United Arab Emirates (UAE) Company Formation Frequently asked questions (FAQs)

The type of the company in RAK is International Business Company (IBC)

• IBC refers to International Business Company
• It is a company which does not conduct substantial business in its country of incorporation.
• It is formulated in a tax free jurisdiction.
• It legally minimizes any type of tax burdens.
• It improves one's wealth management

Read more:

• RAK offshore company cost
• Advantages of an offshore company in RAK

There are 02 ways you can start a business in Dubai: free zone business setup and mainland business setup. As a foreigner, you should choose the former option, as it offers more exclusive benefits for overseas businesses.

The cost for Dubai free zone company setup varies depending on the type of free zone business setup that you choose, e.g. Dubai Multi Commodities Centre Authority (DMCC), Dubai Creative Clusters Authority (DCCA) and Jebel Ali Free Zone (Jafza). Generally, Dubai free zone company setup costs range from AED 9,000 to AED 10,000. Other fees incurred during the free zone business setup includes:

• Licence Fee: AED 10,000 to AED 50,000 per year
• Office Fee: AED 15,000 to AED 20,000
• Share Capital: AED 1,000 to as much as AED 1,000,000

Out of all Dubai free zones, DMCC is our top choice for free zone company setup. Even though the setup cost is a bit higher than other free zones, DMCC is still a better option as it provides a variety of value-added services and support for foreign businesses. Being the world-leading free zone for 6 consecutive years, DMCC is the ideal destination for Dubai free zone company setup.

RAK Offshore International Business Companies (IBC) must use the suffix Limited or Ltd. to denote limited liability.

The usual authorized capital of RAK company is 1,000 AED. But there is no minium paid up for the company

It is possibe. A foreigner can own 100% share of the company

All information, documents are strictly kept confidential. No one can find the company information online.

Furthermore, we have nominee services which can help to keep your name out of all the paperwork.

Read more:

• UAE nominee services
• Difference between offshore and onshore company in UAE

Rak Offshore IBC doesn’t pay taxes on profit and capital gains, No value-added tax, No withholding tax.

It may have non UAE resident as director or shareholder.

It may have UAE resident as director or shareholder. (Read more: UAE residency) 

It may have corporate shareholder/corporate director

It does not require the shareholder/director to be physically present in the UAE for incorporation

It may hold shares in other UAE and worldwide companies.

It may maintain bank accounts and deposits in the UAE or worldwide.

It may own real estate in the UAE, with prior authorization from RAK Investment Authority.

It is not obliged to maintain its books and records.

It cannot have physical offices in the UAE.

It may not carry on business within the UAE.

It may not obtain UAE Residency Visa.

It may not do banking and insurance business without special license.

Read more:

• Set up company in UAE
• Virtual office UAE

Inside UAE

• Holding Assets
• Holding Bank Account
• Property Owning (Freehold Areas)

Outside UAE

What are the main activities that a RAK Offshore company can hold Outside UAE?

• General Trading
• Consulting and Advisory Services
• Holding Company
• Property Owning
• International business services
• Professional Services
• Shipping and ship management companies

Read more:

• Set up company in UAE
• Opening an offshore account in the UAE

Usually It takes 2 working day to set up company in UAE

For opening RAK offshore company, Offshore Company Corp requires to have:

• Copy of Notarized Passport;
• Bank Reference Letter - original required;
• Copy of Notarized Proof of residence in English (Utility bill) and the issued date must not later than 3 months.
• Notarized Spicemen Signature
• CV/ Resume

Read more:

• Ras Al Khaimah offshore company formation
• Offshore bank account in UAE

After the company is formed, we will send you soft documents via email. After that, we will courier the hard document to you:

• Certificate of Incorporation
• Memorandum of Association (M&A)
• Resolution appointing officers
• Registered Office
• Registered Agent

Read more:

• Offshore company in United Arab Emirates
• Set up company in UAE

RAK Offshore International Business Companies (IBC) must use the suffix Limited or Ltd. to denote limited liability.

No, the bearer shares are not allowed in RAK IBC

No annual reports or accounts need to be filed. Accounts must be audited and accounts must be distributed to shareholders (but NOT filed with the authorities)

How it works?

Ras Al Khaimah (RAK) and Dubai International Business Company (IBC) is for Offshore Company Status.

• 100% foreign ownership, complete confidentiality
• Possibility of business address, bank account in Dubai
• A tax free and business friendly environment. (Read more: UAE corporate income tax)

RAK / Dubai IBC is perfect for

• Holding Company
• Advisory and Consulting Services
• Financial Services Company
• Investments and Joint Investments Company
• Intellectual property
• International Trading (outside of UAE)

Preparation

Request FREE Company Name Search.

• We check the eligibility of the name in list business name availability UAE, and make suggestions if necessary.

Send your Required Documents scanned copies to us:

1. Valid Passport
2. Proof of Residential Address

After checking the documents, we will send you a proforma invoice for our service fees.

Making Payment for your Order

• We accept payments by Credit/Debit Card   , Paypal or Wire Transfer to our bank accounts (we support multiple currencies with many banks around the world) (Payment Guidelines).
• Read more: RAK company formation cost

RAK offshore company formation

• We prepare the incorporation forms of your proposed company for you to sign (we will need your company’ structure, initial share capital information…etc).

