Dubai, Abu Dhabi and Sharjah are considered most important emirates of UAE as far as business is concerned. But most of the people (including foreign investors) usually neglect the business opportunities available in other smaller emirates of UAE, while there are immense opportunities available for foreign investors in these smaller emirates also. One such example is Ras al Khaimah which is known for providing free zone businesses and also an offshore jurisdiction for foreign investors. RAK Free Zone has already been discussed here. Now, we will discuss about the opportunities for offshore companies provided by the emirate of Ras al Khaimah.
RAK International Corporate Centre (RAKICC) is the merger of RAK International Companies and RAK Offshore. RAK International Companies was previously part of RAK Free Trade Zone but later became part of RAKICC. This merger of two different entities was announced in May 2016. There is no doubt that RAK ICC is one of the best offshore jurisdictions in UAE and also in the world that provide several such advantages that are required for smoothly running of an offshore company.
- RAK ICC is a perfect tax haven that provides exemption from all types of taxes. Currently, UAE government has implemented VAT on various goods and services but RAK ICC will remain completely tax free. Another important tax benefit provided by RAK ICC is its Double Taxation Agreements (DTAs) with more than 50 countries (Germany, Finland, Italy, New Zealand, China, Malaysia, India etc.). Through these agreements, the offshore company holders can avoid taxes with businesses in countries having DTAs with RAK ICC. These treaties also prove that RAK ICC is an internationally approved offshore jurisdiction
- There is no legal hindrance in setting up a company in RAK offshore as it adheres to the International Anti Money-Laundering regulations and other international standards
- A unique benefit of setting up an offshore company in RAK is its freedom from several such rules and regulations that are laid in other offshore jurisdictions in UAE and the whole region. International investors don’t face issues in RAK that may be present in other offshore jurisdictions because RAK ICC is completely independent jurisdiction with its own rules and regulations
- Establishing offshore company in RAK protects one’s possessions from legal issues. Before opening an offshore company, the authority (RAKIA) confirms legality of your business and then it ensures protection of your assets in case of a legal pursuit
- The presence of a physical office for any offshore company in RAK is not required. This company will do business outside UAE but can have a bank account in any bank in the country
- Only a single director and a single shareholder are required to open offshore company in RAK
- Unlike UAE mainland, there is no restriction of the inclusion of local person in the business. The offshore company in RAK can be completely owned by foreigners
- As compared to several other offshore jurisdictions, the cost of setting up and maintaining (through annual fee) an offshore company in RAK offshore is quite low
- RAK ICC ia located at a strategic location. It is in the proximity of Saqr Port that serves 1,400 vessels every year. The specific offshore jurisdiction is 15 minutes of drive from Ras Al Khaimah Airport, 30 minutes’ drive from Sharjah Airport and 45 minutes’ drive from Dubai Airport
These advantages are enough to attract any foreign investor who wants to establish offshore company in a safe and business friendly location. In order to make this process quick and hassle free, you can contact Riz & Mona Consultancy via our WhatsApp # 971-56-9971225. We are registered agents of RAK ICC.