Ras Al Khaimah (RAK) is one of the fastest-growing of the seven Emirates that together form the UAE. With the highest level of industrialization, RAK contributes to the 26% of GDP that is acquired through manufacturing. RAK is almost an hour's drive away from Dubai.
RAK is known for its business-friendly environment and competitive costs. The cost incurred while doing business in RAK is almost 25-50% lower than UAE on average; this allows companies to get the best return on their investment.
RAK International Corporate Centre (RAK ICC) is a government entity that deals with the corporate registry in the Emirate of Ras Al Khaimah. The government authority is responsible for the registration and formation of International Business Companies (IBC) / offshore companies.
Through Decree No. 12 of 2015, RAK ICC was first brought into existence. It consolidated two companies under its purview:
- RAK International Companies (previously part of RAK Free Trade Zone)
- RAK Offshore (previously part of RAK Investment Authority)
Advantages of RAK Offshore Company Formation
- RAK can help enter the international market
- 100% foreign ownership is also permitted
- RAK has a stable and business-friendly legal system
- No limitation on currency types attracts global funding
- Great protection tools for assets such as intellectual property
- RAK laws allow retention of capital, profits, and international earnings
- Offshore companies in RAK enjoy complete tax exemption
- The rules and regulations for a RAK offshore company are flexible
- Companies can choose to hold shares in a free zone company as well as in an onshore (LLC) company
- Companies can open an offshore bank account and operate it in different currencies to carry out the international business operations
- Incorporation of a RAK offshore company requires just one director, shareholder, and secretary (they can be the same person)
- A RAK company can act as a Holding Company
- Extreme privacy and confidentiality is available for RAK companies
- A RAK offshore company can own real estate and intellectual property in UAE
- Easy renewal of RAK ICC company
- No accounting necessities
Apart from all the above lucrative benefits of RAK offshore company formation, one must also note that the UAE has signed double tax treaties with almost 50 countries, and this is a solid plus point for investors looking to set up a company in RAK.
Documents required for RAK company formation
These are the documents that are generally required by the authorities to start a company in RAK; it may also vary sometimes in certain cases:
- Three proposed names for the company
- Valid passport with UAE entry stamp for each shareholder/director
- A valid personal and business profile of the shareholders
- Memorandum of Association (attested)
- Shareholder's resolution (attested)
- Bank Good standing letter (Reference letter from bank) for the shareholders
- Proof of physical address of all the directors and the shareholders
- Certificate of Good Standing, also known as Certificate of Existence of the company
- Incumbency certificate of the company (mentioning the names of the shareholders and directors)
- Board resolution and power of attorney
- Additional documents may be requested by the authorities during the registration process
Steps to start a company in RAK
If all the steps are followed correctly, and all the compliances are met without any rectification, your offshore company can be ready to operate in 3-4 working days.
- The first step that you would want to take in the direction of your offshore company incorporation is to hire an offshore business consultant expert. Forming a company can be quite burdensome and complicated if not done with proper guidance.
There are multiple core reasons to hire an offshore business consultant; the whole process becomes easier while you can sit at home and prepare for your business.
- Secondly, you should decide on a business name and get approval for the same. You must check that your proposed name doesn't conflict with names already present in the registry.
- Approval of the proposed business activity is also required.
- Submit all the required documents to RAK ICC and pay the registration fees along with other expenses.
- After everything is verified and approved, you can start with your business activities.
Changes in document verification due to COVID
Under the current scenario of the pandemic, RAK ICC has altered its procedure for registration of RAK offshore companies temporarily.
Unlike before, shareholders and directors residing outside the UAE won't be required to send the original documents by courier. The documents required for company formation can be completely sent and verified online.
We here at Business Setup Worldwide excel in providing the best-customized business solutions for your offshore company. If you decide to proceed with an offshore company in a jurisdiction of your choice, contact us, and we will guide you through the entire process.