PAK Blog Service: Dubai Offshor companies

DUBAI OFFSHORE COMPANIES (RAK) OFFICIAL APPOINTED AGENTS

We specialize in studying each client on their unique situation – citizenship, income, family status, secrecy, privacy etc., and propose a solution that is 100% legitimate. This process is very fast and efficient. If all the required information is in place, you can be on your way to freedom from taxes in as little time as 1 week.

Ras Al Khaimah

Ras Al Khaimah ranks among the smaller emirates of the UAE federation but it has always had an important position: in the past it was a centre of traditional shipbuilding and maritime commerce, more recently as a centre of quarrying, manufacturing and tourism. Since 2003, the government of the emirate has been pursuing the policy of diversification of the economy, industrialization and promotion of tourism, investment into education and public health and by investment into public utilities.

With a renewed drive for development over the past few years, Ras Al Khaimah has been pursuing the goal of becoming a serious investment destination. In a few years the emirate could become one of the top tourist draws in the Gulf thanks to its varied landscape which includes both the coast and the sand dune areas and the mountainous regions with pleasant wadis in the Hajar Mountains.

Government and Politics

Ras Al Khaimah joined the UAE federation in 1972 as the last of the seven emirates. The ruler of the emirate, Sheikh Saqr bin Mohammed Al Qasimi, has been in power since 1948. Since 2002, most of the day-to-day political and economic operations are carried out by the crown prince and deputy ruler, Sheikh Saud bins Saqr Al Qasimi.

Local government departments in Ras Al Khaimah include:

Emiri Court
Law Court
Land Department
Municipality Department
Public Works and Services Department
Economic Department
General Accounts Department
Ras Al Khaimah Oil and Gas Commission
Ports and Customs Department
Civil Aviation Department
Information and Tourism Department
Ras Al Khaimah Broadcasting Corporation
Antiques and Museums Department

Economy

Ras Al Khaimah´s economy is not based on oil as it has only small oil reserves. Its gas reserves are more important but revenues from gas are also of a lesser importance than in other emirates and the emirate has had to look beyond its borders to fulfil its demand for gas. As the emirate will never be a major oil producer, RAK has instead had to concentrate on developing its industrial sector.

The Emirate is rich with raw materials such as limestone, clay, quartz and other minerals. Ras Al Khaimah is unique in the Gulf region as it has a high concentration of leading industrial units which process these natural resources and manufacture various types of cement, clinker, ceramics and other building materials. It opened the UAE’s first cement company in the early 1970s and is now the UAE’s largest producer of cement. RAK also boasts the largest rock quarry in the Gulf region.

In the 1980s, the emirate formed RAK Ceramics, which has become the world’s largest ceramics producer, and Julphar, the Gulf region’s first pharmaceuticals company. As the first pharmaceutical and medical supplies manufacturer in the Gulf region, Gulf Pharmaceuticals (also known as Julphar) has developed into a global brand and now sells its products, which meet the rigorous US Food and Drug Administration and European Commission guidelines, to almost 50 countries.

Since the 1980, other advanced manufacturing companies have set up operations in Ras Al Khaimah, including companies producing glass, CD and DVD discs, air-conditioning equipment, machinery parts, metal products and others. The total number of industrial companies registered in Ras Al Khaimah exceeded 100 in 2006.

RAK Freezone Company – Go Offshore with advantages

An offshore company is a company which is incorporated outside the jurisdiction of its primary operations. Offshore companies are sometimes known as non-resident companies. An offshore company should not conduct substantial business within the offshore jurisdiction where it is incorporated.

An Offshore company is a very flexible corporate entity commonly used in international tax planning, and can be integrated into a wide variety of business arrangements. Tax optimization, asset protection and confidentially are just a few benefits which can be achieved by a proper application of an offshore company.

There is no standard reply as to which is the best offshore jurisdiction. Depending on the personal situation and business activities of its owners and upon the various tax regulations in force in the countries where the offshore company will engage in business are decisive factors.

