Why UAE Offshore Company?

While many jurisdictions are considered only as tax havens, UAE Offshore Company Formation provides some unique advantages. 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. Why UAE offshore company? Important aspects to be examined and which UAE, especially 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 (ie Bermuda, BVI, Caymans, Gibraltar, Turks & Caicos).

UAE Offshore Company offers a great alternative to the above traditional offshore business destinations.

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, Ukraine. These double taxation avoidance agreements make UAE Offshore Company Formation an even more attractive proposition for international businesses.

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.
• 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 favorable 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.