Services

Ras Al Khaimah International Corporate Centre (RAK ICC)

In the realm of international business, the RAK ICC or the Ras Al Khaimah International Corporate Centre has emerged as the gold standard for offshore company formation. Located only 45 minutes from Dubai, RAK provides a cost-efficient, safe, and compliant environment for foreign investors. 

Xpert Advisory manages the complete lifecycle of end-to-end legalization. We efficiently bridge the long gap between international issuing bodies and the government authorities of the United Arab Emirates, making sure your crucial records are properly processed with pace, security, and most importantly, absolute confidentiality.

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Ras Al Khaimah International Corporate Centre: What is It?

Ras Al Khaimah International Corporate Centre (RAK ICC) is the lone Corporate Registry for IBCs (International Business Companies). It was set up following the Emiri Decree No. 12 of 2015, which consolidated 2 prior registries: RAK International Companies (previously a part of the RAK Free Trade Zone) & RAK Offshore (previously a part of the RAK Investment Authority).

As opposed to typical Free Zone companies that function within the United Arab Emirates, companies in the RAK OCC are mainly “Offshore” entities. They are specifically designed for foreign businesses, holding assets, as well as global investments.

The Legal Framework of RAK ICC: Common Law

One of the most prominently distinctive benefits of the RAK ICC is that it functions as per the regulations of Common Law. “The RAK ICC Business Companies Regulation 2018” are as per the BVI’s (British Virgin Islands) international company regime. This offers a familiar regulatory environment for foreign investors, thereby making sure that all disputes get resolved leveraging global best practices as opposed to the local Civil Law that is Sharia-based. 

The Strategic Advantages of Choosing RAK ICC

Investors opt for RAK ICC for its perfect blend of reputation, flexibility and most importantly, cost-efficiency. Here is a detailed look at some of the most prominent benefits that RAK ICC offers: 

  • 100% Foreign Ownership: Zero requirement for a local UAE sponsor. You get complete control of your business entity. 
  • 0% Corporate Tax: Companies in the RAK ICC are typically not subject to the corporate tax of UAE (on the condition that they do not indulge in business activities within the UAE mainland).
  • Zero Paid-Up Capital: Depositing share capital in a bank for incorporation is not compulsory. The minimum amount of authorized shares can be as low as a single share.
  • Privacy & Confidentiality: The Free Zone does not have a public registry. All details regarding shareholders or directors are submitted to the registry but are not directly accessible to the common public, ensuring solid privacy. 
  • Cost-Efficiency: Setup as well as renewal fees in the RAK ICC Free Zone are much less as compared to the jurisdictions in Dubai or Abu Dhabi. 
  • Global Banking Accessibility: Entities in the RAK ICC are recognized by fiscal institutions globally as well as within the UAE for corporate bank account opening.

RAK ICC Business Structures

RAK ICC offers an extensive range of corporate structures to suit particular business requirements. Here is a detailed look at the different types of companies you can form in the RAK ICC Free Zone:

An IBC is the most common corporate structure. It facilitates thresholds to carry out foreign business transactions, trade, as well as consultancy services worldwide. 

Designed specifically to “ring-fence” investments, holding companies can hold shares in the Free Zones of the UAE or Mainland companies, real estate, as well as international stocks. 

SPVs are leveraged to isolate both fiscal as well as legal risks. SPVs are highly ideal for securitizations, financing, fiscal transactions, and assets’ fractional ownerships. If any project does not succeed, the liability is restricted to the SPV, safeguarding the assets of the parent company. 

A tactical vehicle to centralize patents, copyrights, as well as trademarks. By having IP in a RAK ICC entity, you get the option to license it out to different subsidiaries, making royalty management as well as tax planning simplified. 

Also referred to as a Protected Cell Company, an SPC aids a single company to make distinct portfolios or cells. The assets & liabilities of a single cell are completely separate legally from those of different cells. This form of business structure is utilized widely by insurance setups and investment funds.

