1、Expanding and shifting your business activity through a UAE Offshore Company set up. The International Business Companies (IBC) Registry allows foreign investors to register offshore companies as RAK Offshore, a division of RAK Investment Authority (RAKIA) without the need to establish a physical pr
2、esence in the UAE. Companies are usually incorporated within 24 hours. Any non-resident individual or corporate entity can register a company. Many jurisdictions are considered only as tax havens. The United Arab Emirates is a real country with a real economy with a population of approximately more
3、than 4 million. It has an established history of international trade, finance and business, and today it is one of the fastest growing countries in the world with one of the highest standards of living. The choice of a suitable jurisdiction is an important decision and requires careful consideration
4、s. Important aspects to be examined and which RAK offers may be outlined as follows: Political and economic stability of the jurisdiction The availability of a modern and flexible legislative framework Simple incorporation and filing requirements The availability of Double Taxation Avoidance Agreeme
5、nt (DTAA) State of the art banking system State of the art telecommunication facilities UniquenessUAE is not a dependent or overseas territory of another country Pressure has been put on traditional low tax jurisdictions by the Commission of the European Community (EU) in conjunction with the Organi
6、zation for Economic Cooperation and Development (OECD). The UK parliament has converted British Dependent Territories to British Overseas Territories (in 1998). The UK government may apply greater control over its tax haven progeny (ie Bermuda, BVI, Caymans, Gibraltar, Turks meetings The directors m
7、ay meet at such times and places within or outside the UAE as the directors may determine to be necessary or desirable. Telephone and other electronic meetings are allowed. Subject to a requirement in the memorandum and articles the director shall be given reasonable notice of meetings of directors,
8、 although this rule is subject to a waiver of notice. The presence of a director at a meeting shall be deemed to constitute a waiver on his part. The quorum of a meeting of directors is fixed by the memorandum and articles but where no quorum is fixed, a meeting of directors is properly constituted
9、if one half of the total number of directors is present in person or by alternate. Information published relating to directors There is no public register of directors, although the company may voluntarily file its register of directors with the Registrar. Must accounts be prepared by the directors?
10、 A company incorporated under the Regulation shall keep such accounts and records as the directors consider necessary or desirable in order to reflect the financial position of the company. Must such accounts be filed No. with the financial authorities? Must such accounts be audited, and if so by wh
11、om? No. They may be audited by persons approved by the directors. Must the company have a registered presence in the territory of incorporation? Yes. The company must at all times have a registered office and registered agent within Ras Al Khaimah. The registered office must be maintained either by
12、the company or its registered agent. What records must be maintained in the territory and are they available for public inspection? A copy of the share register and the register of directors and an imprint of the common seal must be kept at the registered agents address. Other records such as minute
13、s of meetings of directors, members and copies of all resolutions may be kept at such places as the directors determine, but copies must be kept at the registered agents address. These are not available for public inspection, other than by members or directors. If copies of these registers and docum
14、ents are kept other than by the registered agent, the registered agent must be notified of the location of the original. If the company fails to comply with these provisions it is liable to a fine. Company seal A company must have a common seal. Re-domiciliation provisions A company incorporated und
15、er the laws of a foreign jurisdiction may continue its existence as a company registered under the Act. Similarly, RAK Offshore business companies may transfer their domicile to foreign territories that permit such procedures. UAE Offshore and Properties - Real EstateMany speculators, investors and
16、end users prefer buying, selling, managing (especially UAE) properties through a UAE Offshore company Called corporate ownership rather than individual ownership. Advantages of using a UAE offshore company for buying and selling Properties:Set up time: 24hours. Tax and duty exemption100% foreign own
17、ership permitted and 100% tax and duty exemption.UAE Double Taxation Avoidance Agreement (DTAA)Corporate Bank AccountBank account opening with UAE prime banks, multi-currency, with full internet access, making it easier for international money transfers. Physical Office not requiredNo physical offic
