RAK ICC: Seven Key Insights for Offshore Company Formation

Ras Al Khaimah International Corporate Centre (RAK ICC) is a globally recognised hub for Offshore Company Formation in UAE. Read our previous article on Offshore Company Formation in UAE for a general overview of the three top Offshore Jurisdictions in UAE.

RAK ICC offers an exceptional framework for entrepreneurs and businesses seeking tax-efficient and secure jurisdictions for international operations. In this article, we explore seven crucial aspects of RAK ICC, providing a detailed guide to its features, benefits, and processes for company formation.

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1. What is RAK ICC and Why Form an Offshore Company?

RAK ICC is a world-class corporate registry based in Ras Al Khaimah, one of the UAE’s seven emirates. It is renowned for its robust regulatory standards, transparency, and streamlined procedures for offshore company formation. Businesses from around the globe are attracted to RAK ICC for its investor-friendly environment, confidentiality, and strategic location.

An offshore company is a legal entity established outside its owner’s home country or primary area of operation. Offshore entities offer various advantages, including tax efficiency, enhanced privacy, and asset protection. RAK ICC facilitates such setups, making it easier for businesses to engage in international trade, manage investments, and protect assets without the complexities associated with traditional jurisdictions.

WellTax ensures a seamless experience in forming offshore companies with RAK ICC. From documentation to compliance, we handle every step, giving you peace of mind.

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2. Benefits of Setting Up a Company with RAK ICC

RAK ICC offers an extensive array of benefits for businesses, making it one of the most appealing offshore jurisdictions globally. Here’s why forming a company with RAK ICC is advantageous:

• Quick Incorporation: The process is efficient, with most companies incorporated in just a few days.
• No Local Presence Required: Companies can operate without the need for a physical office or local employees.
• 100% Foreign Ownership: Full ownership is guaranteed, allowing entrepreneurs to retain complete control of their business.
• Zero Taxation: RAK ICC companies are exempt from corporate taxes, income taxes, and VAT, resulting in substantial cost savings. For a proper Corporate Tax Planning in the UAE, read our article.
• Privacy Protection: High levels of confidentiality safeguard sensitive information and business details.
• No Exchange Restrictions: There are no limits on currency movement, enabling seamless financial operations.
• Ownership of Real Estate: Offshore companies can acquire property in the UAE, including in free zones.
• Banking Flexibility: Businesses can easily open corporate accounts in UAE banks.
• Simplified Compliance: There’s no requirement to file annual financial statements, reducing administrative burdens. Read our article on Essential Record-Keeping Documents for UAE Corporate Tax Compliance.

These benefits make RAK ICC an ideal choice for entrepreneurs seeking a reliable and efficient jurisdiction for international operations.

At WellTax, our experienced team ensures that you capitalise on these benefits while maintaining compliance with RAK ICC’s regulations.

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3. Requirements for RAK ICC Offshore Company Formation

Setting up an offshore company with RAK ICC involves meeting specific requirements, which are relatively simple compared to many other jurisdictions:

1. Company Name:
   • The name must end with “Limited” or “Ltd” to denote its legal status.
   • It must not contain restricted or sensitive terms without special approval.
2. Shareholders:
   • A minimum of one shareholder is required, who can be an individual or a corporate entity.
   • Shareholders are not required to be UAE residents.
3. Directors:
   • At least one director must be appointed, and shareholders can also act as directors.
4. Registered Agent:
   • All companies must appoint a licensed registered agent approved by RAK ICC.
5. Share Capital:
   • There is no minimum share capital requirement, allowing flexibility in structuring your company.

WellTax ensures you meet all these requirements, providing end-to-end support during the incorporation process.

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4. Exploring the Different Types of RAK ICC Companies

RAK ICC offers various company structures tailored to different business needs. Each structure provides distinct advantages and is suited for specific purposes:

Company Limited by Shares (CLS)

CLS is a versatile structure commonly used for international business, asset holding, and joint ventures. It limits shareholder liability to the value of their shares.

