Offshore Company Formation in Dubai, RAK, UAE

The type of the company in RAK is International Business Company (IBC)

• IBC refers to International Business Company
• It is a company which does not conduct substantial business in its country of incorporation.
• It is formulated in a tax free jurisdiction.
• It legally minimizes any type of tax burdens.
• It improves one's wealth management

Read more:

• RAK offshore company cost
• Advantages of an offshore company in RAK

Business setup in Dubai has normally been regarded as easy, with the city's policies being friendly towards businesses, but that ease may differ based on the type of business, location, and ownership preferences.

Key Factors Contributing to Ease:

1. Free zones: Dubai has more than 30 Free Zones, including DMCC and Dubai Internet City, that offer streamlined processes to set up businesses, especially for foreign investors. Full foreign ownership, no personal or corporate tax, and a simplified system of getting licenses-that is what entrepreneurs get in these zones.
2. Government Incentives: The DED in Dubai paves the way and simplifies the process with much ease, especially in terms of licensing, for companies in the emirate. Moreover, initiatives such as the Dubai SME promote and finance startups and small businesses, with added incentives.
3. Digital and automated services: The government of Dubai has invested much in digital infrastructure, and most of the steps with regard to licensing and registration can be completed online, therefore saving much time and reducing much paperwork. Initiatives such as Dubai Now and the Dubai Trade portal give access digitally to most government-related procedures.
4. Tax Benefits: There is no personal income tax and generally no corporate tax; this reduces the administrative burden and thus becomes highly attractive for international investors.

Challenges:

1. High cost of living/fees: Office rent, fees of visas, and other operational costs are high, especially in the mainstream areas. The Free Zone costs vary widely, and some might be more expensive than others.
2. Industry-specific regulations: May need special approval from the regulating body, which extends the time for set-up. For instance, industries related to finance or health may have special licenses.
3. Sponsorship requirements: The general requirement in mainland is that it has limited foreign ownership, often requires a local sponsor; recent reform allows foreign ownership of up to 100% for specific types of industries.

In all, Dubai allows for relatively easy business setup, especially in Free Zones nevertheless, the entrepreneur should take into consideration probable costs and regulatory requirements.

In fact, Dubai is one of the attractive places to initiate any type of business with its strategic location, supportive governmental policy, and other merits like tax benefits. Key elements that make it a very favorable choice:

1. Strategic Location:

The position of Dubai as a gateway between Asia, Europe, and Africa opens up a huge market. It enjoys very good connectivity through its ports and airports, making it also a logistics hub for regional and international trade.

2. Business-Friendly Environment:

Dubai offers a seamless process of incorporation for a business, especially in Free Zones where the number of regulations is usually at a minimum. The city also has specific government agencies for permit, licensing, and approval formalities, such as the Dubai Department of Economic Development-DED, which hastens the process tremendously.

3. Taxation Incentives:

Dubai follows a very accommodating policy of taxation, levying no personal income tax and generally no corporate tax. To international investors, it may be of interest that the Free Zones allow for 100% foreign ownership, tax holidays, and full repatriation of profits.

4. Quality Infrastructure:

Dubai boasts of state-of-the-art infrastructure, including advanced telecommunications, transport systems, and business parks designed to support almost every sector. Such quality infrastructure attracts the interest of companies in the fields of finance, technology, tourism, and logistics, among others.

5. Supporting Innovation:

The city has established the Dubai Future Foundation, Dubai Internet City, and other initiatives to spur innovation in attracting tech startups. These initiatives include funding, mentorship, and networking opportunities for startups in the technology and sustainability sectors.

6. High-Quality Lifestyle:

For foreign entrepreneurs, Dubai promises a great lifestyle, excellent health care, good educational opportunities, and a vibrant atmosphere that helps attract the best talent with ease.

However, Dubai's competitive marketplace may be challenging to many investors, and finding the licensing fees, cost of living, and other industry-related regulations becomes very essential in setting a very solid ground for success.

There are 02 ways you can start a business in Dubai: free zone business setup and mainland business setup. As a foreigner, you should choose the former option, as it offers more exclusive benefits for overseas businesses.

The cost for Dubai free zone company setup varies depending on the type of free zone business setup that you choose, e.g. Dubai Multi Commodities Centre Authority (DMCC), Dubai Creative Clusters Authority (DCCA) and Jebel Ali Free Zone (Jafza). Generally, Dubai free zone company setup costs range from AED 9,000 to AED 10,000. Other fees incurred during the free zone business setup includes:

• Licence Fee: AED 10,000 to AED 50,000 per year
• Office Fee: AED 15,000 to AED 20,000
• Share Capital: AED 1,000 to as much as AED 1,000,000

Out of all Dubai free zones, DMCC is our top choice for free zone company setup. Even though the setup cost is a bit higher than other free zones, DMCC is still a better option as it provides a variety of value-added services and support for foreign businesses. Being the world-leading free zone for 6 consecutive years, DMCC is the ideal destination for Dubai free zone company setup.

In the context of the United Arab Emirates (UAE), an LLC refers to a Limited Liability Company, while "non-LLC" generally refers to any other type of business structure that is not an LLC such as a sole proprietorship or partnership. Here are some key differences between the two:

	LLC	Non-LLC
Liability	The liability of the company's shareholders (also known as members) is limited to their respective capital contributions.  This means that the personal assets of the members are generally protected from business liabilities.	The owners have unlimited liability, meaning their personal assets may be at risk to satisfy business debts and obligations.
Ownership and Management	LLCs are typically owned by two or more individuals or entities, who are known as members. These members may be involved in the management of the company or may appoint managers to run the day-to-day operations.	The ownership and management structures can vary depending on the type of business entity chosen. For example, a sole proprietorship is owned and managed by a single individual, while a partnership may have multiple partners with shared ownership and management responsibilities.
Legal Formalities	LLCs in the UAE are subject to certain legal requirements and formalities. These include drafting a Memorandum of Association (MOA) and Articles of Association (AOA), obtaining necessary licenses and permits, and complying with reporting and accounting obligations.	Non-LLC structures, especially those involving sole proprietorships or simple partnerships, may have fewer legal formalities and requirements.
Foreign Ownership	The UAE has different regulations regarding foreign ownership in different sectors and the Emirates. Generally, LLCs require local sponsorship or a UAE national as a partner, holding at least 51% of the shares, while the foreign partner(s) can hold the remaining 49%.	Non-LLC structures may provide more flexibility in terms of foreign ownership, depending on the business activity and location.

 

It's important to note that the specific regulations and requirements can vary depending on the Emirate in the UAE and the nature of the business. It is advisable to consult with legal and business professionals or relevant government authorities for accurate and up-to-date information specific to your situation. Contact us at Offshore Company Corp for support when establishing a company in the UAE.

RAK Offshore International Business Companies (IBC) must use the suffix Limited or Ltd. to denote limited liability.

The usual authorized capital of RAK company is 1,000 AED. But there is no minium paid up for the company

It is possibe. A foreigner can own 100% share of the company