RAK International Corporate Center
RAK offshore company formation
PROS OF RAK offshore company
— Low cost for the registration and renewal
— Various business activities (allowed to combine many unrelated business activities)
— Personal presence for registration is not required
— Easy maintenance of the company
CONS OF RAK offshore company
— Not allowed doing business in the UAE
— Resident visas are not applicable
— Longer time and more requirements to open a bank account
RAK ICC Review
RAK ICC is a corporate registry, where RAK International Business Companies, of Offshore companies in other words, are incorporated. RAK ICC complies with international standards and practices and is recognized internationally.
RAK ICC is one of the few places in UAE where you can register an Offshore company. This type of company allows you to carry out the business out of UAE anywhere in the world, but have a UAE bank account and official place of registration. Offshore company is a very convenient tool for those who carry out international business.
Companies are incorporated through registered agents, who provide all services of setup and maintenance to the clients. Your Agent can assist you in remote company registration, but you will have to come to UAE for bank account application.
Renewals are done completely remotely and do not require the personal presence of the shareholders.
Keep in mind that if you want to get a UAE resident visa or carry out your business within the country, RAK IBC won’t suit you. Instead, you will need to form a Free Zone company.
If you have an Offshore company in another jurisdiction and want to move it to RAK, it is easy to do it by a procedure called Change of Domicile.
At the moment RAK offers registration of companies limited by shares, but in the near future they are planning to launch a few new types such as Unlimited companies, Companies limited by guarantee or Segregated portfolio companies. There is also Wills and probate registry as a part of partnership with Dubai International Financial Center (DIFC), famous for its courts where expatriates can register their wills according to Common law rather than Shariah law. In our opinion RAK IBC is a good choice for those who try UAE incorporation for the first time and do not need their company to have local presence.
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RAK OFFSHORE COMPANY COSTS
NO VISA COMPANY
| LICENSE TYPE | VISAS INCLUDED | TOTAL COST | |
|---|---|---|---|
| RAK ICC Offshore company | no visa | AED 11,340 $3,150 | download breakdown |
DOCUMENTS
DOCUMENTS
PROCEDURE
NO VISA OPTIONS
- - Passport copy
- - Latest utility bill as address proof
- 3-5 days- company formation
- 1 day- urgent formation for extra 1000 AED
Top questions about RAK offshore company
Can I rent an office of my RAK offshore company in Dubai?
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 agent. It will be mentioned in your incorporation documents and normally the agent 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.
Does offshore company have to register with Federal Tax Authority and pay VAT?
No, offshore company is not liable for VAT, because it's 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 Federal Tax Authority.
Should I pay any other TAX?
UAE is free from income tax and corporate tax. It has only import tax 5% for the goods that you bring into the country, and VAT 5% for the trading or service transactions that happened in UAE. But since an offshore company cannot import any goods to UAE, it is exempted from import tax too.
What is the difference between offshore and free zone company?
There are a few major differences:
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.
Offshore company is not eligible for UAE resident visas, whereas a free zone company is usually entitled for resident visas.
Free Zone company may be liable for VAT if it does business in the UAE, but offshore company never has to pay UAE VAT.
Offshore company is the cheapest type of UAE corporate entity, and any free zone would always cost higher.
Should I renew my company? When? How much does it cost?
Yes, offshore company has 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.
Can I get a resident visa if I have an offshore company?
No, offshore company is not entitled for resident visas.
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