Offshore Company Formation RAK 2023: All You Need to Know
Ras Al Khaimah Investment Authority introduced RAK offshore company formation in the year 2007. After that, RAK became one of the most popular destinations for offshore businesses.
One of the major points to note is that only two offshore locations exist in the UAE. So, if you are looking for an offshore business setup in the UAE, you can either do that in RAK or Jebel Ali Free Zone (JAFZA).
Currently, there are several businesses that run offshore companies in the RAK emirates. These businesses belong to real estate, building materials, manufacturing and high-tech industry, and the service sector.
What is a RAK Offshore Company?
Ras Al Khaimah offshore company is a company that has an entity’s home base in another country, but it operates from Ras AL Khaimah.
Know about RAK International Corporate Centre (RAK ICC)
RAK ICC is the entity that guides the registration and incorporation of offshore companies in RAK. It is known for its compliance checks and professional services.
Why Form an Offshore Company in Ras Al Khaimah
There are a variety of use cases for RAK offshore business setups. Two of the biggest reasons why businesses go for RAK offshore company formation are the no corporate tax on qualifying income and low administration expenses. This we will discuss in detail the benefits.
When you feel that the level of privacy and safety is lower in your business’s base country, then a business setup in RAK is a great option. Besides that, many countries have poor legal frameworks, leading to a mess when running a business. At that time, many activities could be performed at RAK offshore, reducing legal issues.
Also, starting a RAK offshore is a great way to protect the assets.
What are The Business Activities in RAK Offshore Business
RAK Emirate provided Offshore company formation to diversify its economic activities and generate income. For that reason, offshore company formation Ras Al Khaimah allows several business activities.
- Real Estate: As RAK is becoming more and more valuable emirate, the requirement for commercial as well as residential real estate is increasing. Therefore, real estate has become one of the booming businesses. You can also start an offshore company to conduct real estate activities in RAK.
- Shipping Industry: RAK gives access to the Persian Gulf as well as the Gulf of Oman. If your business requires access to both sides, RAK’s location is perfect, along with the other offshore company
- Tourism: RAK is the home of high mountain peaks and sandy beaches. Along with this, the government is also developing tourism in the state. Therefore, starting an offshore company that handles tourist activities and infrastructure is beneficial too.
- E-commerce: RAK offshore company setup has many e-commerce businesses as several skilled resources from south-east Asia are available. So, starting an offshore company can benefit you in terms of skills, and even the cost is lower than in European and American countries.
Besides these activities, many RAK offshore companies offer consultancy and professional services.
What are the Legal Structures Allowed for RAK Offshore Business?
Here is the list of legal structures allowed for RAK offshore business:
- Company Limited by Shares
- Company Limited by Guarantee
- Segregated Portfolio Company
- Restricted Purpose Company
- Unlimited Company
What are The Benefits of Offshore Company Formation?
As there are so many offshore companies in Ras al Khaimah. That’s because of the amazing benefits that the business offers. Let’s check each benefit in detail:
A RAK offshore business can purchase assets in UAE, such as real estate, intellectual property rights, etc. The UAE legal framework helps individuals to protect these assets and earnings from lawsuits in the company’s base country.
Quick Offshore Business Setup with Right Agent
The process of setting up an offshore business doesn’t take much time. However, you must have the right guidance for obtaining the license and property to execute the business. If the application and documents are perfect, it won’t take much time from the authority’s end.
100% Foreigner Ownership
The companies can have 100% foreign ownership. Thus, you can run your business without sharing the company ownership with anyone.
Process of Forming a RAK Offshore Company?
The RAK offshore business formation process is straightforward and quick. However, you must fill in all the details correctly and provide the required documents without fail.
For assistance in the company formation, you can contact Business Setup HQ. We will fill in and submit the application on your behalf. The only information we require from you is the list of your business activities. We will find the business license for you according to your business activities.
The UAE business setup regulations are strict when it comes to business name selection. Therefore, you can also take our support in getting your business name approved.
After receiving the license, you’d also need assistance finding the office location for your RAK offshore company. We have more than a decade of experience and keep ourselves updated regarding new facilities in the region. So, if you have us by your side, we will provide you with the best office location.
After getting your license and office, you can start your offshore activities in RAK without an issue.
What are the Documents Required for RAK Offshore Company Setup?
Here is the list of documents required for setting up an offshore business in Ras Al Khaimah:
Documents Required for Individual Shareholders
- Valid Passport Copy for each shareholder
- Proposed company names (3)
- Personal profile of each shareholder
- Business profile of each shareholder
- Proof of residence
- Original bank’s “Good Standing Letter”
Documents Required for Corporate Shareholders
- Photocopy of business license
- Photocopy of incorporation certificated
- Memorandum of Association
- Board resolution and power of attorney
- Business profile of directors, shareholders, and secretary
- Photocopy of passports for all directors
- Proof of residence
- Bank ref. for each corporate shareholder
Formation of an Intellectual Property Holding Company
Ras Al Khaimah offers an IP holding structure to businesses to protect the use of their name and other intellectual properties, such as trademarks, designs, products, etc.
The IP holding company in Ras Al Khaimah acts as a subsidiary of the primary company.
It provides the business with the following benefits:
- Management becomes more accessible as the assets are centralized.
- Tax payment becomes easier with centralized assets.
- You can use your intellectual property as collateral.
- Makes it easier to conduct IP audit.
Business Setup HQ Offshore Company Formation RAK Services
Business Setup HQ provides an exclusive service for setting up an offshore company in RAK. Our end-to-end service starts with a consultation on whether it is useful for you to go for RAK offshore company formation.
If it suits your business, we will move forward with the application. If not, we will let you know the other options that best match your business’s nature and activities.
After RAK offshore company registration and license obtaining, Business Setup HQ also offers assistance in finding warehouses and offices.
Overall, Business Setup HQ is the one-stop solution for Ras al Khaimah offshore company setup. All you need to do is to contact us and get the company started.
Offshore Business Setup in RAK: Frequently Asked Questions
The period varies from business to business. However, by getting the assistance of the right agent, you can get the company started within a week.
RAK Offshore company formation costs keep changing as per the changes made by the authority. However, it is one of the most cost-effective options compared to other Offshore locations.