Ras Al Khaimah International Company (RAK IC) Formation

One of several independent federal Emirates, Ras Al Khaimah (RAK) is just one which makes up the United Arab Emirates (UAE). As a premier investment authority, RAK, gives potential investors, individuals and companies numerous benefits in setting up a RAK International Company.

The non-resident IC, is the most popular option for foreign companies which seek to establish a presence in the Middle East. Along with asset protection, confidentiality of financial account and access to benefits form tax free schemes, it also offers a political stable environment, financial solidity with minimal risk.

In a near to zero crime area, it provides one of the perfect area links between the East and the West.

  • Modern legislative framework
  • Easy incorporation and filing requirements
  • Double Taxation Avoidance Agreements
  • World Class banking and telecommunications facilitates
  • No signed treatise enabling foreign exchange of information
  • UAE not on any tax haven “blacklists”
  • No restrictions on capital repatriation
  • No restrictions on profit transfer
  • No double taxation agreements
  • No exchange controls
  • Confidentiality
  • Not subject to EU or OECD regulations
  • Shipping Management Companies
  • Commission Agents
  • Professional Services
  • Investments and Joint Investment
  • General Trading
  • E-Commerce or Internet Trading
  • Property Ownership Company
  • Holding Companies
  • Forex Company
  • Stockbroker

A RAK IC may only operate within the approved activities which are detailed in the Official Memorandum. Companies are prohibited from trading in the UAE Market, a local agent or distributor has to undertake business and transactions in the UAE Market.

Licenses are required for various business undertakings, these permits are broken down into the following categories; Industrial, General Trading, Commercial, Consultancy or Services. Many times more than one license is required. These categories are broken down into small business activities.

Licenses are time-bases permits, which authorise the trader to conduct business in the RAK Zone for a specified time frame. Each license comes with a one year validity, which commences from the license issue date. For license renewals, companies are required to submit their annual audit reports.

License rates are not fixed and are subject to revisions. Licensed companies are informed of the revisions when renewing their business licenses.

The requirements for the formation of a RAK IC are to select a name for the company and have it approved by the RAK Fee Zone Authority. Notarised (by the Notary Public in the UAE Courts) the proposed Memorandum which includes share capital, share value, power of Directors and object of the company.

Confirmation of share capital payments in cash or kind. The Board Resolution of each corporate shareholder approving the taking up of share in the new company, this needs to be n outraised and apostilled and legalised at the UAE Embassy.
All details of the Company Auditors, along with a letter confirming their appointment, if applicable.
A bank Certificate confirming deposit of the minimum share capital.
Name and address of approved registered agent and approval form the RAK free Zone Authority to provide a registered agent service. All the name of the individuals who are authorised to sign on behalf of the company.

Once approval has been granted, the company shall be entered in the commercial Register and the licence shall be issued by the RAK Free Zone Authority.
A RAK IC conducting banking or insurance operations outside of the RAK Free Zone and the UAE must have obtained permission and have been granted the appropriate licensing from authorities within the relevant jurisdiction.

A few of the requirements are the proof of physical addresses and certified copies of valid passports of Directors and Shareholders. These need to be certified by either a Notary Public, Bank or by the issuing country’s Embassy. A Character reference may also be required.

Overview
Company TypeIC - Limited by Shares
Country Law

Federal and Sharia

As well as Independent System for Free Zone

Company Law

International Companies Regulations 2006

Registered Agents Regulations 2006

RAK Offshore Regulations 2006

Registered Office RequiredYes
Local Registered Agent RequiredYes
Shelf Companies PermittedNo
Migration Of DomicileYes
Average Time To Form Company1 to 2 Business Working Weeks
Government Fees
Minimum Government Formation ChargeAED 2,500 (Excluding Taxation or any Licensing Fees)
Recurring Minimum Annual Company License FeeAED 2,000 (Excluding Taxation or any Licensing Fees)
Annual Return Filing FeeAED 1,500
Corporate Tax
Corporation TaxNo
Access to Double Taxation TreatiesNone
Directors
Minimum Required Directors1
Local Director RequiredNo
Records PublicNo - Disclosure to Government
Board Meeting LocationAnywhere in the World except RAK
Corporate Directors PermittedYes
Privacy - Publicly Available RecordsNo

There is a minimum requirement of one Director, of which may be the only shareholder. Directors can be either individuals or corporate bodies of any nationality and resident of any country.

Company Secretary
Secretary RequiredYes
Local or Qualified PositionYes - Natural Person or Corporate Body
Share Capital
Standard CurrencyDirham
Permitted Share CurrencyAny
Minimum Paid Up SharesFully Paid
Usual AuthorisedDhs. 1,000 (Minimum)
Bearer Shares PermittedYes
No Par Value Shares PermittedNo
Shareholders
Minimum Number Of Shareholders1 Shareholder
Corporate Shareholdes PermittedYes
Meeting LocationsCan be held anywhere in the world, except RAK
Privacy - Publicly Available RecordsNo
Company Accounts
Requirements To PrepareYes
Audit RequiredNo (Unless Licensing is required Audit needs to be submitted)
Keep Financial RecordsYes
Requirement To File AccountsYes
Requirement to File Annual ReturnNo
Accounts Publicly AccessibleNo

Tax benefits of a RAK IC are No tax on personal income, corporate earnings, capital gains, sales, withholding. No value added or import or export Tax. 100& capital and profit repatriation. Double Taxation agreement and bilateral investment treaties available.

The only ICs which are required to pay taxes are petrochemical, oil and gas companies and branch offices of foreign banks.

RAK - UAE Facts
Location

Located in the southeast end of

the Arabian Peninsula on the Persian Gulf

Ras al-Khaimah is a member of the United Arab Emirates

Size

Approximate area of RAK 1,684 sq. km

Approximate area of UAE 83,600 sq. km

Population

Approximately 263,217 RAK

Approximately 9,346,129 UAE

Languages SpokenMain and Official Language is Arabic
CurrencyUAE dirham (AED)
PoliticsFederation of 7 Hereditary Monarchies
Economy

Main Industries for RAK:

Building Materials

Pharmaceutical Industries

Services and Financial Sector

Agriculture and Fishing

Transport

Air

Road - Driving on the Right

Boat

Time ZoneGST (UTC+4)
International Dialling Code+971
Internet TLD.ae

Contact us today to enquire about the Cost of Formation or if you have further questions regarding the application process.

Ras Al Khaimah International Company (IBC) Formation Enquiry

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