RAK Offshore Company Formation

RAK Offshore Company

When it comes to international businesses, the RAK Offshore Company formation is an inexpensive and cost-effective offshore in the UAE. It is the greatest alternative that is available because of the quick registration process, which is also straightforward. Rak offshores are not permitted to do business in the UAE, and they don't have a physical office there. Although RAK Offshore also has the benefit of enjoying the full tax exemption, they have full access to firm profits with complete privacy maintained, asset and information protection, and confidentiality. There is a need for a registered agent in RAK Offshore Company registration, where his office can be the firm's registered office.

You should pick the RAK Offshore company formation to have the advantages that are provided by this special economic zone, such as a business-friendly regulatory framework, tax breaks, confidentiality, and many others. RAK Offshore jurisdiction is one of the oldest offshore jurisdictions in the UAE and also in the northern emirates; it is one of the most prestigious offshore jurisdictions.

Features of the RAK Offshore Incorporation

You should do RAK Offshore company formation, and for that, some features of the RAK Offshore incorporation are mentioned below

Company Secretary

In Ras Al Khaimah, laws don't ask for a company secretary, but it usually makes the signing responsibilities easy for the RAK Offshore incorporation process.

Shareholders

A minimum of one shareholder will be needed for the international corporation registration with the RAK ICC. Corporation shareholders will be allowed to decide the business's Capital structure and can also issue shares with or without a par value. Shares can also be issued in registered form, and the bearer shares will not be forbidden during the RAK Offshore incorporation.

Directors

At least one director will be needed for an international company to be registered with the RAK ICC. Corporate directors will be allowed, but your company must have a minimum of one natural person as a director.

Beneficial owners

There should be a register of ultimate beneficial owners, which must be kept updated and submitted to the RAK ICC authority by all the businesses that have RAK ICC registration.

Registered address

The registered office address in the zone should be maintained, and RAK ICC International Business Companies will be required to pick an authorized registered agent.

Requirement for Accounting

The accounting records are required to be maintained by every business and have to be kept for seven years after the date they were started. At least one director will need to sign and approve the accounts; also, it is not required to submit the RAK ICC authorities.

Taxation

In the UAE, the RAK ICC International Business Companies do not pay any taxes. However, if there is a taxable supply in UAE, then VAT can be imposed. The RAK ICC IBCs are not the inhabitants there, so they will not be entitled to the tax residency certificates and are also not allowed to benefit from double taxation arrangements.

Timeline

To be registered with RAK ICC after filing to the authorities will take you at least four to five days for the international business firm.

Company Names

In the process of RAK Offshore incorporation, the main thing you have to make sure of is that the name you keep should end with incorporated or limited. The registrar can allow you names that are in foreign languages and characters. Also, the names you can't take are assurance, bank, chamber of commerce, building society, cooperative, charted, imperial, fund, insurance, mutual fund, municipal, royal, and trust, and related activities can't be used.

Economic Substance report

According to the Cabinet resolution requirement, there is a command that the submission of the notifications, establishments and businesses that are engaged in the relevant activities in the UAE will be required to submit economic substance notifications to the required authority for six months, which is after the financial period and the economic substance reports twelve months after the financial period.

Documents needed for RAK Offshore Company Formation

There are documents required for registration depending on the type of company formation, which are mentioned below

Single-Shareholder Company in RAK

The documents that are required for the Single-shareholder RAK Offshore company formation in Ras Al Khaimah Company are as follows

• Passport copy (Notarized)
• From a Bank addressed to RAK Offshore Company, a letter of recommendation
• Residency proof like utility bill, municipality certificate
• Curriculum Vitae
• Bank statement for the last six months

Multiple Shareholders Company in RAK offshore company

The documents that are required for the Multiple shareholder's RAK Offshore company formation are mentioned below

• The applicant’s company or business license-certified photocopy
• Shareholders Resolution
• Memorandum of Association
• The company certificate of occupancy with names of shareholders and directors.
• Passport copies of shareholders and directors
• Certificate of Good Standing or Certificate of Existence of company

Requirements for Company Incorporation in Ras Al Khaimah

The key requirements for the company incorporation in Ras Al Khaimah offshore company are as follows

Business Name

For the process of incorporation of Ras Al Khaimah offshore company, either the related name from business operations for the company name or the company name must be derived from the name of any shareholders or directors. There needs to be a suffix that is limited or LTD at the end of the name; names that are related somehow to governmental entities or express religious principles cannot be accepted for the company name.