18、e in the UAE required with the Offshore License. You will use the physical address of the registered agent, saving you a lot operational costs in terms of renting offices. Asset Protection in Case of DeathIn case of death, corporate ownership of assets (such as properties) is transferred via simple
19、company share transfer to new beneficial owner, saving a lot of legal inheritance troubles and costs. ConfidentialityCorporate ownership and business ensures beneficial owners confidentiality. Joint InvestmentsBest choice in case of joint investments and joint business owners. Advantages of UAE offs
20、hore over other Offshore Jurisdictions Very costly and time consuming mandatory legalization and notarization of Documents by UAE consulate and Ministry of Foreign affairs from other offshore jurisdiction such as BVI, Panama, Cayman Islands etc., can be avoided. Double Tax Avoidance Agreement (DTAA)
21、Since the UAE has no taxes; accordingly double taxation prevention treaties are aimed at making the UAE a more attractive territory in which to operate. Generally, under these treaties profits generated from shares, dividends, interest, royalties and fees are taxable only in the state where the inco
22、me is earned according to mutually agreed terms and conditions. To protect UAE investors from direct or indirect double taxation. Investments to be taxed in the country of residence other than that country of source. The U.A.E signed several bilateral agreements for avoidance and prevention of doubl
23、e taxation with most of its major trade partners.ADVANTAGES Reduced Dividends Tax Exempting Deposits from Tax Exempting Capital gains from Tax Exempting national air carriers and shipping companies working in international traffic from taxes and fees Exempting Government Sector Establishments from T
24、axes on Dividends, Interest and Capital Gains The Significance of the Tax Agreements to the Foreign Investor and the Investment funds Impact of the Tax Agreements on attracting Foreign Investments and capital MovementsList of Double Taxation Avoidance Agreements:No Country Execution No Country Execu
25、tion1 Egypt 26/3/1995 25 Turkmenistan 24/11/19992 Algeria 28/11/2001 26 Armenia 29/12/20043 Yemen 25/8/2001 27 Tajikistan 29/01/20004 Tunisia 24/2/1997 28 Mongolia 29/11/20025 Morocco 26/9/1999 29 Azerbaijan 30/04/20076 Sudan 28/11/2001 30 Austria 27/04/20047 Syria 11/6/2000 31 Poland 29/01/19948 Le
26、banon 25/10/1998 32 Germany 18/03/19969 Mozambique 04/05/2004 33 Finland 24/02/199710 Pakistan 29/01/1994 34 Italy 20/11/199511 IndiaIndia (Protocol) 21/08/199304/09/2007 35 Czech 26/06/199712 Sri lanka 04/05/2004 36 France 15/11/198913 Philippine 29/12/2004 37 Belgium 26/06/199714 Korea 04/05/2004
27、38 Romania 09/01/199615 Singapore 17/06/1996 39 Turkey 29/01/199416 Indonesia 17/06/1996 40 Luxemburg 07/05/200617 Thailand 12/11/2000 41 Spain 13/08/200618 Malaysia 17/06/1996 42 Malta 13/08/200619 China 05/06/1994 43 Bosnia & Herzegovina 30/04/200720 New Zealand 04/05/2004 44 Seychelles 06/02/2007
28、21 Ukraine 28/02/2004 45 Mauritius 20/06/200722 Belarus 02/01/2001 46 Canada 07/01/200423 Holland 29/11/2007 47 Uzbekistan 26/10/200724 Bulgaria 22/01/2008Why not Cayman Islands, BVI or Lichtenstein, But UAE-Offshore?Thanks to the EU Savings Directive of 2003 and recent US-EU initiatives to wipe out
29、 tax havens, the U.A.E became the better place to incorporate offshore companies for various reasons and purposes. UAE looks set to reap the rewards of a recent EU and US ruling under which banks are now forced to reveal information to tax authorities. Financial institutions in the EU and US are now
30、 obliged to either disclose tax and bank information to the relevant tax authority, or charge client a hefty withholding tax.Though the new directive specifically affects EU residents, a number of banks in tax havens have also agreed to exchange customer information, including Jersey, Guernsey, the
31、Isle of Man, the British Virgin Islands, the Cayman Islands, Switzerland, Liechtenstein, Monaco and San Marino.The reputation of discretion for some of these countries is being eroded. Since July 1, 2005 in order to keep details of their private, bank customers now have the option of paying a withho
32、lding tax which will be levied directly in the country in which their savings are held. This will be charged at a rate of 15 per cent for the first three years, 20 per cent for the following three years, and 35 per cent from 2011 onwards.The United Arab Emirates has long enjoyed a reputation as a se
33、cure, tax-free jurisdiction for international banking and company incorporation. With this latest development from Europe and the US, UAE company registration and corporate and personal banking options are becoming more popular with international businesses and high net worth individuals.Since the U
34、AE are neither a signatory to the relevant directive, nor agreeing to cooperate with the Organization of Economic Cooperation and Development (OECD), it looks set again even further.Any company can be configured to a clients individual specification. Clients may or may not need to provide some of the element for in general carefree incorporation, depending on their personal circumstances or preferences.
