC?
Large numbers of High Net worth Individuals and corporations are taking steps to incorporate overseas.
Away from the area of their main business transactions.
Offshore Asset Protection
An offshore company is the perfect entity for enabling individuals to achieve asset protection offshore. Assets can be owned by the company rather than directly by an individual, and the company can be placed in trust, e.g:
- Achieve a higher level of anonymity
- A number of overseas centers offer the option of having nominee directors for the establishment of a company.
- Others also keep the names of Directors and Shareholders off public record.
- Those who transact through such a company can keep their affairs private.
- Greater Ease of Operation.
- Many locally incorporated offshore centers make it very easy for companies to trade.
- The Aviation, Media and financial sectors require specific licenses and much greater regulation.
- An offshore company can be far easier to manage than an onshore one.