UAE/RAK Offsshore Formation


UAE/RAK Company Formation

Ras Al Khaimah is situated to the east of Arabian Gulf and is an emirate of UAE. Ras Al Khaimah possess of total 3% of UAE.

International Companies are welcomed in Ras Al Khaimah and is considered to be the most common way to avoid tax liabilities. Basically, no personal presence is needed to incorporate a business in RAK. Below are eminent features of the International Company in RAK:

  • Banking Sector
  • International Companies are allowed to open a bank account anywhere in the UAE but personal attendance is needed in order to open a bank account in RAK or anywhere in UAE. However, if company is not an International Company then there is permission for them to open bank account, around the globe. We appreciate you contacting us to know more.
  • Free-Tax
  • RAK is the free tax emirate of UAE and International Companies are also eligible to enjoy from this and that there is no need for any individual and commercial tax in RAK.
  • Privacy
  • RAK respects privacy and there will be no director or member of a company, whose name will be included in public registry for open access. 
  • General Reputation 
  • RAK does not have overseas neither have any dependent territorial obligations and hence it is a white-listed corporate location.

Requirements for Company Incorporation

It takes about two weeks to incorporate a global company in Ras Al Khaimah. Shorty, after approval, certificate of incorporation gets issued. Thus, we can say that incorporation process is quite vigorous in RAK.

Share Capital

There is standardised share capital of USD 2,722 or AED 10,000. But, no lower limit upon the share capital, even it upon the discretion of company that in what denomination does it want to transact i.e. either in USD or AED.

Registered Office of the Company and Agent

An International Company is required to have registered office of the company and agent in RAK.

Director

There is a minimum requirement of one director to be appointed and no requirement for the director to be resident of UAE. Corporate directors are also allowed to be appointed. Character of the director is never revealed publicly.

Secretary

There is a minimum requirement of one secretary to be appointed and no requirement for the director to be resident of UAE. There is the permission to appoint corporate secretary.

Shareholder

There should be minimum of one shareholder and corporate shareholders are also permitted. There is also the permission, for director and shareholder to be same person.

Confidentiality

There will never be any communal revelation of members or directors character. If for any case, disclosure is required then such disclosure would only be facilitated with the court’s permission.

Taxation

Being a “tax- or duty-free state” neither personal nor any commercial tax will be applicable in the Ras Al Khaimah.

Accounts of the Company and Audit

It is compulsory for the company to maintain its accounts but no need to audit them.

Tax Treaty

There are total of 66 double tax treaties RAK went through. However, such treaties are valid on Free Zone Companies and the offshore companies are excused from the provisions of these double tax treaties.

Bank Accounts

Opening a bank account in UAE is the vital part of services and we will provide full assistance in this matter. To open bank account, personal presence of the director or signatory is required, and it normally take seven days to process the application and within this time frame, bank account is opened in UAE. But, UAE banks does not offer credit or debit card services to its commercial clients. However, if you need to open bank account outside UAE, then we will also be able to help you and offer you our full support. Benefit of opening bank account outside of UAE is that; no personal visit is required, and credit/debit card facility could be availed by the corporate customers. We appreciate your visit to our offshore banking section, to get inside of more.

Incorporation Advantages

Following are main advantages in RAK:

  • Privacy and confidentiality are maintained.
  • There is no accounting and tax liability.
  • Non-UAE residents are allowed to purchase and hold property in UAE free zones.
  • UAE/RAK holds good business reputation.

Disadvantages

International companies in RAK are not allowed to operate their business in UAE.

Incorporation Fee

International companies in RAK are charged with annual licence and incorporation fee. For more details, please visit fee section to know more.

Difference between Tax Heavens and Ras Al Khaimah

Below are distinctions between Ras Al Khaimah and tax heavens:

  • RAK is not black-listed by any internationally regulatory authorities such as FATF or OECD.
  • UAE/RAK is not the signatory of Tax Information Exchange Agreement and in future, it seems quite uncertain that UAE or RAK shall ever enter into any such agreement. On the contrary, tax heaven countries are willing to exchange information with international monetary and financial authorities such as FATF.
  • Tax heaven countries are mostly dependent territorial entity and they either rely on USA or UK. Whereas UAE maintains its sovereign status and this independency increases the reliability of UAE and RAK.
  • UAE/RAK do not hold the standing of tax heaven and this IS the reason that UAE companies are always welcome to business in Europe or any other continent of the world. Nevertheless, tax heaven countries are usually restricted from such overseas business expansion.