UAE/RAK Company Setup


UAE/RAK Company Formation

Ras Al Khaimah (RAK) is one of seven stated of United Arab Emirates and is located in the eastern side of Arabian Gulf. Ras Al Khaimah makes about 3% of total area of United Arab Emirates

International Company is welcomed to be incorporated in RAK and it is the most common type of company, to enjoy tax free liabilities and there is no personal existence required to incorporate company in RAK. Following are some of features of International Company:

  • Banking sector in RAK allows company to maintain and open bank account both in overall Emirates or Dubai. But, there is one liability that; personal visit is needed for this purpose. However, apart from International companies, RAK companies are allowed to open company anywhere in the world, but we will appreciate, if you contact us for more details.
  • Free-Tax liability can be enjoyed in the RAK because it is the no tax state of the UAE. The important thing is that, no personal or corporate tax is enforced for the companies in Ras Al Khaimah.
  • Privacy is what expected from the tax heavens, thus none of director or shareholder of the company is listed in the public registry.
  • Reputation of RAK is neither of a dependent nor of any overseas territory of any other country and this reputation makes it white-listed.

Incorporation Requirements

It normally takes two working days to incorporate international company in RAK and certificate of incorporation is usually issued very shortly after this. So, in general international company incorporation in RAK is very fast.

Share Capital

The standard share capital is of AED 10,000 or $2722, however there is no minimum limit on the required share capital and there is the option for the company to adopt either AED or USD.

Registered Office and Agent

International company which deems to be incorporated in RAK, needs to have registered office and agent, within RAK.

Director

There is a requirement to appoint minimum of one director and there is no restriction the nationality of the director. Corporate director is also allowed, and identity of the appointed director shall not be disclosed in the public register.

Secretary

Company’s secretary is allowed to be appointed and there is no restriction on the nationality of the secretary. Any corporate entity can also be appointed as the secretary of the company.

Shareholder

Company should at least have one shareholder. Corporate shareholders are allowed to be appointed. If for any case, director or the shareholders are same, even then there is no restriction on such setting.

Confidentiality

Confidentiality is maintained and thus there shall be no public disclosure of directors or shareholders information. If disclosure is to be made, then court’s permission is required to disclose information to the third party.

Taxation

RAK is a tax-free emirate. So, there shall be no personal or corporate tax.

Accounts and Audit

Company’s accounts should be maintained but there is no compulsion for getting them audit.

Tax Treaty

As of now, RAK has undergone 66 double tax treaties, but offshore companies are exempted from these treaties, and these treaties are applicable on the Free Zone Companies.

Bank Accounts

We consider opening of bank account as the part of our incorporation service and thus we pledge full assistance to you in this regard. However, personal visit by the company’s director or any signatory is allowed to open a bank account in UAE. The process is quite fast in UAE and it takes about one week to open bank account in UAE, however banks here, do not offer debit/credit card to its corporate customers. We have also developed expertise in opening bank accounts outside UAE and thus pledge to assist you fully in this regard and there is generally no requirement of personal visit and debit/credit card service shall also be provided if you open a bank account outside UAE through us. Please visit offshore bank section, for more details.

Advantages

Following are advantages to incorporate company in RAK:

  • Confidentiality of the matter or identity.
  • No tax liability and no accounting liabilities.
  • Non-residents of UAE can own property in UAE free zones.
  • Good reputation of UAE/RAK for business.

Disadvantages

The only disadvantage of incorporating company in UAE/RAK is that; they do not allow RAK international companies to carry out any business-related activity in the UAE.

Incorporation Fee

There is an incorporation fee and annual renewal fee for RAK international companies, please visit our fee schedule section for more details.

Differentiation between RAK and Tax Heavens

Following are some of main differences between the classic tax heavens and the RAK:

  • Generally, there is no blacklisting on the RAK by international financial organisations like OECD or FATF.
  • There is no Tax Information Exchange Agreement exist between RAK/UAE or any other country of the world and it is highly unlikely that UAE/RAK would ever agree to sign such agreement with any country of the world. However, tax heavens are eager to exchange such information with the FATF or any other organisation.
  • UAE is a total sovereign country which adds to the credibility of UAE. However, if we look on the tax heavens then mostly are either British or American dominated territories, so they can easily be pressurised or dominated by them.
  • Another advantage that leads RAK over the tax heavens country is that; Generally, UAE does not have the reputation of being the tax heavens and therefore UAE/RAK companies are welcomes to operate or do business in the Europe. However, tax heaven countries do not enjoy such status and thus lags here.