Ras Al Khaimah International Corporate Centre, also known as RAK ICC, is a government corporate registry. It is a consolidation of RAK International Companies and RAK Offshore and was formed as per the decree no. 12 of 2015. Located in the northern Emirate of Ras Al Khaimah and with an office in Dubai, UAE, RAK ICC provides a broad suite of registration services related to international business companies and offshore companies. It is a renowned world class offshore registration office and one of the fastest growing corporate registries globally.
RAK ICC carries out the registration and formation of International Business Companies (IBCs) and offshore companies. Companies incorporated under RAK ICC are governed by Business Companies Regulations 2018.
Why set up an International Business Company in RAKICC?
There are a number of offshore jurisdictions globally in which an IBC can be incorporated. However, RAKICC offers several key benefits not available in other jurisdictions. Chief among them is flexibility.
It is one of the most cost-effective jurisdictions in which to incorporate an IBC. It allows full foreign ownership, flexibility with the types of shares that can be issued and the number of shareholders that are permitted and the absence of any requirement to deposit paid up capital, file annual financial accounts or lease physical office space.
RAKICC IBCs also benefit from operating under a common law framework and have access to the common law courts of DIFC and ADGM. This provides a layer of assurance and security in the event of any dispute or other settlement.
How to Incorporate an International Business Company in RAK ICC
To incorporate an entity in RAK ICC, you will need to appoint a RAK ICC registered agent. The agent will assist with collating the relevant documentation and then completing the required applications and preparing the relevant company formation documents. The new company documentation will then need to be signed and submitted before the company is officially formed and the certification of incorporation is received.
Advantages to Incorporating in RAK ICC
There are numerous advantages to incorporating in RAK ICC, below is a list of a few of the main benefits:
- 100% foreign ownership
- Different share types (bonus share, partly paid share or nil paid shares)
- No restriction of repatriation of capital and profits
- No minimum capital requirement
- Taxation benefits
- Cost-efficient incorporation
- Can own property in RAK and Dubai
- Can setup a bank account within the UAE
Types of Companies
There are three main types of RAK ICC Companies, these are listed below:
- Company Limited by Shares (CLS)
- Company Limited by Guarantee (CLG)
- Unlimited Company (UC)
Company Limited by Shares
In a Company Limited by Shares (CLS), the shareholders have limited liability up to the value of the share capital of the entity. The shareholders will only be liable to the creditors of the company up to the nominal value of their shares, this means that the shareholders are protected in the event that the company becomes insolvent. A CLS must have a minimum of one shareholder and one director. There are various possible uses of a CLS, these include the following:
- International Business Company
- Holding Company
- Special Purpose Vehicle
- Segregated Portfolio Company
- Project Company
- Family Office
- Joint Venture Company
Company Limited by Guarantee
Companies limited by shares are flexible corporate vehicles that can be used for numerous purposes. In RAK ICC, Companies Limited by Guarantee (CLGs) can be incorporated with or without the authority to issue shares, so in some cases, they will not have any shares or shareholders. All CLGs must have at least one guarantee member regardless of whether the company has shares/ shareholders. The guarantee member(s) of a CLG gives an undertaking to contribute to the CLG in the case of its liquidation. The liability of the guarantee member is limited to the amount that they guaranteed. A guarantee member will remain liable to the CLG for a year after ceasing to be a member.
The amount guaranteed by each member will be listed in the memorandum and articles of association.
Unlimited Company
An Unlimited Company (UC) is incorporated without limited liability, meaning the shareholder(s) or member(s) have an unlimited obligation to settle any outstanding liability of the company in the event of the company’s liquidation. A UC can be incorporated with or without share capital. The legal liability is not limited.
