The United Arab Emirates (UAE) is renowned for its business-friendly environment, and Ras Al Khaimah (RAK) stands out as a prime location for setting up an offshore company. RAK offers numerous advantages for entrepreneurs and investors looking to establish an international business presence. This blog will provide you with important information about setting up a RAK offshore company, including its benefits, the setup process, and the necessary requirements.

What is a RAK Offshore Company?

A RAK offshore company is a business entity established under the jurisdiction of Ras Al Khaimah, one of the seven emirates in the UAE. Offshore companies in RAK are primarily used for international business activities and offer various benefits, including tax efficiency, confidentiality, and ease of operation.

Benefits of Setting Up a RAK Offshore Company

1. Tax Efficiency

RAK offshore companies enjoy a tax-free environment on income, profits, and dividends. There are no corporate taxes, making it an attractive option for businesses looking to maximize their profits.

2. Confidentiality

RAK provides a high level of confidentiality for business owners. There is no public registry of shareholders or directors, ensuring privacy and security for company stakeholders.

3. Ease of Setup and Management

The setup process for a RAK offshore company is straightforward and can be completed relatively quickly. Additionally, there are minimal requirements for annual reporting and compliance, reducing administrative burdens.

4. 100% Foreign Ownership

Unlike some other jurisdictions, RAK offshore companies allow 100% foreign ownership, providing complete control to international investors.

5. Asset Protection

RAK offshore companies can be used to hold assets such as real estate, intellectual property, and investments, offering protection from potential legal claims and creditors.

6. Access to International Markets

RAK’s strategic location and its well-established legal and business framework provide companies with easy access to international markets and a global clientele.

Setting Up a RAK Offshore Company: The Process

1. Choose a Registered Agent

To set up a RAK offshore company, you must work with a registered agent authorized by the RAK International Corporate Centre (RAK ICC). The agent will assist with the application process and ensure compliance with all legal requirements.

2. Select a Company Name

Choose a unique name for your offshore company. The name must be approved by RAK ICC and should not include any restricted words such as “bank,” “insurance,” or “trust” without special permission.

3. Prepare Documentation

You will need to provide several documents, including:

• A completed application form
• Copies of passports for shareholders and directors
• Proof of address for shareholders and directors
• Details of the company’s proposed activities

4. Submit the Application

Submit the completed application and required documents to your registered agent, who will forward them to the RAK ICC for approval.

5. Pay the Fees

There are initial registration fees and annual renewal fees associated with setting up a company. The registered agent will provide a detailed breakdown of these costs.

6. Receive Incorporation Certificate

Once your application is approved, you will receive a Certificate of Incorporation from the RAK ICC. Your offshore company is now officially registered and ready to operate.

Key Requirements for RAK Offshore Companies

1. Shareholders

A minimum of one shareholder is required, and there is no maximum limit. Shareholders can be individuals or corporate entities.

2. Directors

A minimum of one director is required. Directors can be individuals or corporate entities, and there is no residency requirement.

3. Secretary

A company secretary is mandatory. The same individual can serve as both director and secretary.

4. Share Capital

There is no minimum share capital requirement. The share capital structure should be defined in the company’s articles of association.

5. Registered Office

A registered office address in RAK is required. This is typically provided by the registered agent.

6. Annual Requirements

RAK offshore companies must renew their registration annually and pay the renewal fee. While there are no audit requirements, companies must maintain proper accounting records.

Conclusion

Setting up a RAK offshore company offers numerous advantages for international business operations, from tax efficiency and confidentiality to ease of management and asset protection. By understanding the setup process and requirements, you can make informed decisions and take full advantage of the benefits offered by this strategic jurisdiction. With the assistance of a registered agent, establishing your RAK offshore company can be a seamless and rewarding experience, paving the way for your business success on a global scale.