One of the seven independent federal emirates that make up the vast United Arab Emirates is Ras Al Khaimah, or RAK as it is more popularly known. For individuals looking to start their own business, this Emirate, along with the others, provides appealing investment and commercial options in the UAE.
RAK continues to be the top investment jurisdiction in the UAE, offering potential international investors, business owners, entrepreneurs, and companies a variety of benefits and arrangements for establishing an offshore company there.
The nation upholds a positive financial connection with all corresponding banks and has a great reputation with all high-tax jurisdictions, including the US and EU.
RAK offshore company registration offers business owners complete banking secrecy and security, making it the second-most popular location in the UAE for business setup after Dubai.
Refer to RAK offshore incorporation for more information.
THINGS TO KNOW ABOUT RAK OFFSHORE COMPANY SETUP
- 100% foreign ownership – A RAK offshore corporation allows for 100% foreign ownership, which is one of its main benefits. In RAK, an offshore corporation can be fully owned by non-residents, unlike several other types of UAE businesses that may require a local partner or sponsor.
- Currency Restrictions – Offshore businesses operating in RAK are not subject to foreign currency limitations. This implies that there are no restrictions on the way in which the applicant can engage in business or financial transactions.
- Local offices not required – In contrast to many other types of UAE firms, RAK offshore entities do not need to maintain a local office or hire staff there. Costs for administration and operations are reduced as a result.
- Acting as a holding company – An offshore RAK firm may act in this role as a holding firm. It can therefore hold assets, investments, shares, and other financial instruments for the benefit of its shareholders. This is particularly useful for establishing processes for global corporations and enhancing asset management.
- Repatriation of money – RAK offshore companies provide for the complete repatriation of funds and profits. It indicates that the free flow of money into and out of the UAE is unrestricted.
- Real estate ownership – Both the ownership of intellectual property rights and real estate are allowed for RAK offshore companies in the UAE. This would especially help investors who want to buy real estate in the country. Additionally, these companies could be the owners of intellectual property rights like patents, trademarks, and copyrights.
- Limited Business Activities – It’s important to be aware that RAK offshore enterprises are not permitted to engage in some business activities, such as professional services or retail, that require a physical presence within the UAE.
- Currency fluctuations – Though RAK offshore firms are not subject to currency restrictions, doing business in several currencies can expose the company to currency fluctuations and related risks.
- Local Knowledge – It’s critical to have a solid knowledge of the laws, customs, and commercial norms of the country where you plan to conduct business. A lack of local knowledge can hinder networking and efficient decision-making.
- Complexity of taxation and laws – Offshore business arrangements can have complex legal and tax implications regardless of the tax benefits. It is crucial to work with legal and tax professionals who are knowledgeable about RAK laws and who can lead the applicant through any potential complication.
- Banking challenges – Opening and maintaining bank accounts for offshore firms can be challenging due to shifting international banking rules, anti-money laundering (AML) laws, and Know Your Customer (KYC) requirements. Some banks may be hesitant to provide services to offshore businesses.
Reach out to us at Relin Consultants – Leading Global Business Set Up Partners for further assistance with our offshore company setup services in RAK.