Offshore companies are an attractive and relatively inexpensive option compared to other types of legal entities in the UAE. They are ideal for foreign investors seeking to establish entities for holding capital or assets both inside and outside the UAE, or for conducting business activities abroad.
An offshore company differs significantly from a free zone company in the way it operates. It is a legal corporate entity formed with the main purpose of conducting business outside the country of incorporation and/or the location of its ultimate ownership.
The following are the main advantages of forming an offshore company in the UAE, though these may vary slightly depending on the specific jurisdiction’s corporate laws.
In general, offshore companies in the UAE are not subject to corporate income tax. They offer operational flexibility and privacy at a lower cost — for instance, they do not require office space — while also providing protection for assets such as real estate purchased in the UAE.
Ras Al Khaimah is one of the most significant offshore jurisdictions in the UAE.
Both Ras Al Khaimah and other UAE offshore jurisdictions operate as “tax-free” zones, meaning that businesses are exempt from UAE corporate and income taxes. They allow 100% foreign ownership and enable registered companies to open multi-currency accounts and conduct business within the UAE.
The UAE’s RAK Offshore Company is affordable, cost-efficient, and highly regarded in the region. For international business purposes, RAK stands out as the most economical offshore option in the UAE, offering a straightforward and speedy company registration process. RAK offshore companies do not maintain a physical office in Ras Al Khaimah and are not allowed to conduct business within the UAE. Nevertheless, they benefit from full tax exemption, complete access to company profits, and enjoy total privacy, confidentiality, and protection of assets and information. A registered agent is required for RAK offshore company registration, and their office can serve as the company’s registered office.
RAK Offshore is one of the most prestigious offshore jurisdictions in the northern emirates and among the oldest in the UAE. Expatriate entrepreneurs and investors looking to leverage the business-friendly environment and growth potential of this special economic zone will find RAK offshore company formation highly advantageous.
Choosing RAK offshore company formation allows you to benefit from a supportive regulatory framework, tax incentives, confidentiality, and a range of other advantages offered by this special economic zone. Avantra Corporate is ready to support your business goals by providing a suite of professional services tailored to your specific needs. Our proven track record has established us as a leading name in this specialized segment.
A RAK offshore company must have at least one shareholder to receive a certificate of incorporation. Corporate shareholders are also allowed. Shareholders determine the company’s capital structure, but bearer shares are not permitted under RAK ICC regulations.
At least one director is required to establish a company with RAK ICC, and corporate directors are permitted. The identities of the directors are kept confidential and are not disclosed publicly.
Every RAK offshore company is required to appoint a company secretary.
Companies must maintain accounting records for seven years from the date they are prepared. These records must be approved by the board of directors and signed by at least one director. Submitting accounts to the RAK ICC Authority is optional.
The registration process for a company in the Free Zone typically takes three working days.
A RAK offshore company’s name must end with “Limited” or “Incorporated.” Certain words and activities are prohibited, including Assurance, Bank, Building Society, Chamber of Commerce, Chartered, Co-operative, Fund, Imperial, Insurance, Municipal, Mutual Fund, Royal, and Trust.
A registered office address and a registered agent are mandatory under local company regulations. The registered agent’s office, whether in the UAE or within the Free Zone, can serve as the company’s official registered office.
Companies incorporated under RAK ICC are governed by Cabinet Decision No. (58) of 2020 regarding beneficial ownership requirements. Under this legislation, RAK offshore companies must report information about their Ultimate Beneficial Owners (UBOs) to the RAK ICC Authority. Simply put, a UBO is an individual who ultimately benefits from and exercises control over a company.
According to Cabinet Decision No. (58) of 2020, a UBO is defined as a person who owns or controls 25% or more of the company’s capital, holds at least 25% of the voting rights, or otherwise exercises ultimate control over the legal entity. To comply with these regulations, RAK offshore companies are required to maintain and make available the Real Beneficiary Register (RBR) and the Partners of Shareholders Register (PSR). Disclosure of UBO information is mandatory not only for active companies but also for companies undergoing liquidation, in addition to submitting the two registers to the RAK ICC Authority.
RAK ICC is one of the UAE’s leading corporate registries and a highly sought-after jurisdiction for offshore company formation. Foreign investors are encouraged to set up RAK offshore companies due to the Authority’s forward-looking legislation and its capability to support compliance with Economic Substance Regulations (ESR). To establish an offshore company, investors are required to engage a registered agent in the UAE, such as Avantra Corporate.
Avantra Corporate has assisted hundreds of businesses with high-quality registered agent services across the UAE for many years. We have successfully facilitated the formation of offshore companies in RAK ICC, Ajman Offshore, and JAFZA. As a premier registered agent, Avantra Corporate offers seamless, reliable, and cost-effective services to investors of all types.
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RAK ICC offshore companies can only be incorporated through registered agents. Avantra Corporate, as a licensed RAK ICC registered agent, offers clients efficient and cost-effective offshore company registration services in the UAE. We complete the incorporation process within 3–4 working days after receiving instructions from our clients.
RAK ICC allows the incorporation of several types of offshore companies, including:
We offer flexible pricing plans including free initial consultation to understand your requirements.
Project duration depends on the scope and complexity, but we provide clear timelines upfront.
We offer flexible pricing plans including free initial consultation to understand your requirements.
It normally takes 1-2 working days with the assistance of Shuraa.
The RAK Offshore Regulations 2006 govern the companies.
Yes. Corporate entities may even own shares in RAK Offshore firms.
The director can be a resident of any foreign citizen, but he or she must provide proof of residency as well as other essential documentation.
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