Are you interested in setting up a new offshore company in the UAE? Imagine enjoying an excellent business environment, strong customer base, lucrative options for investments, and an extremely tax-friendly business environment that allows you to operate your business at a lower cost, without compromising on your profits. An RAK offshore company is definitely the way to go.
Here we provide you with a comprehensive guide to RAK offshore companies in the UAE. We will elaborate on its features, benefits, company registration process, documents required, bank account opening procedures, ongoing compliance requirements, and answer frequently asked questions related to RAK offshore companies in the UAE.
What is RAK Offshore Company in UAE?
RAK offshore company stands for Ras Al Khaimah offshore company and is a type of company known as an International Business Company (IBC) in the UAE. Ras Al Khaimah is the northernmost emirate of the UAE, which is an incredible location for businesses and entrepreneurs due to its strategic location, tax benefits and favorable laws.
The Primary objective of RAK offshore company is to facilitate offshore business activities, providing investors and business owners a platform to operate their businesses globally. RAK offshore companies are best suited for businesses that do not require physical premises to operate and can be easily managed remotely since such entities are not permitted to undertake any business activities within the UAE territory.
Features of RAK Offshore Company in United Arab Emirates.
RAK offshore companies in the UAE have some unique features, which make them an ideal business entity for entrepreneurs looking for offshore entities’ flexibility:
1. Zero Percent Tax : RAK offshore companies enjoy the advantages of a zero percent tax levied on them, making them the most tax-efficient offshore companies in the UAE, and possibly within the wider jurisdiction of tax haven destinations.
2. Total Foreign Ownership : In the RAK offshore company, foreigners can own 100 percent of the company without partnering up with a local emirate.
3. Privacy is Paramount : RAK offshore companies enjoy complete confidentiality such that the details of shareholders, directors, and the company’s beneficiaries are not accessible by the public directly.
4. Flexible Share Capital: The company’s share capital amount can be changed anytime after registration.
Benefits of Setting up an RAK Offshore Company in United Arab Emirates
1. Asset protection: Through RAK offshore companies, investors can safeguard their assets from unforeseen claims, and direct them to more sustainable investments.RAK vehicle can used as for legacy planning, estate planning and for wealth planning.
2. Tax benefits: Setting up an RAK offshore company can be especially attractive thanks to the zero tax rates on these types of companies.
3. Cost-effective operating costs : Starting an RAK offshore company can become affordable since it doesn’t require a fixed physical location and low maintenance fees .
4. Confidentiality: The high level of privacy and confidentiality of RAK offshore companies ensures that confidential company information is kept private.
5. Limited of liability: RAK offshore companies’ owners and shareholders enjoy limited liability, meaning they have less personal risk when it comes to business losses.Liability is limited to the capital of the company .
How to Open an RAK Offshore Company
Setting up an RAK offshore company can be relatively simple; however, it is a detailed and thorough process that must adhere to the United Arab Emirates’s laws.
Here are the basic steps to consider when opening an RAK offshore company:
1. Select a registered agent and consultant : This is an essential factor because the knowledge and expertise of the registered agent ensure factual and up-to-date guidance that you might need during the company registration process. It is also necessary to have an agent present your company to local authorities.
2. Choose a name and activity for your RAK offshore company: You have to choose a name unique to your company and ensure it is appropriate under the UAE company act.and also the proposed activity of the company .
3. Provide the required documents: You will be required to submit all your company’s relevant documents to the registered agent. These include a declaration of compliance, Articles of Association, passport copies of shareholders, utility bill , CV and a registered office address.
4. Final submission for register RAK offshore company: After submitting the relevant documents, the registration process will begin, and it would take a few days to a few weeks to complete.
Documents Required for Opening RAK Offshore Company
The required documents for your RAK offshore company registration are:
1. Choosing the company name: You need to choose a company name that is suitable for your industry and adheres to the UAE laws.
2. Passport copies of shareholders: The passport copy should be in color.
3. Articles of Association: This document outlines the company’s rules and regulations.
5. Proof of residence address: You need to provide an address proof by providing utilities bill
6.Profile of the shareholders: A detailed cv of the shareholders is a mandatory document.
Bank Account Opening Process and Procedures for RAK offshore company in UAE
Opening a bank account for your RAK offshore company in the UAE is relatively straightforward, and it can usually be done through online banking. To open a bank account for your company in the UAE, you need to provide the bank with the company’s registration documents, including Articles of Association, passport copies of shareholders, and a registered office address. The bank then reviews the documents to determine if your company is eligible to open an account.
On-Going Compliance for RAK offshore company in UAE
RAK offshore company owners and shareholders are responsible for complying with the legal requirements of the UAE. Following are the main on-going compliance requirements for RAK offshore companies in UAE:
1. Auditing and reporting requirements: All offshore companies in the UAE must prepare financial statements and should submit audited accounts annually to RAK ICC.
2. Renewal of license: RAK offshore companies must renew their licenses annually, including renewal fees.
3. Notification of changes : Your company must report any changes of directors, shareholders to the RAK ICC.
RAK offshore companies is an ideal vehicle for entrepreneurs and investors who want to expand their business dynamically. With this type of company in the UAE, investors can enjoy significant aspects such as tax efficiency, privacy, and asset protection. Setting up this company requires adherence to the UAE’s legal requirements, and it is recommended that you engage a licensed and competent registered agent to facilitate the process. Finally, staying compliant with the legal requirements is vital, to avoid any penalties or legal implications. Contact Nex Consultants company formation expert to assist with your RAK offshore company registration and other legal requirements, and start enjoying the advantages of a tax-efficient offshore company in the UAE.