A Guide to the RAK ICC Free Trade Zone in UAE
Written By Antima – 21st Jan’22
In 1972, Ras Al Khaimah, one of seven emirates that include the United Arab Emirates, joined the Federation as a representative. In 2006, Ras Al Khaimah approved the Ras Al Khaimah International Company Law, which is modeled after the effective international company regime in the British Virgin Islands. The legislation was most recently changed in 2016, in order to stay up with worldwide developments.
The RAK ICC (Ras-Al-Khaimah International Corporate Centre) is the result of the merger of two business registers in Ras Al Khaimah: RAK International Companies (previously part of the RAK Free Trade Zone) and RAK Offshore (formerly part of the RAK Investment Authority).
It is in charge of issuing and incorporating International Business Companies, as well as providing a full set of registry services related to the operations of International Business Companies.
RAK ICC is a new world-class company registry that works in the international business Company Formation market in strict accordance with international standards and best practices.
RAK International Corporate Centre will be at the forefront of the development of an international business service provider, and we will continue to improve our service model to satisfy the demands of our clients.
The Ras Al Khaimah International Corporate Centre (RAK ICC Free Zone) is a growing free trade zone in the Ras Al Khaimah Emirate. RAK ICC is close to three airports and three ports, all of which are within a 45-minute drive journey (including Dubai International Airport).
The RAK Free Zone Authority is attempting to simplify regulatory frameworks for enterprises in the developing section of the Emirati economy as a consequence of the merger of two former free zones, the RAK Free Zone and the RAKIA Free Zone Authority.
Benefits of RAK ICC
The RAK ICC offshore company is registered on the UAE’s territory without the need for a physical office, and it can only do business outside of the UAE. Such a person is eligible to open a bank account in Dubai or any other Emirate. There is no need to present yearly financial statements to the authorities for firms of this type, among other advantages, and it is simple to maintain the company. All you have to do is renew the business once a year.
- 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 considerations to consider before registering a business in the UAE. You must first identify the sort of entity you wish to create, followed by the license that matches your business activity. What kind of business formations are permitted by the RAK ICC Free Zone authority? The formation of your international business organization, or IBC, might be one of five options:
- Company Limited by Shares
- Restricted Purposes Company
- Company Limited by Guarantee
- Unlimited Company
- Segregated Portfolio Company (also known as a protected cell company).
There are two other alternatives available through the RAK ICC Free Zone. If your firm has a lot of trademarks, patents, copyrights, and other intellectual property assets, you may establish up an intellectual property holding company (IPHC) to manage the leasing and sales of all of your IP assets in one location. This solution will simplify your taxation by putting everything under the umbrella of a worldwide company’s sister organization.
You can choose to contract a Premium Product, which is a cooperation between RAK ICC and the Ras Al Khaimah Economic Zone RAKEZ that allows you to register an offshore business while also being able to function on the mainland. Your offshore registration will be handled by RAK ICC, and your collaboration with RAKEZ will allow you to set up an onshore subsidiary RAKEZ to operate locally, as well as apply for a resident visa. Except for the Segregated Portfolio Company, the Premium Product works with all of the business types described above.
You may apply for activity licenses in the following classes:
- General 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 can employ a registered agent to form a business that follows the International Business Company (IBC) structure in the RAK ICC Free Zone. There is no other way to take advantage of this free zone. As registered agents for the RAK ICC Free Zone, we can assist you in Forming Your Company in RAK ICC. Contact our experts to get started today itself.