17th October 2019
With the introduction of the Economic Substance Requirements (ESR) in most jurisdictions, is your offshore company considering relocating to a new jurisdiction? The need to relocate to a more reputable jurisdiction with real economic substance is stronger than ever.
What are the Economic Substance Requirements?
The EU Code of Conduct Group and the Organization for Economic Cooperation and Development (OECD) have been assessing the tax policies of jurisdictions which have either little or no tax against the criteria of ‘economic substance’. The objective is to prevent tax planning strategies which exploit loopholes in tax regulations enabling companies to avoid paying tax.
At the start of 2019, many jurisdictions introduced enhanced economic substance requirements, which subsequently came into force from 30th April 2019.
Where does the UAE fit with the Economic Substance Requirements?
On 30 April 2019, the UAE's Cabinet of Ministers Resolution No.31 of 2019 Concerning Economic Substance Regulations was issued. This requires all relevant UAE entities to have demonstrable economic substance in the UAE. Failure to comply will result in penalties including fines and suspension or revocation of trade licenses.
In September 2019 the UAE adopted new rules relating to offshore structures. Previously the EU had requested the UAE to introduce rules whereby only companies with a real economic activity could be incorporated in order to reduce risks of tax avoidance. Earlier this month, the UAE was removed from the EU's Blacklist of countries deemed to be tax havens.
The UAE has a huge opportunity to attract companies from all over the world to re-domicile. It has an abundant ecosystem of professionals, experts, infrastructure and resources to meet the Economic Substance Requirements.
Why redomicile your offshore company to RAK ICC?
If you have an offshore holding company and are doing business in the UAE, organising corporate paperworks and attestations is likely to be a lot quicker and a lot cheaper than perhaps more traditional offshore jurisdictions. Most transactions are completed within a matter of days.
How long does it take to redomicile an offshore company to RAK ICC
Once all of the paperwork is prepared and in order, the redomicile process is relatively quick and usually completed within a week.
How Gateway Group can help to redomicile your offshore company to RAK ICC
It always makes sense to engage a company who has practical experience in matters relating to company registrations and regulations to ensure that your own assignment is managed quickly and professionally. Gateway has experience in redomiciling offshore entities to RAK ICC so we are conveniently positioned to complete this process for your organisation. To get your offshore company redomiciled to RAKICC, email us: info@GatewayToUAE.com
To celebrate the removal of the UAE from the EU Blacklist, RAK ICC has launched a special offer, valid until the end of the year, allowing companies to redomicile to RAK ICC with no government fees to pay until next year. To take advantage of this special offer to redomicile your offshore company to RAK ICC, email us info@GatewayToUAE.com
Written by Jenny Hunt, Founding Partner & CEO
Gateway Group Of Companies, Abu Dhabi & Dubai, UAE
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Protect your business and profits and have an efficient business setup in Abu Dhabi and Dubai by engaging the award-winning Gateway Group to deliver our customised business setup, unique local sponsor packages, and visa processing. To establish your business in the UAE, Email us: Info@GatewayToUAE.com
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