A new type of Offshore Company in RAK with the abbreviations RAK ICC (Ras Al Khaimah International Corporate Centre) was established in 2016. It’s an International Business Company (IBC) for the international business.
Basically, RAK International Corporate Centre (RAK ICC) is merged entity of the earlier two types of companies –RAK Offshore and RAK IC. RAK Offshore companies were registered by RAKIA and RAK IC companies were registered by RAK Free Trade Zone Authority.
These two companies were relatively similar but had some differences on the applicable regulations. Merger between RAK IC and RAK Offshore was announced in May 2016.
The introduction of the RAK offshore Company does not involve any major changes for the current key advantages of an offshore company in UAE. The only amendment will be made to the Memorandum of Articles of the existing companies stating the change of status to RAK Offshore company.
The UAE has been signed for double tax treaties with more than 47 countries – A RAK Offshore company can best take benefit of those treaties.
A RAK offshore company can hold shares in “onshore” Dubai company (such as Dubai LLC company), or any other legal entity globally. A RAK International Corporate Center (RAK Offshore Company) can also own real estate property (such as free hold properties) in the UAE.
A RAK offshore company can hold a bank account in the Dubai UAE, for the use of carrying the day to day operational transactions and other related persons carrying out business.
Advantages of RAK Offshore Company Formation
RAK Offshore Company offers numerous advantages in terms of currency control, taxation, administrative flexibility, and operational efficiency. Here are the key benefits:
- Full Foreign Ownership: Foreign investors can enjoy 100% ownership of their RAK Offshore company.
- Zero Corporate Income Tax: There is no corporate income tax levied on RAK Offshore companies.
- Single Director Requirement: A RAK Offshore company can be managed by a single director, who does not need to be a resident.
- No Accounting Requirements: RAK Offshore companies are not required to maintain or submit financial accounts.
- Single Shareholder Setup: A RAK Offshore company can be established by a single shareholder, simplifying ownership.
- Shareholder and Director Flexibility: The same individual can hold both the shareholder and director positions in the company.
- No Residency Restrictions: There are no residency limitations for shareholders or directors of the company.
- Easy Renewal Process: Renewing a RAK International Corporate Centre (ICC) company is a straightforward and hassle-free process.
- English Documentation: All official registration documents are issued in English, ensuring accessibility and ease of understanding.
- No Audit Reports Required: RAK Offshore companies are not obligated to submit audit reports, reducing administrative overhead.
- Compliant Offshore Jurisdiction: RAK Offshore is a white-listed jurisdiction, fully compliant with international standards and regulations.
- Intellectual Property Ownership: RAK Offshore companies can hold intellectual property such as trademarks, patents, and copyrights.
Documents Required for Individual Shareholders
To set up a RAK Offshore company with individual shareholders, the following documents are required:
- Valid Passport Copy (including UAE entry stamp page) for each shareholder and director.
- Three Proposed Company Names to register your business.
- Personal and Business Profile (CV) of each shareholder.
- Original Proof of Physical Address (such as a utility bill or telephone bill) for each shareholder.
- Bank Good Standing Letter (reference letter) for each shareholder. The account must have been active for at least two years.
Documents Required for Corporate Shareholders
For corporate shareholders, the following documents must be submitted:
- Certificate of Incorporation (notarized).
- Memorandum & Articles of Association (notarized).
- Board Resolution and Power of Attorney authorizing the establishment of the RAK Offshore company (notarized).
- Certificate of Good Standing or Incumbency Letter (notarized).
- Directors/Secretary CVs or Profiles for corporate officers.
- Utility Bills as proof of address for corporate shareholders and directors.
- Bank Reference Letter for the corporate shareholder.
All documents marked with an asterisk (*) must be notarized from the home country.
Other Requirements
- Prohibited Activities: RAK Offshore companies are not allowed to conduct business with UAE residents or operate within the UAE or RAK Free Trade Zone without obtaining the appropriate licenses.
- Document Attestation: All photocopied documents must be properly attested.
- License Renewal: RAK Offshore licenses are valid for one year. After expiration, renewal is required to maintain company operations.
- Additional Approvals: Various departments may require further approvals for specific business activities within RAK ICC.
How Smart Business Creation Can Assist
- Document Preparation and Submission: We handle the preparation of all required documents and submit them to the Registrar at the RAK ICC Authority.
- Company Name and Activity Approval: We will obtain approval for your company name and business activities from the RAK Offshore Authority.
- Quick Registration Process: Our team ensures that the entire registration process is completed within a week.
- Bank Account Assistance: We can assist in opening a bank account in Dubai for your RAK Offshore company.
- License Renewal Support: We provide renewal services for your RAK Offshore company to ensure ongoing compliance.
- Registered Agents: As registered agents of RAK ICC, we handle the entire process, ensuring a smooth and seamless company formation experience.
For further assistance with RAK Offshore company formation, contact Smart Business Creation at WhatsApp # .
