With a sprawling landscape of 1684 sq. km, RAK International Corporate Centre (RAK ICC) is one of the most popular free zones in UAE. RAK ICC has seen tremendous growth in the past few years in terms of foreign direct investments. Businesses from different countries choose RAK ICC for offshore operations, tapping into benefits like enhanced IP protection, relaxed tax slabs, and minimal oversight. If you are planning to plunge into the same bandwagon, this article can make things increasingly easier for you.
Why Choose RAK ICC to Pursue Offshore Activities?
Hailed as a state-of-the-art business destination globally, RAK ICC provides an inviting environment that suits a multitude of offshore businesses. So, whether you seek to boost your ecommerce footprint or serve global clients with an augmented presence, RAK’s infrastructure and benefits can help your venture witness unlimited growth for years to come.
Plus, the robust regulatory framework and stable political environment add to the longevity of the business. Long story short, RAK ICC is just what you need to boost your global footprint and accelerate your business growth. Here’s what makes RAK ICC a standout avenue for offshore activities:
- Permission to set up subsidiaries with the RAK Department of Economic Development (RAK DED), ensuring seamless access to the local market.
- Leasing and purchasing properties via the Ras Al Khaimah Municipality Department is permissible. This will serve as a boon for industrial entities, ecommerce companies, and shipping firms.
- Seamless wealth management opportunities for high-net-worth individuals with comprehensive privacy.
- Comprehensive financial confidentiality with no need to share financial details publicly.
- High level of protection for IP assets, including trademarks, patents, and copyrights, thanks to the treaties with globally-recognized institutions, including WIPO. This primarily benefits the holding companies.
- End-to-end safety for investment companies managing diverse investment portfolios boasting stocks, bonds, securities, and so on.
- Lucrative tax arrangements ensure nil taxes on foreign-sourced incomes. This is complemented by zero income taxes, wealth taxes, and withholding taxes.
All these benefits pave a strong foundation for foreign entities seeking business expansion via offshore endeavours.
Steps to Register a RAK Offshore Company:
RAK International Corporate Centre, broadly known as RAK ICC, is the governing authority that regulates offshore businesses to their entirety, be it a matter of incorporation or securing critical business permits. Those seeking to register an RAK offshore company can follow the given steps for a hassle-free experience.
1. Select a unique company name:
Make your way to the RAK ICC registry to find an apt company name. The registry serves as a robust database that helps with the name selection process. Once chosen, ensure that the selected name does not breach the naming conventions or any trademark guidelines.
2. Select a Business Structure
Depending on the operational footprint, management requirement, and industry, you can pick one of the following structures for RAK offshore company formation:
Company Limited by Shares (CLS)
It is ideal for holding companies, investment firms, joint ventures, and project companies. CLS ensures limited liability for shareholders, which is equivalent to the extent of their contribution. Additionally, it enables the grant of partly-paid shares, bonus shares, and nil-paid shares. From an incorporation standpoint, it requires at least one shareholder and one director with no bar on minimum capital requirement. Once incorporated, the company name must terms like LTD or Inc. as it is mandatory under the law.
Company Limited by Guarantee (CLG)
CLG works best for charitable entities and NGOs. Typically, it entails at least one guarantee member whose degree of liability is higher than that of a normal member. For example, in case of winding up, the guarantee member must pay a nominal amount to reconcile any financial obligation. As a part of compliance, these entities must affix terms like Ltd and Inc. in their name.
RAK ICC Segregated Portfolio Company (SPC)
Segregation of assets and liabilities into a number of small portfolios can save a company from significant financial risks. That’s what SPC is all about; it helps capital-conscious entities create as many as ten portfolios wherein they can shift some of their assets and liabilities to promote financial health by offsetting risks. Also known as a protected cell company, SPC formation can save the parent company from unprecedented events like winding up by isolating a certain portion of finances.
Intellectual Property Holding Company (IPHC)
IPHCs are generally referred to as sister companies to parent entities, primarily helping with the management of IP assets like copyrights, patents, and trademarks.
Unlimited Company (UC)
As the name suggests, UC exposes members to unlimited liabilities. However, it is not similar to that of a general partnership because it adheres to a separate legal identity. Entities seeking credit support, international tax planning, and liability pass-through can opt for this business structure.
Restricted Purposes Company (RPS)
RPS is a popular business structure among financial companies seeking seamless structuring of asset-backed securities, mortgage-backed securities, and collateralized debt obligations (CDOs).
3. Appoint a registered agent:
Hiring a certified agent will be the next step in the incorporation process. Ensure that the selected agent is well-versed in the registration legalities and has a proven track record of establishing offshore entities.
4. Prepare the required documents:
RAK offshore company formation invites a slew of documents that the authority needs for inspection. These include copies of directors’ passports, partners’ consent, address proof, a bank reference letter, a letter of incumbency, a certificate of good standing, board consent, a Memorandum of Association, and so on.
5. Application filing
In this step, you will file the application concerning incorporation with the governing authority. The application shall be submitted along with the documents cited above. Upon successful filing, the authority will prompt you to pay the applicable fee, which will vary depending on the business type and industry.
6. Inspection and grant of Certificate of Incorporation
RAK ICC shall inspect the paperwork in accordance with the prevailing legislation. Upon successful assessment, you will receive the certificate of incorporation. The issuance of the certificate will mark the end of the registration process.
7. Open a corporate bank account:
The company incorporation process is incomplete without a corporate bank account. From international invoicing to seamless transactions, a corporate bank account can bring your finances to life, enabling hassle-free cash flow.
8. Maintain compliance:
Lastly, you need to scout the operational compliance, which may include filing annual returns and securing industry-specific approvals. Adhering to these requirements is paramount for keeping your business up and running.
A certified agent can go beyond typical services to keep your business compliant. They can play a vital role in boosting your compliance performance, which can help invite loads of benefits, including tax incentives, property ownership, and seamless global business.
Conclusion
Understanding local laws and regulations for RAK offshore company formation is paramount for hassle-free incorporation. By teaming up with a registered agent or a seasoned partner like BSW, you can avert the hassles of delving into intricate compliance to bring your offshore venture into motion.
BSW (Business Setup Worldwide) is a one-stop destination for transforming your offshore ambitions into reality. We assist clients set up offshore businesses in any tax-haven jurisdiction effortlessly by facilitating bespoke solutions.