Wednesday, 7 May 2014
THE UAE - BUSINESS HUB OF THE FUTURE
Since its formation in 1971, United Arab Emirates has emerged as a major force in global economy with state-of-the-art infrastructure and an un-relinquished business environment. UAE has adapted and transformed itself from an oil and gas economy to a state diversified to international trade, tourism, financial services, real estate, banking and manufacturing.
Given the UAE’s continued stance on ZERO tax’s and duty exemptions, there is little wonder why more and more individuals and International Companies are now choosing the Emirates as, not only their business headquarters, but also in many cases their primary choice of residence too.
In early 2003, Jebel Ali Free Zone Authority (JAFZA) Dubai’s foreign ownership Free Trade Zone became the first location in the UAE to provide offshore company formations. In February 2007, Ras Al Khaimah Investment Authority (RAKIA) and Ras Al Khaimah Free Trade Zone (RAKFTZ) located in the most Northerly region of the Emirates expanded their already thriving Free Zone to include offshore business formations, often known as International Companies (IC’s.) Due to the excellent operational service methods adapted by RAK Offshores, the offshore incorporation division of RAKIA and RAKFTZ, coupled with the clear documentation process and lower incorporation fees, have stepped into the driving seat of offshore formations within the UAE.
WHY CHOOSE THE EMIRATES?
There is a very significant difference between the ‘safe haven’ of The Emirates and other worldwide ‘tax shelters.’ The Emirates and other GCC countries of The Middle East are ‘tax free’ jurisdictions by nature and not by design.
WHAT DOES THIS MEAN?
The Emirates, in its very nature, has always been a ‘tax free’ country; A jurisdiction that has:
· NO Corporation Tax;
· NO Capital Gains Tax;
· NO VAT (Value Added Tax);
· NO Personal Tax; and
· NO Death Duty Tax.
In short; it is, and has always been, a country with 0 Tax.
WHAT IS THE DIFFERENCE?
Other jurisdictions around the globe have become ‘tax havens’ by design. Over the years governments have allowed various locations within their sovereignty to offer ‘tax havens’, as a form of ‘shelter’, therefore, offering a facility for wealthy individuals or corporate clients to ‘move’ their finances away from tax authorities. An army of pin striped, suited lawyers or city accountants would work to protect their clients from tax payments, by moving their interests to ‘tax havens’ designed for this purpose.
CHOOSE THE JURISDICTION WITH DILIGENCE
Always be mindful when choosing a ‘tax haven,’ as many jurisdictions have now been ‘redesigned’ and do
not offer the security that they once provided – please consult ADAM Consulting for further information.
SAFETY AND SECURITY
In the G20 Summit held in February 2009, there has been a crackdown on non-cooperative tax
havens, forcing major companies to look for safer, yet more pragmatic locations to carry out their future business operations. It is important to note that, in accordance with the latest international best business practices, the UAE is NOT black or grey listed from any international organization such as the Organization for Economic Cooperation and Development (OECD) and the Financial Action Task Force (FATF.)
PRIVATE ACCOUNT HOLDERS
With reference to a private ‘joint’ account holder in the UAE and in the unlikely event that either of the two “joint owners” unexpected demise, the joint account, under UAE Civil Code Federal Law No.2 would be frozen. The account may remain inactive for a period of 18 months or longer until probate, which gives reference to their estate, by way of a written “Will” is read. In additional, even if you legalise a Will, the laws of the UAE may still apply to immovable property such as real estate. If the accountholder dies without a “Will,” it is likely the estate, overseas property, bank account or any other asset, including the vehicles, will be distributed in accordance of Sharia Law. The same would also apply to a single-personal bank account holder.
OFFSHORE ACCOUNT HOLDERS
With reference to an Offshore Account with multiple Shareholders, holding a joint account and in the unlikely event of the sudden demise of a Shareholder or joint account holder, there are two  possible solutions:
a. A “Will” was previously filed.
