What are Special Purpose Vehicles (SPVs)?
SPVs (Special Purpose Vehicles) are separate corporate vehicles designed for securitization and isolating financial and legal risk by ring-fencing assets and liabilities. SPVs can be established as subsidiaries, project or joint venture vehicles to ensure that only those assets related to a transaction are exposed to the liabilities associated with that transaction.
With SPVs having a separate legal personality, claims by your SPV’s creditors cannot attach to the assets of the SPV’s shareholders or any of its sister companies.
Benefits
- Structured finance: This financial instrument is available to companies to restructure debt, raise capital, transfer assets, and manage risk. Conventional financing does not address these issues.
- Securitisations: This includes bringing together the companies various financial assets and debts. Therefore, issuing the investors with a consolidated financial instrument.
- Asset holding and transfers: A transfer includes the movement of assets from one account to another account. An SPV reduces red tape and as a result, makes this process much easier and faster.
- Financing and raising capital: using SPVs as a funding structure.
- Ring-fencing and risk sharing: This is a protective strategy to create a ‘barrier’ in order to separate the company’s financial assets from the rest, legally allowing you to isolate the risks of a project and share those risks with other investors.
- Fractional ownership structures: Selling ownership asset shares to individual shareholders, who then share the benefits. As a result, keeping the cost lower then whole ownership.
Why establish an SPV with APMS?
APMS is a future-proof destination for your business, whether you are starting up or relocating from elsewhere. Benefits of setting up a Special Purpose Vehicle (SPV) with APMS include:
- Fast and straightforward incorporation process
- Simple migration from various global jurisdictions
- Robust Anti-Money Laundering laws in Ras Al Khaimah
- Attractive tax regime effective in the UAE
- A welcoming and encouraging business environment
The Business Services
Open a SPV/SPC in Ras Al Khaimah
We are a future-proof destination for your business, whether you are starting up or relocating from elsewhere
Among the types of structures that can be used for setting up a special purpose company in Ras Al Khaimah, only the private company limited by shares can be employed as a special purpose vehicle. This type of entity will benefit from several advantages not granted to other companies established in the Ras Al Khaimah free zone.
Its registration will be completed with the Ras Al Khaimah Authority based on the Memorandum and Articles of Association which must state the specific objects of activity of the SPV. The Ras Al Khaimah SPV must be registered for carrying out financial activities only.
Characteristics of a SPV in Ras Al Khaimah
Special purpose vehicles are not subject to the legislation applicable to other types of companies in the Ras Al Khaimah as it follows:
- the SPV is not required to have a physical office in Ras Al Khaimah, but only a registered address;
- the SPC must not file audited accounts;
- the shareholders of a SPC must not hold an annual general meeting.
The Ras Al Khaimah special purpose company is also subject to several restrictions, among which:
- it cannot be used as a holding company;
- it cannot undertake commercial activities;
- it cannot act as a general partner in a partnership used for investment purposes;
- the maximum number of shareholders in a SPC is limited to three.
Also, the Ras Al Khaimah SPV must appoint a corporate service provider which was previously licensed by the Ras Al Khaimah Authority and which will manage the special purpose company.
For complete information and assistance in setting up a SPV in Ras Al Khaimah, please contact us at +971581167153, +447593168511 or email us at info@almayaprojectms.com
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The Accounting & Bookkeeping services at Almaya Project Management Services are delivered to SMEs and Corporates under the supervision of experienced Chartered Accountants and CPAs at an hourly, monthly, quarterly, or yearly rate. The rates may also vary depending on the customized project requirements.
For more information about Accounting & Bookkeeping services in Ras Al Khaimah or any other part of UAE, contact us at info@almayaprojectms.com
