Ras Al Khaimah in the UAE is a major business hub that facilitates offshore company formation. With an international business company as the core structure available there, it is uniquely designed to meet the needs of foreign investors.
Aside from this, it carries the UAE’s legacy and reputation, offering a range of benefits that foster a business-friendly environment. Given the current trend toward global cohesion, investors and businesspeople from around the world are setting up offshore companies to expand globally, diversify investments, or manage their businesses effectively.
We have outlined various other reasons to foster your decision to set up a company in RAK. Read on to learn more.
Top Reasons Why Global Investors Prefer RAK
Investors prefer RAK company formation for the following reasons. Here’s quick detail on each:
100% Foreign Ownership
RAK ICC is a haven for foreign entrepreneurs seeking a reputable badge of having a UAE company. RAK offshore company formation allows 100% foreign ownership, meaning a person of any nationality can set up a company here. There is no requirement to appoint a local director.
Keeping the individual shares aside, an RAK ICC company can also have corporate shareholders or directors of any nationality (except from the countries that are heavily sanctioned). That means even a Delaware LLC or a Cayman exempt company can be a shareholder in an RAK offshore company. This particularly gives this company structure an edge over other jurisdictions.
Favorable Tax Environment
Like other offshore companies in other jurisdictions, an RAK offshore company enjoys a favorable tax environment. That means it does not have to pay any corporate income tax on foreign source income. Moreover, it is also not liable to pay capital gains tax or withholding tax. This significantly reduces the tax burden and enables profit retention to support maximum business expansion. Despite this, the firm must still register for taxes with the Federal Tax Authority.
No Restrictions on Foreign Currencies
UAE does not impose any foreign currency controls on the firms set up in RAK ICC. That means you can hold capital in any currency without converting it into local currency.
On top of that, the UAE Dirham (AED) is mathematically pegged to the US Dollar, and the absence of currency restrictions allows international traders to use RAK ICC to completely eliminate foreign exchange volatility risk. Furthermore, RAK ICC laws are uniquely designed to allow the company to open multicurrency accounts not only locally in the UAE but also with digital banks and traditional wealth managers worldwide.
Minimal Administrative Hurdles
It is another of the key reasons that foreign entrepreneurs and investors prefer RAK company formation. There are minimal administrative requirements, and there is no need to register a local office, employ employees, or hire a company secretary. This significantly reduces the overall cost of the firm.
Other than this, RAK ICC firms are exempt from submitting annual audited financial statements to the registry for license renewals.
Invest in Local Real Estate
Historically, offshore companies could not buy local properties in Dubai. But that’s not the case now. You can also invest in real estate in Dubai via your RAK ICC company. RAK ICC has a direct Memorandum of Understanding (MoU) with Dubai Land Department (DLD), which allows you to hold properties in designated freehold areas in Dubai.
Easier Business Management
RAK ICC offshore company is a popular structure to set up holding companies. Through holding companies, you can easily manage subsidiaries in other jurisdictions and ensure effective management.
Other than this, you can also set up a segregated portfolio company with numerous cells to separately manage different investments or businesses. The major advantage of this structure is that each cell has ring-fenced protection, meaning the liabilities or debts of one cell cannot affect the others.
RAK offshore company is an ideal structure to grow your business across the globe and manage it efficiently. Besides businesspersons, it is also an ideal structure for investors seeking to diversify and manage global funds. Navigating the legal requirements can be tedious, and that’s where you must seek the help of consultants.