In this case, the surviving Shareholder or partner could have the “WILL” read by probate.
b. A “Will” was NOT previously filed.
In accordance with the regulations, the share will be distributed automatically between the remaining shareholders.
In each event (a) and (b) – accounts would not be held inactive – business could continue
AND assets remain part of the Company.
As professionally licensed agents, we are able to handle your corporate application and document process with ease. Through years of experience, local knowledge and direct contact with the authorities, we have a distinct advantage by being able to provide the best service, the most up to date information and the most cost effective solutions.
Often we are asked “how do we proceed?” or “what documents are required?” Therefore, as a useful guide we provide all our clients with all the necessary help, offering step by step instructions through every stage of incorporation, from start to finish. What is more, once incorporation is complete, we continue to offer our support whenever and wherever you need it.
British Based Legal System
Type of Company
Tax on Offshore Profits
Own Property in Dubai
Hold Shares in Companies
Minimum Number of Shareholders Minimum Number of Directors Corporate Directors Permitted Secretary Required
Standard Authorised Capital/ Shares
Bearer Shares Permitted
Registered Office / Registered Agent
Company Secretary Local Directors Local Meetings
Physical Presence for Incorporation
Due Diligence / Disclosure
Due Diligence Required
Disclosure of Beneficial Owner on Public File Government Filing of Register of Directors Government Filing of Register of Shareholders
All original documents must be viewed by an Arab Embassy and the Ministry of Foreign Affairs in the country where the original documents were produced. Copies will be taken stamped and sealed as ORIGINAL COPIES. This is also known as Legalization.
The chart is intended to provide an overview of key corporate features of the various jurisdictions. The content is general in scope and should not be relied upon as advice. ADAM Global strongly recommends that applicable professional advice be taken prior to establishing any corporate structure.
STANDARD LEGAL REQUIREMENTS & SUPPORTING DOCUMENTS
A. INDIVIDUAL SHAREHOLDER(S)
1. Passport Copy of the Shareholder(s)
2. Copy of Immigration/Employment Status
a. Recent UAE Entry Stamp Page on Passport (For Non-Residents)
b. Visa Page Copy and No Objection Letter from the Sponsor (For holders of a UAE Resident
3. Proof of Address – Utility Bill, Telephone Bill
4. Shareholder(s) Profile – CV/ Resume (Most up to date)
5. Bank Reference Letter
B. CORPORATE SHAREHOLDER(S)
1. Certificate of Incorporation of the holding Company [notarized and attested/ apostilled]
2. Certificate of Good Standing of the holding Company [notarized and attested/ apostilled]
3. Certificate of Incumbency of the holding Company [notarized and attested/ apostilled]
4. Memorandum & Articles of Association of holding Company [notarized and attested/ apostilled]
5. Board Resolution – Calling for the establishment of an IBC or Offshore formation [notarized and attested/ apostilled]
6. Power of Attorney [notarized and attested/ apostilled]
7. Passport copy of the authorised signatory
C. INDIVIDUAL DIRECTOR(S)
1. Passport Copy of the Director(s)
2. Director(s) Profile – CV/ Resume (Most up to date)
3. Director(s) Appointment Letter
D. CORPORATE DIRECTOR(S)
1. Certificate of Incorporation of the existing company [notarized and attested/ apostilled]
2. Certificate of Good Standing of the existing company [notarized and attested/ apostilled]
3. Memorandum and Articles of Association with the provision to provide director services
[notarized and attested/ apostilled]
4. Board Resolution – to provide director services to an IBC or Offshore company [notarized and attested/ apostilled]
5. Power of Attorney [notarized and attested/ apostilled]
6. Passport copy of the authorised signatory
E. INDIVIDUAL SECRETARY
1. Passport Copy of the Secretary
2. Secretary Profile – CV/ Resume (Most up to date)
3. Secretary Appointment Letter
Vithul V Murali
Dubai Mobile : +971 50 55 73 538
Dubai Mobile : +971 50 55 73 538
Skype : Vithul.murali