There are a number of business activities which are suited to be operated through an offshore company, these include:

General Trading
Consulting and Advisory Services
Holding Company (buy/hold/sell stakes of companies)
Investments and Joint Investments Company
Property Owning
International services
Professional Services
Shipping and ship management companies
Commission Agents Company – Intermediary Brokers (IB’s)

Why United Arab Emirates Offshore Company Formations

Expanding and shifting your business activity through a UAE Offshore Company set up

The Emirate of Ras Al Khaimah (RAK) has launched an offshore facility – The second in the UAE.

The International Business Companies (IBC) Registry allows foreign investors to register offshore companies as RAK Offshore, a division of RAK Investment Authority (RAKIA) without the need to establish a physical presence in the UAE.

RAKCA is Ras Al Khaimah’s first and largest registered agent for the incorporation of International Offshore Business Companies (IBC). Companies are usually incorporated within 24 hours. Any non-resident individual or corporate entity can register a company with RAKCA.

AK Investment Authority (RAKIA) is a Government body formed in 2005 with mandate to promote industry, trade, investment, tourism and infrastructure in the Emirate of Ras Al Khaimah in the UAE.

Located within 1 hour driving distance from Dubai (85 kms) and 30 minutes drive from Sharjah (45 kms), the land and infrastructure costs are very competitive by as much 50-60% as compared to any neighbouring Emirate.

Many jurisdictions are considered only as tax havens. The United Arab Emirates is a ‘real’ country with a ‘real economy’ with a population of approximately 4 million. It has an established history of international trade, finance and business, and today it is one of the fastest growing countries in the world with one of the highest standards of living.

The choice of a suitable jurisdiction is an important decision and requires careful considerations. Important aspects to be examined and which RAK offers may be outlined as follows:

Political and economic stability of the jurisdiction

The availability of a modern and flexible legislative framework
Simple incorporation and filing requirements
The availability of Double Taxation Avoidance Agreement (DTAA)
State of the art banking system
State of the art telecommunication facilities

Uniqueness

UAE is not a dependent or ‘overseas’ territory of another country
Pressure has been put on traditional low tax jurisdictions by the Commission of the European Community (EU) in conjunction with the Organization for Economic Cooperation and Development (OECD). The UK parliament has converted British Dependent Territories to British ‘Overseas’ Territories (in 1998). The UK government may apply greater control over its tax haven progeny (i.e. Bermuda, BVI, Caymans, Gibraltar, Turks & Caicos)

UAE has Double Taxation Avoidance Agreements (DTAA) with a number of countries

Double taxation agreements prevent individuals and corporations from being susceptible to paying tax on the same item during the same time period. These agreements determine which of the two states concerned should levy tax in a particular situation: Austria, Belarus, Belgium, Canada, China, Czech Rep., Egypt, Finland, France, Germany, India, Indonesia, Italy, Lebanon, Malaysia, Malta, Morocco, New Zealand, Pakistan, Poland, Romania, Singapore, Sudan, Thailand, Tunisia, Turkey, and Ukraine.

UAE is not a member of the Organization for Economic Cooperation and Development (OECD)

No foreign exchange of information.

UAE is not on the OECD “blacklist” of tax havens (nor the FATF blacklist)

UAE is not a member of the EU, and is not subject to EU regulation

Main activities of UAE OFFSHORE COMPANY

General Trading
Consulting and Advisory Services
Holding Company (Buy/Hold/Sell stakes of companies)
Investments and Joint Investments Company
Property Owning
International services
Professional Services
Shipping and ship management companies
Commission Agents Company – Intermediary Brokers (IB’s)

Fiscal & Regulatory benefits of UAE OFFSHORE COMPANY

100% income tax exemption
100% corporate tax exemption
100% capital and profit repatriation
100% ownership in Free Zones
No Import or Export taxes
No capital gains tax
No Value-added tax
No Withholding tax
Proximity to entire Gulf and global markets

Main features of UAE OFFSHORE COMPANY

It does not need to have physical offices in the UAE.
It may not carry on business within the UAE.
It may not obtain UAE Residency Visa.
It may have non UAE resident as director or shareholder.
It may have UAE resident as director or shareholder.
It may have corporate shareholder/corporate director
It does not require the shareholder/director to be physically present in the UAE for incorporation
It may own real estate in the UAE, with prior authorization from RAK Investment Authority.
It may not do banking and insurance business without special license.
It may maintain bank accounts and deposits in the UAE or worldwide.
It is not obliged to maintain its books and records.
It may hold shares in other UAE and worldwide companies.
It may own yachts registered in the UAE.

