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UAE RAK IC Offshore Company Formation

(Ras Al Khaimah International Company)

Overview

Overview of a RAK Offshore
International Company (IC/IBC)

Ras Al Khaimah (RAK), one of seven independent federal Emirates that make up the United Arab Emirates (UAE), offers attractive opportunities for those seeking to establish an International Company (IC). RAK remains a premier investment authority, giving potential investors, individuals and companies numerous benefits and arrangements in setting up an RAK offshore company.

Also referred to as a Non-resident Company, International Business Company and International Business Corporation (IBC), the RAK IC remains the most popular option for foreign companies seeking: to establish a presence in the Middle Eastern region, asset protection, confidentiality of financial accounts and to benefit from tax free schemes.

RAK offers investors and foreign companies a political stable environment, financial solidity with minimal financial risk (Moody’s credit rating of Aa3), with next to zero crime, in a strategic region that connects itself with regional markets, while also providing a critical link between the East and the West.

Top Uses

Top Uses of a RAK IC/IBC

There are many reasons why an individual or company would use a RAK Offshore International Company; whether it is savings on taxes, protecting ones savings, cost efficiency, simplicity or confidentiality.

Some of the other advantages include, but are not limited to:

  • Reduced tax liability
  • Fewer reporting requirements
  • Internet Trading
  • Probate
  • Family Wealth Protection
  • Property-owning Companies

There are a number of businesses which are best suited to operate through an Offshore IC including:

  • General Trading
  • Consulting and Advisory Services
  • Holding Company (buying/holding/selling stakes of companies)
  • Investments and Joint Investments Company
  • International services
  • Professional Services
  • Shipping Management Companies
  • Commission Agents Companies

Advantages

Advantages of a RAK IC/IBC

Some of the advantages of holding an RAK Offshore International Company (IC) in the UAE include:

  • Asset protection
  • Confidentiality
  • Tax planning
  • International visibility and exposure
  • Zero exchange controls
  • No double tax agreements
  • No restrictions on profit transfer
  • No restrictions on capital repatriation
  • No signed treatise that enable a foreign exchange of information
  • UAE is not on any 'blacklist' for tax havens

The UAE and RAK offshore Companies offer political and economic stability of the jurisdiction through:

  • Modern and flexible legislative framework 
  • Simple incorporation and filing requirements 
  • Double Taxation Avoidance Agreements (DTAA)
  • State of the art banking and telecommunication facilities

Recently there has been a lot of pressure put on low tax jurisdictions by both the European Union (EU) and the Organization for Economic Cooperation and Development (OECD). However, because UAE is not a member of the EU or the OECD it is therefore is not subject to their regulations.

Key Corporate Features [Chart]

Corporate and Legal Features of a RAK IC/IBC

RAK IC Corporate Details
General

Type of Entity Limited by Shares
Type of Law Federal / Sharia
Governed by International Companies Regulations 2006
Registered Agents Regulations 2006
Registered Office in RAK Yes
Shelf company availability No
Our time to establish a new company 1-2 weeks
Minimum government fees (excluding taxation) Dhs. 2,000
Corporate Taxation Nil
Access to Double Taxation Treaties No
Share capital or equivalent

Standard currency Dirham (pegged to the dollar at 3.67 AED for $1)
Permitted currencies All
Minimum paid up Dhs. 1,000
Usual authorized Unlimited
Bearer shares allowed Yes
No par value shares allowed No
Directors

Minimum number 1
Local required No
Publicly accessible records No
Location of meetings Anywhere except RAK
Corporate directorship allowed Yes
Shareholders

Minimum number 1
Publicly accessible records No
Corporate shareholder allowed Yes
Location of meetings Anywhere except RAK
Company Secretary

Required Yes
Local or qualified Local (natural or corporate)
Accounts

Requirements to prepare Yes
Audit requirements No
Requirements to file accounts No
Publicly accessible accounts No
Recurring Government Costs

Minimum Annual Tax / License Fee Dhs 2,000
Annual Return Filing Fee Dhs 1,500
Other

Requirement to file annual return No
Migration of domicile permitted Yes

Requirements for Incorporation

Requirements for Incorporation of a
RAK IC/IBC

People or companies seeking an offshore company formation in the United Arab Emirates are required to satisfy the below criteria.

