RAK Offshore Company Formation and Bank Account Opening

The Companies are governed by Ras Al Khaimah Corporate Centre Business Companies Regulations 2016.

RAKICC offers the following benefits:

• Zero taxation.
• Confidentiality, privacy and security to the shareholders and directors of companies.
• No audit reports filing.
• No paid-up capital.
• Single or multiple directors (nominee directors are allowed)
• No limitation on capital expatriation.
• Registered address in the UAE.
• No requirement to have a rented office space.

We are RAKICC Registered Agents through our group company and offer the cheapest RAKICC Offshore company formation at the lowest cost.

1. Process of RAK Offshore Company Formation

RAKICC offers a very smooth and easy process for the RAK Offshore company registration.

Here is a step-by-step guideline explaining the registration process:

Step 1 – Place your order for RAK Offshore Company

As a starting point, you will need to place an order on our website choosing RAK Offshore company.

Timeline: Once you have placed the order, we will immediately open your file and proceed with the company formation.

Step 2 – We will prepare memorandum and articles of association

As the starting point, we reserve the proposed name of company (one name out of the three (3) names that you will provide to us in the order of priority) with RAKICC. We will in parallel prepare the memorandum and articles of association of your new company.

Timeline: The reservation of name and preparation of the above documents takes one (1) working day. We assume that you will have provided us with the required documents immediately after placing the order on our website.

Step 3 – You will sign the memorandum and articles of association

We will invite you to our offices to sign the application and memorandum and articles of association of the company. However, if you are not available in the UAE, we will guide you on the process of signing the memorandum and articles of association in the country of your residence. Once you have signed the documents in compliance with the process, you will need to send us the originals by courier.

Timeline: The signing of the memorandum and articles can be arranged in our offices on the same working day. If you wish to sign the documents in the country of your residence, the timeframe will vary on a case-by-case basis.

Step 4 – We will register your RAK Offshore company

Once the above process has been completed, we will submit the relevant documents to RAKICC for the registration of your company. RAKICC will issue the following documents once your company has been registered:

1. Certificate of incorporation.
2. Memorandum and articles of association.
3. Register of members, directors and secretary.

The share certificate and company stamps can be arranged by as additional documents based on your requirements.

Timeframe: RAKICC is likely to register your company and issue the documents within 2-3 working days.

2. Available activities for RAK Offshore

Following are examples of activities that can be carried out through offshore companies established with RAKICC:

1. International trade.
2. Consultancy services.
3. Brokerage.
4. Real estate holing in RAK and other places as permitted by the local laws.
5. Ship registration.
6. Stock market trading.
7. Holding company (buying, holding or selling shares in companies).

It is important to note that the above activities may only be carried out by the RAK Offshore company internationally and not inside the UAE, except for holding assets or real estate.

3. Documents and Information Required

The following documents/information are required by us for the formation of your company:

1. Passport copy of each shareholder, director and secretary. These can be the same individual. If the shareholder is a corporate entity, we will need the passport copies of the shareholders of the corporate entity until the individual shareholders in the chain of ownership.
2. Proof of residence for each shareholder, director and secretary in English language (i.e. utility bill).
3. At least three (3) proposed name(s) of the company.
4. A description of the activities of the company.

4. Commence Activity and Open Bank Account

You can commence the business activity of your company immediately after the company has been registered.

You can open RAK offshore company bank account in the UAE or outside. We can provide you end-to-end assistance on opening your corporate bank account as we work closely with various banks in the UAE and outside.

You will not eligible to obtain any UAE residence visas through your offshore company. For any UAE residence visa requirements, you will need to set-up either a free zone company or a mainland company in the UAE.

Companies from offshore jurisdictions

The extent to which a jurisdiction is considered as offshore varies in terms of degree and perception. Countries that are largely taken to be tax havens are quintessentially offshore jurisdictions. This includes the British Virgin Islands, Bermuda and the Cayman Islands. All the businesses incorporated in these particular jurisdictions are labeled as offshore companies. Then there are mid-shore jurisdictions like Singapore and Hong Kong that are small intermediate countries devoid of zero tax regimes with oversized financial centres.

Last but not the least, there are industrialized economies that are typically used as tax mitigation structures. These are typically inclusive of countries like the Netherlands, the United Kingdom and even Ireland. Corporations formed in Federal systems in which certain states act as offshore centres, are also termed as offshore.

The classification of offshore companies

In the past, offshore companies were classified into two separate categories. First, there were companies that enjoyed tax exemptions within their jurisdiction where they were registered as long as they did not carry out financial activities with the people of that jurisdiction. These were known as IBCs or International Business Companies. While the model was copied widely, it was mostly popularized by the British Virgin Islands. With time, the OECD launched a global initiative back in the early 2000s to ensure that ring fencing of taxes is prevented. A number of jurisdictions, such as Gibraltar and the British Virgin Islands, repealed their International Business Companies Legislation. However, IBCs are still formed in several jurisdictions, including Panama and Anguilla.

Apart from IBCs, some countries continue to offer tax regimes that allow the same benefits. As long as the company conducts all of its activities overseas, and does not repatriate its profits, it will not be taxed in its home jurisdiction. Here, the term ‘offshore jurisdiction’ is used to define the home jurisdiction, and all such companies are considered as offshore companies.

On the other hand, there are several countries, including Bermuda, the Cayman Islands and the British Virgin Islands that do not impose any taxes on companies. This makes them de facto tax exempt.

The basic characteristics of offshore companies

While it is normal for all offshore companies formations in UAE to vary to a degree, depending upon the corporate laws that prevail within the chosen jurisdiction, there are certain core characteristics associated with all offshore companies. These include:

• The regulation of corporate activities carried out by the companies is lighter than those in developed countries
• These enjoy tax exemptions in their home jurisdiction
• Business flexibility is promoted by designing corporate regimes

Why are offshore companies formed?

There are a range of commercial and private purposes for which offshore companies are formed. Some of these are economically beneficial and legitimate, but there are those that are even criminal in nature. The media often makes allegations about offshore companies being formed for white collar crimes, fraud, tax evasion and money laundering. However, offshore company formations are used in various commercial transactions from listing vehicles to joint ventures and generic holding companies. It is also rather common for these to be used in relation to private wealth for tax mitigation and privacy purposes.

Before the signing of the MOU, it was not possible for any company incorporated outside Dubai to own any real estate property in Dubai. Typically, it has been a norm for overseas investors to set-up offshore companies with Jebel Ali Free Zone for the ownership of real estate properties in Dubai. Now, the investors can opt for setting up RAK offshore companies (at much lower incorporation and maintenance costs) instead of Jebel Ali offshore companies.

If you are interested in buying property in Dubai through RAK offshore entity, RAK ICC will issue a no objection certificate for you to present before the Dubai Land Department to register property under the name of your company.

RAK ICC makes continuous efforts of addressing the needs of its clients and business partners by offering new services, products and collaborations with authorities and firms.
We trust our clients will be in a position to take advantage of this great opportunity with seamless professional assistance from our team at InZone.