In Brief

Location	Gulf	RAK Offshore is the first comprehensive offshore centre in the Gulf region.
Time Zone	GMT+4	Between Europe and Asia. Open on Sundays.
International Business Companies	Yes	First centre in the Middle East to offer IBC registration.
Trusts	No	Not offered yet.
Offshore Banking	Yes	Authorized to open bank account with UAE banks.

You can register International Business Companies bearing the status of “Limited” or “Ltd.” at RAK Offshore.

Middle East and the Gulf

Thanks to geographical proximity and cultural similarities, RAK Offshore is an attractive location for businesses from countries in the Gulf and the Middle East. These countries already have strong business links with the United Arab Emirates. RAK Offshore is also likely to benefit from the fact that some countries in the region suffer from political unrest and/or asset protection issues.

Russia & CIS Countries

Confidentiality and financial privacy coupled with issues such as political uncertainty, weak currencies, taxes, severe foreign exchange controls and asset protection in Russia and CIS countries make RAK Offshore a viable option for businesses from these regions who seek an offshore location.

Europe, India & Other Countries

Companies in this region have a favourable image of the UAE as a business centre. Add to that their interest in investing in the booming economies and financial markets of the GCC and it is not hard to see why RAK Offshore is a perfect offshore location for these companies.

Statutory description of private limited company	International Business Company (IBC).
Governing corporate legislation	RAK Investment Authority (RAKIA) is the governing body and the companies are regulated under RAK Offshore Regulations 2006.
Time-scale for incorporation	24 hours. There is a time difference of +4 hours to GMT.
Availability of ready-made companies	No.
The regulations governing availability of names	Generally the nature of the company has to be indicated through the words “Limited” or “Ltd.”.
Minimum and maximum number of shareholders	A company may be formed with minimum of one shareholder and there is no limitation as of maximum.
Statutory minimum paid-up capital requirements	Capital is required for the incorporation of an offshore company but there is no minimum capital requirement.
Classes of share available	Share capital may be divided into different classes. Bearer shares are not allowed. Shares may be issued fully, partly or nil paid.
Denomination of share capital	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.
Annual Costs	As per request.
Residency requirement on shareholders or shareholders’ meetings	No requirement for a local resident to be a Shareholder, only proof of residence is required to be submitted.
Information published relating to shares and shareholders	The company must keep a copy of the share register at the registered office address. This is available for inspection by the members and is not publicly available. The company may voluntarily file at the Registrar the copies of the register of members.
Minimum and maximum number of directors	Sole directors are permissible. There is no statutory limitation for maximum number of directors permitted, although the articles may impose a limit.
Are corporate directors or corporate shareholders permitted?	Yes. Corporate entities are even permitted to hold shares in a RAK Offshore companies.
Nationality and residency requirements of directors	The director can be a resident or any foreign citizen but is required to submit the proof of residence and other relevant documents.
Nature of the powers of the directors	The directors have all the powers of the company that are not reserved to the members under the Regulation or in the memorandum and articles.
Directors & apos; meetings	The directors may meet at such times and places within or outside the UAE as the directors may determine to be necessary or desirable. Telephone and other electronic meetings are allowed. Subject to a requirement in the memorandum and articles the director shall be given reasonable notice of meetings of directors, although this rule is subject to a waiver of notice. The presence of a director at a meeting shall be deemed to constitute a waiver on his part. The quorum of a meeting of directors is fixed by the memorandum and articles but where no quorum is fixed, a meeting of directors is properly constituted if one half of the total number of directors is present in person or by alternate.
Information published relating to directors	There is no public register of directors, although the company may voluntarily file its register of directors with the Registrar.
Must accounts be prepared by the directors?	A company incorporated under the Regulation shall keep such accounts and records as the directors consider necessary or desirable in order to reflect the financial position of the company.
Must such accounts be filed with the financial authorities?	No.
Must such accounts be audited, and if so by whom?	No. They may be audited by persons approved by the directors.
Must the company have a registered presence in the territory of incorporation?	Yes. The company must at all times have a registered office and registered agent within Ras Al Khaimah. The registered office must be maintained either by the company or its registered agent.
What records must be maintained in the territory and are they available for public inspection?	A copy of the share register and the register of directors and an imprint of the common seal must be kept at the registered agent & apos address. Other records such as minutes of meetings of directors, members and copies of all resolutions may be kept at such places as the directors determine, but copies must be kept at the registered agent’s address. These are not available for public inspection, other than by members or directors. If copies of these registers and documents are kept other than by the registered agent, the registered agent must be notified of the location of the original. If the company fails to comply with these provisions it is liable to a fine.
Can the company make secured loans?	Yes.
Can the company make unsecured loans?	Yes.
What are the limits placed on the company’s borrowing powers?	None. There are no debt/equity ratios under the law.
Is there a register of company charges?	A company may maintain at its registered office a register charges and other encumbrances. This is not mandatory. Similarly, a public register may be maintained at the option of the company.
Company seal	A company must have a common seal.
Re-domiciliation provisions	A company incorporated under the laws of a foreign jurisdiction may continue its existence as a company registered under the Act. Similarly, RAK Offshore business companies may transfer their domicile to foreign territories that permit such procedures.

