There are several types of companies available in Ras Al Khaimah. RAK International Corporate Centre (RAK ICC) is a corporate registry responsible for RAK ICC company formation in the international and offshore companies in RAK.
RAK ICC foundation also lays down the types of offshore companies permissible to be formed in RAK. RAK ICC was established after the enactment of Emiri Decree No. 12 of 2015. RAK ICC foundation is solely responsible for granting international business companies (IBC) permission.
Types of RAK ICC Company
The different RAK ICC foundation is as follows:
Company Limited by Shares
Business Limited by Shares (CLS) designates that the shareholders' liability to the firm's creditors is restricted to the capital initially invested or the nominal value of the shares plus any premium paid in exchange for the company issuing the shares. A limited company's name must include the words "Limited" or "Incorporated" or the initials "Ltd" or "Inc."
This company must always have at least one shareholder and one director. The corporation can issue bonuses, partially paid or unpaid shares. More than one person may hold shares as joint owners.
The Purpose of the Company
These companies are used for worldwide investments and global trade.
Business vehicles used to hold shares and other assets are known as holding companies. Holding companies have earned quite a reputation worldwide, making them one of the most sought-after business vehicles for offshore company incorporation. Learn more about why you should invest in a holding company on our blog.
Special Purpose Vehicle
This company type is generally used to hold specific assets such as real estate. The asset can then be further sold as a whole or in different parts by selling the relevant shares to the RAK ICC Company; this would not attract the need to involve local notaries and land registry authorities.
Joint Venture Company
A business vehicle is used for a short period to accomplish a mutual business goal. Rights of the shareholders in this company type are generally stated in the Memorandum and Articles or a separate shareholders agreement.
Generally, this type of company operates on a specific project while minimizing risk exposure to shareholders.
It enjoys minimal disclosure obligations and is an entirely private business vehicle.
Company Limited by Guarantee
Depending on whether it is authorized to issue shares, a Company Limited by Guarantee (CLG) may be set up with RAK ICC foundation. A limited company's name must include the words "Limited" or "Incorporated" or the initials "Ltd" or "Inc."
A guarantee member must make up at least one of the members of a company limited by guarantee, whether or not the company is authorized to issue shares. A guarantee member may also be a shareholder if the company is authorized to issue shares. The guarantors promise to provide a small contribution if the company is dissolved.
As a liability member, a member's liability to the firm is restricted to any additional liability expressly provided for in the company's memorandum or articles, including the sum that the guarantee member must contribute following the memorandum and articles of association.
The Purpose of the Company
RAK ICC foundation limited by guarantee is to adaptable business entities that can be utilized for various objectives. Two examples are acting as an incorporated association or granting apartment owners certain membership rights in the business that oversees the real estate development on their behalf.
Restricted Purposes Company
A corporation created specifically to serve a particular purpose vehicle is known as a Restricted Purposes Company (RPS).
A company limited by shares is considered an RPS if its memorandum specifies its incorporation purpose(s) and that it is a limited-purpose company.
RPS serves a particular function primarily. People doing business with an RPS Company might feel even more secure knowing that it prohibits engaging in activities inconsistent with its declared objectives. The firm, its shareholders, and its directors are all bound by the restrictions on the company's operations that are outlined in its memorandum.
A business with no RPS registration, when incorporated, continues, or re-registers, must not register.
Segregated Portfolio Company
A corporation limited by shares is known as a Segregated Portfolio Company (SPC). To separate the assets and liabilities of the company held inside or on behalf of a segregated portfolio from other assets and liabilities of the company, the SPC may create up to 10 segregated portfolios. If the Registrar is confident that the company's directors have the skills and experience required for managing segregated portfolios properly, segregated portfolios may be incorporated.
A protected cell company is another name for a Segregated Portfolio Company (or SPC). Assets representing share capital, retained earnings, capital reserves, share premiums, and all other assets that are attributable to or held within the Segregated Portfolio comprise Segregated Portfolio assets.
This type of business vehicle can be incorporated with or without a share capital where the liability of the members is unlimited. Unlimited liability means that the company members are jointly obligated to meet any deficiency in the company's assets to enable the settlement of liabilities taken on in the course of business to an unlimited extent.
How Can We Help?
Once you select a proper jurisdiction, contact us to determine the best company type for the business activity you are aiming for.
Business Setup Worldwide is committed to making your offshore company incorporation smooth and burden-free. We can help you with offshore company registration along with other offshore services.
How much does it cost to incorporate a company in RAK?
How long does incorporating an offshore company in the RAK ICC foundation take?
2-3 working days.
Does one have to be physically present in the RAK ICC foundation during company incorporation?
No, physical presence is not necessary.