There are several offshore jurisdictions around the world where one can establish an international business company (IBC). It may be difficult to decide as to which offshore jurisdiction is the best and most suitable for your new IBC. What makes it even more challenging is that most jurisdictions offer almost identical benefits which are hard to distinguish without carrying out an in-depth analysis of the issues involved.
We have outlined below the 5 key reasons why you should choose Ras Al Khaimah International Corporate Centre (RAK ICC) over any other offshore jurisdiction in the world.
Related: 4 Key Differences Between Offshore and Free Zone Companies in UAE
1. Ownership and Management
There are no restrictions on the foreign ownership of shares of IBCs. Any person can own 100% shares in an IBC with RAK ICC. There is no requirement for a UAE national to own any shares in these companies. This ensures that you are in full control of the affairs of your company. This avoids any potential legal or practical difficulties which you may otherwise encounter.
RAK ICC has registered over 30,000 companies with shareholders from over 160 countries.
RAK ICC provides the freedom to the shareholders on the following issues:
- Number of shareholders
- Type of shares issued including bonus shares and fully, partly or unpaid shares.
- Ability to register share pledge
- Ability to appoint corporate directors
- No attestation required for corporate documents
The above factors provide full ownership and management control to the shareholders of IBC.
2. Flexibility and Bank Accounts
Shareholders are not required to deposit any minimum paid up capital into a bank account to incorporate the company. There is also no requirement to file annual financial accounts for the company. There are no restrictions on these companies on repatriation of capital and profits which ensures that the shareholders are not restricted in any way in the movement of their capital.
There is currently a serious challenge faced by IBCs in their ability to open corporate bank accounts. RAK ICC companies enjoy the benefit of UAE’s outstanding reputation which makes it easier for these IBCs to open corporate accounts locally in the UAE and in many other countries around the world.
The above factors are key to practically running any business with full flexibility and enjoying control over capital and profits.
Related: 4 Key Steps to Opening a Corporate Bank Account in the UAE
3. Security and Legal Regime
This jurisdiction offers the shareholders a world-class business environment. The UAE has an outstanding reputation regionally and internationally when it comes to ease of doing business.
The legal regime provides further comfort to the shareholders as RAK ICC operates under common law legislation. The IBCs have access to the common law courts of the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Markets (ADGM) with each having international recognition in connection with the resolution of disputes. These strong common law based courts ensure that it is easier for the shareholders to resolve their issues in the most efficient manner.
The legal regulations ensure that these companies are fully compliant with the best practices as well as the local and international laws.
4. Cost Savings and Taxation
Setting up an IBC with RAK ICC is more cost-effective than many other offshore jurisdictions around the world. The cost of annual maintenance of these companies is also one of the lowest around the world. There is no requirement to have any office space as each company uses the address of the registered agent.
The companies enjoy access to a broad range of double taxation treaty network offered by the UAE. The UAE has signed more than 200 tax agreements including 123 agreements to avoid double taxation and 87 agreements to protect the investments. This, in itself, is one of the key reasons that the UAE attracts huge amounts of interest in business set-up.
The RAK ICC companies offer the above savings on every step of the way starting from the incorporation to throughout the lifecycle of the business.
5. Carry-Out Business in the UAE
These companies also provide an ability to shareholders to carry out any business activities inside the UAE by setting-up a subsidiary company with Ras Al Khaimah Economic Zone (RAKEZ). This structure is offered by RAK ICC as a premium product and offers significant cost benefits for anyone looking to carry out international and local business activity in the UAE.
Related: 5 Key Benefits of RAK ICC Premium Product
The above benefits result in a huge interest by investors/shareholders to incorporate their companies with RAK ICC.
InZone is a registered agent with RAK ICC and ensures smooth incorporation and ongoing maintenance of the IBCs.
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