Business Setup in RAK Offshore
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How Much Does Business Setup In UAE Cost?
It depends on several factors, such as your business activity, Free zone or Mainland, Number of Visas required, and shareholders . Based on our 4 years of experience in business setup in Dubai, we have developed a Business Setup Cost Calculator to give you answer.
What is RAKICC?
The RAK International Corporate Centre (RAKICC) is the official government corporate registry in Ras Al Khaimah, United Arab Emirates, specializing in offshore business setup in Ras Al Khaimah. As a key authority in the registration and formation of international business and offshore companies in the UAE, RAKICC provides a comprehensive suite of registration services designed for offshore business incorporation.
Established by Decree No. 12 of 2015 and later amended by Decree No. 4 of 2016, RAKICC merged the RAK International Companies (previously part of RAK Free Trade Zone) and RAK Offshore (formerly under RAK Investment Authority). Known for its modern and world-class services, RAKICC follows international best practices, solidifying its position as a leading entity for offshore business setup in Ras Al Khaimah.
What Are the Benefits of an RAK Offshore Company in the UAE?
Offshore business setup in Ras Al Khaimah offers a range of benefits, including:
- Bank Account Opening: Offshore companies can open bank accounts in their own name.
- Property Ownership: Own real estate in Ras Al Khaimah and Dubai through an RAK offshore company.
- 100% Foreign Ownership: Enjoy full foreign ownership without the need for a local partner.
- Share Ownership: RAK offshore companies can hold shares in both mainland and free zone companies within the UAE.
- Tax Benefits: Offshore companies are exempt from taxes on income and profits.
- Subsidiary Establishment: Set up subsidiaries within the RAK Economic Zone.
- Legislative Framework: RAKICC offers a modern, robust legislative framework for secure offshore business setup.
- Compliance Procedures: Stringent compliance measures ensure the integrity of offshore operations.
What is RAK Offshore or RAK IBC?
Offshore business setup in Ras Al Khaimah, commonly known as RAK IBC (International Business Company), refers to an offshore company registered with RAKICC in Ras Al Khaimah. Before the 2016 merger of corporate registries, RAK Offshore functioned independently under the RAK Investment Authority.
Free Zone Business Setup
Mainland Business Setup
Run your business anywhere in the UAE without any limitations.
Offshore Business Setup
Set up your offshore company and operate outside the UAE with a corporate bank account.
Step 1
Effortless documentation for International entrepreneurs.
Step 2
Selecting the ideal license for your business requirements.
Step 3
Acquiring Employment Entry Permits and Residence Visas for Staff.
Step 4
Establishing a Corporate Bank Account in the UAE.
On August 24, 2020, the UAE Government issued Cabinet Decision No. (58) of 2020 concerning beneficial owner procedures (the “Cabinet Decision”), which applies to offshore business setups in Ras Al Khaimah (RAK). This decision requires RAK offshore companies to declare Ultimate Beneficial Owners (UBOs) to the Ras-Al-Khaimah International Corporate Centre (RAK ICC).
Failure to submit UBO information can result in penalties of up to AED 100,000 for RAK ICC companies. Below, we address essential questions regarding UBO declarations for RAK offshore companies.
Who is a UBO?
- A UBO is an individual who ultimately benefits from a company.
- They possess direct or indirect control through ownership of at least 25% of the company’s shares and voting rights.
- UBOs can appoint or remove directors/managers and exert significant influence over the company.
What does the UBO declaration consist of?
- Names of directors/managers acting under the direction of another person.
- Details about partners and shareholders, including their voting rights and the date they acquired ownership.
Who must declare UBOs?
- All companies in the UAE, whether on the mainland, in free zones, or offshore, must declare UBO information.
- RAK offshore companies must disclose UBO details to RAK ICC, even if their operations are outside the UAE.
Where to file UBO details?
- UBO information must be submitted to the relevant offshore registration authority, which, for RAK offshore companies, is the RAK ICC.
