RAK ICC Offshore Company Formation
Where do RAK offshore companies get registered?
The RAKICC, which is a government owned corporate registration centre established in the Emirate of Ras Al Khaimah, United Arab Emirates. RAK ICC is one of the most respected offshore company set-up registries and is ranked amongst the top jurisdictions in the world. RAK ICC provides efficient legislation for the creation and maintenance of offshore and international business companies.
RAK offshore companies are established to:
- carry out international business activities outside the UAE,
- act as holding companies
- hold real estate properties in the Emirates Dubai and Ras Al Khaimah,
- provide asset protection,
- carry out tax planning,
- carry out estate planning
What Benefits does RAKICC offer?
RAKICC offers the following main benefits for setting up offshore and international business companies:
- No taxes applicable
- Modern legislation
- Registered address
- Single and multiple directors are allowed
- No auditing and accounting requirements in a majority of jurisdictions
- Business can be conducted internationally
- No limitations on any nationality
- Capital expatriation does not have any limitations
Activities that can be conducted
- Property holding (within Ras Al Khaimah and Dubai)
- International trade
- Consultancy
- Brokerage activities
- On-line advertising activities
- Registration of ships
- Services
- Trading
What is RAKICC?
Ras Al Khaimah International Corporate Centre or RAKICC is a Corporate Registry established pursuant to Emiri Decree No.12 of 2015 and operates in Ras Al Khaimah, United Arab Emirates. It was created as a result of amalgamation of two former corporate registries (i.e. RAK International Companies and RAK Offshore). RAKICC is a highly reputed offshore jurisdiction and offers various types of companies that can be incorporated. It offers about four hundred (400) different business activities to choose from. RAKICC allows you to incorporate your offshore company and provide registry services which comply with the highest standards and international practices.
Why should one choose RAKICC?
RAKICC is one of the most respected jurisdictions offering shareholders the opportunity to incorporate their offshore companies.
RAKICC has the following main advantages:
Control
RAKICC entities can have one hundred (100) % foreign ownership. There are no restrictions on any nationality to own shares in a RAK offshore company. This allows shareholders complete control over the business and management of the company.
Security
While the UAE is subject to local courts based on the UAE laws, RAKICC allows access to common law jurisdiction courts of Dubai International Financial Centre (“DIFC”) Courts and Abu Dhabi Global Markets (“ADGM”) Courts. Unlike local courts, proceedings here do not take place in Arabic as the DIFC and ADGM Courts use English as their official language.
Global Network with Growing Economy
RAK ICC being part of the UAE allows its shareholders to be part of a fast-growing economy as well as a stable currency.
Fast and Efficient Process
RAK ICC has favourable rules and regulations for incorporation of companies. A single person of any nationality or an entity can be shareholder and/or director of a RAK offshore company. The entire process of incorporation is exceptionally time efficient. The entire process can be completed within two (2) working days.
Strategic Location
The UAE has one of the most important geo-political location which provides businessmen with ease of doing business. The UAE also happens to be the only jurisdiction allowing offshore company incorporation in the Middle East.
Flexibility
RAK ICC has several rules that grant ultimate flexibility to the shareholders of RAK ICC companies. These include no minimum capital requirement, no requirement to file audited accounts and access to local as well as international banks for opening of corporate accounts. Thus, shareholders can enjoy regulatory arbitrage.
Cost Effective
While many jurisdictions may allow to incorporate offshore companies, they are at times very heavy on the pockets of shareholders. RAK offshore company formation, however, is extremely cost efficient and offers very competitive company incorporation as well as renewal fees. Further, there is no requirement to have a separate office as the office address of the registered agent is used as the registered office address of the company.
Privacy
RAK ICC allows financial privacy to its shareholders from scrutiny. The shareholders have the advantage of minimal corporate regulatory interference in their business. Thus, unlike other jurisdictions, you are not required to maintain and submit balance sheets, audited reports, and other financial records, allowing complete privacy.
Taxation
This is one of the most important factors that a shareholder would look for while incorporating its offshore company. RAK ICC allows its shareholders to take advantage of its Double Tax Treaty (DTT) Network, making sure that shareholders do not pay double taxes. RAK ICC is one of the few international jurisdictions to provide zero (0) tax policy for its entities. Therefore, you have the advantage of tax arbitrage with RAK ICC.
Who can come to RAK ICC?
While RAK ICC offers its services to anyone looking for an offshore company, it is particularly advantageous if you are:
- an entrepreneur seeking to reach global audience.
- a corporation seeking advantages in trade regulations.
- a person seeking diversification of its assets.
- an investor seeking one of the best investment opportunities.
- a company seeking to incorporate its subsidiaries.
- a family planning inheritance, seeking estate planning and wealth management.
Types of Companies Under RAKICC
RAK offshore companies are used for various purposes including holding assets, company shares and carrying out business activities internationally. RAK ICC offers three basic categories of companies that one can incorporate:
1. Company Limited by Shares (CLS)
A CLS is one of the most sought-after offshore companies under the RAK ICC. A CLS is the type of company where the liability of its shareholders is limited to the initial investment in shares. Their liability is exhausted once the amount equivalent to their investment in shares is paid off. It is particularly effective in shielding the personal assets of investors in situations where the company is facing financial difficulties as the liability of its investors is limited. Thus, investors can be assured that their investment would not face any risk beyond the amount of paid-up capital in the company. A CLS must always have at least one shareholder and one director.
