RAK Offshore Company Setup Formation
RAK Offshore Company Formation
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.
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 company | International Business Company or IBC |
| Common or civil law jurisdictions | Civil |
| Shelf company availability | NO |
| Time to incorporate | 1-2 days |
| Min. annual duty or franchise fee | AED2,500 |
| Annual return filling fee | NIL |
| Taxation | NIL |
| Disclosure of beneficial ownership | NO |
| Bearer shares | NO |
| Standard minimum paid up capital | AED100 |
| Standard authorised share capital | AED10,000 |
| Permitted currency of capital | AED & US$ |
| Minimum number of shareholders | ONE |
| Minimum numbers of directors | ONE |
| Corporate directors | YES |
| Local directors | NO |
| Company secretary | OPTIONAL |
| Company seal | YES |
| Public record of directors | NO |
| Public record of shareholders | NO |
| Location of directors meeting | Anywhere |
| Location of shareholders meeting | Anywhere |
| Telephone board meeting | YES |
| Double taxation treaty access | YES |
| Requirement to file account | NO |
| Requirement to prepare account | YES |
| Requirement to file annual return | YES |
| Change in domicile | YES |
| Local registered address | YES |
RAK Offshore Company Setup 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, Nuie or Bahamas. | |
| Legal System | When 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. | |
| 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. |
RAK International Business Company Banking Options
| Possible Banking Locations | Name of Bank | Services | Minimum Balance | Currency Offered | Visit Required |
|---|---|---|---|---|---|
| Isle of Man | Standard Bank | • Online Banking YES • Debit Card YES • ATM Card NO | $1,000 | Multi international currencies, US$, GBP, EUR, etc. | NO |
| Latvia | Rietumu Banka | • Online Banking YES • Debit Card YES • ATM Card NO | $1,000 | Multi international currencies, US$, GBP, EUR, etc. | NO |
| Dubai | Noor 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 | AED20,000 | Multi international currencies, US$, GBP, EUR, etc. | YES |
| Dubai | Mashreq Bank (retail banking) | • Online Banking YES • Debit Card NO • ATM Card NO | AED25,000 | Multi international currencies, US$, GBP, EUR, etc. | YES |
| Mashreq Bank (corporate banking) | • Online Banking YES • Debit Card NO • ATM Card NO | AED100,000 | Multi international currencies, US$, GBP, EUR, etc. | YES | |
| St. Vincent | Loyal Bank | • Online Banking YES • Debit Card YES • ATM Card NO | $1,000 | Multi international currencies, US$, GBP, EUR, etc. | NO |
| Euro Pacific Bank | • Online Banking YES • Debit Card YES • ATM Card NO | $500-$5,000 | Major currencies like US$, GBP, EUR, etc | NO | |
| Mauritius | ABC Banking | • Online Banking YES • Debit Card YES • ATM Card NO | $1,000 | Multi international currencies, US$, GBP, EUR, etc. | NO |
| Lichtenstein | Valartis Bank | • Online Banking YES • Debit Card YES • ATM Card YES | $5,000 | Multi international currencies, US$, GBP, EUR, etc. | NO |
RAK Offshore Company Formation FeesAED10,000Year 1
- First year fees for company incorporation excluding disbursement (if any)
AED6,000Year 2
- Annual renewal excluding disbursement (if any)
AED2,000Introduction to open bank account
- Introduction fee for opening bank account in Dubai.
USD800Introduction to open bank account
- Fees for introduction to open bank account outside of Dubai, excluding documents certification and disbursement (if any)
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)