RAK Offshore Company Formation

Setting up an offshore company in Ras Al Khaimah (RAK) offers entrepreneurs a strategic opportunity to expand their global business presence. The RAK International Corporate Centre provides a streamlined formation process that can be completed in as little as 1-4 working days, making it one of the fastest offshore jurisdictions in the UAE.

RAK offshore companies provide significant benefits including asset protection, tax efficiency, and enhanced privacy for business owners seeking to optimize their corporate structure.

Overview

Ras Al Khaimah (RAK), one of seven independent federal Emirates that make up the United Arab Emirates (UAE), offers attractive opportunities for those seeking to establish an offshore company or International Company (IC).

RAK remains a premier investment authority, giving potential investors, individuals and companies numerous benefits and arrangements in setting up an RAK offshore company.  All International Companies are governed by the International Companies Regulations 2006. The country has never been blacklisted by the EU and has good standing with all high-tax jurisdictions such in the US and EU and maintains good banking relations with correspondent banks.

Also referred to as a Non-resident Company, International Business Company and International Business Corporation, the RAK IC remains the most popular option for non residents seeking: to establish a presence in the Middle Eastern region, asset protection, confidentiality of financial accounts and to benefit from tax free schemes.

RAK offers investors and foreign companies a political stable environment, financial solidity with minimal financial risk (Moody’s credit rating of Aa3), with next to zero crime, in a strategic region that connects itself with regional markets, while also providing a critical link between the East and the West.

For more>> UAE offshore company formation 

For more>> UAE as an Offshore Financial Center

Non Resident Company

A RAK offshore company is a legal entity established in Ras Al Khaimah, one of the seven emirates of the UAE, but operates outside the UAE's territorial boundaries. These companies are designed specifically for non-resident business owners who conduct business activities outside the UAE.

RAK offshore companies do not require a physical office in the emirate, as they can operate through a registered agent who provides necessary administrative services. The formation process is streamlined, typically taking only 2-4 working days to complete.

The minimum requirements include one shareholder and one director, who can be the same person. Corporate entities can also serve as shareholders. A company secretary is not mandatory, making the structure relatively simple compared to other jurisdictions.

Advantages of RAK Offshore Company

Some of the advantages of holding an RAK Offshore International Company (IC) in the UAE include:

1. Asset protection
2. Confidentiality
3. Tax planning
4. International visibility and exposure
5. Zero exchange controls
6. No double tax agreements
7. No restrictions on profit transfer
8. No restrictions on capital repatriation
9. No signed treatise that enable a foreign exchange of information
10. UAE is not on any 'blacklist' for tax havens

The UAE and RAK offshore companies offer political and economic stability of the jurisdiction through:

• Modern and flexible legislative framework 
• Simple incorporation and filing requirements 
• Double Taxation Avoidance Agreements (DTAA)
• State of the art banking and telecommunication facilities

Recently there has been a lot of pressure put on low tax jurisdictions by both the European Union (EU) and the Organization for Economic Cooperation and Development (OECD). However, because UAE is not a member of the EU or the OECD it is therefore is not subject to their regulations.

  Read our blog: Dubai Offshore vs. RAK Offshore

Top Uses

There are many reasons why an individual or company would use a RAK Free Zone to set up a company whether it is savings on taxes, protecting one's savings, cost efficiency, simplicity or confidentiality.

Some of the other advantages include, but are not limited to:

• Reduced tax liability
• Fewer reporting requirements
• Internet Trading
• Probate
• Family Wealth Protection
• Property-owning Companies

There are a number of businesses which are best suited to operate through an Offshore IC including:

• General Trading
• Consulting and Advisory Services
• Holding Company (buying/holding/selling stakes of companies)
• Investments and Joint Investments Company
• International services
• Professional Services
• Shipping Management Companies
• Commission Agents Companies

Key Corporate Features 

The Formation Process

Establishing a RAK offshore company involves several key phases from documentation to name selection. The formation timeline typically ranges from 1-10 business days, depending on the service provider and specific circumstances of the application.

Steps to Incorporate a RAK Offshore Company

The incorporation process for a RAK offshore company follows a structured pathway. First, applicants must select a qualified registered agent who will handle the submission process with authorities in Ras Al Khaimah.

Next, the company name must be verified and reserved through the registration authority to ensure its availability and compliance with naming regulations.

Documents must then be prepared and submitted to the relevant authorities. This includes the memorandum and articles of association, along with identification documents for all shareholders and directors.

After submission, the registration authority reviews the application. Upon approval, the certificate of incorporation is issued, officially establishing the offshore entity.

