Why a RAK Company?
Zero percent tax on corporate and personal income
Extremely private: Beneficial owner information is not provided to RAKIA / government and therefore cannot be disclosed by them
Shareholders, directors and officers can reside anywhere in the world
Double Taxation Avoidance Agreements with 47+ countries
A minimum requirement of one director and one shareholder
No requirement to file annual reports or financial returns
IBC's can conduct business internationally, and own real estate in the UAE
Not tainted by negative offshore associations: The UAE is NOT on any OECD, FAFT or EU blacklist
RAK Company Key Facts
RAK Company Tax Information
Ras Al Khaimah is a lucrative offshore jurisdiction to incorporate an offshore company. Its has been named the “hidden gem” of offshore territories for its favourable tax regime. Ras Al Khaimah is a tax neutral jurisdiction whereby companies are neither liable to pay corporation tax, income tax, stamp duty tax, asset tax, gift tax or exchange controls on any corporate or personal income derived from outside of the jurisdiction. Ras Al Khaimah offshore companies therefore benefit from the highest level of tax efficiency.
Type of Shares
Registered shares, preference shares, redeemable shares and shares with or without voting rights attached. Bearer shares are not permitted.
Corporate or individual
Must the Director/ Manager be resident?
Minimum paid up capital
No paid up capital requirement.
Restrictions on trade
An International Business Company in RAK can conduct business internationally, own real estate in the UAE, be used as a trading vehicle, maintain bank accounts and is not limited by trade restrictions.
Type of Company
Location of meetings
All RAK Offshore IBCs should maintain a local registered agent approved by the local authorities.
United Arab Emirates Dirham (AED).
Arabic is the official language though English is the most spoken language.
Name Restrictions of the Company
Any name that is too identical or similar to an existing name. Any name of a major international corporation where written consent to incorporate is not available. Any name that contains a registered trademark not owned by the company. Any name that the registrar may find undesirable, offensive or misleading.
Ras Al Khaimah offshore companies benefit from superior levels of data privacy and protection where information pertaining to company operation is kept far away from public access. Ras Al Khaimah offshore companies are not obligated to file annual tax returns or disclose the company’s financial records publicly.
The names of director(s) and shareholder(s) of Ras Al Khaimah offshore companies are not publicly accessible, furthermore offshore companies are able to appoint nominee Director(s) and shareholder(s) to protect and anonymise the company’s ownership.
Offshore Universe is further able to advise as to the potential benefits of utilising nominee services in-conjunction with a RAK IBC for privacy purposes.
RAK Background Information
Ras Al Khaimah is one of the fastest growing financial hubs in the Middle Eastern region, with a 45 minute drive from Dubai. The jurisdiction has been successful in diversifying its economy to the manufacturing and financial service sectors, slowing weaning itself from oil dependency. As a result, Ras Al Khaimah has been able to insulate its economy from current oil pries slumps.
Since RAK has been one of the lesser endowed Middle Eastern territories with natural minerals, the emirate has concentrated on developing its manufacturing and industrial sectors. By opening the UAE’s first cement company in the early 1970s RAK is now the UAE’s largest producer of cement which has helped boost the domestic economy.
Investment promotion has been overseen by the Crown Prince Sheikh Saud Bin Saqr Al Quasimi through implementing investment friendly regulations. The business friendly policies implemented by the local government has further helped attract foreign direct investment. For example, the government consistently invests heavily on facilities and infrastructures, especially those that are related to the tourism sector.
Ras Al Khaimah’s economic growth has been attributed to its beneficial free-zone establishment in 2000 which has enabled 100% foreign ownership. This has spurred an increase in the level of foreign direct investment into the jurisdiction especially within the real estate sector.
Ras Al Khaimah enjoys one of the strongest telecommunications systems. The leading company in the industry, Etisalata is 60% stake-holed by the government and is heavily invested in.
The opening of the Emirates Highway in 2005 has significantly improved transport connections across Ras Al Khaimah. Moreover, there are over 50 daily commercial flights from European cities to Ras Al Khaimah supplied by all major European Airlines as well as the world renowned Emirates Airline.
Ras Al Khaimah enjoys the second largest banking sector in the Gulf Co-operation Council Council with total assets worth $88 billion dollars. Moreover, offshore company formations and the offshore industry in general has significantly contributed to the economy’s financial industry, boosting the level of business activity conducted.
Ras Al Khaimah has a two tiered political structure consisting of the UAE federal government and local government of each emirate state. RAK is the seventh and last emirate to join the UAE in 1972. RAK is governed as a federation with an absolute monarchy. The late His Highness Sheikh Saqr Al Qasimi, ruled the northern emirate of Ras Al Khaimah for more than 60 years under stable governing. The Sheikh is considered as the world’s longest serving monarch.
Consistent with the seven other emirates, Ras Al Khaimah constitutionally follows Islamic Sharia Law from the Holy Q’uran as the basis of its judicial rulings.
Even in the midst of the economic crisis, Ras Al Khaimah’s GDP growth between 2007 to 2008 was at 8% as a result of the government’s gear towards economically friendly policies. RAK enjoys a lower cost of living cost of living by around 30% compared to other Emirate states.
The prevailing legislation governing company operation is the RAK International Companies Regulations, 2006 and its amended version of 2012.
Legislation governing a IBC’s operation is considered highly flexible, reducing bureaucracy and proving companies with great autonomy. The RAK Investment Authority (RAKIA) is responsible for overseeing and regulating offshore company conduct and is regarded highly accommodating and lax in their regulation.
RAK Banking Services
- High-level confidentiality – Banking privacy is reinstated by UAE statutes. Authorities have access to bank information in criminal tax matters where a court order is present only.
- Variety of payment options – With accounts in several currencies, internet banking, international wire transfers, debit and credit cards, prepaid cards, checkbooks, merchant accounts, brokerage accounts UAE bank account holders enjoy great payment flexibility.
- No exchange controls whatsoever – In RAK, Dubai or indeed any of the UAE. Funds can be easily moved in and out of any local or foreign bank account.
- Full operative control– Secure Internet-banking facilities, with no need to install specific software on computers or other devices.
- Wide choice of payment cards
- No personal visits to the Emirates is required to open a RAK bank account.
- Free account application – The bank charges no fee for account opening.
Bank Account Requirements:
✓ Certified copy of passport
✓ Bank reference from a bank, which knows the person over 2 years
✓ Professional reference from an individual who knows the person over 2 years. If you do not have a relationships with a professional, the bank needs a second bank reference from another bank.
✓ Proof of address (original utility bill with individual’s name and residential address).