RAKICC Offshore Company Formation

RAKICC Offshore Company formation

RAK International Corporate Centre (RAK ICC) is a leading and prominent corporate registry in Ras Al Khaimah, United Arab Emirates. Established in 2015, it has quickly become one of the fastest-growing international corporate registries, known for its compliance standards and professional services.

RAKICC offering a range of business structures and services. The RAKICC operates under specific regulations that govern the formation and operation of companies within its jurisdiction.

Key Regulations

Business Companies Regulations

RAKICC is governed by the Ras Al Khaimah International Corporate Centre Business Companies Regulations 2016 and RAK ICC offshore companies operate under the RAK ICC Business Companies Regulations 2018

These regulations provide the legal framework for the incorporation and management of RAKICC Business Companies.

Key Structures and Benefits

Types of RAK ICC Companies are:

1 Company Limited by Shares

2 Company Limited by Guarantee

3 Restricted Purpose Company

4 Segregated Portfolio Company

5 Unlimited Company

6 Intellectual Property Holding Company

7 Premium Products necessitates for ease of doing business in the UAE

8 Transfer of Domicile

9 Wills & Probate

Business Activities

RAK ICC companies are primarily designed for international operations, including:

International trading
Shipping
Patent management and Intellectual property assets holding
Consulting
Real estate ownership
Copyright Registration
Holding companies

Corporate Structure

100% foreign ownership allowed

Minimum of one director and one shareholder required

Corporate directors permitted

No office requirement in RAK

Fast incorporation process, typically completed in one day

100% repatriation of capital and profits

Cost-efficient registration and renewal fees

One day incorporating process

No restrictions on the number of shareholders

No attestation is required for corporate documents

No need to file financial accounts

No requirement for minimum capital

Financial Advantages

0% corporate tax subject to UAE corporate tax law and Double taxation treaties with respective countries

0% personal income tax

0% capital gains tax subject to applicable laws

No minimum capital requirement

Legal Framework

Based on common law regulations
Access to Standard law regulations with access to DIFC and ADGM courts
Variety of legal andtraditional structures and different products available for other usages
Ability to register and share pledges
Migration or continuance of existing corporate entities from various jurisdictions
No restriction on capital repatriation
Migration or Continuance of Existing Corporate Entities from various jurisdictions
Different classes of shares and the ability to register the share pledge

Incorporation Requirements

Minimum Requirements:

One shareholder
One director
One secretary (a director may act as the secretary)

Name Policy: Company names must end with “Limited” or “Incorporated”

Share Capital:

Minimum authorized capital: One share
Minimum issued capital: One share
Shares can be issued in various currencies, including AED, USD, EUR, and GBP (other currencies require approval)

Corporate Governance

Directors:

Minimum of one director
Corporate directors are permitted
No residency requirements

Meetings:

Board meetings can be held anywhere in the world
Annual General Meetings are required

Registered Agent and Office:

A RAKICC Business Company must have a Registered Agent in the UAE and maintain a Registered Office through the Registered Agent

Beneficial Ownership

The Registered Agent must maintain particulars of the company’s beneficial owners. While this information is not publicly disclosed, shareholder, director, secretary, and beneficial owner details are provided to RAKICC

Dissolution and Striking Off

The regulations include procedures for winding up a company. The Registrar may strike off a company from the Register under certain circumstances, such as:

Not carrying on business or not in operation or liquidation process
Contravening regulations
Failing to pay required fees

RAKICC’s regulatory framework aims to provide a flexible and efficient environment for international businesses while maintaining compliance with international standards.

Compliance, Reporting and Regulations

Key points include:

Taxable income up to AED 375,000 is taxed at 0%, and income above AED 375,000 is taxed at 9% subject to UAE federal-decree law no. 47 of 2022 and double taxation treaty agreements with respective countries.
Companies must register for a Tax Registration Number (TIN) with Federal Tax Authority

Financial Records

Companies must maintain accounting books, records, and minutes
Annual accounts must be approved by the directors and preserved for seven years

As of 2024, RAKICC companies are now subject to the UAE’s corporate tax regime

Annual tax returns must be filed within 9 months from the end of each financial period

RAK ICC fully complies with international standards and best practices in the International Business Company formation industry. It adheres to Anti-Money Laundering (AML) and Know-Your-Customer (KYC) practices, ensuring a secure and efficient business environment

RAK ICC offers a unique combination of benefits, making it an attractive option for international businesses looking to establish a presence in the UAE. Its strategic location, tax-friendly environment, and modern regulatory framework provide a solid foundation for global business operations and asset protection schemes

Other Features

Access to a broad range of UAE Double Tax Treaty network
Ability to open bank accounts locally and internationally
USD is freely available. Local currency pegged to USD
Re-domiciliation opportunities to meet substance requirements

Reasons for Re-domiciliation

Traditional Offshore jurisdictions are under pressure due to competition, regulatory issues, and substance.
Finding a viable alternative to jurisdictions traditionally labelled as offshore centres facing extreme scrutiny internationally
Companies are increasingly concerned with the reputational risks associated with the choice of Jurisdiction

Major Advantages

Companies could maintain existing legal status
Companies could preserve operational and banking history
Access to ordinary law courts
Wills registration to protect the assets and shares
in the name of the company

Registration Process

Choose Business Activities: Define your business activities and select a company name.
Appoint a Registered Agent: Connect with a registered agent, Alpha Equity MC to manage the registration process.
Document Submission: Gather and submit necessary documents to RAK ICC authorities.
Payment: Make required payments online or through bank transfer.
Incorporation: Once fees are processed and documents approved, your RAK ICC offshore company is officially incorporated.
Bank Account Setup: Establish a dedicated business bank account for your new company

As a registered agent at RAKICC, Alpha Equity MC can advise to setup a company in RAK ICC with right structure, so you can ensure a smooth and efficient company formation process, allowing you to focus on your core business activities while leveraging the benefits of an offshore company in the UAE.