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International Business Company Formation (IBC) in Dubai

Why Form an International Business Company (IBC) in Ras al Khaimah

Companies that are only operating overseas and do not perform business activities inside the United Arab Emirates (UAE) are referred to as International Business Company or IBC, which is not required to seek licenses. An IBC can be considered as a classical overseas company as this business structure can be exempted from tax and duties. However, it is more beneficial for an IBC to be formed in UAE because the country is not included on the black list of tax havens by the FATF or the OECD. Also, the UAE is not a member-country of the OECD so there is no data exchange. Hence, the propagation and free trade among IBCs are guaranteed by the state.

Benefits of Establishing an International Business Company in Ras al Khaimah, UAE

Ras al Khaimah, as a business hub, is comparable to leading overseas business destinations such as Panama, Channel Islands, and the British Virgin Islands. This is primarily because of the fact that the business model is not totally for the offshore business, which means the rules and regulations are liberal and can be adopted by different companies. With various company design options, many forms of business entities have been established in Ras al Khaimah such as mixed companies, holding firms, property companies and classical businesses. International companies can enjoy the outstanding reputation earned by Ras al Khaimah as an emerging hub for business travels.

Aside from international recognition, you can take advantage of 100% ownership of your company in Ras al Khaimah. Also, there is no required accounting as well as disclosure for company records. There’s no need to register the IBC for commercial business. When it comes to taxation, IBCs can enjoy zero per cent income tax, zero per cent sales tax, zero per cent capital tax and zero per cent dividend tax. Right from the start, the UAE government shows its support to IBCs because there is a required amount for capital funds.

Rules and Regulations in Forming an IBC in UAE

The rules and regulations governing the establishment and administration of an overseas company in UAE are enshrined in the Jebel Ali Free Zone Authority Offshore Companies Rules and Regulations, which was taken into effect by January 15, 2003. In accordance to the rules and regulations, an IBC can freely engage into any areas of business in the UAE except for banking and insurance.

An offshore company cannot take advantage of the privilege to engage with contractual partners either natural or legal. Meanwhile, IBCs are also not permitted to open new branches in the UAE. Once the company, in the duration of its life, wants to search business partners inside the country, it is a must that the company applies for the privilege and secures necessary licenses. Shareholders should settle down the amount of registered capital during the formation of the IBC. However, there is no minimum capital. Hence, the founders can take the liberty to define the amount of registered capital.

Do you want to form an IBC in Ras al Khaimah? With the attractive benefits offered by one of the most progressive countries of the world, this seems a great choice. Dubai Financial Yard has a network of experts and business professionals who can help you form your IBC in Ras al Khaimah and other free trade zones inthe UAE. Contact us today!