The UAE’s RAK Offshore Company stands out as a cost-effective and esteemed choice in the region for international business endeavors. Renowned for its simplicity and affordability, the RAK offshore company registration process is straightforward. Despite lacking a physical office in RAK and the inability to conduct business within the UAE, RAK offshore companies enjoy notable advantages such as full tax exemption and unrestricted access to company profits. This comes with the added benefits of complete privacy, confidentiality, and asset protection.
Choosing RAK for offshore company formation proves particularly advantageous, given its status as one of the oldest offshore jurisdictions in the UAE. Hosting approximately 14,000 companies spanning 50 sectors, RAK stands as the most prestigious option in the northern emirates. Entrepreneurs and investors, especially expatriates, find RAK offshore an attractive prospect, leveraging its business-friendly environment and growth opportunities within this special economic zone.
Our services also include helping clients find a registered agent and securing a registered address for their companies. We facilitate meetings with bank representatives to assist in opening bank accounts for RAK Offshore Company Registration.
For those seeking offshore company formation in RAK, one of the esteemed offshore locations in the UAE, we invite you to contact us for detailed information and personalized assistance. Your business goals are our priority, and our experienced team at Danburite Corp is committed to ensuring a smooth and efficient company setup process for you.
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Key Features of RAK Offshore Company Formation
Streamlined Incorporation Process Experience swift company setup with a fast and efficient incorporation process, facilitating a hassle-free start to your business endeavors.
1. Exemption from Local Office and Employee Requirements
Enjoy the flexibility of operating without the obligation to maintain a local office or hire employees, offering cost-effective advantages for offshore business activities.
2. Complete Foreign Ownership
Benefit from 100% foreign ownership, providing entrepreneurs and investors with full control and autonomy over their offshore ventures in RAK.
3. Zero Tax and VAT
Take advantage of a business-friendly environment with 0% corporate tax and 0% VAT, contributing to a favorable financial landscape for your offshore enterprise.
4. No Import and Export Duties
Navigate your business operations seamlessly, as RAK offshore companies are exempt from import and export duties, reducing financial burdens associated with cross-border trade.
5. Exemption from Mandatory Account Filings
Experience simplified financial management with no requirement to file accounts, allowing for greater operational ease and fewer compliance obligations.
6. Stability and Outstanding Reputation
Choose RAK as a stable jurisdiction with an excellent reputation, providing a secure and trustworthy environment for your offshore business activities.
7. Enhanced Privacy and Confidentiality
Ensure utmost confidentiality and asset protection with robust privacy measures, allowing you to conduct business discreetly and securely.
8. No Foreign Currency Restrictions
Operate without constraints, as RAK offshore companies face no restrictions on foreign currency transactions, facilitating smooth international business dealings.
9. Real Estate Property Ownership in the UAE
Diversify your investment portfolio by having the ability to own real estate property in the UAE, adding an attractive dimension to your offshore business setup.
10. Property Ownership for Non-Residents in UAE Free Zones
Explore the option of property ownership in UAE free zones, providing additional opportunities for non-resident entrepreneurs to invest and expand their holdings.
11. Open a Bank Account in the UAE
Facilitate your financial transactions seamlessly by being able to open a bank account in the UAE, enhancing the accessibility and efficiency of your offshore business operations.
Choose RAK as your preferred offshore destination, where these distinctive features create an optimal environment for international entrepreneurs and investors.
Documentation Needed for RAK Offshore Company Formation
- Shareholder/Investor Passport Copy: Provide a clear copy of the passport for each shareholder or investor involved in the offshore company. This serves as a vital identification document.
- Investor Curriculum Vitae (CV): Submit the comprehensive curriculum vitae (CV) of each investor, offering insights into their professional background and experience relevant to the business venture.
- Address Proof Utility Bill: Furnish a utility bill as proof of address, validating the location associated with the offshore company. This may include bills for electricity, water, or other utilities.
- Preferred Trade Names: Indicate the preferred trade names for the offshore company, ensuring they align with legal requirements and regulations. This step is crucial in initiating the company registration process.
Key Characteristics of RAK Offshore Companies
Shareholders:
A minimum of one shareholder is required for the incorporation of a RAK offshore company, and corporate shareholders are permissible. The shareholders play a crucial role in determining the capital structure of the company. Notably, bearer shares are not permitted by the RAK ICC Authority.
Directors:
Mandatory for company incorporation, at least one director is required. Corporate directors are allowed, and it’s noteworthy that details of directors are not publicly accessible.
Secretary:
Every RAK offshore company established with the RAK ICC must appoint a secretary, ensuring adherence to regulatory requirements.
Annual Accounts & Audit:
While the company must maintain accounting records, there is no mandatory submission of these records to the RAK ICC Authority. Directors are responsible for approving the accounting records, and they must be retained for seven years from their preparation date.
Timescale:
The registration process for a RAK offshore company in the Free Zone typically takes three working days, providing a relatively swift incorporation timeline.
