The United Arab Emirates is now one of the world’s biggest providers of offshore entities. Especially Ras Al Khaimah (RAK) has attracted thousands of offshore companies in only a few years. But why are a growing number of investors choosing RAK?

The Ras Al Khaimah Investment Authority (RAKIA) launched the concept of the International Business company in January 2007. In the meantime, it has become one of the most popular offshore company structures worldwide. About 8,000 offshore companies are registered in RAK, an Emirate of UAE located along the southeastern tip of the Arabian Peninsula. But why do investors choose RAK offshore? The reason is simple: RAK offshore companies are exempt from corporate and income taxes and are ideal for internationally active companies.

Why a UAE offshore company?

Unlike some other tax havens, offshore companies in the UAE enjoy an excellent reputation internationally, and are valued business partners in international business, as well as for banks and financial service providers worldwide. The crucial advantage is that a RAK offshore company in the United Arab Emirates facilitates access to a business account with international, well-capitalized and solid banks, operating in a stable economic environment. A major benefit of RAK: Dubai requires a minimum of two shareholders, RAK only one. Plus, the shareholder’s physical presence is required in Dubai for the formation; this is not required in RAK.

The confidentiality of RAK, which allows the company formation without knowing the beneficial owner, attracts entrepreneurs and investors around the world – also taking into account the fact that all of Britain’s overseas territories have recently agreed to new rules to automatically share information on individuals holding bank accounts in their country, with the UK as well as France, Germany, Italy and Spain. While British overseas territories agreed to share information on bank accounts and offshore company owners, the UAE does not plan to participate in any exchange or the automatic exchange of information under OECD plans.

UAE offshore – Strong banking system

The UAE generally has one of the most liberal trade regimes in the Gulf region, a well-established infrastructure and a strong banking system, as well as a stable political system. The economic diversification in trade, logistics, banking, tourism, real estate and manufacturing additionally builds the basis for a high-potential business environment.

The UAE has an open economy, with a high per capita income (PPP) of almost 47,500 US-Dollars and a considerable annual trade surplus. The country has successfully diversified the economy and has reduced the portion of GDP based on oil and gas output to 25 precent. Please find further information about UAE offshore at: http://www.dubai-offshore.com/

UAE FACT SHEET & TAX GUIDE