  • The minimum capital requirement of a RAKIC is AED 1,000
  • Minimum of one shareholder
  • Minimum of one Director in which the powers and duties are to be specified in the memorandum
  • Company name needs to be approved by the RAK Free Zone Authority
  • Memorandum needs to include share capital, share value, power of Directors and object of the company notarized in a UAE Court
  • Must keep financial records in office (though they remain confidential)
  • It is not a requirement that shareholders or Directors need to be present when signing incorporation documents
  • Select a name for the company and have it approved by the RAK Free Zone Authority
  • Confirmation that the share capital has been paid
  • Bank Certificate confirming of deposit of the minimum share capital

Taxation

Taxation of a RAK IC Offshore Company

Of the many attractive advantages in setting up a RAK offshore company formation are the numerous tax benefits accrued through incorporating within the jurisdiction of the UAE.

These tax benefits include:

  • Zero personal income tax
  • Zero corporate tax
  • No capital gains tax
  • No sales tax
  • No withholding tax
  • No value added tax
  • No import of export tax
  • 100% capital and profit repatriation 
  • 100% ownership in Free Zones 
  • Sixty one double taxation agreements and thirty two bilateral investment treaties are in place

The only companies required to pay taxes are oil, gas and petrochemical companies and branch offices of foreign banks.

UAE Double Taxation Avoidance Agreements (DTAA)

Double taxation avoidance agreements (DTAA) prevent individuals and corporations from having to pay tax on same item during the same time period. Agreements have been made with:

Austria, Belarus, Belgium, Canada, China, Czech Rep., Egypt, Finland, France, Germany, India, Indonesia, Italy, Lebanon, Malaysia, Malta, Morocco, New Zealand, Pakistan, Poland, Romania, Singapore, Sudan, Thailand, Tunisia, Turkey, Ukraine.

Corporate Details

Corporate Details of a
RAK IC Offshore Company

Companies Law stipulates that a RAK International Company (IC) may engage in any type of lawful activity except for industries including insurance, banking and the investment of money for others and restrictions apply to conduct local business.

An IC conducting banking or insurance operations outside the Free Zone and the UAE must ensure that it has obtained permission and has been granted appropriate licensing from authorities within the relevant jurisdiction.

The register of the UAE RAK offshore companies registered agents maintained by the Authority shall contain the following details in respect of each registered agent:

  • Name and address approved registered agent
  • Names of the individuals who are authorized to sign on behalf of the company
  • Date of approval the given by the RAK Authority to provide registered agent services

Principal Corporate Legislation

  • International Companies Regulations 2006
  • Registered Agents Regulations 2006

Governing Corporate Legislation

RAK Investment Authority (RAKIA) is the governing body and the companies is regulated under RAK Offshore Regulations 2006.

Restrictions on Trading

An IC may only operate within the activities outlined and approved of in the official memorandum.

Language of Legislation and Corporate Documents

English

Shelf Companies Available

No

Time to Incorporate

Normally processed within 1 – 2 weeks

Names Requiring Appropriate Consent or Licensing

In certain cases consent of an appropriate Ministry or any such local authority may be required for activities, operations or businesses’ engaged in:

  • Oil & Gas, Banking & Investment, Financial Services, Insurance, Media, Transport, Construction, Telecommunications, Real Estate Management, Architectural and Engineering Consulting, Tourism, Shipping, Civil Aviation, Legal Services, Medical Services, or Education.
  • Any name that contains the words state, government, municipal, etc., and may wrongfully suggest a patronage of such.

Re-domiciliation provisions

A company incorporated under laws of a foreign jurisdiction can continue its existence as a company registered under that specified Act. RAK Offshore IC may also transfer their domicile to foreign territories that permit such procedures.

RAK IC Company Formation
Products from Sovereign


Basic UAE RAK International Company | Contact us for pricing

Includes:

  1. Certificate of Incorporation
  2. Certified copy of the Memorandum & Articles of Association
  3. Registered office & agent fee for the first year
  4. Government fees for the first year
  5. Company Secretarial Maintenance for the first year
  6. Certificate of Endorsement
  7. Articles of Incorporation
  8. Transfer of Subscription Rights
  9. Share Certificate(s)
  10. Initial corporate minutes resolution
  11. Apostille
  12. Register of Directors
  13. Register of Members
  14. Appointment of First Directors
  15. Consent Actions of the Board of Directors
  16. Company Seal

To request more info or to order a UAE RAK International Company from Sovereign (with or without a bank account) today, click on the Let’s Get Started button below.

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