About Ras Al Khaimah
Ras Al Khaimah (RAK) is one of the seven emirates that comprises the United Arab Emirates (UAE). RAK means “Head of Tent”. RAK lies in the northern most territory of the UAE with a large enclave. It extends from Masafi to the UAE’s southern border with Oman and strategically located at the foot of the Hajar Mountains and in the south of strait of Hurmuz. The Emirate of RAK is fortunate to have perhaps the most scenic and fertile land in UAE.
UAE as a country is rich in its culture and heritage. Since Dubai started achieving big goals and getting noticed on the global map, the significance of being more knowledgeable in fields of technology, education, health care, transportation, etc., started dawning in other emirates as ways and means of attracting investors into this land of opportunities. Subsequently by allowing investors to come in and invest in different sectors such as property, trading, import & export, manufacturing, offshore investments etc.,
Property Development started attracting foreign investments since 2006. As this segment developed quite fast with many major projects taking off in the coastal areas, RAK government opened doors to investors to come over and start their own business by giving facilities of residence Visas for them, their staff and their families. Being a complete tax free jurisdiction an investor could even set up an offshore venture with a bank account having a minimum cash deposit and carry out business all over the globe except inside UAE and get paid into the offshore account.
Double Taxation Avoidance Agreements Guide (DTAA)
The flow of foreign investments depends mainly on the international investment climate, and the elimination of double taxation which puts its marks on commodities and services exchange and capital movement is a major element of that environment. One of the major goals of DTAA is that the UAE concluded with many countries to protect its investors from direct or indirect double taxation. These agreements also contribute in enhancing the commercial and economic relations between countries and to broaden investment opportunities for investors from inside and outside the country.
To achieve these objectives, the Ministry of Finance has adopted a strategy to enhance the economic co-operation with all countries, in particular with the state’s major trade partners and this has been achieved by signing bilateral agreements with these countries aiming to restore economic and fiscal balance and to reduce customs operation costs and improve effectiveness of foreign investments, taking into consideration that these investments are to be taxed in the country of residence other than the country of source. This strategy was very successful with the UAE which signed (52) bilateral agreements for avoidance and prevention of double taxation with most of its major trade partners.
Though UAE is a tax free country and doesn't need any book keeping or tax returns to be filed, the government insists to have the Audit done through government approved Audit firm in UAE every year for companies those who seek Tax Residency Certificates to avail the facility of DTAA. These companies can either be Free Zone companies or Non-Free Zone companies. Offshore companies doesn't have the provision of availing this facility.
An Offshore company is a business that is formulated in a low tax or no tax jurisdiction for the purpose of legally minimizing any type of tax payment and improving your wealth management. In short “It is a wealth management tool that can be utilized by any one – legally and legitimately”.
Offshore companies have the combined benefits of tax exemptions, privacy protection, anonymity and limited liability. People all over the world opt to set up their companies Offshore. All companies registered by Sakhi Consultants are entirely legal and are able to operate world wide.
Why Opt for an Offshore Company?
Primarily one would opt for an offshore company to gain confidentiality over their financial matters without intrusion of any kind and to maximize their wealth. Offshore companies can avail the advantages that tax agreements provide such as reduced dividend tax, Exempting Deposits & Capital Gains from tax, profits from business earnings, properties sales and funds.
Why Open a RAK Offshore company?
The offshore world massively assaulted over the last few years especially after the 9/11 issue by information exchange programs and tax directives. This has primarily affected the US and the European controlled countries. The best known tax heavens such as Jersey, Guernsey, Cayman Islands and the Isle of Man are all under the influence of these directives. The latest Jurisdiction to join the list is the Swiss Authorities who are being forced to pass information of their clients by US, UK and the EU. However RAK is under no obligation to any nation to pass on any information regarding any of their investors or clients as per the UAE rules and regulations.