RAK Offshore Company Formation

Ras Al Khaimah (RAK), one of the seven emirates in the UAE, offers a prime location for setting up offshore companies. With its investor-friendly policies, tax benefits, and strategic location, RAK has become a popular choice for entrepreneurs and businesses looking to establish an offshore presence. This article provides a detailed guide on RAK offshore company formation, including its benefits, requirements, and the step-by-step process.

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Ras Al Khaimah International Corporate Centre (RAK ICC)

Ras Al Khaimah International Corporate Centre (RAK ICC) is a corporate registry that enables offshore company formation in the UAE. Located in Ras Al Khaimah, RAK ICC has become one of the fastest-growing international corporate registries due to its global reputation, adherence to local and international regulations, and excellent professional services. It offers a streamlined process for setting up offshore companies, attracting businesses worldwide seeking tax optimisation, asset protection, and confidentiality.

What is an Offshore Company?

An offshore company is a legal entity established outside the country of its primary operations or its owner's residence. These companies are typically formed in jurisdictions with favourable tax regulations, business laws, and privacy policies. Offshore companies are often used for purposes such as international trade, asset protection, tax optimisation, and maintaining business confidentiality.  

Also read: Offshore Company Formation in Dubai

Benefits of Forming an Offshore Company in RAK

Forming an offshore company in the UAE offers numerous advantages for businesses seeking a strategic, tax-efficient, and confidential international presence.

• Quick Incorporation Process: The process of incorporating an offshore company in the UAE is completed quickly, allowing businesses to start their operations without delay.

• No Local Office or Workers Needed: There is no requirement to have a local office or hire local workers, reducing overhead costs.

• 100% Foreign Ownership: Offshore companies can be entirely owned by foreigners, offering full control over the business.

• No Taxes or VAT: Offshore companies in the UAE enjoy zero corporate taxes and no value-added tax (VAT), providing significant tax savings.

• No Import or Export Duties: There are no duties on imports or exports, facilitating international trade.

• No Requirement to File Accounts: Offshore companies are not required to file annual accounts, simplifying compliance.

• Stable Jurisdiction with Excellent Reputation: The UAE has a strong reputation for being a stable jurisdiction, attracting businesses worldwide.

• Maximum Privacy and Secrecy: Offshore companies benefit from high levels of privacy and secrecy, ensuring asset and information protection.

• No Currency Limits: There are no restrictions on currency exchange, allowing free movement of capital.

• Ownership of Real Estate: Offshore companies can own real estate in the UAE, including property in free zones.

• Bank Account Opening: Offshore companies can open bank accounts in the UAE, facilitating financial transactions and international trade.

 Requirements for RAK Offshore Company Formation

• Company Name: The name must end with "Limited" or "Ltd" to denote its status as a limited company.

• Shareholders: A minimum of one shareholder is required, who can be an individual or a corporate entity.

• Directors: At least one director is required. Shareholders can also act as directors.

• Local Registered Agent: A registered agent must be appointed to facilitate the incorporation process.

• Minimum Share Capital: There is no mandatory minimum share capital requirement.

Types of RAK ICC Companies

RAK ICC offers various types of companies to cater to diverse business needs, each with unique features and benefits.

1. Company Limited by Shares (CLS)

A Company Limited by Shares (CLS) means that shareholders' liability to creditors is limited to the capital they originally invested, i.e., the nominal value of the shares and any premium paid for the shares. The company name must end with "Limited," "Incorporated," "Ltd," or "Inc."

Key Features of a CLS:

• Must have at least one shareholder and one director at all times.

• Can issue bonus shares, partly paid shares, or nil paid shares.

• Shares can be held jointly by multiple people for succession purposes.

• Share certificates must be signed by at least one director, and the conditions for issuing them should be stated in the company's articles.

Possible Uses of a CLS:

• International Business Company

• Holding Company

• Special Purpose Vehicle

• Joint Venture Company

• Project Company

• Family Office

• Segregated Portfolio Company

2. Company Limited by Guarantee (CLG)  

A Company Limited by Guarantee (CLG) can be established with RAK ICC either as a company authorised to issue shares or as one not authorised to issue shares. The company's name must end with "Limited," "Incorporated," "Ltd," or "Inc."

