Registration offshore companies are formed in tax haven status countries e.g. Ras Al Khaimah, UAE, to maximize economic opportunities in other countries, enjoy fewer restrictions and the liberal laws available in offshore destinations. The countries or jurisdictions where company offshore registration is done are commonly known as offshore jurisdictions.
Normally RAK and other offshore jurisdictions promote offshore incorporation to strengthen their financial sector as a major development area, and thus create employment opportunities for their citizens. So tax concessions and the liberal operating laws offered to company offshore registration such as in RAK, are usually provided by developing countries which aim to develop rapidly.
Articles of incorporation in the formation of the business is a legal document that establishes the structure and purpose of a company offshore registration. This is a basic document for incorporating your corporation or company.
Articles incorporation set the objectives and scope of the business as to what activities the business will undertake and what path will be adopted by the business in order to achieve its goal. Once they are filed with the appropriate regulatory authority in the territory in which you are incorporating your business, the incorporation process begins.
After they are duly accepted by the authorities they issue an incorporation's offshore certificate of existence. The incorporations offshore certificate of existence is evidence of existence and formation of a company offshore registration. This is also called a Certificate of Incorporation at times.
Amongst the several reasons for going to RAK or other offshore jurisdictions, lower or zero tax rates in offshore destinations is one of the leading reasons why businessmen all over the world opt to incorporate their companies in offshore jurisdictions.
For promoting company offshore registration, the governments of offshore jurisdictions make laws which ensure that operational ease is enjoyed by offshore companies such as in RAK, as shown below. Usually, company offshore registration is preferred because laws governing the operations of businesses for locally registered companies are very tough in certain parts of the world.
An added advantage in several jurisdictions or tax havens is the issue of confidentiality. In many such places, confidentiality is protected by law and disclosing information is a criminal offense!
* Advantages - No inheritance or any other taxes; cheapest incorporation in the Middle East; you do not need to spend time and money getting various Embassy and Ministry of Foreign Affairs attestations if you are using the company in the Middle East; simple Know Your Client documents required; also Double Tax treaties are applicable to these companies; and these companies can own property within the free zone.
* Disadvantages - Expensive jurisdiction for the pure offshore company, [though cheaper than the Dubai Offshore companies] if the company is to be used outside the Middle East since other jurisdictions are cheaper.
* Corporate Legislation Source - RAK Offshore International Business Companies Regulations of 2006
Company Status; exempt from all taxes.
* Usual Minimum Capital - USD 1.00
* Company Name - Prior approval required; can end their names with Ltd., S.A., NV.
* Time Taken To Incorporate - Incorporation takes 2 days, ONLY, after all KYC documents received.
* Are Shelf Companies Available - No
* Capital Duty - None
* Minimum Number Of Shareholders - One
* Are Bearer Shares permitted - No
* Directors: Minimum Number? - One
* Directors: Corporate Allowed? - Yes
* Directors: Location? - May be non-resident in Ras Al Khaimah, UAE.
* Secretary: Mandatory? - No
* Secretary: Corporate Allowed? - Yes
* Secretary: Location? - No restrictions
* Registered Office: Mandatory? - Yes
* Registered Agent: Mandatory? - Yes
* Information Available On Public File - Not public information; confidentially kept by the Registrar only.
* Documents To Be Kept At Registered Office - None
* Accounts Audit Required? - No. Only if RAK authorities suspect money laundering
* Accounts Filed? - No
* Double Tax Treaties - Yes! Currently with 24 countries including India, China and Pakistan.