Offshore Company Formation in Ras Al Khaimah

Ras Al Khaimah, one of the emirates in the United Arab Emirates, is an international offshore business centre for non-resident foreigners and entrepreneurs to conduct their business and to outsource the back office tasks. Ras Al Khaimah also offers an independent Registrar of Companies to help deal with the formation of the offshore company.

Benefits

Some of the benefits in setting up an offshore company in Ras Al Khaimah include the following:

 

  • No need to pay corporate taxes
  • 100% on capital and profit repatriation
  • 100% ownership in free zones
  • No taxes on capital gains
  • No taxes on value added tax
  • No withholding taxes
  • Nearby to the whole Gulf and to major global markets
  • There is no need for the company to have a physical office in the United Arab Emirates
  • While it may not get the United Arab Emirates visa residency, a non-resident can become a director or shareholder
  • The director or shareholder need not be physically present during the incorporation of the offshore company
  • The offshore company can own real estates in the United Arab Emirates subject to prior approval from the Rak Al Khaimah Investment Authority
  • The company can have its bank accounts and deposits in the United Arab Emirates or globally
  • There is no obligation to do bookkeeping and to update company records
  • The company can hold shares in other the United Arab Emirates companies or global companies
  • Ras Al Khaimah has a strong, well-regulated, and transparent system in internal, local, federal, and international compliance while protecting the customer’s confidential information
  • The Registrar and the Financial Services Authority adopts a firm but a modern and flexible legal system
  • Political and economic stability
  • It is easy to incorporate an offshore company along with easy filling requirements
  • Ras Al Khaimah has signed Double Taxation Avoidance Agreement (DTAA) with many countries
  • Ras Al Khaimah has an advanced and up-to-date banking system and telecommunication facilities
  • The United Arab Emirates are not dependent or foreign territory of another country
  • The United Arab Emirates is one of the fastest growing countries and economies in the world
  • The United Arab Emirates is not a member of Organisation for Economic Co-operation and Development (OECD) and not on OECD’s blacklist
  • The United Arab Emirates is not on Financial Action Task Force (FAFT) blacklist
  • The United Arab Emirates is not a member of the European Union so it is not subjected to the European Union regulations

 

 

Required Documents for Individual Applicants

The required documents for applying to set up an offshore company in Ras Al Khaimah as an individual are:

  • A passport copy of the applicants
  • Original bank reference letter signed by the authorized bank official with a stamp of the bank
  • In case that bank reference is not available, apply using latest 3 months of original bank statements
  • Provide original utility bills, telephone land lines bills, or an attested certificate of residence by the municipality of the home country as a proof of residence

 

Required Documents for Non-individual Applicants or Corporate Entities

The required documents for applying to set up an offshore company in Ras Al Khaimah as a non-individual or a corporate entity are:

  • License or Certificate of Incorporation by the chamber of commerce
  • Board resolution to form an offshore company in Ras Al Khaimah
  • Memorandum of Association of the parent company
  • Passport copies of the directors and shareholders
  • Additional documents requested by the Registrar during the registration process should they be necessary
  • Certain documents need the United Arab Emirates embassy in the home country and the United Arab Emirates of Foreign Affairs to attest to them

 

Procedure

The first step to setting up an offshore company in Ras Al Khaimah is to look for a registered agent that specializes in the formation of Ras Al Khaimah offshore companies. Only a registered local agent residing in Ras Al Khaimah have the power to process the documentation to form an offshore company. One of the recommended local agents is Cross Border Business Consultants. After you have confirmed your selected local agent and the cost details, the other steps are smooth sailing.

The second step is to propose a name. Each company needs a Limited word behind its name and the name cannot contain restricted words such as Emirates, Dubai, Ras Al Khaimah, RAK, FOREX, Finance, Bank, Insurance, and names related to the royal family or ruling families in the United Arab Emirates. An example of an acceptable name is ABC Limited.

The third step is to send all the required documents to the consultant. Please see the above for the list of documents. Scanned copies are sufficient enough for this step.

The fourth step is to sign the official application and the Memorandum of Association. After signing these documents, send it back to your appointed local offshore company formation agent by courier. Remember to send the original copies here because the offshore authority requires them in their original copies.

Finally, you must make a payment to the local agent after the agent confirms the documents. The agent will then proceed to register for an offshore company formation and the process will take around 24 to 48 hours.

Once your company is fully incorporated, the next step is to register for an offshore bank account. An offshore company can open a bank account in Ras Al Khaimah or in any other emirates within the United Arab Emirates region. Some of the recommended banks in Ras Al Khaimah for offshore companies to open an account in are Hong Kong Shanghai Bank (HSBC), National Bank of Ras Al-Khaimah PJSC or RAK Bank, and Emirates NBD, one of the largest banks in the Middle East based on assets. The whole procedure will take you around 2 to 14 days depending on which bank you choose. After that, you are ready to start your business.

 

Suggested Activities

The suggested activities for the UAE Offshore Company are:

    • General trading
    • Business consultancy
    • Business advisory
    • Holding company
    • Owning properties
    • International business
    • Professional services
    • Shipping companies
    • Ship Management companies
    • Holding assets
    • Invoicing
    • Holding an offshore bank account

 

  • Owning properties in free hold areas