Ras al-Khaimah (UAE)
Company Registration: The RAK Offshore Company
Ras-Al-Khaimah (UAE) Law is based on Civil Law. Below are the requirements and related issues for registering a RAK Offshore Company (RAK) in Ras-Al-Khaimah (UAE).
RAK Offshore Company names must be in English and end with ‘Limited’ or ‘incorporated’.
The following names and their associations cannot be used: Assurance, Bank, Building Society, Chartered, Imperial, Insurance, and Trust.
Directors, Shareholders, Secretary & Registered Office
Information with details of the company name and beneficial directors and shareholders (nationality, country of residence, address, profession etc) must be provided by the client.
Scanned and notarized copy of the passports of the beneficial directors and shareholders must be provided by the client.
Scanned copy of recent utility bill as proof of residence showing the name and address of the beneficiary owners of the company must be provided by the client.
Scanned and notarized copy of original bank reference letter of the beneficial shareholders must be provided by the client.
For non-individual corporate applicants the following documents are required: Copy of Incorporation Certificate, Board of Meeting of Directors or Resolution, MOA of the parent company, Passport copy of the directors and shareholders, Good Standing Certificate and any other documents requested by the Registrar during the process
The RAK Offshore Company can be registered with one director and shareholder who may be the same person.
The director and shareholder may be individuals or corporate entities and may be a non-resident of the UAE.
The RAK Offshore Company can be incorporated without a secretary.
The RAK Offshore Company must be incorporated with a registered office in RAK provided by the agent.
The RAK Offshore Company can hold meetings anywhere.
100% foreign ownership is permitted
The RAK Offshore Company will have a Certificate of Existence once it is registered which is an equivalent of the usual certificate of incorporation.
The RAK Offshore Company cannot be subject to re-domiciliation.
RAK Offshore Companies are very flexible financial instruments and can be used to serve many objectives such as tax planning, trusts, funds, real estate holdings etc.
- The authorized share capital is $US 1, 000.
- There is no minimum share capital requirement.
- Bearer shares are permitted.
- Different classes of shares are permitted and shares have to be fully paid when allotted.
- Shareholders decide the capital structure of the company.
RAK Offshore Companies offer complete privacy and confidentiality, owners of IBC’s are kept confidential under law and details of beneficiaries, shareholders & directors are not available for public inspection.
Time schedule & delivery
The incorporation of a RAK Offshore Company takes about 10 to 14 days.
Taxation,Reports & Double Tax Treaties
RAK has rapidly gained a reputation for being a tax free, transparent jurisdiction and it is of paramount concern that the reputation of RAK is not tainted by money laundering or any other illegal practices therefore anti-avoidance regulations are enforced.
Below is an overview of the tax and accounting regulations for RAK OffshoreCompanies in Ras-Al-Khaimah:
There is no federal tax legislation in the United Arab Emirates as each emirate has its own tax law.
Only oil, gas and petrochemical companies are required to pay taxes.
No Corporation Tax for RAK Offshore Companies.
No Income Tax for RAK Offshore Companies.
No Withholding Tax for RAK Offshore Companies.
100% Capital and Profit repatriation for RAK Offshore Companies.
No import or export taxes for RAK Offshore Companies.
No Net Worth tax for RAK Offshore Companies.
No VAT in the UAE.
No Capital Gains Tax in the UAE.
Taxation of Dividend profits applies only in the state from which the income was earned.
Dividend income paid by a UAE company to another company which has a double taxation treaty with the UAE may not be taxable in the foreign company even though no tax was paid in the UAE.
Taxation of Royalties profits applies only in the state from which the income was earned.
Taxation of Interest profits applies only in the state from which the income was earned.
There is an annual government license fee of about US$1, 600 must that be paid in order to operate, which is included in the annual fees of our Law Firm.
Annual Reporting Requirements:
RAK Offshore Companies must keep accounting records for 7 years from the date on which they were prepared.
RAK Offshore Companies must provide accounts to be approved and signed by the directors but there is no requirement for accounts or audit to be filed with the RAK authorities.
RAK Offshore Companies are not required to file annual returns.
Double Taxation Treaties
The UAE has over 52 Double Taxation Treaties in place.
As the UAE has no taxes, double taxation treaties are aimed at making the UAE a more attractive territory in which to operate by reducing taxation levied in foreign jurisdictions on profits remitted abroad by foreign entities operating in the UAE.
RAK currently has a DTTA with the following countries: Austria, Belarus, Canada, Czech Republic, Egypt, Finland, France, Germany, India, Indonesia, Italy, Lebanon, Malaysia, Malta, Morocco, New Zealand, Pakistan, Poland, Romania, Singapore, Sudan, Thailand, Tunisia, Turkey and Ukraine.
The ultimate choice of jurisdiction for a company will be dependent on the following factors:
The economical & political stability (confiscation, expropriation and nationalization risks).
The level of taxation and the availability of tax exemptions.
The suitability of the Double Tax Treaties to reduce & optimize its tax burden.
The perception of the company depending on whether it is an offshore or EU jurisdiction.
The confidentiality provided by the jurisdiction in relation to disclosure of information.
The regulatory matters in relation to filing annual returns, accounts and have them audited.
The quality of legal and accounting firms.
The quality of local banking services.
The quality of infrastructure of communications and workforce.
The convenience of the time zone of the jurisdiction.
There are numerous benefits to incorporating a company in RAK, one of the fastest growing emirates in the region and one of the fastest growing economies in the world.RAK Offshore Companies are very flexible financial instruments and can be used to serve many objectives such as tax planning, trusts, funds, real estate holdings etc.
RAK maintains a Free Trade Zone in which international business can be conducted free of local taxes and regulations. These companies are similar to British Virgin Islands IBCs but offer the security of being on the OECD’s ‘White List’. They are allowed to have their Agent and Registered Office anywhere within the UAE.
Furthermore, RAK offers businesses and individual a wide range of services and a structure dedicated to non-residents and has a well established communication network and solid banking infrastructure.
Below is a summary of advantages related to the use of RAK Offshore Companies :
Any non-residential individual or corporate entity can register an offshore company in RAK.
RAK Offshore Companies do not pay corporation tax.
RAK Offshore Companies do not pay income tax.
RAK Offshore Companies do not pay withholding tax.
RAK Offshore Companies do not pay import or export tax.
RAK Offshore Companies do not pay Net Worth tax.
RAK Offshore Companies do not pay VAT.
RAK Offshore Companies do not pay Capital Gains Tax.
-RAK Offshore Companies can repatriate 100% of their Capital and Profit.
RAK Offshore Companies allow 100% foreign ownership.
RAK Offshore Companies can be registered with one director and one shareholder.
RAK boasts a well developed, credible financial regulatory framework which includes strict adherence to International Standards such as international anti money laundering regulations
The cost to create and maintain an RAK Offshore Company is relatively low.
RAK has no restrictions on hiring manpower if required with easy access to a large pool of well-qualified, highly training professionals.
RAK guarantees a high degree of confidentiality.
RAK is a tax free environment with no exchange controls.
RAK offers a wide network of comprehensive Double Taxation Treaties.
English is widely spoken and all business documents can be produced in English if required.