THE MAIN CHARACTERISTICS OF RAK COMPANY

General

Type of entity International Company Limited by Shares
Type of law Federal/Sharia
Political Stability Excellent
Disclosure of Beneficial Owner Yes
Migration of Domicile Permitted Yes
Corporate Taxation Nil
Language of Name English or Arabic

Corporate Requirements

Minimum Number of Shareholders One
Minimum Number of Directors One
Corporate Directors Permitted Yes
Minimum Usual Authorised Capital AED 1,000
Fully Paid Yes

Local Requirements

Local Partner (UAE National or Company owned by UAE National) No
Registered Office/Agent Yes
Local Directors No
Local Meeting No
Government Register of Directors Yes
Government Register of Shareholders Yes
Local Auditor No

Annual Requirements

Annual Return No
Submit Accounts Yes

Recurring Government Costs

Minimum Annual Tax/Licence Fee AED 2,000
Annual Return Filing Fee AED 1,500

Presentation of jurisdiction

Ras Al-Khaimah (RAK), is one of the seven United Arab Emirates. And even though the most well-known Emirate is Dubai, 100 km from it, RAK stands out as the fastest growing free trade zone in the area.

A major interest has gone towards the financial and investment sector in Ras Al-Khaimah, and reasons lies in its financial structure and the features of RAX taxation:

  • No taxes for international, free zone or mainland companies, or individuals.
  • The Ras Al-Khaimah International Company (RAK-IC) was launched in 2006 and since that has helped many companies improve their financial structure, optimizing it, and providing tax effective and extensive corporate solutions.
  • It has a long and valuable experience helping companies that deal optimizing the financial structure of their services, i.e.
  • International trading.
  • Ownership of intellectual property or real estate.
  • Asset protection or if it is a global holding company.
  • The only prerequisite is to run all operations outside of the UAE.

Given that RAK International Company services are broader than those mentioned above…

Who should choose RAK Company and for which activities?

Who?

  • Entrepreneurs;
  • Consultants;
  • Stockbrokers;
  • Global Holding Companies.

Which activities?

  • International trade;
  • Inheritance tax purposes;
  • Holding of intellectual property rights (IP);
  • Ownership of movable and immovable property;
  • E-Commerce;
  • Asset protection.

INTEREST OF THE JURISDICTION OF RAK

Advantages of a company in RAK:

  • No corporate tax – 0%.
  • No corporate, personal, sales or withholding taxes applied in the UAE.
  • Absolute confidentiality.
  • 100% foreign ownership.
  • Double taxation treaty network.
  • No annual reporting requirements.
  • No Accounting.
  • No restrictions on repatriation of profits and capital.
  • Absence of Exchange controls.
  • Flexibility to act as the global holding company for all international activities.

Disadvantages of a company in RAK:

  • Lack of public registers can hinder proving ownership.

How to proceed

To incorporate or purchase a company the following documentation should be provided:

  • A completed application form signed by the company or by the representative;
  • Copy of valid passport;
  • A personal bill, which is less than 3 months old from the date of the application;
  • Payment of our fees.

Note: additional documents may be required depending on the certain offshore bank.

Set-up time: From the moment, we are in possession of all required documents:

  • Incorporation of a company or purchase of an existing company: 3 days;
  • Delivery of the original company documents: 15 days;
  • Offshore Bank: offshore bank account opening: 3 weeks.