RAK Offshore Questions & Answers Fact Sheet
What is an Offshore IBC?
- IBC refers to International Business Company
- IBC is a company which does not conduct substantial business in the country of its incorporation.
- It is formulated in a tax free jurisdiction.
- It legally minimizes any type of tax burdens.
- It improves one's wealth management.
- Large numbers of high net worth individuals and corporations are redirecting their business to offshore jurisdictions which provide a relaxed regulatory framework and minimum to zero tax obligations. The reasons for this direction are various:
a) To Save Tax
- An offshore company can form part of an overall taxation reduction strategy for certain individuals or entities.
- Within a tax efficient structure, the use of an offshore company may assist in achieving profit maximization and efficient realization.
b) 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.
c) 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 or foundation for example.
d) 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.
RAK OFFSHORE COMPANY REQUIREMENTS
1) Is there any requirement/regulations governing availability of names for RAK Offshore companies?
RAK Offshore International Business Companies (IBC) must use the suffix Limited or Ltd. to denote limited liability.
2) How many shareholders can a RAK offshore company have?
RAK Offshore IBC can have minimum one shareholder and a maximum limit of 15 shareholders whose liability is limited to their shares in the company's capital.
3) What is the minimum capital required?
Minimum capital is not required for the incorporation of an offshore company. But it has to be mentioned on the MOA.
4) How many Directors/Secretary can a RAK Offshore company have?
A minimum of one director 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 public record.
5) What should be the registered address of the RAK Offshore company?
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.
6) What about the taxation?
For Rak Offshore IBC there is no profit and capital gains tax, No value-added tax, No withholding tax.
7) What about the confidentiality?
All information and documents arekept strictly confidential.
8) Is the RAK Offshore company subject to audit?
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 keep their accounting records wherever in the world the directors deem appropriate.
9) What is Governing corporate legislation?
The companies are regulated under RAK Offshore Regulations 2006.
10) Are ready-made companies available?
11) Are bearer shares allowed?
12) What are the requirements for shareholder(s)/ director(s) of a RAK Offshore company?
- 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 hold shares in other UAE and worldwide companies.
- It may maintain bank accounts and deposits in the UAE or worldwide.
- It may own real estate in the UAE, with prior authorization from RAK Investment Authority.
- It is not obliged to maintain its books and records.
- It cannot have physical offices in the UAE.
- It may not carry on business within the UAE.
- It may not obtain UAE Residency Visa.
- It may not do banking and insurance business without special license.
13) What are the main activities that a RAK Offshore company can have inside UAE?
- Holding Assets
- Holding Bank Account
- Property Owning (Freehold Areas)
14) What are the main activities that a RAK Offshore company can have outside UAE?
- General Trading
- Consulting and Advisory Services
- Holding Company
- Property Owning
- International business services
- Professional Services
- Shipping and ship management companies
15) What is the denomination of share capital?
AE Dirham and US Dollar can be used as the denomination for the capital.
16) Is there any residency requirement on shareholders or shareholders' meetings?
17) Is a company seal required?
Yes, a company must have a common seal.
TIME FRAME FOR INCORPORATION
How long it takes to set up a RAK Offshore company?
Usually incorporation of a RAK OFFSHORE company is possible within 24 hours.
WHAT ARE THE REQUIRED DOCUMENTS TO OPEN A RAK OFFSHORE COMPANY?
- Application Forms (Reservation of name, consent of shareholder, consent of director, consent of secretary, application for incorporation)
- MOA - prepared by the registered agents
For Individual Applicants
- Passport Copy - Attested
- Bank Reference Letter - original required
- Proof of residence (Utility bill) - original required
- Any other documents requested by the Registrar during the incorporation
For Corporate Entity Applicants
- Copy of license or incorporation certificate issued by the chamber of commerce or any other body – Apostilled/ attested.
- Shareholder’s resolution - Attested (deciding to acquire shares of the RAK Offshore company to be incorporated)
- MOA of the parental company – Apostilled/ attested
- Passport Copy of the Director and Shareholders - Attested
- Good Standing Certificate – Attested
- Attested Incumbency certificate (mentioning the name of shareholders and directors )
- Any other documents requested by the Registrar during the incorporation
N.B. If that corporate entity is again owned by another company, the same documents mentioned above are required till final level to get to know the initial beneficiary owner.
WHAT ARE THE ADVANTAGES OF A RAK OFFSHORE COMPANY:
- 100% income tax exemption
- 100% corporate tax exemption
- 100% capital and profit repatriation
- 100% ownership in Free Zones
- No capital gains tax
- No Value-added tax
- No Withholding tax
- Proximity to entire Gulf and global markets
- Low start-up costs
- Absolute privacy, confidentiality and protection of assets and information
- 100% foreign ownership
- Ability to maintain bank accounts (Current Account) in the UAE
- Limited liability company
- Minimum one director required, one shareholder and one secretary (it can be the same person)
- Own real properties in the UAE
- Annual Audit Report not required to be submitted to the Authority
- It does not require the shareholder/director to be physically present in the UAE for incorporation
- No restriction on nationalities
- 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.
Who can be interested to open a RAK Offshore company?
- Businesses, that want to be registered in the United Arab Emirates, but do not intend to conduct any substantial business in the country, can opt for RAK Offshore international registry service. This service is particularly suitable for companies looking for minimizing their overall tax liability, seeking asset protection or in need of establishing an exchange control trading vehicle.
How can I open a RAK Offshore company?
- This product is available only through a network of registered offshore agents who will take care of all administrative and legal matters.
For more information please contact us directly at the following email addresses:
or visit our website: www.hcs-fze.com