International Business Company (IBC / RAK Offshore Company)
The International Business Company (IBC), or RAK Offshore company, was introduced as legislation in 2006 and is becoming renowned globally as a tax efficient and versatile corporate solution.
Whether your business applies to international trade, ownership of intellectual property, asset protection, direct ownership of real estate, or is a global holding company, an International Business Company can be advantageous. This is only applicable for offshore businesses and not for operations within the UAE.
There are four very good reasons for setting up a RAK offshore Company; as it is technically an Offshore Company you will pay 0% tax as there are no limits on bank transfers, you don’t need to deposit any share capital, and we’ve been informed by Ras Al Khaima that there is currently no disclosure to other tax authorities.
For more information and to speak to one of our specialists please call us on 0208 421 7481 or +44 (0)208 421 7481 from outside the UK.
RAK Offshore Company Formation
The first thing any potential Dubai investor should know is a RAK Offshore Company. This is known as a Ras Al Khaimah International Business Company, or RAKIA IC for short. It is technically an offshore company and is perfect for entrepreneurs with no intention of trading within the Emirates.
The UAE is one of the fastest growing economies in the world and Ras Al Khaima is one of the fastest growing Emirates. It is free of corruption and well renowned for its lack of red tape. Situated under an hour from Dubai it benefits from perhaps the most comprehensive list of non-double taxation treaties anywhere. In fact, it’s a mere 15 minutes’ drive from RAK airport, 30 minutes from Sharjah and just 45 minutes from Dubai Airport. It is fantastically situated between Asia and Europe for international trade to the East and West and even boasts three separate ports, including Saqr port where over 1400 ships dock annually.
It is also perfect for outsourcing, thanks to its proximity to major economies and multicultural and highly skilled workforce. There is also a seven day working week – Sundays are business as usual.
Benefits of a RAK offshore company include the following:
- Offers offshore retail and investment banking
- Modern telecommunication and transportation infrastructure with very well developed road, air and sea transport facilities
- Local government that is fast and efficient with minimum regulation and red tape
- Local currency linked to the US dollar to ensure a stable exchange rate
- Minimal renewal fees
Features of a RAK offshore company include the following:
- Highly confidential company structure. No access to public records
- Highly respected jurisdiction not considered a “tax haven”
- Corporate directors are allowed
- Minimum requirement for 1 director, 1 company secretary and 1 shareholder. The same person can occupy all three positions.
- The IBC may appoint a legal system based upon a preferred international jurisdiction
- No requirement for filing of accounts or annual returns
- Bearer Shares possible
- UAE or foreign bank accounts can be set up
- The IBC can be set up within 48 hours subject to receipt of required information
Further benefits of a RAK offshore company include the following:
- Easy to set up – no complex compliance requirements
- 0% tax
- Potential access to the UAE’s double tax treaty network
- 100% foreign ownership
- No requirement for resident directors/shareholders
- Extremely versatile – can be used for international trading, holding companies, investments, consultancy and intellectual property
- No reporting requirements
- An International Business Company can invest in local real estate unlike other offshore jurisdictions
Please contact us below for further information about our Dubai company formation services, or to discuss the best option available for you to open a Dubai company.