Compliance and Safety

Ras Al Khaimah is one of the fastest growing emirates in one of the fastest growing economies in the world, the United Arab Emirates.

Renowned for its natural beauty and art de vivre, Ras Al Khaimah has also gained a reputation for being a transparent, tax-free, corruption-free and no-red-tape location to do business. Its booming economy and proximity to other major international centres like Dubai has attracted hundreds of large, medium and small businesses from every part of the world.

Now, RAK Offshore is making it possible for non-resident corporations, entrepreneurs and individuals worldwide to enjoy all the advantages which were available only to resident entities.

At RAK Offshore, the sole raison d’être is to help your business succeed. From the very outset, it was conceived to allow you to unleash your entrepreneurial spirit by making it easier and more cost-effective to start and operate an offshore business. RAK Offshore offers businesses and individuals a wide range of comprehensive services and structures that are dedicated to non-residents.

RAK Offshore also benefits from one of the most comprehensive lists of non-double taxation treaties in the world, including with China, India, Italy, France and Germany.

Day-to-day operations are managed by the Registrar, under the control of the RAK Investment Authority (RAKIA), and the independent and dedicated RAK Financial Services Authority (RAKFSA), as well as the Central Bank of the United Arab Emirates. In delivering its functions and in considering applications by organisations and individuals wishing to establish businesses within or through RAK Offshore, the Registrar and RAKFSA aim to adopt a firm but flexible regulatory approach.

It is of paramount concern to the government that Ras Al Khaimah’s reputation is not tainted by the use of the jurisdiction for money laundering or other illegal purposes. Therefore, RAK Company Administration, as a licensed Registered Agent is expected, in accordance with a set of strict guidelines, to carry out proper due diligence and “know your customer” checks so that we are satisfied as to the identity of the clients and the legitimate origin of the clients & apos; funds. Although total confidentiality is ensured by the legislation, the authorities will cooperate with law enforcement agencies and regulators in case of illegality.

Professional Business Environment – The RAKIA Advantage

Fiscal Benefits

100% income and corporate tax exemptions.
No Foreign exchange controls.
100% capital and profit repatriation.
Strong appreciating and fully convertible currency.
Low Inflation.
Easy funding from International Banks.

Regulatory Benefits

100% ownership in Free Zones.
No trade barriers or quotas.
Easy Licensing Procedures
Simple Import, Export Policies
Liberal labour laws.
No restrictions on hiring expatriates.
Issue of visit and residence visa
Open door policy.
Single window clearance for permits and consents.
Every investor gets personal attention.
Cost and time savings
International Bank Accounts (with electronic banking facilities)

Highlights

No need to Travel

Our clients are not required to visit Dubai to Incorporate the Company. Our Dubai corporate assistance team in UAE Dubai will undertake the necessary tasks on your behalf.

Industrial License

Activities allowed: Import raw materials, manufacturing, processing, assembling, packaging, and exporting finished products. Feasibility and environmental impact studies and clearance from RAKFTZ are required.