The Fall of Mauritius and Seychelles offshore sector, and the Emergence of RAK ICC in the UAE

The ever-evolving world of global finance has seen several shifts in recent years, particularly in the area of offshore jurisdictions. For companies aiming to optimise their tax strategies, protect their assets, and ensure privacy, the choice of offshore jurisdiction has always been a cardinal decision. However, the dynamics of this landscape have been shifting drastically. Recent developments have seen the decline of Mauritius and Seychelles as favourable offshore jurisdictions, with businesses now pivoting towards the Ras Al Khaimah International Corporate Centre (RAK ICC) in the United Arab Emirates (UAE).

Mauritius, for many years, was a significant player in the offshore sector. Its GBL2 offshore license was a beacon for international businesses, offering 100% tax advantages, a stable political environment, and a robust legal framework. However, this license has now been eliminated, in a move that has sent shockwaves through the offshore world. This change is so profound that it's often referred to as "offshore Mauritius is dead." The discontinuation of the GBL2 license is a reflection of global initiatives towards transparency and combating tax avoidance and evasion. The impact of this is that Mauritius, once a haven for offshore entities, has lost its allure.

Similarly, Seychelles, another popular offshore jurisdiction, has been facing increasing challenges. International banks have been scrutinising businesses registered in Seychelles with a more discerning eye due to concerns related to money laundering and tax evasion. These concerns have created difficulties for Seychelles IBCs trying to open and maintain international bank accounts. The result is a significant reduction in the attractiveness of Seychelles as an offshore jurisdiction.

With the decline of these traditional offshore jurisdictions, businesses are exploring alternative options. One of these is the Ras Al Khaimah International Corporate Centre (RAK ICC) in the UAE. The RAK ICC is emerging as a leading company registry, providing state-of-the-art facilities and an attractive regulatory environment for international businesses.

The UAE offers an array of benefits as an offshore jurisdiction. Its strategic geographic location at the crossroads of Europe, Asia, and Africa provides easy access to key global markets. Additionally, the UAE offers political stability, a robust legal framework, world-class infrastructure, and a tax-friendly environment. Importantly, the UAE is not considered a tax haven and is not on any international 'blacklist,’ which adds to its credibility and reputation.

At Fintech and Innovation Ltd, we have been closely monitoring these shifts in the offshore landscape. We understand the challenges that these changes present, and we are committed to helping our clients navigate this new terrain. We are based in the UAE and offer comprehensive assistance in setting up RAK ICC offshore structures, providing expertise and experience in the UAE’s business environment.

Our services encompass the full spectrum of the setup process. From selecting the appropriate legal structure to dealing with the administrative tasks associated with registration and compliance, we provide a one-stop solution for businesses seeking to establish themselves in the RAK ICC. We also offer ongoing support to help our clients respond to changes and challenges in the global business landscape. 

Please contact us at info@fintechinnovation.io and we will help you with your next RAK ICC setup.