IBC’s in the UAE

OUTLINE

The concept of an IBC is well established in international corporate planning and parallels can be drawn to the models of both the alternative zero-tax jurisdictions (e.g. BVI, Seychelles) and low tax jurisdictions (e.g. Malta, Cyprus, Ireland), with a similar OECD and Companies Act model.

The landscape for IBC’s is changing rapidly and the UAE, combined with its more Double Tax Agreements with more than 40 countries, stable banking sector and geographical location, is becoming a deserved 1st choice for establishing IBC’s.

IBC’s in the UAE benefit from:
  • Zero business taxes and duties with access to > 40 DTAA’s,
  • No exchange controls or restriction of capital flows,
  • Access to UAE banks,
  • 100% foreign ownership permitted,
  • No public register of corporate officer and ownership information,
  • No public filing of accounts and no audit requirements,
  • Choice of legal jurisdiction for commercial contracts of the company.
Key Features:
  • Choice of name ending with Limited or Incorporated,
  • Incorporation within 5 working days of receipt of all required documents,
  • Minimum 1 shareholder required of any nationality,
  • Corporate shareholders allowed,
  • Minimum capital requirement $1
  • Bearer, redeemable and different share classes are permitted,
  • UAE Registered Office and agent required,
  • Minimum of 1 Director which can be a corporate entity,
  • Minimum of 1 Company Secretary (which can also be the same as the sole Director),
  • Directors, Secretary and shareholders need not be UAE resident,
  • Board Meetings can be convened outside of the UAE, including AGM’s,
  • Annual accounts must be prepared and kept for 7 years, but are not filed our audited.
Restricted Activities:
  • Cannot trade with UAE Free Zone or UAE onshore companies,
  • Cannot carry out the business of an insurance or re-insurance company, insurance agent, insurance broker, or banking business,
  • Cannot carry out other restricted activities as defined by the UAE regulations from time to time.
List of Double Tax Avoidance Agreements in force with RAK

Algeria, Armenia, Austria, Azerbaijan, Belarus, Belgium, Bosnia & Herzegovina, Bulgaria, Canada, China, Czech Republic, Egypt, Finland, France, Germany, Greece, Holland, India, Indonesia, Italy, Kazakhstan, Korea, Lebanon, Luxembourg, Malaysia, Malta, Mauritius, Mongolia, Morocco, Mozambique, New Zealand, Philippine, Poland, Pakistan, Romania, Seychelles, Singapore, Spain, Sri-Lanka, Sudan, Syria, Tajikistan, Thailand, Tunisia, Turkmenistan, Turkey, Ukraine, Uzbekistan, Yemen, Vietnam.

INCORPORATION PROCESS:

In addition to the fee and order form, we require the following due diligence documents:

For an Individual Shareholder, Director, Secretary & Beneficial Owner
  • * Certified copy of Passport,
  • Original proof of residential address (bank statement or utility bill),
  • Original Personal Bank Reference Letter,
  • *Power of Attorney. (if applicable e.g. empowering us to sign incorporation documents and bank account opening forms)
For a Corporate Shareholder, Corporate Director & Corporate Secretary
  • *Certificate of Incorporation
  • *Memorandum & Articles of Association
  • Certificate of Good Standing (original)
  • *Register of Members and Directors
  • *Board Resolution approving the registration of the IBC,
  • *Board Resolution stating decision to act as Director
  • *Board Resolution stating decision to act as Secretary
  • Company Bank Reference Letter (original)
  • *Certified Passport copies of company officers and shareholders,
  • *Power of Attorney (if applicable)

*Document must be certified by a licensed lawyer or notary in the home country

*Must be notarised and legalised at the UAE Consulate of the home country, or if a UAE Consulate office is not present, in any other country nearby.

Note: We will provide the template documents above in a format acceptable to the Registrar.

Time Frame

Incorporation is within 7 days of receipt of the due diligence documents, following which after approx. 10 days, we will courier the company pack to you including:

  • Official Government letter providing permission for the company to open a UAE bank account,
  • Certificate of Incorporation,
  • Original Memorandum and Articles of Association,
  • Directors’ Written Resolution,
  • Shareholders’ Application letter,
  • Appointment of First Directors,
  • Shareholders’ Resolution granting permission to open and operate a UAE bank account,
  • Directors’ Acceptance Letter,
  • Company stamp
Print

Credentials

Connect With Us

Signia Group
Level 4, Al Mamoura Bld 'B' Mohamed Bin Khalifa Street,
PO Box 46400, Muroor, Abu Dhabi, United Arab Emirates.

Tel: +971 (0)2 659 4021

Fax: +971 (0)2 659 4019

Email: info@signiagroup.com