Read our blog: Dubai Offshore vs. RAK Offshore
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 offshore company or 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. All International Companies are governed by the International Companies Regulations 2006. The country has never been blacklisted by the EU and has good standing with all high-tax jurisdictions such in the US and EU and maintains good banking relations with correspondent banks.
Also referred to as a Non-resident Company, International Business Company and International Business Corporation, the RAK IC remains the most popular option for non residents 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.
For more>> UAE as an Offshore Financial Center
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Some of the advantages of holding an RAK Offshore International Company (IC) in the UAE include:
The UAE and RAK offshore companies offer political and economic stability of the jurisdiction through:
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.
There are many reasons why an individual or company would use a RAK Free Zone to set up a company whether it is savings on taxes, protecting one's savings, cost efficiency, simplicity or confidentiality.
Some of the other advantages include, but are not limited to:
There are a number of businesses which are best suited to operate through an Offshore IC including:
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 | Dhs 2,000 |
Annual Return Filing Fee | Dhs 1,500 |
Other | |
Requirement to file annual return | No |
Migration of domicile permitted | Yes |
For more>> UAE offshore company formation
People or companies seeking an offshore company formation in the United Arab Emirates are required to satisfy the below criteria.
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:
The only companies required to pay taxes are oil, gas and petrochemical companies and branch offices of foreign banks.
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.
Safeguard Your Assets With the Strongest Multi Jurisdictional Asset Protection Structure in the World
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:
RAK Investment Authority (RAKIA) is the governing body and the companies are regulated under RAK Offshore Regulations 2006.
An IC may only operate within the activities outlined and approved of in the official memorandum.
English
No
Normally processed within 1 – 2 weeks
In certain cases consent of an appropriate Ministry or any such local authority may be required for activities, operations or businesses’ engaged in:
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.
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