A GUIDE TO THE RAK ICC FREE TRADE ZONE IN UAE

In 1972, Ras Al Khaimah, one of the seven emirates of the United Arab Emirates, joined the Federation as a representative. In 2006, Ras Al Khaimah introduced the Ras Al Khaimah International Company Law, modeled after the well-regarded international company framework in the British Virgin Islands. The legislation was last amended in 2016 to align with global developments.

The RAK ICC (Ras Al Khaimah International Corporate Centre) was formed through the merger of two company authorities in Ras Al Khaimah: RAK International Companies (previously part of the RAK Free Trade Zone) and RAK Offshore (formerly under the RAK Investment Authority). It is responsible for incorporating and issuing International Business Companies, as well as providing a full range of corporate services related to their operations. RAK ICC has emerged as a world-class corporate body, operating in the international business formation market in full compliance with global standards and best practices. Positioned at the forefront of international corporate services, RAK ICC continues to refine its service model to meet the evolving needs of clients.

Located within Ras Al Khaimah, the RAK ICC Free Zone benefits from strategic connectivity, being within a 45-minute drive of three airports—including Dubai International Airport—and three major ports. Meanwhile, the RAK Free Zone Authority is working to simplify regulatory frameworks for businesses, following the consolidation of the former RAK Free Zone and RAKIA Free Zone Authority, further strengthening Ras Al Khaimah’s role in the UAE’s growing economy.

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Benefits of RAK ICC

The RAK ICC offshore company is established in the UAE without the need for a physical office, and it is permitted to conduct business only outside of the UAE. Such a company is eligible to open a bank account in Dubai or any other Emirate. There is no requirement to submit yearly financial statements to the authorities for this type of entity, making it simple to maintain. All that is required is to renew the business once a year.

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• There is no corporate tax, no VAT, and no sales tax.
• There is no obligation for the management or director to travel to the UAE personally.
• 100 percent international ownership of RAK ICC Capital and 100 percent tax repatriation
• Personal presence is not required for company formation.
• The privacy of the owners and directors is protected because they are not publicly listed.
• There is no necessity for an audit or the presentation of financial statements.
• Bank accounts will be held by the UAE.

What are the criteria for RAK ICC company setup?

There are two key steps to take before setting up a business in the UAE. You must first identify the type of entity you wish to create, followed by the license that matches your business activity. What kinds of business formations are permitted by the RAK ICC Free Zone authority? The formation of your International Business Company (IBC) can take one of five forms:

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1. Company Limited by Shares
2. Restricted Purposes Company
3. Company Limited by Guarantee
4. Unlimited Company
5. Segregated Portfolio Company (also known as a protected cell company).

There are two additional options available through the RAK ICC Free Zone. If your company holds multiple trademarks, patents, copyrights, or other intellectual property assets, you can establish an Intellectual Property Holding Company (IPHC) to manage the leasing and sales of all your IP assets in one place. This structure simplifies taxation by consolidating everything under the umbrella of a global company’s sister entity.

Another option is the Premium Product, a collaboration between RAK ICC and the Ras Al Khaimah Economic Zone (RAKEZ). This allows you to set up an offshore company with RAK ICC while also gaining the ability to operate on the mainland through RAKEZ. Under this arrangement, RAK ICC manages the offshore setup, and RAKEZ enables you to establish an onshore subsidiary, operate locally, and apply for a resident visa. The Premium Product applies to all business types mentioned above, except for the Segregated Portfolio Company.

You may also apply for activity licenses in the following categories:

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1. Industrial
2. General Trading
3. Commercial
4. Media
5. Consulting/Services
6. Trading

Why RAK ICC?

• There is no minimum capital requirement, and you are not required to file financial reports.
• The company documents do not require any legal verification, and the procedure will just take a day if you choose a licensed agent to do it for you.
• RAK ICC operates under Common Law law with access to the legal systems of the DIFC and ADGM (Abu Dhabi Global Market) Free Zones.
• You can transfer your corporate residency from another offshore jurisdiction to RAK ICC.
• Most free zones in the UAE do not grant you this power. The basic rule is that if you wish to change the free zone, you must liquidate the prior company in the free zone that you want to depart and form a new one from scratch in the new open region.
• RAK ICC also maintains a Probate and Wills record in partnership with the DIFC Wills Centre in the Dubai International Financial Centre Free Zone.

How do you form a company in the RAK ICC Free Zone?

All interested parties must appoint an approved agent to form a business under the International Business Company (IBC) structure in the RAK ICC Free Zone. This is the only way to benefit from the opportunities offered by this free zone. As approved agents for the RAK ICC Free Zone, we can assist you in setting up your company in RAK ICC. Contact our experts to get started today.