Business Setup in Ras Al Khaimah Offshore

A Ras Al Khaimah offshore company, officially known as an International Business Company (IBC), is a legal entity registered in RAK but designed to operate outside the UAE.

It has a registered address in RAK but doesn't have a physical office or staff there. It's a "non-resident" company, meaning its business is focused on the global market, not the local UAE market. This structure allows you to manage your international operations from a stable and tax-free base.

Industries That Benefit from RAK Offshore Companies

A Ras Al Khaimah Offshore Company is a flexible business structure that suits a wide range of industries. Here are some examples:

• International Trading: You can use an RAK Offshore company to issue invoices, manage payments, and handle logistics for global trade without being subject to taxes in the UAE.
• Asset Holding: An RAK Offshore company can hold shares in other businesses, maintain investment portfolios, and own property, but only in designated areas approved by RAK authorities. In certain cases, Dubai properties may also be allowed if approved by the developer and the Dubai Land Department. This makes it a secure option for structuring and protecting assets.
• Intellectual Property (IP) Management: An RAK Offshore company can own trademarks, patents, and copyrights. You can then license this IP to other companies globally and collect royalties in a tax-efficient manner.
• Consulting and Advisory Services: If you provide professional services to clients worldwide, a RAK Offshore company offers a simple and efficient way to manage your income.

Ras Al Khaimah has built a strong reputation as a leading global business hub. The emirate is known for its stable economy, modern infrastructure, and forward-thinking government. The RAK International Corporate Centre (RAK ICC), the authority that registers offshore companies, is recognized worldwide for its high standards and efficiency. RAK ICC replaced the former RAK Offshore Authority, creating a single streamlined process for offshore company formation.

RAK ICC has grown impressively in recent years, and by early 2025 it serves over 30,000 companies across more than 160 countries. This shows the trust that global investors have in Ras Al Khaimah offshore as a jurisdiction.

Key Features of Ras Al Khaimah Offshore Companies

Ras Al Khaimah offshore companies provide distinct advantages that make them attractive to global investors.

• 100% Foreign Ownership: Investors enjoy complete control without needing a local partner or sponsor.
• Confidentiality: Ownership and director details remain private and are not publicly disclosed.
• Asset Protection: Personal wealth is safeguarded from business risks and liabilities.
• Zero Taxation: Offshore companies in RAK are exempt from UAE Corporate Tax (introduced in 2023), as well as income tax and VAT, provided they do not conduct business within the UAE. However, if the company earns UAE-sourced income, the exemption may not apply.
• Low Setup and Renewal Costs: Incorporation and annual maintenance are more affordable than in many competing jurisdictions.
• Fast and Simple Incorporation: Offshore registration is straightforward and usually completed in a matter of days.
• Strong and Reliable Legal Framework: RAK ICC follows a system that combines UAE civil law with internationally recognized standards, offering global investors clarity and confidence.
• Global Reputation: Offshore entities from RAK are recognized by banks and institutions worldwide, easing international trade and financial transactions.

RAK ICC has clear and simple requirements for setting up an offshore company. Here's a breakdown of what you need to know.

• Shareholders and Directors

• • Minimum Number: You need a minimum of one shareholder and one director. The same person can hold both positions.
  • Nationality: There are no restrictions on the nationality of shareholders or directors. They can be from anywhere in the world.
  • Corporate Directors: A company (a corporate body) can be appointed as a director, which offers flexibility in your corporate structure.

• Registered Agent and Office

To set up an offshore company in RAK, you must work through an approved channel. RAK ICC does not allow direct applications from individuals or businesses.

• • Registered Agent: Only a licensed registered agent can handle your application. RAK ICC publishes an official list of approved agents, and only those listed are authorized to submit documents on your behalf. The registered agent also serves as the company’s link to the authorities and manages compliance tasks.
  • Registered Office: Every offshore company must maintain a registered office in Ras Al Khaimah. This address is arranged through the registered agent and is used for all government notices and legal correspondence.

• Share Capital & Share Classes

• • No Minimum Capital: Ras Al Khaimah offshore companies are not subject to a mandatory minimum paid-up share capital. You can register your company with an authorized share capital as low as AED 1,000, depending on your business structure and agent preferences.
  • Flexible Share Classes: RAK ICC regulations allow for different classes of shares. For example, you can create shares with different voting rights, dividend rights, or other special conditions. This is useful for complex ownership structures.

To ensure a smooth process, you must prepare the correct documents. The requirements differ for individual and corporate shareholders.

For Individual Shareholders

If you are registering as an individual, you’ll generally be asked to provide:

• A clear, color copy of your passport.
• A recent utility bill (not older than 3 months) as proof of your residential address.
• A professional reference letter from a lawyer or accountant OR a bank reference letter.
• A brief CV or professional profile.

