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-millionaire, 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.
What is an Offshore Company?
An offshore company is a valid business entity that 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 also regarded as a non-resident company. The characteristics of an offshore company 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 Business Incorporation
RAK remains a premier investment authority, giving potential investors, individuals, and companies numerous benefits and arrangements in setting up a RAK offshore company.
The country has never 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. Offshore RAK company 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 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 allows the business owners to invest in RAK offshore involves:
- Business activities can be carried outside the UAE
- Act as holding companies
- Hold real estate properties in the Ras Al Khaimah
- Provide asset and wealth protection
- Carry out tax planning and carry out estate planning
- No strict investment rules and regulations as compared to other jurisdiction
- High-end confidentiality and security
- Access to double taxation avoidance agreement (DTAs)
- High-end lawsuit protection
What is the Process of RAK Offshore Company Registration?
The offshore company registration in RAK involves few steps that a business investor has to abide by. If all the documental requirements met, it usually takes one day to register your RAK offshore company. Here is the procedure for registration of your offshore:
- 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 exiting 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.
- Submission of the company documents: Next to 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:
- A duly filled offshore business incorporation application form
- Identity proofs of the business shareholders and directors
- Address proofs of the business shareholders and directors
- Passport-size photos of the business shareholders and directors
- Complete business plan
- Memorandum of association (MOA)
- Articles of association (AOA)
The documents are to be submitted to the authority for verification. Once submitted, after strict scrutiny, the authority delivers the approval.
- Pay the registration fees and other expenses: Once you obtain the approvals, the company registration fees can be made cash, online or through money transfer.
- 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 the legal proceedings if one is not aware of the steps that one need to undergo.
So, the ideal option that most business investors proceed ahead with is to move with an expert’s guidance. Have a look at the Core Benefits of Hiring an Offshore Business Consultant, which will help you to understand the basics in detail.
Business Setup Worldwide helps small, medium and large enterprises concretize their business.
For a 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 set up for a RAK offshore company, contact us; we would glad to help you out.