Why RAK ICC is the Premier Jurisdiction for IBCs: A Comparative Analysis
Are you considering setting up an International Business Company (IBC)? If so, you’ll want to choose a jurisdiction that offers the best combination of benefits and advantages. While there are many options available, one jurisdiction stands out as the premier choice for IBCs: Ras Al Khaimah International Corporate Centre (RAK ICC). In this article, we’ll explore why RAK ICC Company Formation is the top choice for IBCs by comparing it to other popular jurisdictions.
First, let’s define what an IBC is. An IBC is a type of offshore company that is typically used for international trade and investment purposes. IBCs are popular because they offer tax benefits, privacy, asset protection, and flexibility in terms of ownership and management.
Now, let’s compare RAK ICC to other popular jurisdictions for IBCs, such as the British Virgin Islands (BVI), Cayman Islands, and Seychelles.
Taxation
One of the main benefits of IBCs is their tax efficiency. RAK ICC offers a zero percent tax rate on corporate profits, making it an attractive option for businesses seeking to minimize their tax liabilities. In contrast, the BVI and Cayman Islands both have corporate tax rates of 0% but have other taxes to consider, while Seychelles has a corporate tax rate of 1.5%.
Privacy
Another key benefit of IBCs is their privacy and confidentiality. RAK ICC provides a high level of confidentiality for its clients, with strict privacy laws and regulations in place. In contrast, the BVI and Cayman Islands have recently introduced legislation that requires companies to disclose beneficial ownership information, and Seychelles requires the disclosure of some ownership information.
Asset Protection
IBCs are often used for asset protection purposes, and RAK ICC offers a robust legal framework to protect its clients’ assets. RAK ICC’s legal system is based on English common law, and its courts have a strong track record of enforcing contracts and protecting the rights of businesses. In contrast, the legal systems of the BVI and Cayman Islands are based on local laws, and Seychelles has a mixed legal system based on both English and French law.
Reputation
The reputation of the jurisdiction where an IBC is registered can also be important. RAK ICC is a well-respected and reputable jurisdiction that is compliant with international standards and regulations. It is also an OECD white-listed jurisdiction, which can provide additional credibility and legitimacy to businesses operating in the global marketplace. In contrast, the BVI and Cayman Islands have faced scrutiny in recent years over their compliance with international anti-money laundering and tax transparency standards.
Cost
Finally, the cost of setting up and maintaining an IBC is a key consideration. RAK ICC offers competitive pricing and low annual fees, making it an affordable option for businesses of all sizes. In contrast, the BVI and Cayman Islands can be more expensive, and Seychelles has recently increased its fees.
Conclusion
To sum-up, if you’re looking to establish an IBC, RAK ICC Company Formation is the premier choice for its zero percent tax rate, strict privacy laws, robust legal framework, and affordable pricing. Skwer Group can help you establish and manage your IBC in RAK ICC, providing a range of services that include company formation, banking, legal, and accounting. Contact us today to learn more about how we can help you take advantage of the many benefits of establishing your IBC in RAK ICC.