1. What is the single most important advantage your jurisdiction provides for Chinese clients?
Fiscal & Regulatory benefits of RAK offshore companies
• 100% income tax exemption
• 100% corporate tax exemption
• 100% capital and profit repatriation
• No capital gains tax
• No value-added tax
• No withholding tax
• Absolute privacy, confidentiality and protection of assets and information
• Ability to maintain bank accounts in the UAE
• One director required, one shareholder and one secretary (even if they are the same person)
• The ability to own property in the UAE
• Annual Audit Report not required
• Shareholder/director is not required to be physically present in the UAE for incorporation
2.Whatis the main reason a Chinese client would consider using a shelf company in your jurisdiction?
In the current worldwide economic situation, RAK is becoming a very efficient place to incorporate your offshore company.
UAE looks set to reap the rewards of the EU ruling, under which banks are now forced to reveal information to tax authorities.
The reputation for discretion of some “old jurisdictions” is being eroded.
UAE has long enjoyed a reputation as a secure, tax-free jurisdiction for international banking and company incorporation. With this latest development from Europe, RAK company registration and corporate and personal banking options are becoming more popular with international businesses and high net worth individuals.
3. What is your jurisdiction’s unique selling point in setting up offshore companies for Chinese clients?
Many jurisdictions are considered as tax havens. The United Arab Emirates is a 'real' country with a 'real economy'. 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 UAE is also unique in that it is not a member of the Organization for Economic Cooperation and Development (OECD), it has no foreign exchange of information, it is not on the OECD 'blacklist' of tax havens (nor the FATF blacklist), and it is not a member of the EU or subject to EU regulation.
4. Opening a bank account for newly set-up companies has been a challenge for some jurisdictions in the past few years. Is this the case in your jurisdiction? How quickly can a company in your jurisdiction have their bank account set up?
Opening bank accounts has never been a challenge for us, especially having a bank account opened in the UAE. Actually, one of our outstanding advantages is that clients may have a bank account. 90% of the banks in UAE accept RAK offshore, and they have online banking systems. Some of the banks can provide current cards, which can be used globally and even to withdraw cash. Moreover, clients can have multiple currency accounts, including accounts in Chinese RMB.
To open a RAK IBC bank account takes around five working days.
5. If you could describe the incorporation industry as it relates to China in one word, what would that be?
Opportunity–We started promoting in China so as to expand our reputation in 2012; during the last several years we have found that marketing to China is unique and has potential which results from the advantages of the jurisdiction. Still, we’ve got lots of work to do towards China marketing, and we are confident that with the reputation of RAK Offshore spreading, Chinese clients will realize that they have an attractive option.
Source: RAK Investment Authority
