There are two known offshores in the United Arab Emirates (UAE). Ras Al Khaimah (RAK) offshore and Jebel Ali Free Zone (JAFZA) offshore are two of the known offshores in the country, which investors usually look into when they are interested in establishing an offshore company.
Although they are both good offshore places, there are still quite a few things that make them differ from each other.
Why Do Investors Choose Offshore Company Formation All About?
JAFZA was established in 1985 and is now known to be one of the largest free zones. It is located just outside Dubai, about an hour away from Abu Dhabi if one travels by car.
In the year 2003, JAFZA was granted the right to have JAFZA offshore company formation. This authority has their own company law regime that they use to apply to their location for the companies that are established with them.
Highlights of JAFZA’s Benefits for Clients JAFZA Offshore Company Formation
There are a number of benefits that are obtained by investors who opt for JAFZA offshore company formation. Just a few of them are listed below for you to peruse:
- Confidentiality of Information—Disclosing the names of the shareholders and directors for the public to see is not entirely necessary. This is an advantage as other investors would like to keep their identities confidentiality.
- 100% Foreign Ownership—Unlike in the mainlands, a local sponsor is not needed when a foreign investor would like to go through JAFZA offshore company registration.
- Confidentiality of properties and assets—JAFZA has regulations that are applied throughout the free zone that includes the offshore as well. Certain regulations give investors the permission to have their properties and assets to be confidential.
- Ownership of Real Estate in the UAE—Investors who are planning to conduct a JAFZA offshore company setup will find it advantageous that they can also own a local real estate in the country.
- Having Local Bank Account—As part of its seemingly endless benefits, a JAFZA offshore company can have the benefit of holding multi-currency bank accounts in the country. They can have their international transactions be done through these accounts.
Why Do Investors Choose RAK Offshore Company Formation?
Ras Al Khaimah (RAK) is located just an hour outside Dubai. It is considered to be a fast-growing Emirate with the highest industrialization in the country. It also has a reputation of having competitive costs and having a business-friendly environment as well.
There are over 1,900 International Business Companies (IBCs) recorded in the client portfolio of Ras Al Khaimah (RAK) offshore. These investors are usually investing in real estate and property.
Company regulations and jurisdictions that are applied across the RAK offshore are being overseen by the Ras Al Khaimah Investment Authority (RAKIA) to ensure that different kinds of businesses are properly catered.
Advantages of RAK Offshore Company Setup
- 100% Foreign Ownership—RAK also does not require investors to have local sponsors before they start with RAK offshore company formation. It does not follow the requirements that are applied in the mainlands.
- Swift Processing—RAK offshore company formation does not take too long to happen. As long as documents are well prepared, it can be finished in a short period of time.
- Information Confidentiality—Shareholders and directors’ names are not required to be available on a public register. They can have their information to be private as others would want.
- Establishing a Bank Account—Opening bank accounts in the UAE is always possible to be done by investors who opt for RAK offshore company setup. The international transactions of these investors can go through the local bank accounts established in the country.
- A List of Activities—There is a long list of activities that can be conducted by investors who plan for RAK offshore company setup. However, there is also a list of activities that are not allowed.
Top Business Setup Consultants in UAE
Our team in FAR Consultants Middle East have assisted with JAFZA offshore company setup and RAK offshore company formation. With 35 years of experience in various fields, including business setup in UAE, we always have the most updated information that you will need in helping you to arrive at your final decision.
Aside from this, we are capable of guiding you from the start until the process is done. We can provide solutions as well for problems that you are encountering now and you might have in the future. We will ensure that you are surrounded with the right people who only have your best interests at heart.