Offshore company RAK free zone
Offshore company RAK free zone.
Benefits of Forming an Offshore Company in RAK
In the United Arab Emirates (UAE), Ras-Al-Khaimah (RAK) is the preferred destination of foreign investors for setting up an offshore company. Usually, those businessmen who are looking for tax-free income, or want to maintain the privacyof their investments, avail the option of setting up an off-shore company in RAK.
Establishing a business at RAK is fairly advantageous due to a number of reasons. Firstly, at RAK, offshore businesses can be started within a short duration. Secondly, there is greater flexibility in investments. Thirdly, RAK Investment Authority (RAKIA) offers a range of finance-related opportunities and tax advantages for the entrepreneurs. Thus, a large number of foreign investors are turning to RAK for establishing their off-shore businesses.
To start an offshore company at RAK, an office license has to be applied for. Also, during setting up the offices, the clients have an array of solutions to take their pick from – such as standard, core, shell and executive ones, in addition to flex facilities.
With the objective of accommodating businesses rendering specialized solutions in real estate and asset protection, RAK Offshore was established. RAK Offshore contains over 1,900 International Business Companies (IBCs) and respects the privacy and maintains confidentiality – of the patrons. By doing so, a business-friendly environment is created for both individual and corporate investors – including those who are operating in financial and non-financial markets like real estate investments, global trading, and tax planning.
Benefits of RAK Company Formation
Read on to know more about the various benefits of RAK offshore company formation for entrepreneurs and businessmen.
As compared to other UAE jurisdictions, registering an off-shore company in RAK is advantageous because you do not have to conform to a set of strict rules or regulations. In fact, RAKIA lays down independent guidelines that are favorable for international investors, owing to RAK Offshore being an independent overseas territory.
In several cases, investors want to keep their investments classified. In fact, one of the primary reasons for business investors to choose RAK for their offshore company is due to the confidentiality factor. The identities of the IBC owners are kept confidential and, thus, businessmen are increasingly choosing RAK as their favored offshore company destination.
Having an off-shore company at RAK can help you earn tax-free income as well. Yes, RAK Offshore is a 100% tax-free zone. In turn, the business dealings of investors are transparent; and also, they can enjoy higher returns from their offshore investments.
Furthermore, both countries where the entrepreneurs are transiting can have a tax treaty known as the Double Taxation Avoidance Agreement, whereby, the investors can evade paying taxes in 2 countries.
There are plans of introducing new tax reforms in the UAE; but, nevertheless, RAK Offshore will not be affected. Thus, the IBCs can continue to enjoy the commercial hub’s tax-free advantages.
By having an offshore company in RAK, you can avail the benefits of 100% asset protection via a robust platform, too. Through RAK Offshore’s Asset Protection Policy, the foreign investors have a legal wall between the creditors and the assets pertaining to their offshore enterprise; thus, safeguarding the investors’ interests.
As an investor at RAK Offshore, you can, also, avail the benefits of Lawsuit Protection. When you do so, your possessions are protected from lawsuitsor judgments. In fact, RAKIA conducts a thorough check and only, thereafter, incorporates a company and through the stipulated legal norms. Nonetheless, your property assets are protected by the authorities in cases of legal issues.
Offshore Company: A Brief
An offshore company is a Limited Liability Company (LLC), corporation or any other similar entity that is constituted in a foreign country to that of the principal investors; or a business enterprise that only operates in jurisdictions other than the country where it has been incorporated.
The term ‘Offshore’ refers to offices that are located beyond one’s home country boundaries. Though, an Offshore Company has 2 definitions. From the perspective of the principal investors, the company is based in an international country, and not the home country of the principal representatives; and from the standpoint of where the company is formed, an off-shore enterprise can only conduct business outside the jurisdiction of the country of its registration.
There are varied reasons for people to set up offshore companies. In some cases, investors rely on such companies to take advantage of the statutory laws that are prevalent in the proposed foreign countryand are not applicable in the home country. Moreover, there are additional benefits of setting up off-shore companies like asset protection, tax savings and/or other business opportunities.
The objective of countries to invite foreign entities to set up offshore businesses within their boundaries is for revenue gains via agents’ fees and filing expenses, relating to the establishment of the offshore entities. Also, some jurisdictions have less natural resources and thus, adopt favorable offshore company legislationto attract foreign investors to set up businesses or hold capital within their regions. By doing so, the nation reaps the benefits of higher Gross Domestic Profit (GDP).
Free Zone Companies Vs Offshore Ones
Keep in mind that there are some differences between Free Zone and Offshore companies; they are set up for different purposes. Both can hold a bank account in the country of their registration. However, offshore companies cannot operate within the jurisdiction of the company where they are filed. Only Free Zone companies are entitled to conduct business in the country of their incorporation.
Also, free zone companies can have business transactions via a physical presence; on the other hand, offshore companies only need to register with the concerned authorities and establish an office sans the permission to conduct business in the country of their filing.
Also, there are several similarities between both types of companies. For instance, the investors can enjoy 100% ownership without having a sponsor or local partner; moreover, the Free Zone Authorities register and license both kinds of companies.
Overall, foreign investors opt for off-shore businesses at RAK to enjoy a range of facilities; more importantly, tax-linked benefits and confidentiality clause ones. In short, the RAK offshore propositions result in a win-win situation for all related parties.