Offshore Company Formation in UAE

One of the most cost-effective solutions to start an offshore company in the UAE is to register it in the RAKIA Free Zone. Despite the fact that RAK offshore company is registered by a free zone authority in the emirate of Ras Al Khaimah, the international bank account can be opened in a Dubai branch of a local bank. The registration is carried out by RAKIA Free Zone Authority with the help of an offshore agent (e.g. a company registered with RAKIA which holds a permit/license to register offshore companies). While an offshore company can benefit from tax exemption and absence of audit requirements, a very well-developed UAE infrastructure adds prestige to international companies registered in the UAE. Moreover, an offshore company guarantees that information about shareholders and directors of international companies registered in the UAE remains confidential.
 

Register Offshore

THE MOST FREQUENT QUESTIONS REGARDING STARTING A BUSINESS IN DUBAI AND UAE

What are the requirements in relation to the name and a business structure of an offshore company?

The name of a company should end with words “Limited” or “Ltd.”, which means “with limited liability”.

How many shareholders are required for an offshore company registration?

An offshore company can be owned by one (1) to fifteen (15) shareholders. Their responsibility is limited by the number of the shares they hold. 100%-foreign ownership is allowed. The shareholders do not need to fly to the UAE to sign documents to register an offshore company.

What is the minimum share capital requirement for an offshore company?

A minimum share capital of an offshore company in RAK ICC shall be AED 10,000 or its equivalent in USD or Euro. However, this amount is not required to be deposited into a bank account, but shall be included in the MOA of the company.

How many directors are allowed in an offshore company?

The requirements include minimum one (1) director and one (1) secretary, both of which can be legal entities. The director can be a secretary at the same time.

What will be the address of a registered offshore company?

The company address will be the same as the address of the registering agent company.

What is important to know about taxation?

An offshore company (RAK Offshore) is free of income taxes, capital gain taxes, VAT and a non-resident income tax.

What is important to mention about confidentiality?

All information is strictly confidential and there is no general access to it.

Is an offshore company required to submit annual audit reports?

Audit is not required. Auditing can be done internally, but submission of audit reports to RAKIA is not required.

What is the timeframe for RAKIA offshore company registration?

The registration process usually takes one day only. However, as the process of registration approval is out of our company’s control, we suggest a time frame of 3 to 5 days.

What types of businesses might be interested in opening of an offshore company in RAK ICC?

The RAK ICC is perfect for companies that want to be registered in the UAE, but do not plan to conduct business in the UAE. An offshore company is suitable for the companies that need to minimize their tax liabilities or protect their assets, as well as to open a bank account in a local bank.

What documents are required to register an offshore company?

The standard list of documents includes a passport copy, a bank reference letter, and proof of residence (e.g. utilities bill) for an individual. In case the owner of the future company is a legal entity, a fully legalized package of the corporate documents is required. The rest will be carried out by us.

What legal document regulates offshore companies’ activities (RAK Offshore)?

It is RAK ICC Business Companies Regulations 2018

What countries does the UAE have double taxation treaties with?

The current list can be found on the UAE Ministry of International Affairs website.

Does RAKIA keep a list of ready-to-purchase offshore companies?

No, it doesn’t.

Are bearer shares allowed in RAKIA offshore?

No, not allowed.

What is allowed and what is not allowed to a RAK Offshore company?

Allowed: to own properties (in projects approved by RAKIA); to have bank accounts and deposits in the UAE and outside of the country; to be a shareholder of a different company (either in the UAE or outside).

Not allowed: to have an office in the UAE; to conduct commercial activities on the territory of the UAE; to have UAE residence visas issued by RAKIA offshore company; to conduct banking or insurance activities.

What are the major types of UAE offshore companies’ activities?

The most popular activities include assets ownership, bank accounts ownerships, real estate ownership in RAKIA approved projects.

What are the major types of offshore companies’ activities outside the UAE?

Those include trading, consulting, holding, real estate ownership, professional services, maritime and sea navigation.

Does an offshore company need a stamp?

Yes, it does.

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