Offshore Companies
Choose the jurisdiction which best suits your needs
UAE, RAK
United Arab Emirates (UAE)
Ras Al Khaimah (RAK)
Why choose this jurisdiction when starting a business?
Ras Al Khaimah (RAK) Free Trade Zone is one of the emirates of the United Arab Emirates (UAE). The emirate is situated in the east of the Persian Gulf and is the northernmost emirate of the UAE.
In January 2007, the RAK Investment Authority (RAKIA) launched the international business company concept. There are no restrictions on the number of shareholders or directors of an international business company. Shareholders and directors are not obliged to hold an annual meeting or to file audited accounts. The International Business Companies (IBC) Registry displays only the name of the company and the date of incorporation.
International business companies are not authorised to conduct business activities in Ras Al Khaimah with the exception of accounting, audit, legal and banking activities. International business companies cannot employ staff locally.
Ras Al Khaimah has become a true trading and industrial hub with an economy that continues to expand and thrive.
To incorporate a RAK offshore company in this Emirate your personal presence is not required, which also adds to the efficiency to RAK ICC company registration.
100% Foreign ownership
100% Repatriation of capital and profits
No withholding tax
Packages and Prices
UAE, RAK
Standard
Package
The cheapest option company formation, payment government fees, registered office, local registered agent, Client Due Diligence (CDD) full and free tax and legal assistance, and much more, to keep your entity fully compliant.
Business
Package
A special package with all services as included on the Standard Package, plus our Bank Account opening services with a local bank based in UAE, providing account opening remotely, and offering you online banking, multi-currency account, debit cards and all other major banking services you may need.
Premium
Package
A package with all services as included on the Business Package plus full Nominee Services (Nominee Members and Managers) providing you the highest degree in terms of confidentiality and anonymity.
Advantages
No restrictions on the directors’/shareholders’ residency or citizenship.
Additionally to the RAK offshore company set up advantages, the UAE has double taxation treaties with more than 50 countries which are actually designed to make it an even more attractive destination and prospect for those individuals and companies who originate from countries with aggressive taxation policies. The treaties are in place to further reduce any potential taxation burdens being levied against foreign companies and citizens operating in the UAE and Dubai who remit their profits abroad.
Your company in Ras Al Khaimah in 1-2 days.
UAE New Tax Regulations
The recent tax reforms in the UAE, particularly the implementation of Corporate Tax (CT), have significantly influenced the use of RAK ICC (Ras Al Khaimah International Corporate Centre) entities, particularly in terms of their taxation and reporting duties. Historically, RAK ICC companies were primarily utilized for offshore purposes with minimal reporting requirements. However, the new regulations have introduced additional obligations, particularly concerning corporate tax, accounting, and compliance.
The corporate tax rate has been set at 9% and applies to taxable income above AED 375,000, aligning with earlier statements from the Ministry. This ensures that the UAE’s Corporate Tax system remains highly competitive on a global scale, further cementing its position as a major international financial and business hub. RAK ICC companies that generate all of their income from activities conducted outside of the UAE will generally continue to be exempt from UAE Corporate Tax.
Regarding Free Trade Zones, the UAE remains committed to honoring its zero-percent tax or exemption policies for businesses registered within these zones, as long as they do not engage in mainland activities. These businesses will remain exempt until the end of their tax holiday period, though they are still required to file an annual CT return.
Key changes for RAK ICC Companies
+ Corporate Tax (CT) Implementation
Effective June 1, 2023, the UAE introduced Corporate Tax (CT) at a rate of 9% on taxable income exceeding AED 375,000. RAK ICC companies, typically established for offshore activities generating income outside the UAE, were previously exempt from corporate tax. However, under the new regulations, these companies must now evaluate whether their operations fall under the UAE Corporate Tax regime.
+ RAK ICC and Taxable Income
Income from overseas activities: For RAK ICC companies that solely generate income from activities conducted outside the UAE, such income generally remains exempt from UAE Corporate Tax.
Income from UAE sources: If a RAK ICC company begins earning income within the UAE or from UAE-sourced operations, this income would likely be subject to the 9% Corporate Tax rate. Even companies with only foreign-sourced income may need to comply with reporting requirements to confirm their exemption.
+ Tax Registration
Corporate Tax registration: All businesses in the UAE, including RAK ICC companies, are required to register for Corporate Tax if they meet the criteria for the tax regime. Even if a RAK ICC company earns only foreign-sourced income and is not liable for Corporate Tax, it may still need to register and file an annual nil return to remain compliant.
+ Accounting and Record-Keeping
Accounting requirements: RAK ICC companies now face stricter accounting and record-keeping responsibilities, even if they are not subject to Corporate Tax. Previously, many offshore entities had minimal accounting obligations, but the new rules require proper maintenance of financial records and preparation of financial statements in line with recognized accounting standards, such as IFRS.
Auditing: While not all RAK ICC companies may need to submit audited financial statements, certain UAE jurisdictions may require audits based on the company’s activities and regulatory environment.
Regular accounting: Although monthly accounting may not be mandatory, RAK ICC companies must maintain accurate financial records and at least annual accounting to comply with Corporate Tax filing and Economic Substance Regulations (ESR), where applicable.
+ Annual Tax Returns
If a RAK ICC company is subject to Corporate Tax, it will need to submit an annual tax return. Even if the company’s income is exempt (such as income sourced entirely from outside the UAE), it may still be required to file nil tax returns to confirm the absence of UAE-sourced income. While companies without UAE taxable income may not owe Corporate Tax, they still have filing obligations.
+ Economic Substance Regulations (ESR)
RAK ICC companies involved in relevant activities, such as holding companies, shipping, or intellectual property, must comply with the Economic Substance Regulations (ESR). This includes demonstrating sufficient presence in the UAE, such as having adequate staff, premises, and management. Compliance with ESR requires the submission of an annual ESR notification and, if necessary, an ESR report. Non-compliance can result in penalties, regardless of taxable income status.
Conclusion
Consulting our Business Tax Experts is highly recommended to ensure compliance with the new tax framework and to optimize the use of RAK ICC companies under the revised regulations.
How can we help you?
Should you have any question, our Business Development Managers team will be ready to guide and assist you!
