So far, you have learned some basics about why forming a company overseas can bring a world of good to your business. None of this has touched any technical aspects on what it takes to form an overseas company. When it comes to RAK free zone company formation, there are certain things you need to remember. Firstly, you should know that several countries have free zones across the world. These free zones serve a variety of purposes and are considered feasible for the economy. One must not mistake them with Exclusive Economic Zones (EEZ) as they are quite different in nature. Though the eventual purpose of both is to stabilize the economic condition of the country, they work on fundamentally different principles. The free zone is meant to attract foreign investment whereas the EEZ has more to do with promoting the exports of the country.
In either case, the income of the said country is going to rise but mingling them with one another would be like comparing Apples with Oranges. Every free zone is designed for a purpose, and the same is the case with free zones in UAE. You will find at least one free zone in every state. Though fundamentally same, every free zone brings one or more unique benefits to the table. It makes sense for businesses around the world to take as much benefits out of these facilities as they can. Being in UAE must have allowed you to see ample examples where the businesses took plenty of benefit out the facilities available. Being in a free zone means you will automatically earn several privileges which you may not have when operating from other regions in the country. Here is more on some of the privileges offered to investors in RAK:
Zero Percentage Tax Rate
There is no denying that every single business around the world would love to have this facility. After all, most business lose a sizeable chunk of revenue as tax deduction. Make no mistake about the fact that if it wasn’t for tax deductions, many businesses would still be around today. Worry not, now you can operate from a region where no matter how much you sell, you’ll never have to pay a single penny worth of tax. Same is the case with forming companies in other states. For instance, if you are looking to have Dubai free zone company formation, you will likely get the similar privileges. There will be no tax on the business and you will only end up paying minimal if any fares at all.