In a CLG, at least one member must be a guarantee member, and if the company is authorised to issue shares, a guarantee member can also be a shareholder. Guarantee members undertake to contribute a nominal amount if the company is wound up. Their liability is limited to the amount specified in the memorandum, articles of association, and any other liability outlined in these documents.

CLGs can be used as flexible corporate vehicles for various purposes, such as managing real estate developments and conferring membership rights to apartment owners.

3. RAK ICC Segregated Portfolio Company (SPC)

A Segregated Portfolio Company (SPC) is a company limited by shares that can create up to ten segregated portfolios to segregate the assets and liabilities of the company. This structure ensures that the assets and liabilities within or on behalf of a segregated portfolio are isolated from the other assets and liabilities of the company.

An SPC, sometimes called a protected cell company, includes segregated portfolio assets such as share capital, retained earnings, capital reserves, share premiums, and other attributable assets.

4. Intellectual Property Holding Company (IPHC) at RAK ICC

An Intellectual Property Holding Company (IPHC) at RAK ICC is a subsidiary or sister company of global corporations established to hold the company�¢??s intellectual property (IP), such as patents, trademarks, and copyrights.

The IP associated with a business name or system can be one of its most valuable assets, but it must be properly protected to maintain its value.

5. Unlimited Company (UC)

An Unlimited Company (UC) is a company where the liability of its members is not limited. Members have joint, several, and unlimited obligations to cover any shortfall in the company's assets if liquidated. Unlike a general partnership, a UC is a separate legal entity that can own assets.

Possible Uses of an Unlimited Company:

• Credit Support 

• Liability Pass-Through

• International Tax Planning

6. Restricted Purposes Company (RPS)

A Restricted Purposes Company (RPS) is a corporate entity designed to act as a special purpose vehicle. It is a company limited by shares with a memorandum that states:

• The company is a restricted purposes company.
• The specific purpose or purposes for which the company is incorporated.

Step-by-Step Process for RAK Offshore Company Formation

Forming an offshore company in RAK ICC involves several detailed steps to ensure compliance and smooth operation.

 1. Choose a Business Name

• Ensure Uniqueness: Select a unique business name not already used by another entity.
• Compliance with Regulations: Ensure the name complies with RAK ICC regulations, avoiding restricted or sensitive terms.
• Name Reservation: Reserve the chosen name with the RAK ICC to ensure it is secured for your company.

2. Prepare Documentation

• Documents: Gather passport copies and proof of address for all shareholders and directors.

• Company Details: Prepare details of the shareholders, directors, and the intended business activities.

• Memorandum and Articles of Association: Draft these documents outlining the companyÃ?¢??s structure, purpose, and governance.

RAK ICC has provided a list of documents required for RAK ICC company formation�¢??we have attached that for reference.

3. Appoint a Registered Agent

•   Select a Licensed Agent: Choose a registered agent licensed by RAK ICC who will facilitate the incorporation process.
•  Agreement: Enter into an agreement with the registered agent to handle all required filings and correspondence.

4. Submit Application

•  Complete Forms: Fill out the necessary application forms provided by RAK ICC.
•  Submit Documents: The registered agent will submit all required documentation to RAK ICC, including identification documents and the Memorandum and Articles of Association.

5. Receive Approval

•  Review Process: RAK ICC will review the submitted application and documents for compliance.
•  Certificate of Incorporation: Upon approval, RAK ICC will issue the Certificate of Incorporation, formally establishing the company.

6. Open a Bank Account

•  Choose a Bank: Select a bank in the UAE that offers corporate banking services suitable for your business needs.
•  Submit Bank Forms: Complete and submit the necessary forms to open a corporate bank account.

7. Commence Business Operations

• Set up the necessary infrastructure and processes to begin business operations. Maintain compliance with RAK ICC requirements, including any annual filings and renewals.

By following these detailed steps, you can successfully establish an offshore company in RAK.

Conclusion

Forming an offshore company in RAK offers numerous benefits, from tax advantages to asset protection and international business facilitation. By choosing Filings.ae, you can ensure a seamless and efficient setup process, allowing you to focus on growing your business. Contact us today to get started on establishing your RAK offshore company.

Filings.ae specialises in providing comprehensive services for offshore company formation in UAE. Our experts guide you through every step, ensuring a smooth and hassle-free process.