Incorporation in Ras Al Khaimah

Regulator or Registrar: Rak Offshore, a division of Ras Al Khaimah Investment Authority.

Governing corporate legislation: RAK Investment Authority (RAKIA) is the governing body and the companies are regulated under RAK Offshore Regulations 2006.

Type of company: International Business Companies which in most cases must be companies limited by shares, limited by guarantee or both.

Time to incorporate: In most cases including reservation of name, a RAK IBC can be incorporated within 1-2 days. A name once reserved is valid for three months.

Government's Registration fee: At the time of incorporation, the fee payable to the Registrar is AED4500 regardless of the size of authorised capital.

Shelf company availability: Not generally available.

Taxation:

• 100% income tax exemption
• 100% corporate tax exemption
• 100% capital and profit repatriation
• No capital gains tax
• No Value-added tax
• No Withholding tax

Minimum annual government fee: AED2500 regardless of capital structure, payable every year the latest one month before the anniversary of the company.

Disclosure of beneficial owner: RAK adopts money laundering legislation under which all licensed service providers are required to know the identity of their customers before accepting a transaction. Not to do so would be an offence under the legislation. Therefore disclosure of beneficial ownership will be made to trust company, bank, insurers, etc. but not to the Registrar.

Bearer shares: Not permitted. All shares must be in registered form.

Standard minimum paid up: None but our standard company comes with a standard paid up of AED100.00.

Standard authorised capital: Normally AED10,000.00.

Permitted currency of capital: AED or US$ but the use of other currencies are allowed if written consent is obtained from the Registrar.

Classes of shares: Share capital may be divided into different classes. Bearer shares are not allowed. Shares may be issued fully, partly or nil paid.

Minimum number of shareholders: One and there is no residency or nationality requirement.

Minimum number of directors: One and there is no residency or nationality requirement.

Corporate directors: Yes.

Local directors: Optional.

Company secretary: Optional, but it is common practice for an officer of the registered agent to be appointed as company secretary.

Public record of directors & shareholders: The company must keep a copy of the share register at the registered office address. This is available for inspection by the members and is not publicly available. The company may voluntarily file at the Registrar the copies of the register of members.

Location of directors and shareholders meeting: The directors may meet at such times and places within or outside the UAE as the directors may determine. Telephone and other electronic meetings are allowed. Subject to a requirement in the memorandum and articles the director shall be given reasonable notice of meetings of directors, although this rule is subject to a waiver of notice. The presence of a director at a meeting shall be deemed to constitute a waiver on his part. The quorum of a meeting of directors is fixed by the memorandum and articles but where no quorum is fixed, a meeting of directors is properly constituted if one half of the total number of directors is present in person or by alternate.

Telephone board meeting: Yes.

Access to Double Tax Treaty: The UAE has signed more than 45 DTAs, of which many are with East Europe, the Middle East countries and CIS countries.

Requirement to file account: A company incorporated under the Regulation shall keep such accounts and records as the directors consider necessary or desirable in order to reflect the financial position of the company. However there is no requirement to file the account.

Requirement to file annual return: Yes and it is simple.

Local registered office address: A RAK IBC must at all times have a registered office and registered agent within Ras Al Khaimah. The registered office must be maintained either by the company or its registered agent.

Company seal: A company must have a common seal.

Re-domiciliation: A company incorporated under the laws of a foreign jurisdiction may continue its existence as a company registered under the Act. Similarly, RAK Offshore business companies may transfer their domicile to foreign territories that permit such procedures.

What records must be maintained in the territory and are they available for public inspection? A copy of the share register and the register of directors and an imprint of the common seal must be kept at the registered agent’s address. Other records such as minutes of meetings of directors, members and copies of all resolutions may be kept at such places as the directors determine, but copies must be kept at the registered agent's address.  These are not available for public inspection, other than by members or directors. If copies of these registers and documents are kept other than by the registered agent, the registered agent must be notified of the location of the original. If the company fails to comply with these provisions it is liable to a fine.

RAK IBC Corporate Data Sheet - Summary

RAK - Cost and Benefit Analysis

	Star Rating
Corporate Registration Efficiency		Very efficient. Name search takes 1 day only and name reservation within one day. Company can be incorporated in 1 day.
Availability of name		Names are easily available.
Confidentiality		Excellent. No records is available for public inspection
Political Stability		Excellent. Since its independence the UAE has enjoyed continued political stability. The UAE benevolent social & welfare structure ensure the unrest in the Middle East is not contagion.
Maintenance Cost		Higher in comparison to IBC jurisdictions like BVI, Brunei, Nuie or Bahamas.
Legal System		When contrasted with other Arab states, such as Saudi Arabia for instance, the UAE has comparatively very liberal laws. The country has a civil law jurisdiction. However, Shari'a or Islamic law is applied to aspects of family law, inheritance and certain criminal acts.
Regulator		RAK Offshore is a division of RAK Investment Authority and is a pro-active.
Location		45 minutes drive from Dubai.
Exchange Control		Very liberal
Rate of Tax		100% income tax exemption 100% corporate tax exemption 100% capital and profit repatriation No capital gains tax No Value-added tax No Withholding tax
Double Tax Treaty Access		The UAE has signed more than 45 DTAs, of which many are with East Europe, the Middle East countries and CIS countries.
Local Banking Services		Excellent. Many international and local banks have offices in Dubai
Time Zone		GMT+4, no in the same time zone with major Asian capitals
Reputation		Tend to be overshadowed by its larger and more popular “cousin” Dubai. However, RAK is one of the fastest growing emirates in one of the fastest growing economies in the world, the UAE.

How can I get more information on company formation in RAK Offshore?

Please contact us if you wish to open a company in RAK Offshore we will be pleased to discuss your RAK Offshore company formation matters in greater detail.