Overview of RAK ICC
RAK offshore is a common name of an offshore company registered in RAK International Corporate Center (RAK ICC), an authority located in the Emirate of Ras Al Khaimah.
It is a popular and affordable type of a company for business setup in Ras Al Khaimah.
A RAK offshore company can be used for international business almost of any nature. The company cannot carry out business activity in the UAE. However, It can have a corporate account in one of UAE banks.
This type of company can be used to hold real estate property in Dubai. Forming a RAK international company is the cheapest way to do so right now.
RAK ICC Offshore Company Setup - Ras Al Khaimah
Office
Due to the fact that an offshore company cannot do business in the country of its incorporation, it is not able to rent out an office in the UAE. Instead, it will have a registered address.
It will be the address of its Agent. The address and P.O. box can be used for legal purposes, but in case you need to have a working space or invite clients to your office, we recommend renting a space in any business center across Dubai.
Your Agents specialized in business setup in Dubai can find you a suitable business center that would fit your budget.
Company activities
RAK ICC offshore is eligible to carry out almost any business activities that are not listed as “high risk” ones.
Prohibited RAK offshore activities include:
- Banking
- Insurance
- Fund management
High risk activities include:
- Trading of petroleum and crude oil
- Trading of gold and diamonds
- Gambling
- Cryptocurrencies
- Charities or non profit organizations
- Lending services
- Trusts
- High value/luxury goods trading
- Mining
- Defense industry activities
If you have doubts about your business activity, we recommend to checkinf it with your business setup consultants in Dubai.
RAK offshore company setup cost
RAK offshore company setup cost may slightly vary depending on the Agent.
Price difference usually comes due to differences in:
- Location of registered office
- Dedicated manager for your company
- Professional competence of the Agent managers
Average market rate of RAK offshore company setup is 3,000 USD. Annual renewal costs about 2,000 USD. It makes RAK offshore IBC the cheapest type of company to maintain.
RAK ICC company setup
RAK offshore company formation is done by your registered Agent.
Company formation usually takes 3-5 working days.
Upon registration you will receive:
- Certificate of incorporation
- Memorandum and Articles of incorporation
- Shares register
- Register of members
RAK offshore company cost does not include any miscellaneous documents such as certificate of incumbency. If you need it, it has to be ordered separately.
You need to prepare the following documents and details for company incorporation:
- Passport
- Recent utility bill
- Latest entry stamp to UAE copy
- Company name options
- Business activity
Registration can be done without a visit to the UAE. In this case you need to provide:
- Notarized passport copy
- Notarized specimen signature
Once the company is formed, you can come to the UAE for an offshore bank account application. Otherwise, you can open an account in another country.
Resident visas
A RAK offshore company is not eligible for UAE resident visas. Since by its nature, the company cannot carry out the business activity in the UAE, it is presumed that resident visas are not mandatory.
If you need a UAE resident visa, you should go for a free zone company formation instead of an offshore one. Free Zone companies can do business within the UAE and can provide resident visas to the owners.
Company formation in Jebel Ali free zone or any other cheaper free zone will be an option.
Renewal
RAK offshore renewal is done by the registered Agent. It is a simple process and all you need to do is transfer the funds and confirm you are still doing the same business and residing at the same address.
Upon renewal you will receive a certificate of good standing of your company. It is a formal proof that it has been renewed.
You need to show the certificate of good standing to your bank in order to prolongate the bank account as well.
Amendments
Company amendments can be done at any time. Usual amendments are:
- Change of business activity
- Change of Director
- Shares transfer
- Change of Agent
All of them can be done directly by your Agent without your personal presence.
Liquidation
If you no longer need your RAK offshore company it is advisable to liquidate it.
Liquidation takes about 1 month. It involves the following steps:
- Closure of your bank account
- Financial audit
- Returning original documents of the company
Your Agent will manage the rest of the paperwork and procedures.
Upon completion of the liquidation you will receive a Certificate of Dissolution.
Business setup consultants opinion
RAK offshore company would perfectly suit startups or large businesses who carry out their activity out of the UAE.
It is a good choice for people who want to hold UAE property under the company name.
Opening up a bank account is slightly longer for a RAK international company in comparison to free zone entities, for example. However, the success depends on the transparency of the client, not the jurisdiction the company is registered at.
In case you are looking for alternatives in the free zones, check out Ajman Media City or Umm Al Quwain Free Zone as one of the most cost efficient options.
Top questions about RAK offshore company
Yes, offshore companies have to be renewed annually. The cost of the renewal is $2,150 including Certificate of Good Standing, which serves as a formal proof of the company renewal. Usually we deliver this certificate to the bank in order to update the records and make sure the account of the company stays active.
No, offshore companies are not entitled for resident visas.
There are a few major differences:
- An offshore company is not allowed to do business in the UAE, but a free zone company can import goods and provide services in the territory of the UAE.
- An offshore company is not eligible for UAE resident visas, whereas a free zone company is usually entitled for resident visas.
- А Free Zone company may be liable for VAT if it does business in the UAE, but an offshore company never has to pay UAE VAT.
- An offshore company is the cheapest type of UAE corporate entity, and any free zone would always cost higher.
UAE is free from income tax and corporate tax. It only has import tax 5% for the goods that you bring into the country, and VAT 5% for the trading or service transactions that happen in the UAE. But since an offshore company cannot import any goods to the UAE, it is exempted from import tax too.
No, an offshore company is not liable for VAT, because its business can be carried out only outside of the UAE, thus UAE VAT does not apply. It also doesn't have to be registered with the Federal Tax Authority.
You cannot have an official lease contract for the office, but your registered address will be in Dubai. It will be the address of your Аgent. It will be mentioned in your incorporation documents and normally the Аgent would be able to receive your correspondence at that address. You can also lease a space in a business center, where you can have a desk, phone answering, meeting room and other related services.
Documents
| DOCUMENTS | PROCEDURE | |
|---|---|---|
| No visa options | Passport copy | 3-5 days - company formation |
| Latest utility bill as address proof | 1 day- urgent formation for extra 1000 AED |
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