Confidently starting your business

• We will notify you when the company is incorporated and send you the company documents’ soft copies first. All of the RAK Company / Dubai Company Documents will be couriered to your desired shipping address by express (TNT, DHL or UPS etc.).

Read more:

• UAE offshore bank account
• United Arab Emirates company register

The renewal date of RAK IBC is the anniversary date

As the requirement from the Registry, We will prepare the following forms and let you to sign it:

• Shareholder’s resolution mentioning the increase of share capital.
• 3 set of the Amendment to the MOA’s form signed by the shareholder
• You need to courier the original MOA to the authority for the amendment

Read more: 

• Set up company in UAE
• Opening an offshore account in the UAE

We, the registered agent, can help you to issue those additional documents

• Certificate of Incumbency
• Certificate of Good Standing
• Any additional documents

Read more:

• United Arab Emirates corporate tax rate
• Opening bank account in Dubai

There are three types of business entities in the UAE: Offshore Company Formation – RAK IBC, FreeZone Company Formation – FZE / FZC / FZ LLC, and Local Company Formation – LLC.

Firstly, the owners must pick a unique name that is approved by the UAE government. Typically, the owner will submit three different business names that are approved one out of the name.

Secondly, the UAE company must have a local registered agent and local office address.

• A registered company in UAE also requires at least one shareholder, one director, and one secretary. UAE businesses are able to use nominee services of One IBC that help all your information be kept private from the public records.

One IBC can help the clients in opening the offshore IBC in UAE. With over 10 years of experience in support and advising the clients in setting up the company around the world, we believe that can make satisfaction for every customer who cooperates with us.

Read more:

• Offshore company formation in UAE
• Open UAE bank account online

Ras Al Khaimah (RAK) is one of the most developed economies in the UAE. It attracts foreign investors through government policies, high-quality infrastructure, friendly trade relations with nearby countries.

Besides that, a registered offshore company in RAK, UAE also enjoys the following benefits:

• 0% personal and corporate income tax
• 100% foreign-owned company in RAK, UAE
• Access to all large seaports and airports in the UAE
• Neither foreign exchange control nor capital transfer barrier
• Completely confidential information
• Permit to purchase real estate.

For more information about opening RAK IBC company in UAE, the clients can contact One IBC to have the maximum support and advises

One IBC can support customers with the offshore company formation process as well as the requirements of jurisdictions that the clients are interested in.

Read more: 

• Ras Al Khaimah offshore company formation
• RAK bank offshore account

 

 

 

 

Dubai is one of the friendly jurisdictions for foreign investors and business owners to set up a business. Opening a Corporate Bank Account in Dubai is an easy and simple process if you know the right required documents. One IBC can support you open a bank account in Dubai and make the process simpler for the applicants.

During the time of the process, bankers may ask further questions or require more documents to open a bank account.

List of the usual documents requirements for opening a bank account in Dubai, UAE:

• Copy of trade license;
• Copy of MOA/AOA;
• Copy of share certificate;
• Copy of Certificate of Incorporation;
• Copy of page of shareholder’s passport with UAE entry stamp;
• Copy of Emirates ID of shareholder (if the shareholder is UAE residence);
• Copy of Visa page of shareholder (if the shareholder is not UAE residence);
• List a few prospective clients/ or existing clients;
• Copy of bank statement of the shareholders (no more than 6 months);
• Copy of utility bill of the shareholders with showing the proof of address;
• Copy of corporate legal documents and bank statements (for the shareholder if they have other companies outside the UAE).

Read more:

• Opening offshore bank account in Dubai
• Offshore company in Dubai

Registering the Freezone company in Dubai (UAE) is the first step to start a business and take many advantages from the government of the UAE. The main benefits of Free zone company in Dubai, UAE including:

• No corporate tax, and exemption from all annual accounting, and tax obligations;
• Register Freezone company without revealing name and detail information of shareholders and directors for the public record;
• Register the Freezone company with 100% foreign ownership;
• Over 80 countries have signed and negotiated the Double Taxation Avoidance Agreement with UAE;
• Banking Regulations and support through multiple currencies. (Read: Offshore bank account Dubai)

One IBC can guide and support you to register your Freezone company in many special areas to get advantages that apply only for foreign business in UAE such as RAK Free Zone, Dubai Free Zone (DMCC), Ajman Free Zone.

Read more:

• Offshore company in Dubai
• Dubai company formation cost

Businessmen can open an offshore company in Dubai Freezone but can not conduct any trading activities in the UAE. However, it can be used to do business with other countries, a higher reputation.

On the other hand, an onshore company is able to conduct all kinds of commercial activities in the UAE. The rules and regulations applied for Offshore and Onshore companies are different. There are more advantages for foreign investors and businessmen to open an offshore company than onshore for doing business in Dubai.

• Offshore companies allow foreigners are able to own property in the UAE;
• Low rate taxes are applied to offshore companies. It means the company has more financial resources to invest their money and take advantage of business growth.

Read more: Benefits of Free zone company in Dubai

The government of the UAE has designated several different areas such as Dubai Airport Freezone, Ras AL Khaimah Economic Zone (RAKEZ), Jebel Ali Free Zone (JAFZA), etc. to improve the business environment and attract more foreign companies.

Contact our advisory, we will support you to open an Offshore company and find which areas are fit with your business purpose.

Read more:

• Offshore company in Dubai
• How to register a company in UAE