Main advantages of business setup in RAK ICC

Here are the main advantages of business setup in RAK ICC:

1.   Control

A proprietor of a business in RAK ICC that is international stays just like an owner. Finding a local partner is not necessary. Your clients will feel more at ease knowing that they won’t be embroiled in an ownership issue in the future because this property is 100% owned by a foreign entity.

Furthermore, RAK ICC has no limitations on the kinds of shares or shareholders. Your client might issue bonus shares, partially paid shares, or nil paid shares, for instance, if they established a Company Limited by Share (LCS). They would be able to record the share promise and would not be limited in the number of shareholders.

2.   Adaptability

The government mandates a minimum capital requirement for establishing a mainland business. This must be considered adequate to “achieve the purpose of the business incorporation” and be included in the memorandum of association. There is a certain amount needed for some firms; for instance, a public stock corporation needs a minimum of AED 30 million.

3.   Security

RAK ICC clients enjoy a range of exclusive legal advantages that enhance their business operations. These advantages are accompanied by a business-friendly atmosphere, which is built on the United Arab Emirates (UAE) renowned reputation for excellence.

4.   Savings

In comparison to other international setups, registering with RAK ICC is extremely cost-effective due to its many additional benefits.

Firstly, compared to the UAE average, business costs in RAK are often substantially less expensive. Secondly, the expenses for registration and renewal are quite economical. Third, since every firm has a registered office within the RAK ICC, there’s no need to spend a lot of money on office space.

Documents Needed to Form an Offshore RAK Company

The following are the documents of the RAK offshore company registration:

• Copy of passport for a shareholder or investment.
• The investor’s curriculum vitae.
• Utility bill as proof of address.
• Trade names are preferable.

Governing Law For RAK Offshore Company Formation: 

Decree No. 12 of 2015 created the RAK ICC corporate registration, which was later amended by Decree No. 4 of 2016. The new registration is the result of the merger of RAK Offshore, which was once a part of RAK Investment Authority, and RAK International Companies, which was formerly a part of RAK Free Trade Zone. The RAK ICC Business Companies Regulations 2018 for investors and the RAK ICC Registered Agent Regulations 2018 for registered agents in the United Arab Emirates govern the creation of RAK offshore companies.

The Ultimate Beneficial Owner’s (UBO) Declaration

Ultimate Beneficial Owners (UBO) are governed by Cabinet Decision No. (58) of 2020 for companies formed under RAK ICC. The legislation mandates that RAK offshore companies provide the RAK ICC Authority with information on Ultimate Beneficial Owners (UBO). To put it simply, a UBO is any person who owns ultimate control over a firm and receives advantages from it.

A UBO is defined by Cabinet Decision No. (58) of 2020 as the person who ultimately controls the legal entity or who owns or controls 25% of the capital or has voting rights over at least 25% of the shares. RAK offshore businesses are required by the UBO Law to maintain and publish the Partners of Shareholders Registers (PSR) and Real Beneficiary Register (RBR). In addition to delivering the two registers to the RAK ICC Authority, businesses that are operating as well as those that are in liquidation are required to disclose the UBO data.

Regulation Of Economic Substance For RAK Offshore Company

Businesses that are RAK ICC Authority-incorporated must decide whether or not to abide by the Economic Substance Regulation (ESR). ESR applies to UAE-based businesses that participate in any of the nine Relevant business establishment activities.

The nine ESR Relevant Activities are Intellectual Property Business, Distribution & Service Centre Business, Insurance Business, Investment Fund Management Business, Lease – Finance Business, Headquarters Business, Shipping Business, and Holding Company Business. If qualified, these companies have to fulfill ESR obligations, which include filing ESR reports, notifying ESR notices, and passing the ESR test. Businesses that have undergone liquidation are also required to perform an ESR self-evaluation.

Effortless Business Setup in RAK ICC with Vytal

Consulting with Vytal, a top business establishment consultancy firm in the UAE, for the RAK offshore Company Setup (Ras Al Khaimah International Corporate Centre) offers a smooth and effective procedure catered to your entrepreneurial needs. From initial consultation and legal documents to getting the required licenses and opening a business bank account, Vytal’s knowledgeable advisors offer complete help.

FAQs

What advantages does RAK ICC offer?

RAK ICC supports directors in maintaining control over their company. And then there’s flexibility, particularly in terms of finances. Security comes next as RAK ICC keeps companies compliant. Lastly, savings since there are no taxes associated with launching a foreign firm in RAK ICC.

Can foreigners buy property in Ras Al Khaimah?

Ras Al Khaimah allows foreigners to own real estate throughout the whole emirate, in contrast to other emirates that limit foreign ownership to particular zones. To boost foreign investment in its real estate sector, Ras Al Khaimah has taken proactive measures.

Which Arab country is ideal for establishing a company?

Yes, all the requirements are satisfied for the United Arab Emirates to hold the title of the world’s greatest business location. This city’s excellent infrastructure, business-friendly laws, and advantageous location provide a multitude of options for businesses.

What is Ras Al Khaimah’s primary source of income?

The two most significant economic sectors in Ras Al-Khaimah are commerce and industry, which have raised the 0.4 million residents’ level of living.