What is the procedure to set up an Offshore Company in Ras Al Khaimah, UAE?

It is very easy to set up an offshore company in Ras Al Khaimah. Kindly find the procedure list below:-

a) We shall send you a form to fill in information about your proposed company.
b) Based on the information you entered we will check the availability of the chosen company name and get approval on the activities you want to do.
c) Once done, you are requested to send us the original form along with the required documents as per the list that shall be presented for your reference.
d) Upon receipt of documents and payment, your offshore company shall be incorporated within 24 hours.

As an investor in an Offshore Company, can I avail Visa for myself and for my employees?

Offshore companies are generally not allowed to conduct business in the country where they are registered. Thus, residence visa is not issued for Offshore Companies registered under RAK Offshore. Most Offshore Clients have their business in the country of their residence and as registered agent we act as the representative handling administrative aspect of the incorporation with minimal involvement of our client.

Can a company own an Offshore Company?

Yes, individuals or corporation, even combination of both can own an Offshore Company. As part of the incorporation requirements, corporation are required to submit attested copies of the incorporation documents of the parent company and appoint an authorized signatory as representative by virtue of Board Resolution.

Will we be able to open Bank Account?

As your agent, part of our service is to assist you in opening your bank account with the prima banks in the UAE. We will prepare the documents needed to open you bank account and refer your company to bank of your choice. We shall also facilitate a meeting with the bank agent, should you prefer.

Can RAK Company Administration open my Bank Account without registering a company?

No, our Banking Services is offered only for clients that have incorporated their company through us or wants to open their company with us.

What is Double taxation?

Double taxation occurs when a taxpayer is taxed twice for the same asset or income. This happens when taxing jurisdictions overlap and a transaction, asset, or income amount is subject to taxation in both jurisdictions. To be precise, Double taxation is the imposition of two or more taxes on the same income ( in case of income taxes ), asset ( in case of Capital taxes ) , or Financial transaction ( in case of Sales taxes ).

What is International double taxation?

International double taxation occurs when two different states impose a comparable tax on the same potential taxpayer on the same taxable item. It is overlapping tax claims of two or more states.

What is Double Tax Agreement or Treaty?

A Double Taxation Agreement (DTA) is entered into between two countries to eliminate the possibility that the same income or gains might be fully taxed in both. This may happen where a natural person or legal entity is resident in one of the countries and has income or gains arising in the other. A DTA allocates the taxing right over items of income and gains to one or other of the countries. Where, however, certain items remain taxable in both, the DTA will generally provide that the country of residence of the taxpayer will either exempt the income or gains from further taxation or, alternatively, give a credit against its tax for the tax paid in the other country.

What is Double Tax Avoidance treaty (DTAA) or agreement and its benefits?

Usually the non-residents are likely to be covered by the laws of at least two countries, one country of which they are residents and second where such persons are earning income as non-residents. It is, therefore essential to know the manner in which income earned by them will be taxed whether in the country of their residence or the country where income is earned.

Due to phenomenal growth in international trade and commerce and increasing interactivity among the nations, residents of one country extend their sphere of business operations to other countries where income is earned. It is in the interest of all countries to ensure that undue tax burden is not cast on persons earning income by taxing them twice (in country of residence and again in the country where the income is derived). To avoid such a hardship to individuals and with a view to seeing that national economic growth does not suffer, Double Taxation Avoidance Agreements (D.T.A.A) is entered into with other countries.

Such treaties or agreement serves the purpose of providing full protection to tax payers against double taxation. In short, welcoming a free flow of international trade and investments. Such treaties contain, in general, provisions for mutual exchange of information and reducing litigation.

What is the implication of Double Tax Avoidance treaty when it comes to U.A.E?

U.A.E is ‘no tax’ emirates and with Double Tax Avoidance Treaty U.A.E aims to attract more investors. U.A.E has therefore signed such agreement with 47 countries.

U.A.E in spite of signing the Double Tax Avoidance Treaty does have to go through the revision of the terms of the treaty with some of its signatory countries to suit the investor.

One major break through and one of the example of such negotiation is U.A.E - Luxembourg Double Tax Treaty. U.A.E and Luxembourg entered into treaty on 7th May 2005. On 29th April 2009, Luxembourg Parliament voted on the Double Tax Avoidance Treaty and passed the bill in to law. Thus making necessary changes in payment of interest, dividends, and royalties – to be taxable in the contracting country where the investor / beneficial owner are resident.

The Double Tax Avoidance treaty of U.A.E – Luxembourg contains special provision according to which both Contracting States shall co-operate in order to avoid treaty shopping and shall consult each other to try and find a mutual solution in the respect.

UAE double taxation agreements are paving the way for future free trade agreements. After 14 years of negotiations, the UAE signed an agreement with Spain that exempts countries from paying tax on income and capital in both countries

What is the implication or main characteristics of an Offshore company?

An Offshore company has mainly three  important characteristics and implications. Its’ as follows:

•    The Offshore company should be incorporated under the offshore company’s regulations of relevant Offshore jurisdictions.

•    The Offshore company should be incorporated by the prospect/investor/applicant outside the offshore  jurisdiction where it is incorporated. To be precise the prospect/investor/applicant need not have physical presence in the jurisdiction of incorporation. An Offshore company can only be registered through a registered agent of the jurisdiction it has chosen to incorporate its’ company.

•    The Offshore company should not conduct substantial business within the offshore jurisdiction where it is incorporated.

How can I form an Onshore company under Free Zone Authority ?

To form an Onshore company under Free Zone Authority , you would need to choose the jurisdiction you would need to establish your company. On choosing the same , we can guide you through the process.

As for the process you would need to fill in the company formation form and send it back to us for further assessment like activity check and name check, this the first stage of incorporation. On approval you can send all the relevant documents as per required documents  and the process or second stage of incorporation shall begin.

The time scale for the process is 5-7 workings from the date of submission of documents and payment.

As an investor of an Onshore company can I avail visa for myself and for my employee?

Yes, on completion of the company formation you would be entitled to avail visa for yourself and even employee a staff under  your company.

Will i be able to open Bank Account using my Onshore company under Free Zone authority ?

Yes, you will be able to open a bank account during the under formation of the company. As your agent, part of our service is to assist you in opening your bank account with the prima banks in the UAE. We will prepare the documents needed to open your bank account and refer your company to bank of your choice. We shall also facilitate a meeting with the bank agent, should you prefer.

To form an Onshore company under Free Zone jurisdiction do I need to appoint or search for a local partner and what are the benefits of company formation under a Free Zone jurisdiction ?

No, you would not need to have a local partner or even search for a local partner as this is not a requirement to form a company under Free Zone Jurisdiction. 100% ownership in Free Zones.  Under Free Zone jurisdiction you will have 100% ownership. in Free Zones; No trade barriers or quotas.; Simple Import, Export Policies; Liberal labor laws;  No restrictions on hiring expatriates; Easy Licensing Procedures

In practice upon client request to buy a property through an offshore company, a special authorization is provided by the authorities. A RAK Offshore company can indeed buy properties in the UAE.