UAE is one of the well-established countries in the world. It is widely popular for its vibrant atmosphere, dazzling infrastructure, commendable hospitality, and many other features. When it comes to business, UAE remains always on the top of the list of global investors and entrepreneurs. The mega-cities like Dubai and Abu Dhabi are the most preferred destination for UAE company formation. However, there is a new addition to the list of best business destinations in UAE – Ras Al Khaimah. RAK offshore company formation provides the finest facilities to the investors that come with long-term capital gains at affordable costs.
Ras Al Khaimah attracts foreign investors through its high-quality infrastructure, tax-free system, friendly trade relations with nearby countries, government policies, etc. It is one of the most developed as well as desired economies in the UAE. Moreover, RAK assures offshore business establishment in a short period of time with incredible financial opportunities and tax benefits that can be very beneficial to the investors.
This article will give detailed information about various segments of the offshore company formation in Ras Al Khaimah, RAK offshore company cost, and also its benefits.
About Ras Al Khaimah
Ras Al Khaimah is one of the prominent offshore locations in the United Arab Emirates. Besides, it is also one of the fastest-growing economies among the other Emirates. The business-friendly environment and competitive cost contribute to the rising level of industrialization in RAK. And therefore, there is around 26% of the total contribution by RAK to the country’s GDP.
Ras Al Khaimah International Corporate Centre(RAK ICC) is an International Business Company(IBC) that was established in the year 2016. Initially, RAK offshore and RAK IC were two different bodies. Ras Al Khaimah Investment Authority(RAKIA) was the registration authority of RAK offshore companies, whereas RAK Free Zone authorities looked after the registration process of RAK IC companies. Later, in May 2016, both entities were merged together to form RAK ICC. Although both the entities were relatively similar, they had some differences on the applicable regulations.
Benefits of RAK offshore company formation
- Open investments – The most striking advantage of RAK offshore company formation is that the businesses are not subject to the same laws and regulations as it is in any other jurisdiction in the United Arab Emirates. RAK offshore has its own regulatory body, RAK Investment Authority (RAKIA) which has a separate set of rules and regulations.
- Confidentiality of business and its owners – Business owners expecting full confidentiality and secrecy of the business can unhesitatingly choose RAK offshore for their company establishment. Besides, many global investors, entrepreneurs, and business people are already striving to launch their ventures in this jurisdiction. RAK offshore assures full secrecy and anonymity of the business to the business owner at all stages of the transaction.
- Double Taxation Avoidance Agreement – RAK offshore is a 100% tax-free region. It enables entrepreneurs to engage in business activities and gain complete returns. In addition, it also offers foreign investors to sign a tax treaty named Double Taxation Avoidance Agreement, which restricts them from paying taxes in the two countries they transit in.
- Asset protection – RAK offshore also ensures asset protection to the investors by creating a legal wall between the creditors and the assets secured within the company. Thus, it provides a strong and reliable platform for their commercial operations.
- Protection from grievances – Another major advantage of RAK offshore business setup is lawsuit protection. This means, that in case of legal allegations or judgments against the business owner, RAKIA saves and protects company possessions. It also ensures that the company is established ethically with a comprehensive examination. However, in case of a legal pursuit against the owner, the RAK authorities safeguard the assets of the corporation.
Also read the post: Business Setup in the UAE Free Zone. Here’s What You Need to Know
Other advantages of Ras Al Khaimah Offshore Company formation are:-
- Access to all ports in the UAE
- No barriers to foreign exchange control as well as capital transfer
- Permission to invest in real estate
- No signed treatise that enables a foreign exchange of information
- Easy incorporation and filing requirements
- Excellent banking and telecommunications facilities
- Exposure to the international market opportunities
- Improved access to global funding
- Stable and business-friendly legal system
- Flexible rules and regulations
- Freedom to hold shares in other companies
- Minimal staff requirement during the incorporation
- No accounting compulsion
- The owner and director can be the same person
- Can be established with a single shareholder
- No limitations on shareholder and director placements
- Easy renewal process
- No compulsion on submission of audit reports
- Fully compliant with international regulations
- Liberty to hold intellectual properties such as trademarks, patents, copyrights, etc.
Steps to start an offshore company in Ras Al Khaimah
Although the overall process of starting an offshore company in RAK is quite simple and quick, hiring an offshore business consultant expert would make the task more doable. The business consultant would do all the incorporation work while you can be at home and prepare for your business. This would help you get rid of heavy burdens and move forward with proper guidance as well.
So now, let’s have a look at the basic steps of the RAK company setup –
- Determine a company name and get approval for the same from the concerned department. Make sure your proposed name is available for registry and does not conflict with any other registered names.
- Select a business activity and again seek approval for the same. Most importantly, specify all the selected business activities to the authorities while getting approvals.
- Make an application for registration and license, and submit all the requested documents.
- Pay the registration/license fee and other expenses, if any.
- Wait until the authorities thoroughly verify and examine your application, and share the final outcome.
- If approved, get your license and start with your business operations.
Documents required for RAK offshore company formation
- Trade name suggestions (at least three)
- Passport copy of shareholders/director
- Entry stamp/UAE visa
- Business profile/updated CV of the shareholders
- Attested Memorandum of Association
- Articles of Association
- Attested resolution of shareholders
- Original reference letter from bank/ Certificate of good standing
- Address proof of all the directors/shareholders
- Certificate of Incumbency
- Power of attorney
- Board resolution
- Certificate of incorporation(for corporate shareholders)
- Other additional documents
Some of the aforementioned documents may be required to be notarized from the home country.
Points to remember:
- Owners of RAK offshore companies can not conduct business with UAE residents or trade in the RAK Free zone. In order to do so, they need to acquire a suitable license from the concerned authorities.
- Remember to attest all the original as well as photocopies of documents.
- The RAK offshore company owners must mandatorily renew their business license before the expiration. The usual validity period of the RAK offshore license is one year.
- The owners must ensure to complete all the legal requirements of the incorporation procedure timely to avoid any kind of troubles in the future.
Now that you are aware of the proceedings of RAK offshore company formation, you can readily move on with your business establishment idea. However, if you need more details on RAK or any other business locations in the UAE, you can contact the agents of Shuraa.
Shuraa Business Setup is a registered advisory firm that specializes in company formation in the UAE. We have 20 years of experience helping budding investors incorporate offshore companies in Ras Al Khaimah as well as other prominent parts of the UAE. In brief, we provide the best-customized business solutions for all your business needs.
So, without wasting any further time, get in touch with our experts and share your requests. Call +971 44081900 or write at info@shuraa.com.