The entire process typically takes between 2-10 working days, with some service providers offering expedited formation in as little as 1 day.

Documentation Required for Registration

Several essential documents must be prepared for RAK offshore company registration. Shareholders and directors must provide valid passport copies, proof of residential address (such as utility bills or bank statements dated within the last three months), and professional reference letters in some cases.

Corporate documentation requirements include:

• Completed application form
• Memorandum and Articles of Association
• Resolution appointing directors
• Share certificates
• Register of directors and shareholders

For corporate shareholders, additional documents are necessary, including certificate of incorporation, good standing certificate, and board resolution authorizing the investment.

All documents in languages other than English or Arabic require certified translation. Personal documents typically need apostille or notarization to verify their authenticity.

Choosing a Company Name

The company name selection process follows specific regulations within the RAK offshore jurisdiction. Names must be unique and not already registered by another company within the jurisdiction.

Certain restricted words require special approval, particularly terms implying governmental connection or regulated activities such as "bank," "insurance," or "trust."

Names must not contain words that could be considered offensive or contrary to public interest. The use of abbreviations is permitted, though the full name must be disclosed in official documentation.

The name should end with a designation indicating limited liability status, such as "Limited," "Ltd," "Inc," or "Corporation."

Once a suitable name is identified, it must be reserved through the registration authority. This reservation typically remains valid for a period of 30 days while the remaining incorporation steps are completed.

Corporate Structure and Management

A RAK offshore company provides flexible corporate structures that facilitate efficient global business operations. The registration process allows for various shareholding configurations, minimal director requirements, and comprehensive secretarial support services that ensure compliance with RAKICC regulations.

Types of Shareholding Structures

RAK offshore companies typically operate as Companies Limited by Shares, offering flexible ownership arrangements. Shareholders can be individuals or corporate entities from any jurisdiction, with no restrictions on nationality.

The minimum share capital requirement is relatively low, with no mandatory paid-up capital needed to incorporate. Companies may issue different classes of shares including:

• Ordinary shares with standard voting rights
• Preference shares with priority dividend payments
• Redeemable shares that can be repurchased
• Non-voting shares for passive investors

Bearer shares are not permitted in RAK offshore companies, aligning with international transparency standards. The shareholding structure must be disclosed to the registrar during incorporation, though this information remains confidential and is not publicly accessible.

Director and Shareholder Requirements

RAK offshore companies require a minimum of one director who can be an individual or corporate entity. There are no residency requirements for directors, allowing for full international flexibility in management structure.

Similarly, only one shareholder is required, who may also serve as the director. This creates streamlined management opportunities for sole proprietors and small enterprises.

Key management requirements include:

Directors:

• Minimum age of 21 years
• No local residency requirement
• Corporate directors permitted
• No maximum limit on number of directors

Shareholders:

• Minimum of one shareholder (individual or corporate entity)
• No nationality restrictions
• 100% foreign ownership allowed
• Privacy of shareholder information maintained in registry

Secretarial and Registered Office Services

All RAK offshore companies must maintain a registered office address within Ras Al Khaimah. This service is typically provided by licensed registered agents who offer comprehensive corporate secretarial support.

Registered agents handle essential compliance matters including:

• Provision of local registered office address
• Maintenance of statutory records and corporate documents
• Filing annual returns and other regulatory submissions
• Acting as liaison with RAKICC authorities

Corporate secretarial services often extend to meeting coordination, resolution drafting, and share certificate issuance. These services ensure ongoing compliance with RAK International Corporate Centre regulations.

Professional registered agents also provide nominee director and shareholder services when requested, though beneficial ownership must still be disclosed to authorities in compliance with international transparency standards.

Banking and Financial Considerations

Establishing proper financial structures is critical when forming a RAK offshore company. Understanding the banking requirements, tax implications, and compliance obligations will help ensure smooth operations and avoid potential complications.

Opening a Corporate Bank Account

Opening a corporate bank account for a RAK offshore company requires careful preparation and documentation. Most UAE banks require physical presence during the account opening process, though some institutions offer remote options. Required documents typically include the company's certificate of incorporation, memorandum and articles of association, and board resolution authorizing the account opening.

Bank selection should be based on factors such as international transaction capabilities, online banking features, and fee structures. Popular banking options include RAK Bank, Emirates NBD, and HSBC.

Processing times vary between 2-4 weeks depending on the bank and completeness of documentation. Many company formation agents offer bank introduction services to streamline this process.

Understanding Tax Obligations

RAK offshore companies benefit from 0% corporate income tax, making them highly attractive for international business operations. There are no withholding taxes, capital gains taxes, or dividend taxes imposed on these entities.