Equity Capital

The Ras Al Khaimah company should have at least a share capital of 1000 AED, and the payment should be made in the UAE dirhams of 1000 AED. Companies in one or more series can issue various classes of shares, and each of the shares will have its own set of rights, privileges, limitations, and constraints.

Advantages of the RAK Offshore Company Formation

The key advantages of forming an Offshore Company in the UAE are mentioned below

• The offshore business usually is not subjected to the Corporate Income Tax
• At lower relative cost, business flexibility and anonymity are provided
• One of the most important offshore jurisdictions in the UAE is the Ras Al Khaimah
• Being in a tax-free jurisdiction allows you to have 100% foreign ownership, allowing you to open multiple currency accounts in the registered enterprise and conduct business in the UAE.

Governing Regulation for RAK Offshore Company formation

Following Decree No. 12 of 2015, the RAK ICC corporate register was formed, which was later updated with Decree NO. 4 of 2016. Previously, a component of the RAK Free Trade Zone, is now the RAK international companies and the RAK Offshore, formally part of the RAK investment authority, amalgamated to form the new registry. The RAK ICC Business Companies Regulations 2018 governs the establishment of RAK offshore companies for investors and registered agents in the UAE. There are RAK ICC Registered Agent Regulations 2018.

The ultimate Beneficial Owner Declaration (UBO)

An Ultimate Beneficial owner is any person who benefits from a business and has ultimate control over it. The companies that are incorporated under RAK ICC are laid open to Cabinet Decision No. (58) of 2020 on beneficial owner processes. The legislature needs Ras Al Khaimah offshore businesses to report the Ultimate Beneficial Owner (UBO) information to the Ras Al Khaimah ICC Authority.

An Ultimate Beneficial owner is someone who owns 25% of the capital, will have voting rights of at least 25% of the shares, or will ultimately have control over the legal person. The Ras Al Khaimah offshore entities should keep and also have to make public the Real Beneficiary Register (RBR) and Partner of Shareholder Registers (PSR) for compliance with the Ultimate Beneficial Owner. You not only have to hand over two registers to the RAK ICC Authority but also running company and liquidation corporations will have to reveal the Ultimate Beneficial information.

The procedure of RAK Offshore Company formation

The registration process of your Ras Al Khaimah offshore company mostly takes only one day if your required documents are met. Mentioned Below is a step-by-step process for registration of the RAK Offshore Company formation

Step 1 – Choose Name and Business activity

The main step is to start the formation of the RAK offshore company with the business name business activity. While you choose the name, you should keep in mind the regulations for naming your business and should abide by them as they are mandatory.

Step 2- Document Submission

For the RAK offshore company formation, you will have to put your signature on all the incorporation documents and then give the same to the Registrar in RAKIA, who is the regulatory body for the RAK Offshore, for your license and approval.

Step 3- Fee payment

You have to pay the incorporation expenses and the registration fees. You can also pay online or in cash for the formation of the RAK offshore company.

Step 4- Bank account

For the RAK Company formation, you have to proceed with the bank account as your business is ready, so you will have to create your business bank account, and after that, you will be able to start with your operations.

Step 5- Contact Agent

Every RAK Offshore company formation has to have a registered agent who the authority should approve as it is a very important requirement for the formation of an RAK Offshore company from the RAKIA.

Activities allowed in the Ras Al Khaimah Offshore

The best Offshore location is the Ras Al Khaimah, from where you can start your journey. In the RAK Offshore company, some activities are allowed inside and outside of the UAE, which are mentioned below

Inside UAE

You can carry out the business activities mentioned below as an Offshore company in the UAE.

• Asset Holding
• Bank account holding
• Owning Properties

Outside the UAE

The main activities that an RAK offshore Company can hold are below

• Advisory services
• General Trading
• Have a holding Company
• Owning properties
• Internal corporate service
• Shipping related service
• Professional services

RAK Company Formation with Enterslice

Enterslice provides expert advice and consultation services tailored to your RAK Offshore company formation need, making the process complete, efficient, and quick. Our experts will give comprehensive guidance and make sure of compliance with all the legal requirements. We will draft the MOA and all required documents and will select the most appropriate name for your company, which we will make sure reaches the targeted audience.

We at Enterslice are fully familiar with local laws, rules, and regulations by having years of experience in the RAK Offshore Company Formation.