• Ideal for:
  • International trade
  • Holding companies (read our article on Setting up a Holding Company in the UAE: 5 aspects to consider)
  • Special purpose vehicles

Company Limited by Guarantee (CLG)

This structure is particularly useful for non-profit organisations, real estate management, and membership-based entities. Members’ liability is limited to the amount they agree to contribute if the company is wound up.

Foundation Structures

RAK ICC foundations provide a robust framework for asset protection, succession planning, and wealth management. They operate as independent legal entities, offering perpetual existence and enhanced governance.

Segregated Portfolio Company (SPC)

SPCs allow businesses to create segregated portfolios within a single corporate entity. Each portfolio’s assets and liabilities are isolated, making it ideal for investment funds and asset management.

Intellectual Property Holding Company (IPHC)

IPHCs are designed to protect and manage intellectual property, such as patents, trademarks, and copyrights. This structure is often used by multinational corporations.

Unlimited Company (UC)

Unlike other structures, a UC provides unlimited liability for its members. It is commonly used for credit support or liability pass-through purposes.

Restricted Purposes Company (RPS)

RPS structures are designed for specific, predefined objectives, such as serving as a special purpose vehicle in financial transactions.

With WellTax’s guidance, you can select the most suitable company structure for your business objectives, ensuring optimal performance and compliance. Read our page on Setting up a Business in the UK/UAE.

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5. Step-by-Step Process for Establishing a RAK ICC Company

Forming an offshore company with RAK ICC involves several straightforward steps:

1. Choose a Company Name
   • Ensure it is unique and compliant with RAK ICC guidelines.
   • Reserve the name to prevent duplication.
2. Prepare Required Documentation
   • Collect identification documents, including passport copies and proof of address for shareholders and directors.
   • Draft the Memorandum and Articles of Association.
3. Appoint a Registered Agent
   • Engage a licensed agent, like WellTax, to handle the incorporation process and communication with RAK ICC.
4. Submit the Application
   • The registered agent submits all necessary documents to RAK ICC.
   • Pay the required registration fees.
5. Receive Approval and Incorporation Certificate
   • Once the application is approved, RAK ICC issues a Certificate of Incorporation.
6. Open a Corporate Bank Account
   • Select a UAE-based bank and submit the necessary forms to establish an account.
7. Commence Business Operations
   • Begin activities while adhering to RAK ICC’s ongoing compliance requirements.

At WellTax, we make this process seamless, handling everything from documentation to approvals, so you can focus on growing your business.

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6. Permissible Activities for RAK ICC Companies

RAK ICC offshore companies can engage in a variety of activities:

Permissible Within the UAE

• Holding real estate or other assets
• Managing bank accounts
• Owning intellectual property

Permissible Outside the UAE

• International trade
• Professional consultancy
• Corporate holding structures
• Shipping and logistics services

Our experts ensure your business activities align with RAK ICC’s regulations while optimising operational efficiency.

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7. Ultimate Beneficial Owner (UBO) Regulations

RAK ICC companies must comply with UAE regulations concerning the disclosure of the Ultimate Beneficial Owner (UBO). A UBO is an individual who owns at least 25% of a company’s shares or has significant control over its operations.

Companies are required to maintain and submit:

• Real Beneficiary Register (RBR)
• Partner or Shareholder Register (PSR)

These measures ensure transparency and accountability, aligning with international standards.

We assist in maintaining compliance with UBO regulations, helping you prepare and submit the necessary registers accurately.

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Conclusion

RAK ICC provides an unparalleled opportunity for businesses to establish an offshore presence in a globally recognised jurisdiction. From tax optimisation to privacy and operational efficiency, RAK ICC offers a range of advantages that make it a top choice for international entrepreneurs.

Partnering with WellTax ensures a smooth and efficient setup process, enabling you to unlock the full potential of your RAK ICC company. Contact WellTax today to begin your journey toward international success.