Corporate tax can be defined as an involuntary fee levied on the business entities and mandatory. According to the United Arab Emirates rules, corporate business entities are entitled to pay a tax of 5%.
The jurisdiction has been grabbing the attention of the investors for the establishment of business entities.
However, it turns out to be of utmost essential for any business owner to have a complete idea of the taxation process in RAK. This guide highlights the essentials that will turn out to be necessary if you are keen on incorporating an offshore company in RAK.
RAK Taxation System
Neighbouring Dubai and Abu Dhabi, the Ras-Al-Khaimah is one of the growing zones in the United Arab Emirates. The jurisdiction has been significantly growing after allowing the investors to establish an offshore company.
It is titled a no-tax jurisdiction, and the business investors prefer to start a business in the Ras-Al-Khaimah Free Trade Zone (RAK FTZ) or Ras-Al-Khaimah Investment Authority (RAKIA).
When it comes to the taxation process, any business investor gets the benefit of the following:
- No corporate or income tax
- No import or export tax
- No sales or wealth tax
To decrease the tax count at a higher level, the nation of UAE has signed multiple Double Tax Treaty Agreements with numerous countries that help them avoid the double taxation process that gets implied during company transfer.
The RAK is a perfect-at-all-aspects destination that is an ideal choice among global minds. Right from company incorporation to opening an offshore bank account, the jurisdiction allows numerous business investors.
Let’s have a look at the benefits that you can get by incorporating one.
What are the Benefits of Starting a RAK Offshore Company?
Establishing an offshore RAK company can fetch you numerous benefits like:
- 100% company ownership
- No or low tax
- High-end of confidentiality
- No accounting requirements
- Free capital and complete repatriation
Documents Required to Open an Offshore Company in RAK
Documentation plays a significant role when it comes to an offshore company and can’t be avoided. The complete set of documents involve:
- A duly filled application form
- Articles of association
- Memorandum of association
- Well-built business blueprint
- Details of the shareholders and investors
- Initial registration fee
How to Open a RAK Offshore Company?
Coming to the incorporation process, one needs to follow specific steps to complete the entire incorporation cycle that involves:
- Seek a certified offshore expert
- Join hands to understand the complete process
- Get ready with the company documents
- Make sure to open an offshore bank account
- Commence the business transactions
To know more about the offshore company formation in the RAK, do read our latest guide on Offshore Company Guide in RAK.
Offshore Banking in RAK
Banking plays a significant role in the offshore company incorporation process, and any business can’t function the business operations without a corporate bank account.
It is advised to get in touch with an offshore business consultant who can guide you to select the respective bank suiting your business needs.
To know more, glance at the advantages of offshore banking to help you get an idea of the core insights.
In short, you have got a complete scenario on the tax proceedings that gets followed along with the company incorporation and offshore banking.
The ideal way to proceed ahead to save time and money is to have a word with an offshore business consultant who will help you to clear the complete process at ease.
Business Setup Worldwide, one of the top ten business consultants, has been helping business investors to incorporate their business entities across the globe. Since its inception, we have been providing customized business setup solutions to business owners.
If you are willing to set up one or want to know more about the tax proceedings in RAK, feel free to have a word with our business advisors. Contact us today-we’d be glad to assist!