Restrictions on Name & Activity:
The name of a RAK offshore company must conclude with the suffix ‘Limited’ or ‘Incorporated.’ Certain words and their associated activities are restricted when selecting a company name. Prohibited terms include Assurance, Bank, Building Society, Chamber of Commerce, Chartered, Co-operative, Fund, Imperial, Insurance, Municipal, Mutual Fund, Royal, and Trust.
Local Requirements:
In compliance with local company law, a RAK offshore company must maintain a registered office address and appoint a registered agent. The office of the registered agent, located in the UAE or within the free zone, can serve as the registered office for the company. This ensures adherence to the necessary local regulations.
Considering Establishing a Business in RAK Offshore?
RAK ICC stands out as a leading corporate registry in the UAE, experiencing significant demand for offshore company formation. Foreign investors are actively encouraged to register RAK offshore companies due to the innovative legislation and resources provided by the RAK ICC Authority, including compliance with Economic Substance Regulation (ESR) requirements.
Foreign investors aspiring to establish an offshore company in RAK must engage the services of a registered agent in the UAE, such as Company Setup. With a wealth of experience, Company Setup has been a trusted provider of high-quality registered agent services in the UAE for many years. Our services have facilitated the successful establishment of offshore corporations in RAK ICC, Ajman Offshore, and JAFZA.
As premium registered agents in the UAE, Company Setup is dedicated to delivering seamless, robust, and cost-effective services to investors of all types. Join the ranks of hundreds of businesses that have benefited from our expertise, making the process of establishing an offshore company in RAK Offshore a smooth and efficient experience.
RAK Offshore Company Formation Cost
Establishing a RAK Offshore Company is always affordable, thanks to the competitive pricing policy of the governing body. The cost of initiating a business at RAK ICC starts at AED 12,000*.
Declaration of Ultimate Beneficial Owner (UBO)
Companies incorporated under RAK ICC are subject to the provisions outlined in Cabinet Decision No. (58) of 2020 concerning beneficial owner procedures. In accordance with this legislation, RAK offshore companies are obligated to provide information regarding their Ultimate Beneficial Owners (UBO) to the RAK ICC Authority. Simply put, a UBO refers to any individual who ultimately enjoys the benefits derived from a company and exercises ultimate control over the entity.
As per the stipulations of Cabinet Decision No. (58) of 2020, a UBO is defined as an individual who directly or indirectly owns or controls 25% of the capital or possesses voting rights for a minimum of 25% of the shares. Additionally, a UBO is someone who ultimately controls the legal person. To adhere to the UBO Law, RAK offshore companies are required to maintain the Real Beneficiary Register (RBR) and Partners of Shareholders Registers (PSR), making these registers accessible to the public.
This compliance extends not only to operational companies but also encompasses those undergoing liquidation. Companies in the process of liquidation must disclose UBO information and submit both the Real Beneficiary Register and Partners of Shareholders Register to the RAK ICC Authority. This comprehensive approach ensures transparency and adherence to regulatory requirements governing Ultimate Beneficial Owners.
Economic Substance Regulation (ESR) for RAK Offshore Companies
For entities incorporated under the RAK ICC Authority, it is imperative to assess their obligation to comply with the Economic Substance Regulation (ESR). The applicability of ESR in the UAE extends to companies engaged in any of the nine Relevant Activities. These activities encompass Banking Business, Insurance Business, Investment Fund Management Business, Lease-Finance Business, Headquarters Business, Shipping Business, Holding Company Business, Intellectual Property Business, and Distribution & Service Centre Business.
Companies engaged in these Relevant Activities are obligated to fulfill ESR requirements, which include the filing of ESR Notifications, submission of ESR Reports, and meeting the ESR test criteria. Even companies undergoing liquidation processes are mandated to conduct ESR self-assessment to ensure adherence to regulatory standards. It is essential for RAK Offshore Companies to carefully evaluate their business activities and determine their eligibility for compliance with the Economic Substance Regulation in the UAE.
How are RAKICC offshore corporations formed?
RAKICC offshore corporations are formed exclusively through registered agents. Company Setup is a registered agent with RAKICC, offering its clients cost-effective and efficient UAE offshore company registration services. We streamline the incorporation process, typically completing the formation of offshore corporations within 3-4 working days upon receiving instructions from our clients.
What types of businesses are registered with RAKICC?
RAKICC registers the following types of offshore companies:
- Company Limited by Shares.
- Limited Liability Company.
- Company with Restricted Purposes.
- Company with a Separated Portfolio.
- Unlimited Business.
What is the required minimum capital for a RAK offshore company?
To establish an offshore business in RAK, there is no requirement for a minimum capital.
Is a corporate secretary required for the RAK offshore company?
Yes, the presence of one corporate secretary is mandatory for the RAK offshore company. The secretary of the company can also serve as a director.
What should the RAK Offshore Business’s registered address be?
The RAK Offshore Company is required to have a local registered representative who has received authorization from local authorities, along with a local registered office, typically provided by the registered agent.
For further information and assistance on How to Start A RAK Offshore Company Formation in UAE? speak with our experienced consultants. Book your FREE consultation today at +971582595164, +97145187213 or drop us a line on info@companysetup.ae
