At present, owners of companies incorporated across various jurisdictions around the world are racking their brains over whether they should move or stay. The reasons behind such thinking are many. Some investors need to save their business from the impact created by the COVID-19 pandemic and some others need a better jurisdiction that will enable them to meet the requirements of Economic Substance Regulations (ESR). Investors planning to redomicile their companies into the UAE consider the RAK ICC as the top preferred choice.
RAK ICC has a lot to offer for investors planning to redomicile into the UAE, such as the benefit of moving into a ‘whitelisted’ jurisdiction, access to all the relevant infrastructure, and comparatively low fees. Transferring of domicile into RAK ICC is now easier with the help of approved registered agents in the UAE. However, it would be better to get firsthand knowledge about the benefits and relevant processes associated with redomiciling into RAK ICC before approaching the agents. This article is precisely written with that end in mind. Read on.
The UAE is a whitelisted jurisdiction.
In 2019, UAE has been removed from the EU’s list of countries that were deemed as tax havens. The whitelisting of the UAE is pertinent as many prominent offshore jurisdictions such as the Cayman Islands, Panama and Seychelles have been blacklisted by the EU. To be included in the blacklist means such jurisdictions will have to face the risk of sanctions from the EU and its member states, in addition to ‘reputational impact’ and stricter controls on transactions. The EU gave the UAE a clean sheet on its tax practices after the country adopted new rules on offshore structures.
RAK ICC can offer appropriate infrastructure and resources.
The adoption of ESR has dramatically changed the way investors incorporate a company, especially the offshore structures. Many offshore jurisdictions including the UAE are subject to the ESR, but the investors need to think about whether those jurisdictions have the infrastructure to help them meet the Economic Substance Test. Many jurisdictions, particularly the smaller islands, lack an adequate pool of resources to help the companies meet ESR.
To meet ESR in the UAE, entities must demonstrate that they meet the following:
- Adequate physical assets, expenditure and employees exist in the UAE
- Core income-generating activities (CIGA) undertaken in the UAE
- Directed and managed in the UAE
The RAK ICC provides plenty of physical offices or premises that are appropriate for the investors’ CIGAs. In addition to this, RAK ICC provides a large pool of experienced employees to choose from. Many other jurisdictions may not have adequate physical office space and the capacity in terms of personnel (such as consultants and advisors) that are essential to demonstrate an adequate economic substance.
RAK ICC keeps it simple and cost-effective.
Transfer of domicile to RAK ICC can be completed quickly thanks to an efficient back-office process capable of facilitating large volumes of redomicile applications. Apart from ESR, this helps companies to redomicile while maintaining their existing legal status and maintaining operational and banking history. Further, the companies can get access to both common law and local law courts. International business companies (IBC) can be redomiciled to the RAK ICC through registered agents in the UAE who can advise the investors on formation, reporting and running AGMs and can assist them to meet the ESR.
Easy to Open Bank Account
While migrating into RAK ICC, the investors won’t find it tough to open and maintain a bank account in the UAE. The bank account will be essential for carrying out routine operational transactions. After transferring domicile into RAK ICC, the companies can maintain professional relations with legal consultants, accountants and management companies or other similar persons carrying out business within UAE. The registered agents in the UAE can assist the investors in the easy redomicile process in addition to providing related services such as accounting and administrative services.
Hire RAK ICC- approved Registered Agents for Transfer of Domicile
International companies opt for transfer of domicile due to factors such as Economic Substance or the desire to move into a whitelisted jurisdiction. The RAK ICC in the UAE provides the companies with a robust infrastructure to redomicile at lower costs. The companies can enjoy the low-tax regime in the UAE with sufficient resources to meet ESR requirements.
However, the companies need to carry out the process through registered agents in Dubai, UAE such as Jitendra Business Consultants (JBC). JBC has a team of efficient business setup consultants in Dubai who with their wealth of experience simplifies the re-domicile process. The companies can use the office of the registered agents in the free zone as their registered office. By hiring JBC as the registered agent international companies can seamlessly migrate to RAK ICC and enjoy the business benefits.