RAK Offshore Company Setup Formation

RAK Offshore Company Formation

Ras Al Khaimah RAK Offshore creek at dusk, United Arab Emirates

About Ras al-Khaimah

Ras Al Khaimah is one of the emirates of the United Arab Emirates (UAE), in the east of the Persian Gulf. It is in the northern part of the UAE bordering Oman. It is one of the fastest growing emirates in one of the fastest growing economies in the world, the UAE. Ras Al Khaimah literally means “the top of the tent”. It booming economy and close proximity to major international centres like Dubai has attracted 1000s of large, medium and small businesses from many part of the world.
Ras Al Khaimah Investment Authority (RAKIA)
RAK Offshore
Offshore4Asia Corporate Services FZE is a licensed agent of the Ras al-Khaimah Investment Authority.

Incorporation in Ras al-Khaimah, United Arab Emirates

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 2-3 days after complete documentation have been submitted to the registrar. 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 AED4,500 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: AED2,500 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 AED10,000.
Standard authorised capital: Normally AED10,000.
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 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

Type of companyInternational Business Company or IBC
Common or civil law jurisdictionsCivil
Shelf company availabilityNO
Time to incorporate1-2 days
Min. annual duty or franchise feeAED2,500
Annual return filling feeNIL
TaxationNIL
Disclosure of beneficial ownershipNO
Bearer sharesNO
Standard minimum paid up capitalAED100
Standard authorised share capitalAED10,000
Permitted currency of capitalAED & US$
Minimum number of shareholdersONE
Minimum numbers of directorsONE
Corporate directorsYES
Local directorsNO
Company secretaryOPTIONAL
Company sealYES
Public record of directorsNO
Public record of shareholdersNO
Location of directors meetingAnywhere
Location of shareholders meetingAnywhere
Telephone board meetingYES
Double taxation treaty accessYES
Requirement to file accountNO
Requirement to prepare accountYES
Requirement to file annual returnYES
Change in domicileYES
Local registered addressYES

RAK Offshore Company Setup Cost and Benefit Analysis

 Star Rating 
Corporate Registration EfficiencyVery efficient. Name search takes 1 day only and name reservation within one day. Company can be incorporated in 1 day.
Availability of nameNames are easily available.
ConfidentialityExcellent. No records is available for public inspection
Political StabilityExcellent. 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 CostHigher in comparison to IBC jurisdictions like BVI, Nuie or Bahamas.
Legal SystemWhen contrasted with other Arab states, such as Saudi Arabia for instance, the UAE has comparativelyvery 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.
RegulatorRAK Offshore is a division of RAK Investment Authority and is a pro-active.
Location45 minutes drive from Dubai.
Exchange ControlVery 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 AccessThe UAE has signed more than 45 DTAs, of which many are with East Europe, the Middle East countries and CIS countries.
Local Banking ServicesExcellent. Many international and local banks have offices in Dubai
Time ZoneGMT+4, no in the same time zone with major Asian capitals
ReputationTend 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.

RAK International Business Company Banking Options

Possible Banking LocationsName of BankServicesMinimum BalanceCurrency OfferedVisit Required
Isle of ManStandard Bank• Online Banking YES
• Debit Card YES
• ATM Card NO
$1,000Multi international currencies, US$, GBP, EUR, etc.NO
LatviaRietumu Banka• Online Banking YES
• Debit Card YES
• ATM Card NO
$1,000Multi international currencies, US$, GBP, EUR, etc.NO
DubaiNoor Bank
*one-off fee of AED3,000 payable to the bank for setting up the bank account.
• Online Banking YES
• Debit Card YES
• ATM Card NO
AED20,000Multi international currencies, US$, GBP, EUR, etc.YES
DubaiMashreq Bank
(retail banking)
• Online Banking YES
• Debit Card NO
• ATM Card NO
AED25,000Multi international currencies, US$, GBP, EUR, etc.YES
Mashreq Bank
(corporate banking)
• Online Banking YES
• Debit Card NO
• ATM Card NO
AED100,000Multi international currencies, US$, GBP, EUR, etc.YES
St. VincentLoyal Bank• Online Banking YES
• Debit Card YES
• ATM Card NO
$1,000Multi international currencies, US$, GBP, EUR, etc.NO
Euro Pacific Bank• Online Banking YES
• Debit Card YES
• ATM Card NO
$500-$5,000Major currencies like US$, GBP, EUR, etcNO
MauritiusABC Banking• Online Banking YES
• Debit Card YES
• ATM Card NO
$1,000Multi international currencies, US$, GBP, EUR, etc.NO
LichtensteinValartis Bank• Online Banking YES
• Debit Card YES
• ATM Card YES
$5,000Multi international currencies, US$, GBP, EUR, etc.NO

RAK Offshore Company Formation Fees

AED10,000

Year 1

  • First year fees for company incorporation excluding disbursement (if any)
AED6,000

Year 2

  • Annual renewal excluding disbursement (if any)
AED2,000

Introduction to open bank account

  • Introduction fee for opening bank account in Dubai.
USD800

Introduction to open bank account

  • Fees for introduction to open bank account outside of Dubai, excluding documents certification and disbursement (if any)