Ras Al Khaimah International Company (RAK IC) might be the top-notch option in terms of doing business outside of the UAE. But what are the reasons behind all these statements? Let’s figure it out with BBCIncorp!
1. A quick glance at RAK International Companies
As one of the independent federal Emirates of the United Arab Emirates, RAK is situated on the east of the Persian Gulf, covering approximately 1,700 square kilometers. Even though Dubai takes all the spotlights, RAK has risen to be one of the most requisite business hubs in the region.
It is no myth that RAK is one of the perfect-at-all-aspects countries with regards to the ideal offshore jurisdictions. RAK has gone through some pivotal economic developments and diversification with the main concentration on tourism, industry, trading, commerce, and real estate. This extreme economic progress is likewise stirred by all the business-welcomed policies toward foreign direct investment.
RAK International Company (or RAK international business company) is a non-resident firm that is fast becoming a famous alternative for foreigners seeking to have an offshore company in the UAE. One of the fundamental reasons behind this popularity is that they want to create an asset protection platform in the UAE in order to do business in a tax-exempt environment.
1.1. Advantages of RAK IC
Comes with RAK IC is a set of ideal benefits:
Ownership: the foreign ownership of RAK IC is 100%
Low taxes: 0% corporate tax, income tax, withholding tax, and import-export tax. On Jan 1st, 2018, the UAE included a small value-added tax (VAT). In any case, be noticed that US citizens and any individual who is an inhabitant in a nation that taxes global income must report all income to the tax authorities.
Confidentiality: The names of the shareholders and directors are kept away from the public.
Limited liability: Shareholder’s liability is limited to any amount unpaid on a share.
Various Business Fields: Trading, Services, Advisory and Consulting, Investments, Online Business, and Holding company for global assets.
No accounting requirements: Only standard corporate accounting practices are required. There is no need to prepare for accounting filing or to appoint an auditor. And also, there is no accessibility of accounts.
Language: Even though English isn’t the official language of RAK, all documents related to business activities are in English.
1.2. Disadvantages of RAK IC
Like any other offshore entities, International Companies in Ras Al Khaimah also come with several drawbacks.
As an offshore company in RAK, you can not conduct any businesses inside of the UAE. You’re also not allowed to rent local premises as well as employ staff locally.
Moreover, this type of business doesn’t let you attain a resident visa in the UAE. A tax residency certificate also doesn’t come with RAK International Companies.
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