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Company formation Ras al-Khaimah
Ras al-Khaimah (the alternative, more accurate transliteration is Ra’s al-Khaymah) includes the northernmost part of the in the UAE, on the triangular Musandam peninsula. This is reflected in its name, which means ‘top of the tent’. The emirate has 65 kilometres of Gulf coastline and has an area of 1,680 square kilometres. It is the fourth-largest emirate with an estimated population of 300,000, of which about 50% are UAE citizens. Arabic and English are the dominant languages.
The UAE economy has been dominated by petroleum. With few oil and gas deposits, Ras al-Khaimah’s wealth has largely been built on manufacturing. The emirate is one of the region’s largest producers of cement and it exports ceramic products to more than 135 countries. Other indistries include ceramic tile production and fishing.
Ras Al Khaimah: Offshore Legal and Tax Regimes
Although Ras al-Khaimah is a ‘no-tax’ jurisdiction, ownership restrictions on companies in the normal economy mean that the Ras al-Khaimah Free Trade Zone (RAK FTZ) or the Ras al-Khaimah Investment Authority (RAKIA) offshore companies registry are the key locations offering an ‘offshore’ option to foreign operators. Operations inside the Free Zones can be carried out under various different types of license, but most often a foreign company will use a ‘Free Zone Company’ or a ‘Free Zone Establishment’.
Among the incentives offered to companies operating within the Ras al-Khaimah Free Trade Zone are:
1. No corporate or income taxes imposed.
2. No import or export taxes.
3. No sales or wealth taxes.
4. 100% foreign ownership of businesses.
5. 100% repatriation of capital and profits.
6. Concessional rates on land leases.
RAKIA offshore companies also pay no tax whatsoever except for incorporation and annual registration fees. For RAKIA Offshore companies there are no restrictions on the number of shareholders or directors, and they are under no obligation to hold an annual meeting or to file audited accounts.
RAKIA offshore companies cannot conduct business locally except with those supplying accounting, audit, legal and banking services, and staff cannot be employed locally.
The advantages at a glance
- No sales tax
- No taxation on profits
- No dividend taxation
- No capital tax
- No public commercial register
- No mandatory share capital
- 100% foreign ownership
The biggest mistakes when starting a business abroad
Many agencies and law firms do not advise comprehensively or wrongly. Learn what to look for.
Gravity of the situation
Often, these law firms think foreign companies are half-silk, tax evasion is favored and mailbox companies are the leaders rather than the exception. This is true, however, only in some start-up agencies that do not have the necessary expertise. Self-proclaimed law firms that do not employ tax accountants or lawyers usually set up companies that are unlikely to operate legally. We set up and look after companies that can withstand tax audits and that are legally operated.
Do you have to live in the country where you start a company?
You can set up a company worldwide, as long as the respective country allows you as a foreigner to acquire shares in local companies or to act as a managing director. If this is not the case trustees can be used. For example, Cyprus allows every EU citizen to own and run a business. Nevertheless, trustees can be used for the purpose of identity protection. However, it is important that the management takes place locally, in the country in which the company is to be taxable. In addition, a permanent establishment must be set up. Without these, a major tax offices around the world do not recognize the company and in the worst case would require additional payment of corporate and business taxes plus late payment surcharges. We rent you a real office and set up a permanent establishment that meets all requirements beyond doubt.
Problematic Law firms: Secrecy is not regarded.
Some law firms bind customers with toggle contracts and exert pressure when the customer wants to close his company. If you are a client of a law firm that has established a legally flawed company, they can be blackmailed. Because in the case of a fiscal problem, law firms without a license are not bound by a duty of secrecy.
Migrating to a different law firm
We receive many inquiries from customers who already own a foreign company and are looking for a new law firm. The process of changing law firm is made often difficult on purpose. Therefore, we have developed a principle of trust. If you are not satisfied with us and want to change, you can do that at any time. The necessary documents (resignation letter), you receive from us standardized after founding. You are therefore protected against unexpected costs and you are free at any time to visit another law firm. So far we have not lost any customer to another law firm.
Privacy / Firm Location
Your accounting documents are kept safe with us. In addition, all electronic data is stored encrypted and accessible only by us, which are bound to a professional secrecy. All accounting records are also stored locally only. Neither authorities nor hackers are able to access this data.
There are quite a few locations in the world that do not charge taxes on companies or individuals, or only estimate a very low flat rate tax. But this can rarely be used without corresponding change of residence. If you are a resident of any major country, the relevant double taxation agreement is decisive. Providers who promise otherwise lead them to tax evasion, which in the case of discovery usually punishes severely. We advise against setting up companies in countries that have already been blacklisted by the OECD. The foundation is usually very cheap, but the tax consequences in your origin country can be devastating. Since the introduction of the automatic exchange of information between almost all major countries, an anonymous private account no longer exists.
We comply with the following code:
- Legally secure foundations
- No unexpected(hidden) costs
- No false promises
- Finding the right solution by focusing on your requirements
With this strategy, we have been on the market since 2013 and have not disappointed any customer so far. And we prioritize it in keeping that way. We strive to ensure that every client is satisfied and does not take risks with the solutions we provide for them, but only exploits legal opportunities. Starting a company that involves doing real business is more costly than a letterbox company, but it is the only way to save on taxes without risking legal action.
Why an offshore company in Ras Al Khaimah?
When the company is incorporated, the amount of the share capital is determined. A deposit obligation does not exist. Furthermore, a compulsory business address is needed to start a business. A director and a secretary must be named. The residence of the director does not have to be specified, and therefore does not necessarily have to be domestic.
For which offshore companies is Ras Al Khaimah most suitable?
- Private or anonymous asset management
- Consulting Services
- International stores
- Financial Services
- Property acquisition
- International commercial transactions
Nicht umsonst als Steueroase bekannt
Hier sehen Sie die steuerliche Belastung einer deutschen GmbH, einer RAK Freezone Gesellschaft und einer RAK Offshore Gesellschaft.
|GmbH||RAK Freezone Gesellschaft||RAK Offshore Unternehmen|
|Körperschaftssteuer||15.825% inkl.Solidaritatszuschlag)||völlige Steuerfreiheit, keine Unternehmens- oder Einkommenssteuer||völlige Steuerfreiheit, keine Unternehmens- oder Einkommenssteuer|
|Gewerbesteuer||(Hebesatz Bundesdurchschnitt 2010 435%)||entfällt||entfällt|
|Zollgebühren||max. 5% Zollgebühren für die Einfuhr von Gütern (viele Güter unterliegen jedoch der Null-Prozent-Regelung)||entfällt|
Company formation Ras al-Khaimah - That's how it works
Establishing a company in Ras Al Khaimah is easy and the founder does not have to travel extra. For the foundation only a certified ID or passport copy and a power bill is needed. Depending on the choice of bank also a short CV or bank reference.