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United Arab Emirates (UAE)

Introduction

The United Arab Emirates (UAE) is situated in the Southeast of the Arabian Peninsula, bordering Oman and Saudi Arabia.

The United Arab Emirates is an Arabian Peninsula nation settled mainly along the Persian (Arabian) Gulf. The country is a federation of 7 emirates. The capital is Abu Dhabi.

Population:

9.27 million (2016, World Bank)

Official Languages:

Arabic. Recognised national languages: English, Hindi, Persian and Urdu.

Political Structure

The UAE is a federation of seven emirates comprising Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah and Umm Al Quwain and was formed on 2 December 1971.

The UAE federal constitution was permanently accepted in 1961 and provides for an allocation of powers between the federal government and the government of each emirate.

The constitution provides the legal framework for the federation and is the basis of all legislation promulgated at a federal and emirate level.

The UAE judicial system varies significantly across the UAE and the free zones. Only five emirates submit to a federal court system — Dubai and Ras Al Khaimah have their own independent court systems.

Economy

The UAE federal constitution, the federal laws relating to free zones and the powers reserved by the individual emirates under the federal structure, permit each emirate to set up “free zones” for general or industry-specific activities. The purpose of free zones is to encourage foreign direct investment into the UAE.

Currency:

UAE dirham (AED)

Exchange Control:

The UAE does not generally have any currency exchange controls and restrictions on the remittance of funds. Further, free zone entities are generally expressly permitted to repatriate 100 percent of their profits from the UAE in accordance with regulations in place in their respective free zones.

Financial services industry:

A lot of interest has gone towards the financial and investment sector in RAK (UAE) due to new legislation and regulations adopted by the authorities; this in turn has led to interesting business and investment opportunities for individuals and companies worldwide.

An International Business Company in RAK can conduct business internationally, own real estate in the UAE, be used as a trading vehicle, maintain bank accounts, and much more.

Corporate Law/Act

Type of Company/Corporation:

Available a special type of legal entity in Ras Al Khaimah is International Company (RAK ICC) that One IBC provide RAK (UAE) Incorporation Services.

RAK (UAE) ICC benefits from some of the most unique features available to International Companies around the globe:

  • State of the art legislation
  • Establish subsidiary with RAK Free Trade Zone
  • Own real properties
  • Robust compliance procedures
  • 100% foreign ownership & Zero taxes
  • Own shares in local company

Governing corporate legislation: The RAK (UAE) Investment Authority is the governing authority and companies are regulated under the RAK ICC Business Companies Regulations (2016).

Business Restriction:

A RAK ICC cannot trade within the UAE. It may engage in any lawful activity except for insurance, assurance, reinsurance, banking, and the investment of money for other parties.

Company Name:

Your company name may be in any language provided a translation is approved first. Your company name must contain the suffix: Limited or Ltd. Name approval process takes less than a few hours, and your name may be reserved for up to 10 days.

Company Name Restriction

Restricted names include those suggesting the patronage of the UAE Government, any name related to the financial sector, any country or city name, any name containing abbreviations without a valid explanation, and any name that contains a registered trademark not owned by the company. Other restrictions are placed on names that have already been incorporated or names that are similar to those that have been incorporated to avoid confusion. Additionally, names that are considered misleading, indecent, or offensive are also restricted in RAK.

Company Information privacy:

Information published relating to company officers: There is no public register of company officers. No name should be disclosed upon incorporation.

High confidentiality: RAK (UAE) offers complete anonymity and privacy as well as protection of any other information or assets.

Incorporation Procedure

Just 4 simple steps are given to Incorporate a Company in RAK (UAE):
  • Step 1: Select basic Resident/Founder nationality information and other additional services which you want (if any).
  • Step 2: Register or login and fill in the company names and director/ shareholder(s) and fill in billing address and special request (if any).
  • Step 3: Choose your payment method (We accept payment by Credit/Debit Card, PayPal or Wire Transfer).
  • Step 4: You will receive soft copies of necessary documents including: Certificate of Incorporation, Business Registration, Memorandum and Articles of Association, etc. Then, your new company in RAK (UAE) is ready to do business. You can bring the documents in company kit to open corporate bank account or we can help you with our long experience of Banking support service.
* These documents required to incorporate company in RAK (UAE):
  • Passport of each shareholder/beneficial owner and director;
  • Proof of residential address of each director and shareholder (Must be in English or certified translation version);
  • The proposed company names;
  • The issued share capital and par value of shares.

Compliance

Capital:

usual authorised share capital is AED 1,000. Minimum paid up is fully paid.

Share:

Bearer shares are not permitted.

A company is permitted to hold treasury shares. All rights and obligations attached to a treasury share will be suspended and shall not be exercised by or against the company while the company holds the shares as treasury shares.

The RAKICC Business Companies Regulations 2016 permits a company to issue bonus shares, partly paid shares or nil paid shares.

Director:

  • The minimum one director is required.
  • Directors may be of any nationality.
  • The names of directors do not appear in public records.

Shareholder:

  • Shareholders may be of any nationality.
  • Only one shareholder is required who may be the same person as the director.
  • The shareholder can be a person or a corporation.

Beneficial Owner:

Beneficial Owner’s Statement per beneficial owner need to be provided for incorporation in RAK (UAE).

Taxation:

As a member of the World Trade Organization (the WTO) and as a party to various regional free trade agreements throughout the GCC, the UAE has low rates of tariffs.

There is no federal corporate or income tax levied in the UAE (except on oil companies and banks). With RAK corporate taxation: 100% foreign ownership & Zero taxes.

Finance statement:

No requirement to publish annual accounts. Private companies in United Arab Emirates are not required to publish or disclose balance sheets, this information is strictly confidential and not available from other sources.

Local Agent:

You must have a registered agent and registered office in the UAE and we can provide this service.

Double Taxation Agreements:

UAE has signed Double Taxation Agreements (DTAs) with 66 countries, including Austria, Belgium, Canada, Indonesia, Malaysia, New Zealand and Singapore;

License

License Fee & Levy:

The annual company licence fee of AED 20,010 is payable every year the company is incorporated and, starting from the second year after incorporation, an annual administration fee of AED 5,000 is payable to the government.

Business License:

Ras Al Khaimah Free Trade Zone is one of the fastest growing, most cost-effective free zones in the UAE. RAK Free Trade Zone offers the following licenses: Commercial License, General Trading, Consultancy License, Industrial License.

Renewals:

Renewal applications shall be submitted 30 days prior from the date of expiry, where 30 days from the date of expiry is the grace period for processing without penalty. If the renewal is applied in 180 days from the date of expiry, a penalty will be charged for each month after the grace period.

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