There are many benefits to forming an offshore business in Ras Al Khaimah (RAK), United Arab Emirates, such as complete foreign ownership, tax deductions, and confidentiality. Potential investors should be aware of the new compliance requirements brought about by recent regulatory revisions. This article will help the readers understand the requirements for company formation in RAK offshore and how FAR consulting Middle East will be beneficial in forming your company in RAK offshore.
When compared to Dubai, business establishments in RAK enable people, particularly entrepreneurs, to obtain the most economical solutions for their enterprises. Due to its ability to provide complete ownership and complete tax exemption, RAK has many benefits. Companies might have just one shareholder without being physically present if they so desired. There are other additional benefits to forming a RAK company, so this is not all. The Ras Al Khaimah Investment Authority (RAKIA) is the organization that is regarded as the governing body in RAK.
Requirements for Company Formation in RAK Offshore
The following requirements must be fulfilled in order to form a RAK offshore company:
- Directors and Shareholders: As per the rules a minimum of one director and one shareholder is needed. The same person may occupy both director and shareholder roles, as can corporate entities.
- A registered agent who has been authorized by RAK ICC must be appointed. The company’s official address is the registered office address that the agent offers, which is located in RAK.
- Documentation: Required documents include notarized copies of passports for shareholders and directors, proof of address (such as a utility bill), and a curriculum vitae.
- Compliance: RAK offshore businesses are required to keep accurate accounting records and submit a yearly return. Annual financial statements do not have to be filed, but keeping correct records is necessary for compliance.
Benefits of Establishing an Offshore Business in RAK
The establishment of an offshore business in RAK has several benefits. Among these benefits are:
- Tax exemption: All federal taxes in the United Arab Emirates, including income tax, value added tax (VAT), and corporate tax, are not applied to offshore businesses operating in RAK.
- Regulations that are flexible: RAK offers a regulatory framework that is flexible and supportive of business expansion.
- Legal system stability: RAK boasts a stable legal system that offers enterprises a high degree of security.
- RAK’s strategic location in the Middle East makes it a great place for companies looking to tap into the expanding markets in the area.
- Cost-effective: Establishing and running an offshore business in RAK comes at a comparatively minimal cost.
Document Requirements for Company Formation in RAK Offshore
Documents needed by a single shareholder
- The copies of your notarized passports
- Original bank reference letter addressed to the RAK Offshore Authority
- Evidence of residence
- Curriculum Vitae of Shareholders (CV)
- The latest six months’ worth of bank statements for the parent company
Required documents for multiple shareholders
- A photocopy of the applicant’s attested incorporation certificate or business license
- Memorandum of Association (MoA) attested
- The shareholder’s attested resolution
- Passport copies of the directors
- Passport copies of the shareholders
- The existence or good standing certificate
- Certificate of Incumbency
For a company owned by any other company, the above-listed documents should be up to the last stage in order to get an idea about the initial beneficiary owner.
Procedures for RAK Offshore Company Registration
Remember to complete all RAK offshore company creation prerequisites before beginning the RAK business formation procedure. You can register your offshore business in RAK in just one day if you follow all the correct procedures.
The correct process for establishing an offshore business in RAK is as follows:
1. Obtain approvals
First and foremost, you need to obtain the necessary permissions from the relevant authorities for the business name and operations.
2. Sign and turn in the paperwork.
All incorporation documents must be signed and turned submitted to the registrar of the RAKIA. The regulatory agency for RAK offshore is called RAKIA. Therefore, you have to send it your paperwork.
3. Pay the fees
All incorporation and registration fees must be paid online, in cash, or by money transfer, among other methods.
4. Open a bank account.
To begin all of your business operations with ease, you must open a bank account now that you have completed all other procedures.
There are several advantages to forming an offshore business in RAK, such as confidentiality, complete foreign ownership, and tax exemptions. To preserve these benefits, however, subsequent legislative changes—most notably the addition of corporation tax obligations—require scrupulous adherence. Successful business formation in RAK requires interacting with a registered agent and keeping up with the most recent legal criteria.
Company Formation in RAK Offshore
FAR consulting Middle East is one of RAK’s top suppliers of offshore business formation services. From choosing the best business structure to securing the required licenses and permissions, we can assist you with every step of the company formation process. We have a group of seasoned specialists in RAK company law on staff. To make sure your business is properly set up and complies with all relevant rules and regulations, we can offer you individualized advice and guidance.
Please get in touch with us right now if you would want more information on forming an offshore business in RAK. Questions if any can be responded with pleasure by our team.
