Why Offshore company?

An offshore company is often confused with a free trade zone. Unlike free trade zones, offshore companies are allowed to operate beyond its jurisdiction with other companies in the UAE. The two most popular offshore zones include Ras Al Khaimah (RAK) and the Jebel Ali Free Zone (JAFZA). Offshore Companies have the freedom to open multi-currency accounts in the UAE and conduct business globally. They get total anonymity, confidentiality, and privacy in operations. Additionally, they face no value-added tax or capital gains tax. Another key point of differentiation of an offshore company with an FTZ company is that an offshore company is not bound by the minimum capital threshold.

As per UAE laws, an offshore company cannot rent office space in UAE (but can operate in an office under the name of the company’s registered agent in UAE). Also, no employment permits or visas are issued to offshore company managers or employees.

An offshore company will be termed as such when it fulfills one of the three criteria below –

• It is a separate entity or a part of the bigger company engaged in offshoring business processes
• It is classified as an international business company (IBC), and is not permitted to carry out local business

Entrepreneurs can look to set up four different types of business entities when they register for company formation in Ajman offshore

• Free Zone Establishment (FZE) preferably for single shareholder / sole proprietor
• Free Zone Establishment (FZE) preferably for single shareholder / sole proprietor
• Branch of a local company
• Branch of a foreign company

Introducing RAK ICC

Business Setup in RAK ICC offshore

The Ras Al Khaimah International Corporate Centre or RAK ICC is one the premier destination of foreign businesses looking to set up a business presence in the UAE. It serves as a corporate Registry operating in Ras Al Khaimah, and is tasked with the registration as well as the incorporation of Companies with an international presence. Along with registration they also take care of registry services needed to enable successful company formation in RAK. With benefits like 100% ownership and zero taxes, along with a well-equipped corporate infrastructure, RAK ICC has emerged as a favorite for entrepreneurs who want to kick start their business presence in the UAE. The offshore zone is primarily governed by the RAK ICC Business Companies Regulations 2018 and RAK ICC Registered Agent Regulations 2018

Benefits of forming business in RAK ICC offshore

RAK ICC offers a conducive environment for startups and conglomerates alike when running a business in the UAE. Here are some advantages on offer for companies running their operations from RAK ICC

• Freedom from corporate tax and income tax
• Zero import/export duties
• 100% foreign ownership is allowed
• 100% repatriation of profits and capital is permitted
• No restrictions on director and shareholder residences
• Zero auditing and financial results filing requirement
• Single window approval and clearance mechanism
• Simplified renewal procedure
• Companies can have stock ownership in free zones as well as onshore LLC company
• Needs a minimum of one shareholder only to form a business entity in RAK ICC
• Owners can set up limited liability entities, thus separating individuals from corporate entity liability
• RAK ICC offshore companies avail of the best level of confidentiality and anonymity when conducting their operations here
• Strategically located between Dubai and Abu Dhabi with easy access to both economic powerhouses

Documents needed to set up offshore companies

RAK ICC offers a conducive environment for startups and conglomerates alike when running a business in the UAE. Here are some advantages on offer for companies running their operations from RAK ICC

• For a company with single shareholder
  • 1 – Passport copy notarized by a competent authority
  • 2 – Residency proof like utility bill from country of residence
  • 3 – Bank reference letter from country of residence, addressed to the RAK ICC authorities, along with last 6 months bank statement
• For a company with multiple shareholders
  • 1 – Passport copy of all directors, shareholders notarized by a competent authority
  • 2 – Photocopy of incorporation certificate
  • 3 – Memorandum of Association and shareholders’ resolution (both attested)
  • 4 – Certificate of Existence / Certificate of Good Standing
  • 5 – Additional documents as required by the authorities for successful processing of the application

Procedure to set up the company

The registration process is swift and can be completed in a matter of 24 hours. Here are some steps that happen in the company formation in RAK ICC offshore

• Get RAK ICC authorities’ approval for trade name and type of business
• Submit all documents to the RAKIA Registrar, as he is the regulatory authority prevalent in RAK ICC
• Pay the necessary fees needed to obtain approval for registration
• Once you receive all the approvals you have the freedom to commence business operations.

Benefits of forming business in Ajman offshore

Ajman Free Zone offers a feasible way to kick start a separate company entity to carry out local economic activity. Here are some advantages of setting up offshore company operations here in Ajman free zone

• Freedom from corporate tax and income tax
• Since it’s a new entity, the company formation takes as less as 48 hours to get approval
• Complete anonymity of directors/ shareholders as their names are not on public record.
• 100% foreign ownership is allowed
• 100% repatriation of profits and capital is permitted
• Needs a registered agent associated with an offshore company. The company address will be registered with this agent.
• No paid up share capital to be deposited in bank
• Zero auditing and financial results filing requirement
• Single window approval and clearance mechanism
• Simplified renewal procedure

Cost of setting up an Ajman offshore company

• Ajman offshore license fee: AED 4,300
• Ajman register agent fee: AED 2,999
• Bank account opening fee: AED 1,000
• Nominee director: AED 2,999
• Nominee shareholder: AED 2,999
• Ajman offshore renewal fee: AED 5,999

Documents needed to set up offshore companies

• Passport copy of all directors, shareholders notarized by a competent authority
• Proof of residence like utility bills from the originating country
• Bank reference letter from the originating country
• Memorandum of Association and shareholders’ resolution (both attested) for setting up Ajman offshore company
• English CV/ profile of each shareholder

Licenses available for Ajman offshore company

The below licenses are available for company formation in Ajman offshore

• General Trading
• Consulting, Professional, and Advisory Services
• Holding Company (Buy/Hold/Sell stakes of companies)
• Intermediary Brokers
• Property Holding (depending on the emirate’s laws)
• International business
• Shipping companies into logistics and ship management

Why EBS?

At EBS we have the experience to drive end to end assistance in company formation in RAK ICC offshore. Companies cannot form a setup here unless they have a registered agent working on their behalf. EBS is a registered agent that can work with you to resolve all issues around paperwork, approvals, and liaising with government authorities. Get in touch with us for cost-efficient business setup in quick time.