Tax benefits include:

• Zero personal income tax
• Zero corporate tax
• No capital gains tax
• No sales tax
• No withholding tax
• No value added tax
• No import of export tax
• 100% capital and profit repatriation 
• 100% ownership in Free Zones 
• Sixty one double taxation agreements and thirty two bilateral investment treaties are in place

The only companies required to pay taxes are oil, gas and petrochemical companies and branch offices of foreign banks.

However, companies must still consider tax implications in their countries of operation. The UAE has signed numerous double taxation treaties that may affect tax obligations in foreign jurisdictions.

While RAK offshore companies enjoy tax advantages, they must comply with international regulations such as the Common Reporting Standard (CRS) and FATCA requirements. These frameworks enable automatic exchange of financial information between countries to promote tax transparency.

Companies should maintain proper financial records to demonstrate legitimate business purposes and substantiate their tax positions if questioned.

UAE Double Taxation Avoidance Agreements (DTAA)

Double taxation avoidance agreements (DTAA) prevent individuals and corporations from having to pay tax on same item during the same time period. Agreements have been made with:

Austria, Belarus, Belgium, Canada, China, Czech Rep., Egypt, Finland, France, Germany, India, Indonesia, Italy, Lebanon, Malaysia, Malta, Morocco, New Zealand, Pakistan, Poland, Romania, Singapore, Sudan, Thailand, Tunisia, Turkey, Ukraine.

Accounting and Audit Requirements

RAK offshore companies must maintain proper accounting records that accurately reflect their financial position. These records should include all financial transactions, assets, and liabilities of the company.

Annual financial statements must be prepared in accordance with International Financial Reporting Standards (IFRS). According to RAK ICC regulations, companies should submit audited accounts annually, performed by a UAE-approved auditor.

The audit requirement ensures compliance with international standards and enhances credibility with business partners and banking institutions. Proper bookkeeping throughout the year simplifies the audit process and reduces associated costs.

Companies should establish reliable accounting systems from inception and consider engaging professional accountants familiar with UAE offshore regulations. This proactive approach minimizes compliance risks and supports effective financial management.

Corporate Details 

Companies Law stipulates that a RAK International Company (IC) may engage in any type of lawful activity except for industries including insurance, banking and the investment of money for others and restrictions apply to conduct local business.

An IC conducting banking or insurance operations outside the Free Zone and the UAE must ensure that it has obtained permission and has been granted appropriate licensing from authorities within the relevant jurisdiction.

The register of the UAE RAK offshore companies registered agents maintained by the Authority shall contain the following details in respect of each registered agent:

• Name and address approved registered agent
• Names of the individuals who are authorized to sign on behalf of the company
• Date of approval the given by the RAK Authority to provide registered agent services 

Principal Corporate Legislation

• International Companies Regulations 2006
• Registered Agents Regulations 2006

Governing Corporate Body

RAK Investment Authority (RAKIA) is the governing body and the companies are regulated under RAK Offshore Regulations 2006.

Restrictions on Trading

An IC may only operate within the activities outlined and approved of in the official memorandum.

Language of Legislation and Corporate Documents

English

Shelf Companies Available

No

Time to Incorporate

Normally processed within 1 – 2 weeks

Names Requiring Appropriate Consent or Licensing

In certain cases consent of an appropriate Ministry or any such local authority may be required for activities, operations or businesses’ engaged in:

• Oil & Gas, Banking & Investment, Financial Services, Insurance, Media, Transport, Construction, Telecommunications, Real Estate Management, Architectural and Engineering Consulting, Tourism, Shipping, Civil Aviation, Legal Services, Medical Services, or Education.
• Any name that contains the words state, government, municipal, etc., and may wrongfully suggest a patronage of such.

Re-domiciliation provisions

A company incorporated under laws of a foreign jurisdiction can continue its existence as a company registered under that specified Act. RAK Offshore IC may also transfer their domicile to foreign territories that permit such procedures.

RAK Offshore Company Incorporation Services From Offshore Protection

Package Includes

1. Government Registration Fee (First year)
2. Registered Office Address (First year)
3. Registered Agent Services (First year)
4. Company Secretarial Maintenance
5. Certificate of Incorporation
6. Memo & Articles of Association
7. Appointment of 1st Directors
8. Consent Actions of the BOD
9. Share Certificates
10. Register of Directors
11. Register of Officers
12. Register of Shareholders
13. FREE Phone and/or email consultations

Join thousands of satisfied clients who have experienced the Offshore Protection advantage for more than 25 years. When you purchase any offshore company formation product, you'll get FREE support from our lawyers to help answer your overseas company day-to-day management questions.