What is an Offshore Company?
An offshore company is a legitimate and valid business entity that is considered as an off-the-shore business, and it can only carry out all of its business operations exclusively outside the country of its origin. It is one of the favoured alternatives when it comes to quick and easy means of business expansion and is also regarded as a non-resident business.
RAK offshore company formation provides a business person with total banking security and privacy. RAK offshore is the fastest way to invest in offshore companies in the UAE and RAK International Corporate Centre (RAKICC) is the governing body.
Why choose to set up an Offshore Company in Ras Al Khaimah?
The UAE is not considered as a ‘tax haven’ jurisdiction. The Financial Action Force (FATF) has not blacklisted the UAE. Therefore, those choosing to set up an Offshore company within the UAE are protected by the UAE legislation and conduct business activity legally, which comply with international standards.
RAK offshore company allows complete asset protection with a reliable and sturdy platform for foreign investors in comparison to the domestic business entities. RAK offshore asset protection enables immigrant trustees to build a legal wall that effectively helps in separating the creditors and the assets guarded inside your offshore company.
The chief advantage of RAK offshore company formation is that you are not bound to any regular rules and restrictions that the companies need to follow compared to any other jurisdiction. Offshore companies in RAK are an independent overseas territory for investors and entrepreneurs, with its own set of guidelines and authority called RAKICC.
Offshore companies may engage in multiple business activities such as trading, professional services, shareholders and/or investors of other UAE-based companies as well as property holding companies.
For individual director/shareholder
- Certified copy of the valid passport of all directors/shareholders.
- Certified copy of utility bills, local authority tax bill, tenancy agreement or bank statement showing the address of all directors/shareholders.
For corporate director/shareholder
- Certified copy of the corporate documents including Certificate of Incumbency, Memorandum and Articles of Association.
- Certificate of Incumbency/ Certificate of Good Standing.
- Certified copy of the authorized signatory of corporate shareholder.
- Name of shareholders and Ultimate Beneficial Owners.
- Certified copy of corporate resolution regarding new incorporation approval in RAK.
Steps Linked in the Company Formation of a RAK Offshore Company
If all the documental necessities are met, then it normally takes only 3-4 days to incorporate your RAK offshore company. Here is the procedure for registration of your offshore in RAK:
- To begin with, you should get consent for the company name and business activities it is going to perform.
- Next to tender the signed setup documents to the Registrar in RAKICC, the governing body of RAK offshore.
- Your company is ready now. You now need to create your corporate bank account, and then you can commence with the business operations.
What are restrictions on activities of a RAK ICC company?
A RAK international company is not permitted to carry on business activities within the zone or UAE. However, an international company can hold shares, assets in both local and international registered companies.
How should I name an international business company in RAK?
The name of a newly incorporated company has to satisfy with following the conditions:
- Comprise of no more than one hundred permitted characters.
- The name of a limited company must end with words “Limited”, “Incorporated” or their abbreviations “Ltd”, “Inc”.
- Not identical to names of existing companies or names appeared in the reserved name list of the Registrar.
- Must not contain the restricted list of words such as bank, council, credit, fund, forex.
- In the opinion of the Registrar, the name is offensive or contrary to public policy or public interest.
Are corporate directors/shareholders permitted?
Yes, corporate shareholders/directors of any nationality are allowed.
What types of activities are suitable for a RAK ICC company (limited by shares)?
A RAK ICC company can adapt multiple business objectives such as follows:
- International business company facilitating global investment and trade.
- Holding company.
- SPV holding real estate’s or other assets.
- Joint venture.
- Wealth management and asset protection.
- Other trading and services activities as permitted by RAKICC
Is there minimum registered capital for a RAK ICC company?
The share capital has no required minimum registered amount and can be expressed in any currency.
What are annual compliance requirements for a company incorporated in RAK?
A company has to maintain at all times at least one director, on shareholder along with a local registered agent and registered office address in RAK. There is no need for filing annual return, tax return or submitting financial accounts, however, accounting is highly recommended.
FlyingColour Business Setup Services advises small, medium and large businesses. For a RAK ICC, we can assist you in company formation from start to finish. We give not only strategic business information on business setup but also manage legal and documentation formalities.
This blog is written by Mr. Mohammad Rizwan Khan, Business Advisor at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. If you have any question regarding setting up a Rak Offshore license orcsc anywhere across the UAE then please contact us at +971 4 4542366 or email us at email@example.com.
Please Note: This article was published on 03rd January, 2021. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent update or change.