The Emiri Decree No. 12 of 2015 helped establish the Ras Al Khaimah International Corporate Centre (RAK ICC) in Ras Al Khaimah, United Arab Emirates. It serves as a registry for International Business Companies (IBCs) operating under the RAK ICC Business Companies Regulations of 2018.
It's essential to understand the available legal structures for business setup in RAK international companies to select the most appropriate one for your needs. Let's explore the different types of legal structures offered by RAK ICC to help you make an informed decision.
Types of RAK International Corporate Centre(ICC) Company
The different types of structures used for RAK ICC company formation are,
Company Limited by Shares
The Company Limited by Shares (CLS) represents the most widely used option for establishing an International Business Company in RAK. The shareholders in this structure have their financial responsibility capped at their investment amounts. The company name must contain "Limited," "Incorporated," "Ltd," or “Inc.”
When it comes to a CLS, there must be at least one shareholder and one director. The company can issue different types of shares, including bonuses and partly paid shares. CLSs remain highly flexible because they suit a broad range of activities, from international trading to RAK ICC holding company, as well as project-specific undertakings and family wealth management.
Company Limited By Guarantee
A Company Limited by Guarantee (CLG) is a type of organization often used for non-profit organizations, such as charities or clubs. Unlike traditional companies, it does not have shareholders who invest money. Instead, it has "guarantee members" who agree to pay a specific amount if the company faces closure due to debts.
The CLG is advantageous for organizations reinvesting any excess funds back into their mission rather than distributing profits to owners. Additionally, it protects the members' finances from company liabilities.
Restricted Purposes Company
A Restricted Purposes Company (RPC) operates similarly to a standard business organization that has a single defined purpose. Within this company structure, shareholders have no liability beyond their initial investment. Its official documents contain precise details regarding its authorized activities.
The employees of an RPC enjoy increased safety because the company cannot perform tasks beyond its specified goals. All parties involved with the company must adhere to these rules. An RPC can only be established at the moment of company foundation because the law does not permit its transformation into one afterwards.
Segregated Portfolio Company
The Segregated Portfolio Company (SPC) functions as a corporation limited by shares, which enables it to divide its assets and liabilities into separate portfolios. An SPC establishes ten segregated portfolios, which separate portfolio assets and liabilities from company-wide assets and liabilities. The incorporation of segregated portfolios can continue if the Registrar confirms that the directors of the company have sufficient abilities and knowledge to manage these portfolios effectively.
Unlimited Company
An unlimited company exists with or without share capital because its members’ liabilities extend without any limits. All company members must work together to cover any deficit in company assets, which would settle all business-related liabilities without limitation.
Henceforth, it is clear that the RAK ICC provides multiple company formation options for international businesses. Business owners should scrutinise each choice because the proper selection depends on business objectives, risk tolerance, and organisational strategy. Business Setup Worldwide will assist you with choosing your company structure and help you establish your business. Contact us for additional details.
