Offshore Company Guide in RAK

Offshore Company Guide in RAK

The United Arab Emirates has been one of the most preferred global destinations that not only grabs the attention of tourists but also captures the attention of business investors.

Starting a business in the UAE has been made simpler by the Emirati government. From freelancing employee to multi-millionaires, everyone finds the location to be a suitable destination to carry out their profession.

Apart from the onshore company formation, UAE has dedicated offshore destinations, and Ras-Al-Khaimah has been one of the widely preferred business grounds.

One of the seven independent federal Emirates that make up the United Arab Emirates offers attractive opportunities for establishing an International Business Company (IBC).

Wondering what an IBC is? Well, let’s start with the concept of an offshore company formation in RAK.

What is an Offshore Company?

An offshore company is a valid business entity that is formed outside the region where the parent company starts and carries out the business operations only outside the country of its origin.

It is one of the preferred options when it comes to business expansion and is also regarded as a non-resident company. The characteristics of the RAK offshore company setup are:

  • It can be incorporated at a faster pace
  • Can be included with the presence of one shareholder and one director
  • Holds Financial, Legal, and Taxation benefits.
  • Provides the flexibility to deal with offshore banking

An International Business Company (IBC) is a legal corporate business structure widely opted by 90% of the business investors. To know more, have a glance at Why Set Up an International Business Company.

RAK Offshore Company Registration

RAK remains a premier investment authority, giving potential investors, individuals, and companies numerous benefits and arrangements for RAK offshore company setup.

The country has never been blacklisted by the EU and has excellent standing with all high-tax jurisdictions such as the US and EU and maintains good banking relations with correspondent banks.

RAK offshore company provides a business person with total banking privacy and security and is the quickest way to invest in offshore companies in the UAE.

RAK ICC Offshore

When it comes to company incorporation, registration of any legal entity is a must.

Now, you must be wondering, where do RAK companies get registered?

The RAK ICC Offshore is a government-owned corporate body that is positioned in the Emirate of Ras-Al-Khaimah. RAK offshore company registration is an independent overseas territory for investors, with its set of guidelines and authority named RAK Investment Authority (RAKIA).

As one of the most reputed offshore destinations, the RAK offshore authority provides an effective legislation process for starting an offshore company in the UAE.

Ras Al Khaimah Investment Authority is the governing body, and RAK offshore companies are regulated under the RAK Offshore Regulations 2006.

Why Invest in RAK Offshore?

While investing, any business owner focuses on certain areas that turn out to be profitable. Some of the key grounds that allow the business owners to invest in RAK offshore involves:

  • Act as holding companies
  • High-end lawsuit protection
  • Provide asset and wealth protection
  • High-end confidentiality and security
  • Hold real estate properties in the Ras Al Khaimah
  • Carry out tax planning and carry out estate planning
  • Business activities can be carried out outside the UAE
  • Access to double taxation avoidance agreements (DTAs)
  • No strict investment rules and regulations as compared to other jurisdictions

What is the Process of RAK Offshore Company Registration?

Ras Al Khaimah offshore company formation involves a few steps that a business investor has to abide by. If all the documental requirements are met, it usually takes one day to register your RAK offshore company. Here is the procedure for registration of your offshore:

  1. Get sanction for the company name and business activities: Deciding the company trade name is a crucial task for any investor that needs a lot of brainstorming and creativity.

At the same time, it needs to be taken care that the technical aspects are met. For example, the selected trade name shouldn’t be offensive or a copy of the competitor’s trade name existing in the market.

Once decided, it needs to be presented to the registry. Additionally, a list of the selected business activities that will be carried out also needs to be submitted for approval.

  1. Submission of the company documents: Next submit the signed incorporated documents to the Registrar in RAKIA, the regulatory body of RAK offshore.

The offshore company registration in RAK demands the business investor to submit the following essentials:

  • Passport-size photos of the business shareholders and directors
  • A duly filled offshore business incorporation application form
  • Identity proofs of the business shareholders and directors
  • Address proofs of the business shareholders and directors
  • Memorandum of association (MOA)
  • Articles of Association (AOA)
  • Complete business plan

The documents are to be submitted to the authority for verification. Once submitted, after strict scrutiny, the authority delivers the approval.

  1. Pay the registration fees and other expenses: Once you obtain the approvals, the company registration fees can be made in cash, online, or through a money transfer.
  2. Open an offshore bank account: After the incorporation process, the final step is to open an offshore bank account to carry out the business transactions at ease. To know more about offshore banking, have a look at our latest guide on the Advantages of Offshore Banking.

Your business is ready now. You’d need to create your corporate bank account, and then you can start with the operations.

However, it becomes tough to deal with legal proceedings if one is not aware of the steps that one needs to undergo. So, the ideal option that most business investors proceed with is to move with an expert’s guidance. 

Business Setup Worldwide helps small, medium, and large enterprises concretize their business. For an RAK ICC, we can support you in company incorporation from start to end.

We provide not only strategic business inputs on company formation but also handle legal and documentation formalities. For any help or advice on the business setup for an RAK offshore company, contact us; we would be glad to help you out.

FAQs

What is the minimum capital requirement for an offshore company in RAK?

There might be no specific minimum capital requirement for an offshore company in RAK, but this can vary based on the type of business activity and regulations in place.

Is it mandatory to have a local sponsor for an offshore company in RAK?

No, one of the advantages of offshore companies is that they typically do not require a local sponsor.

What is the tax status of an offshore company in RAK?

Offshore companies in RAK often enjoy tax exemptions on corporate and personal income tax, making it an attractive option for international business.

Can an offshore company in RAK open a bank account in the UAE?

Yes, offshore companies in RAK can usually open bank accounts in the UAE for the purpose of conducting international transactions.

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