The “Premium Product”: Obtaining UAE Residency

A typical RAK ICC Offshore company does not entitle one to the residency visa in the UAE or a physical office space. However, the Free Zone has collaborated with the RAKEZ (Ras Al Khaimah Economic Zone) to provide the “Premium Product.”

This type of dual-structure facilitates you to: 

    1. Set up a RAK ICC Offshore company for the purpose of asset holding or asset protection.
    2. Setting up a subsidiary in RAKEZ (Free Zone). 
  • The Outcome: You get to enjoy the advantages of offshore structure while getting a UAE Residency Visa as well as a physical office space or flexi desk through the subsidiary. 

Ask the team of professionals at Xpert Advisory whether the Premium Product aligns well with your residency objectives. 

The Process of RAK ICC Company Registration

RAK ICC does not accept individuals’ direction applications. Hence, one must appoint a renowned registered agent like Xpert Advisory to manage the incorporation, compliance, as well as annual renewals. Here is a brief overview of the complex procedure:

We authenticate your business activity in addition to checking the availability of your preferred business name. Words such as “Bank,” “Insurance,” “Royal,” etc., are restricted. The chosen business name must end with a suffix such as “Ltd.”

We prepare all the necessary KYC (Know Your Customer) documents, including passport copies, residence proof, bank reference letters, CV/resumes, etc., to comply with AML regulations. 

Xpert Advisory submits the filled application to the authoritative registrar. RAK ICC is very efficient; upon approval, the Incorporation Certificate, MOA (Memorandum of Association), AOA (Articles of Association), as well as the Share Registers are officially issued. The procedure can take around 3 to 5 working days.

Post incorporation, we aid in the preparation of the corporate file to apply for a new UAE bank account or international banks.

Wills & Probate Registry

For investors who are not Muslims, succession of assets is a significant concern. RAK ICC has partnered up with DIFC Wills Service Centre. This permits shareholders in RAK ICC to officially register a Will as per the Common Law principles, making sure that their shares as well as assets are distributed as per their wishes, as opposed to the standard laws of Sharia inheritance. 

Re-Domiciliation: Moving Your Business to RAK

If an individual already has a pre-existing offshore company in jurisdictions such as the BVI, Cayman Island, or Panama, RAK ICC permits for continuation (also referred to as re-domiciliation). 

One can transfer their existing company to the RAK ICC Free Zone without needing to liquidate it. This facilitates in preserving the history of the company, pre-existing bank accounts, as well as contracts while moving you to a jurisdiction that is transparent and white-listed. 

Why Choose Xpert Advisory for Company Formation in RAK ICC

Setting up a company in the RAK ICC Free Zone demands more than complex paperwork; it demands a tactical understanding of all your long-term objectives. As your dedicated partner and corporate service provider, we ensure: 

Seamless Compliance

We manage the ESR notifications and all other crucial filings. 

 

End-to-End Support

 Right from your corporate structure’s initial sitemap to opening a bank account and doing annual renewals, we remain with you every step of the way.

Tailored Solutions

Whether you require a regular IBC or a complicated SBC (Segregated Portfolio Company), we structure it properly from the first day. 

 

Ready to give structure to your business vision? Partner with us to ensure all your assets are safe and your business venture remains compliant with a setup in RAK ICC. Connect with us today for a free consultation to proceed with your RAK ICC business plans!

Frequently Asked Questions

1. Can a company in the RAK ICC region do business within the United Arab Emirates?

Typically, no. A typical RAK ICC company is deemed an “offshore” entity and is not allowed to operate directly within the UAE Mainland. However, it has the option to own shares within UAE companies and hold real estate in the UAE.

No, a physical office space is not required in the RAK ICC Free Zone. The registered office of the company will be your Registered Agent’s office (Xpert Advisory). If you need a workspace, the famous “Premium Product” collaboration with RAKEZ is the suggested route.

Once every document is submitted and the name gets approved, the process of incorporation is very swift, generally taking around 3 to 5 working days.