Benefits of a RAK Offshore Company
Financial security and confidence is one of the main determinants influencing where an offshore company is incorporated.
Despite the current slump in oil prices, the diversity of Ras Al Khaimah’s economy has thus far helped to weather the downturn. In addition, economic progress has been slowly insulated by tourism, industry, trade and commerce and the growing real estate industry.
The business friendly policies implemented by local government has further helped attract a good flow of foreign direct investment in the aftermath of global economic retraction. The government consistently invests heavily on facilities and infrastructures, especially those that are related to the tourism sector.
Moreover, the introduction of the International Business Company (IBC) by RAKIA (Ras Al Khaimah Investment Authority) in 2007 has established RAK as a well respected financial centre with an open door, business friendly approach to investment.
In addition, the Emirati dirham, the official currency for the jurisdiction is well regarded as one of the most reliable currencies in the region when it comes to exchange rate stability. The fixed Dirham- US Dollar peg regime has contributed to maintaining economic stability and bolstering investors’ confidence over the years.
RAK’s local government has adopted a favourable tax system akin to many other offshore jurisdictions with companies exempt from all corporate and income taxes.
RAK’s wealth derives predominantly from the real estate and the property sector. Investment and trade in these industries are among some of the principal businesses for several international firms registered in RAK.
Contrary to other offshore jurisdictions, an offshore RAK company is unique in allowing offshore companies to own real estate within the very jurisdiction. As current laws do not preclude from purchasing real estate by foreign nationals or even companies, these parties may enjoy several trading benefits from offshore company operation.
The strength of RAK’s real estate industry with it’s high performance yield in the property market in terms of leases and annual price increase (20-22% on average) has encouraged confidence in the economy, making ownership of RAK real estate lucrative as well as a primary attraction for incorporating an offshore company to hold such assets.
The crucial advantage of RAK and more widely the UAE is its well regarded reputation as a OECD white listed country thus making it an international investors’ hub. Standard & Poor’s rating service rates RAK at ‘A/A-1’ for short- and long-term foreign and local currency sovereign credit ratings, with a “stable outlook”. S&P’s credit rating signifies the strength of the financial sector and the overall economy of regions. Their credit rating is a valuable label shown in the global economic community.
Unlike other jurisdictions notorious for tax haven reputation and negative associations with tax avoidance, RAK may be considered a “hidden gem” in the world of offshore companies as it is fully compliant with anti-money laundering legislation.
The favourable geographical location of RAK at the trade intersection point between East and West further makes the jurisdiction prime for trade and investment, with a 40 minutes drive from modern metropolis of Dubai and 3 hour distance from Abu Dhabi.
Incorporating an offshore RAK company
Offshore Universe (https://www.offshoreuniverse.com) is able to form an offshore RAK company in a matter of days. The benefits of incorporating a RAK IBC with Offshore Universe are as follows:
- Offshore Universe can provide 24.7 professional help and assistance in the formation of a RAK offshore company.
- Offshore Universe is partnered with a number of reputable banks in RAK and is able to open an offshore bank account for the purpose of the company in RAK.
- Offshore Universe has an expert team of offshore consultants who keep constant abreast of development in RAK and would be able to provide updates on any changing legislation or policies regarding an offshore companies’ operation in RAK.
A RAK offshore company benefits from the advantage of RAK as a financial trade zone with limited trading restrictions placed on the operation of IBCs. Moreover, RAK is an ever expanding and growing offshore financial center and business center, including:
- Fast incorporation time
- Local tax exemption
- Flexible company structure
- Trading autonomy
- Easy establishment and maintenance of a RAK bank account
- Absolute privacy in company operation
Staying ahead of the curve in the offshore industry