For Corporate Shareholders

If another company owns the shares, you need to provide certified and attested copies of the parent company's documents:

• Certificate of Incorporation.
• Memorandum and Articles of Association.
• A board resolution approving the setup.
• A Certificate of Good Standing.

Statutory Obligations

Apart from the incorporation documents, companies must also meet ongoing compliance requirements, which include:

• Bookkeeping: You must keep accurate financial records for your company. These records can be stored anywhere in the world.
• Auditing: While you must maintain financial records, an annual audit is generally not required unless the company's articles of association demand it. This simplifies annual compliance and reduces costs.

Naming Rules

When choosing a company name, make sure it meets the legal requirements. Specifically:

• The company name must end with "Limited" or "Incorporated."
• The name cannot be identical or too similar to an existing company name.
• You cannot use words that suggest a connection with the government (e.g., "Royal," "Emirates") or restricted activities (e.g., "Bank," "Insurance") without special permission.

Important Note: All documents must be properly notarized and legalized in the country of origin. In some cases, further attestation by the UAE embassy may also be required.

The RAK Offshore process of business setup is designed for speed and efficiency. Here is a simple, step-by-step guide.

Step 1: Choose a Registered Agent

Your first step is to select an RAK ICC-approved registered agent. This agent will be your guide and partner throughout the process. A reliable RAK Offshore Business Setup Consultant will ensure everything is done correctly.

Step 2: Select a Company Name

Provide your agent with three proposed names for your company. They will check with RAK ICC to see which names are available.

Step 3: Prepare and Submit Documents

Gather all the required documents listed in the previous section. Your agent will review them and apply to the RAK ICC online portal (rakicc.com).

Step 4: Due Diligence and Approval

RAK ICC will conduct a due diligence check on the shareholders and directors. This is a standard procedure to ensure compliance with international regulations. Once cleared, they will approve your application.

Step 5: Receive Your Incorporation Documents

After approval, RAK ICC will issue the official corporate documents, including:

• The Certificate of Incorporation.
• The Memorandum and Articles of Association.
• The Register of Shareholders and Directors.

Congratulations! Your Ras Al Khaimah offshore company is now officially registered and ready to start its international operations. You can now proceed to open a corporate bank account.

Understanding the financial and time commitment is crucial for planning your Offshore Company Formation in Ras Al Khaimah. RAK is known for being one of the most cost-effective jurisdictions.

The initial registration and licensing fees generally range from AED 7,200 to AED 13,600, depending on the selected package and services. This cost covers government registration, professional fees, and essential documentation for company setup.

Timeline for Business Setup

When you are setting up a business in UAE, the timeline for processes might differ. Below is the draft for the timeline of setting a business in RAK:

Total Estimated Timeline: Around 15–20 days from start to finish.

It's very important to understand the operational limits of your offshore company to stay compliant with the law.

Activities Allowed Under RAK ICC Regulations

Your Ras Al Khaimah offshore company is perfect for a wide range of international activities:

• Holding Company: You can use it to hold shares in other companies around the world.
• Asset Management: Hold and manage assets such as stocks, bonds, and other investments.
• Intellectual Property (IP) Holding: Hold patents, trademarks, and copyrights under Intellectual Property Rights and earn royalties from your international assets.
• Real Estate Ownership: Own freehold property in designated areas of the UAE, such as Dubai.
• International Trade: Conduct business with clients worldwide, issue invoices, and receive payments. However, you cannot physically import or export goods through the UAE unless using a local distributor or a free zone company.
• Professional Services: Offer consulting, management, or advisory services to international clients.

Business Activities Not Permitted

To maintain its non-resident status, a RAK Offshore company is strictly prohibited from:

• Trading within the UAE: You cannot conduct any business with individuals or companies located in the UAE mainland.
• Renting a Physical Office: You cannot lease an office space in the UAE. Your official address is your registered agent's office.
• Sponsoring Visas: An offshore company cannot apply for residence or employment visas for its owners or staff.
• Engaging in Regulated Industries: You cannot engage in activities like banking, insurance, or aviation without special licenses, which are not granted to offshore entities.

A smooth setup process depends on avoiding a few common mistakes.

1. Choosing an Unapproved Agent: Always work with a registered agent officially approved by RAK ICC. An unapproved consultant can lead to delays and legal problems.
2. Submitting Incomplete Documents: Any missing or incorrect information in your application will cause significant delays. Double-check everything before submission.
3. Misunderstanding Business Scope: Be clear about the "dos and don'ts." Trying to trade locally with your offshore company is a serious violation.
4. Ignoring Bookkeeping: Even though an audit isn't required, you are legally obligated to maintain proper financial records. Failing to do so can cause problems later.
5. Choosing a Complicated Name: Selecting a name that is too similar to another company or contains restricted words will get your application rejected. Keep it simple and unique.