Offshore Company Formation in RAK ICC: A Comprehensive Guide
This guide explores the different types of offshore companies under RAK ICC, their benefits, and the step-by-step registration process.
Setting Up an Offshore Company in RAK ICC
Setting up an offshore company in the UAE provides numerous benefits for international entrepreneurs and investors.
The Ras Al Khaimah International Corporate Centre (RAK ICC) is one of the leading jurisdictions for offshore company formation, offering financial privacy, tax advantages, and flexible business operations.
However, it is important to note that RAK ICC offshore companies do not provide UAE residency visas and cannot conduct business within the UAE.
Understanding RAK ICC Offshore Companies
RAK ICC serves as a globally recognized corporate registry in Ras Al Khaimah, UAE, providing an efficient and well-regulated platform for offshore businesses. It is ideal for businesses engaged in international trade, asset protection, and wealth management while ensuring confidentiality and ease of operation.
Types of Offshore Companies in RAK ICC
RAK ICC provides a variety of offshore company structures to cater to different business needs. Below are the main types:
1. Company Limited by Shares (CLS)
- Suitable for businesses seeking liability protection and international expansion.
- Allows shareholders to limit their liability to their unpaid share capital.
- Commonly used for trading, asset holding, and international business operations.
Example: A UK-based export company sets up a CLS in RAK ICC to facilitate international trade without being subject to UAE corporate tax.
2. Company Limited by Guarantee (CLG)
- Designed for non-profits, associations, and management entities.
- Liability is limited to the agreed contribution of members.
- Can be set up with or without share capital.
Example: A global charitable foundation establishes a CLG in RAK ICC to manage international donations while ensuring financial transparency.
3. Unlimited Company (UC)
- Offers no limitation on shareholders’ liability.
- Used in specific cases where owners wish to demonstrate financial commitment.
- Less common but beneficial for select business models.
Example: A group of high-net-worth investors forms a UC in RAK ICC to collectively finance global infrastructure projects, showcasing their financial commitment.
4. Restricted Purposes Company (RPC)
- Created for specific and limited business purposes.
- Used in financial transactions and specialized investment activities.
- Helps maintain regulatory and compliance clarity.
Example: A multinational conglomerate sets up an RPC in RAK ICC to serve as a Special-Purpose Vehicle (SPV) for a high-value merger and acquisition deal.
5. Segregated Portfolio Company (SPC)
- Allows businesses to maintain separate asset portfolios under one entity.
- Assets and liabilities of each portfolio remain legally separate.
- Ideal for investment funds and asset management firms.
Example: A European hedge fund utilizes an SPC in RAK ICC to manage multiple investment portfolios without the risk of cross-liability.
6. Holding Company
- Suitable for managing global investments, intellectual property, and real estate.
- Ensures asset protection and simplifies inheritance and wealth management.
- It can be structured for tax-efficient international business operations.
Example: A multinational corporation uses an RAK ICC holding company to manage intellectual property rights for various subsidiaries worldwide.
7. Trading Company
- Facilitates international trade and commerce while benefiting from UAE’s strategic location.
- Supports global import-export operations with no currency restrictions.
- Ideal for businesses expanding into emerging markets.
Example: A European-based supplier uses an RAK ICC trading company to import goods from Asia and sell them in the US.
8. Consultancy and Professional Services Company
- Designed for consultants, financial advisors, and service-based businesses.
- Provides a tax-efficient structure for global professionals working remotely.
- Requires no physical office, reducing operational costs.
Example: A digital marketing consultant working with international clients establishes an RAK ICC offshore company for invoicing and asset protection.
9. Intellectual Property Holding Company
- Enables businesses to hold, manage, and protect patents, trademarks, and copyrights.
- Helps companies optimize royalty structures and licensing revenue.
- Ensures legal protection for intellectual assets in a tax-efficient jurisdiction.
Example: A software company registers its patents under an RAK ICC intellectual property holding company to license its technology globally.
10. Investment and Asset Management Company
- Facilitates investments in financial securities, real estate, and private equity funds.
- Ensures financial confidentiality and legal protection for investors.
- Enhances global tax efficiency and asset management.
Example: A high-net-worth individual establishes an RAK ICC offshore company to manage an international investment portfolio.
Key Benefits of Setting Up an Offshore Company in RAK ICC
Tax Advantages
- RAK ICC offshore companies are generally exempt from corporate tax, income tax, and value-added tax (VAT).
- The UAE has established numerous double taxation agreements to enhance international business operations.
100% Foreign Ownership
- Investors retain full control over their companies without requiring a local sponsor or partner.
Financial Privacy and Asset Protection
- The UAE offers strong legal frameworks to ensure shareholder confidentiality and asset security.
- No public disclosure of company ownership details.
Cost-Effective Setup and Operations
- No physical office space is required, minimizing business overhead costs.
- Simplified compliance requirements and minimal paperwork.
Access to UAE Banking and Financial Services
- Offshore companies can open corporate bank accounts in the UAE with multi-currency options.
- Benefit from the UAE’s globally connected banking system for seamless international transactions.
Step-by-Step Process to Set Up an Offshore Company in RAK ICC
Appoint a Registered Agent
- Work with an authorized RAK ICC agent to facilitate the company registration process.
Choose a Company Name and Define Business Activities
- Select a unique name that complies with RAK ICC’s naming conventions.
- Define the business activities your offshore company will engage in.
Prepare and Submit Documentation
- Provide passport copies of shareholders and directors, proof of residence, and a brief business plan.
Draft and File the Memorandum and Articles of Association
- These documents outline the company’s structure, governance, and operational guidelines.
Receive Certificate of Incorporation
- Once approved, RAK ICC issues the official Certificate of Incorporation, confirming the legal formation of the entity.
Open a Corporate Bank Account
- Use the incorporation documents to open a corporate bank account in the UAE to manage financial transactions.
For expert guidance on RAK ICC company formation, consult with EZONE Business Setup Consultants, your trusted business setup partner, to ensure a smooth and compliant registration process.
You might be interested in learning more about:
- How to Liquidate an Offshore Company in the UAE
- Setting up a Branch office in the UAE
- Setting Up a UAE Branch Office vs. a UAE Subsidiary
FAQ’s about Offshore Company Setup
No, RAK ICC offshore companies do not provide UAE residency visas. If you need a visa, consider setting up a Free Zone company or getting a Mainland business license instead. Your RAKICC can own the Free Zone or Mainland entity.
No, RAK ICC offshore companies cannot conduct business within the UAE. They are meant for international operations only. But they can own UAE companies.
Industries such as investment management, international trade, consultancy, e-commerce, and intellectual property protection benefit significantly from RAK ICC offshore structures.
RAK ICC offshore companies are required to register for corporate tax, but may qualify for a 0% tax rate if they meet the Free Zone Person criteria and comply with UAE tax regulations.
Note: You are MINUTES away from finding out your UAE Business License cost with only a few questions using our Cost Calculator.