Being one of the more popular choices, there are several uses of CLS companies, including but not limited to:
1. Holding Company:
As a holding company, a RAK ICC offshore company can hold shares in a subsidiary company anywhere in the world and real estate property in Dubai. Shareholders can incorporate a subsidiary in a freezone jurisdiction such as RAKEZ with their RAK ICC offshore company acting as a holding company and carry out activities onshore.
2. Special Purpose Vehicle (SPV):
These are very common for conducting specific business or work. An offshore company can hold specific assets and have a SPV to be used for a particular project or business.
3. Joint Venture (JV):
A RAK ICC company can be used to even form a joint venture. A joint venture is formed when two or more parties/entities come together to work under a single business name. Parties can specify their respective rights in their separate shareholder(s) agreement, memorandum of association and articles of association.
4. International Business Company:
These are formed to conduct business in several countries and provides opportunity to have international presence and global investment.
5. Project Company:
Some companies are specifically incorporated to carry out specific projects. This allows the shareholders and investors to reduce their exposure towards risk.
6. Family Office:
These are the companies which manage the affairs of a family including their wealth and asset management. This allows families to have their peace of mind while the financial management can be done through the company.
2. Segregated Portfolio Company (SPC)
Segregated Portfolio Company (SPC) is a sub-category of company limited by shares.
An SPG is type of limited by shares company where a party can incorporate a company with multiple portfolios. These portfolios which can increase up to ten (10) different portfolios. This gives the client freedom to conduct business in more than one portfolio and accordingly divide its assets as well as liabilities to their respective portfolios. The result is that each separate portfolio is ring fenced from general liabilities of the company as well as other portfolios which are part of the company.
Another feature of a SPC is that each portfolio while can issue shares but is not required to do so. Since there would be different portfolios, each portfolio can issue different class of shares, and their respective rights can be reflected in the memorandum and articles of association.
3. Company Limited by Guarantee (CLG)
A CLG is another type of limited company where the limitation is extended only to a specified and agreed amount (called guarantee). This amount of guarantee is to be paid in case the company is liquidated. Thus, a guarantee member/shareholder’s liability is fixed to the agreed amount. In case at the time of liquidation, the liability of the company is more than the guarantee amount, the liability does not extend to the shareholder’s personal assets. This helps the shareholders to avoid any risk beyond the guarantee amount.
The CLGs can be used to incorporate clubs or membership organisations. Another common use is to grant certain rights to apartment owners while the company is developing a real estate project.
4. Unlimited Company (UC)
An unlimited company is a company where the liability of its investors is not limited and extends to their personal assets and beyond. Thus, all investors have joint and several liability to the amount of liability with no limitations on it. This is particularly close to functioning of a partnership where partners are liable for all debts and liabilities of their partnership. However, unlike a partnership, since a UC is a separate legal entity, it can also hold assets.
RAK Offshore Company
RAK Offshore (also known as RAKICC Offshore Company, RAK Offshore Company or Ras Al Khaimah Offshore Company) is an offshore company registered with RAK International Corporate Centre, a corporate registry, established in the Emirate of Ras Al Khaimah in the United Arab Emirates.
RAKICC offers various offshore company set-up products and is renowned as one of the best jurisdictions to set-up offshore and international business companies. RAKICC has the reputation of having state-of-the-art legislation matching with any of the top jurisdictions around the world. The company is formed as International Business Company with RAKICC.
RAK Offshore Company
RAK Offshore (also known as RAKICC Offshore Company, RAK Offshore Company or Ras Al Khaimah Offshore Company) is an offshore company registered with RAK International Corporate Centre, a corporate registry, established in the Emirate of Ras Al Khaimah in the United Arab Emirates.
RAKICC offers various offshore company set-up products and is renowned as one of the best jurisdictions to set-up offshore and international business companies. RAKICC has the reputation of having state-of-the-art legislation matching with any of the top jurisdictions around the world. The company is formed as International Business Company with RAKICC.
Offshore Company
An offshore company or offshore corporation can be defined in two ways. These are:
- a company, group or sometimes a division thereof, which engages in offshoring business processes.
- International business companies (IBC) or other types of legal entities, which are incorporated under the laws of a jurisdiction, that prohibits local economic activities.
The former use (companies formed in offshore jurisdictions) is probably the more common usage of the term. In isolated instances the term can also be used in reference to companies with offshore oil and gas operations.
Own Real Estate Property in Dubai with an RAK Offshore Company
In a landmark development in July 2019, RAK ICC and the Dubai Land Department have signed a memorandum of understanding (MOU) to allow the RAK ICC offshore companies (also known as RAK IBC companies) to own real estate properties in freehold areas in Dubai.
This development means that there is now no requirement for you to set-up a Dubai based company to own property in Dubai. RAK ICC companies now have the chance to directly invest in Dubai’s ever booming real estate market with around 23 freehold areas including Dubai Marina, Downtown Dubai, Palm Jumeirah, Jumeirah Lake Towers, Emirates Hills, Meadows, Arabian Ranches, Dubai Sports City and Jumeirah Village Circle.
Documents Required for RAK Offshore Company Formation
The copies of following documents of all the shareholders and directors are required for an RAK offshore company formation to be initiated:
Documents Required
The copies of following documents of all the shareholders and directors are required for the RAK offshore company formation:
- Passport copy
- UAE visa or entry stamp to the UAE (if available)
- Proof of residential address – latest utility bill
Documents You Will Receive
You will receive the following documents upon the incorporation of your company:
- Certificate of Incorporation
- Memorandum and Articles of Association
- Share certificate(s)
- Register of Directors
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