What to include in the UBO declaration?
- Identification details: full name, nationality, date/place of birth, and address.
- Identity card details: country of issuance, date of issuance, and expiration.
- The date and reason for becoming a UBO.
- Date of ceasing to be a UBO, if applicable.
- Any changes to UBO, shareholder, or director details must be reported to RAK ICC within 15 days.
Importance of UBO disclosure
- Transparency and Accountability: The Cabinet Decision aims to enhance transparency and accountability in UAE business transactions.
- Prevention of Financial Crimes: Helps prevent crimes such as money laundering by identifying legitimate beneficiaries.
- Legal Compliance: Ensures compliance with UAE laws, safeguarding the UAE economy.
How can Agility Global assist? Agility Global provides expert assistance with offshore business setup in Ras Al Khaimah and ensures compliance with UBO declaration requirements. Our legal team specializes in UBO laws and will help you submit UBO information on time.
Contact us for assistance with your RAK ICC company’s UBO filing.
Understanding the UAE Economic Substance Regulations (ESR):
The UAE has adopted the Economic Substance Regulations (ESR) in line with the OECD and European Union Code of Conduct Group on Business Taxation. These regulations ensure the UAE complies with international tax cooperation commitments, earning the country a place on the European Union’s “whitelist,” a status held by only a few offshore jurisdictions.
Compliance Requirements:
As per UAE Cabinet of Ministers Resolution No. 31, all businesses established in the UAE, including offshore companies, involved in any Relevant Activities must demonstrate a certain level of economic presence within the country.
Relevant Activities Under ESR:
- Banking Business
- Insurance Business
- Investment Fund Management Business
- Lease-Finance Business
- Headquarters Business
- Shipping Business
- Holding Company Business
- Intellectual Property Business (IP)
- Distribution and Service Centre Business
Popularity of Offshore Business Setup in Ras Al Khaimah:
The implementation of the ESR has significantly increased the appeal of setting up an offshore business in Ras Al Khaimah (RAK ICC), positioning it as a leading offshore jurisdiction. RAK ICC offers strong support and infrastructure to help companies meet ESR requirements, including establishing subsidiaries through RAKEZ free zone, opening branch offices, and utilizing outsourcing solutions.
Redomiciliation to RAK ICC:
Many companies from other offshore jurisdictions are migrating to RAK ICC to align with ESR requirements. During this redomiciliation process, businesses retain their legal status, operational history, and banking records. This shift is driven by evolving shareholder priorities and the desire to meet ESR obligations effectively.
Competitive Advantage:
RAK ICC benefits from the UAE’s full compliance with EU and OECD economic substance requirements, giving it a competitive edge over jurisdictions on the EU blacklist.
Jurisdictions on the EU Blacklist (as of February 27, 2020):
- American Samoa
- Cayman Islands
- Fiji
- Guam
- Oman
- Palau
- Panama
- Samoa
- Seychelles
- U.S. Virgin Islands
- Vanuatu
Setting up an offshore business in Ras Al Khaimah allows companies to leverage the UAE’s robust regulatory framework and international compliance standing, making it an attractive destination for global business operations.
Corporate Tax & VAT
Receive expert guidance to ensure compliance with Corporate Tax and VAT obligations under the Federal Tax Authority (FTA).
Bank Account Opening
We will help you in opening your corporate or personal bank accounts in UAE effortlessly with trusted banks in the UAE.
Accounting & Payroll
Our accountants handle finances, offering bookkeeping, reconciliation, payroll, and audit support, reducing hiring expenses.
Compliance Services
Our specialists at Agility Global assist with UAE’s regulatory requirements, including ESR reports and UBO filings.
PRO Services
Leave administrative tasks to our PRO team, allowing you to focus on business while saving time and money.
Legal Services
Our legal team advises on UAE laws regarding M&As, corporate restructuring, financing, and dispute resolution.
