Ras Al-Khaimah UAE Company Formation (UK Citizen)

[RRR]

Hi,

New to OCT - I'm looking into organising an off-shore company formation in the UAE, I've come across Ras Al Khaimah (RAK) which may be a suitable location cost wise compared to neighbouring emirate Dubai.

Can anyone recommend an agent or have experiences opening an off-shore company in RAK?

Little insight into my background, UK citizen and I run a brokerage firm (new venture) - we broker commodity deals around the world, connect the dots between buyer and seller (fee can vary depending on the transaction, but once all is signed and sealed our fee is paid out. Could my off-shore company with bank account receive my commission fee? My aim is to reduce my UK corporation tax and pay only personal income tax, is the possible? I'm not here to dodge taxes just reduce any taxes due in a legitimate way.

All advice would be highly appreciated - read allot of threads regarding the Seychelles but I'm set on the UAE as I feel this is a secure destination for an off-shore company formation and international bank account. Please advise if I'm wrong.

 

[JohnLocke]

Welcome aboard, you may have a look at the threads below:

Important! RAK ICC Company Dubai and new rules economic Substance

Hello dear forum users, FYI: I have a RAK ICC limited company (Offshore) by shares in the UAE and also my company bank account is in Dubai, but I live privately in Asia in a country where income tax only applies if the source of income is in the country, but if the income comes from sources...

www.offshorecorptalk.com

Incorporating in UAE / RAK (offshore)

Hey there, I've been reading online and have spoken to an agent regarding incorporating in the RAK (offshore). I've been told that I apparently need a residence visa as it will be very difficult to source a banking relationship without residence. Does anyone have recent experience with this...

www.offshorecorptalk.com

Hope it can be of help for you, there should be some useful information there anyway.

 

[CaptK]

You would be better off in Ajman or ideally Fujeirah, RAK companies are difficult to open bank accounts.

Yes you can pay yourself a commission from the UAE company and keep the majority of profits there. You will need to obtain residency which is included in the package. The main thing is to pay for a good service the cheaper ones dont offer any help. They will bill you separately which can be expensive when it comes to bank account opening.

 

[Sir Gelato]

I agree with Ajman, you've got the free zone taxation scheme, depending on the nature of your business....

 

[RRR]

You would be better off in Ajman or ideally Fujeirah, RAK companies are difficult to open bank accounts.

Yes you can pay yourself a commission from the UAE company and keep the majority of profits there. You will need to obtain residency which is included in the package. The main thing is to pay for a good service the cheaper ones dont offer any help. They will bill you separately which can be expensive when it comes to bank account opening.

I am going to email you as I have seen a number of your replies in threads and your UAE knowledge will considerably help. Thank you CK

 

[reesek]

+1 for Ajman, it can get even an account outside UAE

 

[JustAnotherNomad]

You would probably need substance in the UAE, as required by both the free zone and HMRC. Which means an office, employees, spending time there, etc.
Just having a shell company in the UAE won’t help you reduce your taxes legally.

 

[reesek]

sure you need an UAE residence permit and travel to the airport once in 6m

 

[JustAnotherNomad]

Without knowing much about the UK, I can guarantee you that visiting Dubai once every 6 months won’t be enough to satisfy HMRC.

 

[CaptK]

Without knowing much about the UK, I can guarantee you that visiting Dubai once every 6 months won’t be enough to satisfy HMRC.

Correct there will need to be substance as you stated earlier. You can very easily satisfy HMRC as the basically have a check list.

As he stated he will be paying some tax in the UK, so long as he doesn't go buy a Lamborghini or a house outright for cash he will be fine.

 

[RRR]

Without knowing much about the UK, I can guarantee you that visiting Dubai once every 6 months won’t be enough to satisfy HMRC.

Fully aware that I need to show substance in the UAE. If you were in my position would you opt for different structure/formation? I am happy to invest to make it work and keep HMRC happy ha! - first time owning a business and I will fall into the higher tax band for personal income tax and 20% corp tax and need to find the best solution to legitimately reduce this.

My work in the UK is virtual (emails, zoom meetings and phone-calls including WhatsApp), work from home (no physical office needed) and fully registered of course.

 

[RRR]

Correct there will need to be substance as you stated earlier. You can very easily satisfy HMRC as the basically have a check list.

As he stated he will be paying some tax in the UK, so long as he doesn't go buy a Lamborghini or a house outright for cash he will be fine.

I have been looking at a G63...but no this is helping allot and I appreciate everyones feedback and assistance. I need to do much more research and make sure I make the right decisions as I do not want HMRC coming back to bite me in the a**

 

[CaptK]

I have been looking at a G63...but no this is helping allot and I appreciate everyones feedback and assistance. I need to do much more research and make sure I make the right decisions as I do not want HMRC coming back to bite me in the a**

If you budget to pay an MD of your company 500 a month and they take care of all the admin as a PA would. Substance is justified, an office, web site, email address with actual correspondence.

 

[Davis123]

Nice so good. U.K. citizens have a lot of advantage than most people. Usually if the person controlling the firm lives in the country then they are taxable. U.K. has really cool laws. I was looking at non dom laws earlier. Maybe I need to immigrate there someday.

 

[JustAnotherNomad]

Definitely double check everything with a tax lawyer to be sure...