Ras Al Khaimah International Corporate Centre (RAK ICC) is a leading offshore company registry in the UAE, providing a secure and business-friendly environment for international business activities. This guide outlines the benefits, legal framework, compliance requirements, and tax advantages of setting up an International Business Company (IBC) in RAK ICC.
Overview of RAK ICC
RAK ICC was established in 2016 after the merger of RAK Free Trade Zone (RAKFTZ) and Ras Al Khaimah Investment Authority (RAKIA). It offers a robust framework for international business companies, allowing them to conduct global operations while enjoying numerous benefits.
Key Features of RAK ICC
Legal Basis: The legal framework is based on common law principles, regulated under the Ras Al Khaimah International Corporate Centre Business Companies Regulations 2016.
Company Form: International Company (Company limited by shares).
Liability: The liability of shareholders is limited to their shares in the company.
Business Restrictions: International companies may not carry out business within the UAE or any free zone but can engage in activities such as international trade, consulting, professional services, holding company activities, investment, and more.
Share Capital and Shareholders
Share Capital: No minimum share capital requirement. Companies can issue shares with or without par value in any currency. Fractional shares, bonus shares, partly paid shares, or nil paid shares are permitted. Bearer shares are not allowed.
Shareholders: A minimum of one shareholder is required, who can be an individual or a corporation, and may be non-resident. Shareholder details are not disclosed publicly.
Directors and Secretary
Directors: At least one director is required, who can be a natural person or a legal entity, and may be non-resident. Director details are not disclosed publicly.
Secretary: The appointment of a secretary is required, who can be a legal or natural person and may be non-resident.
Compliance and Reporting
Registered Address: Companies must have a registered agent in the UAE, who provides a registered office.
General Meetings: Annual general meetings are not mandatory and can be held anywhere, including via electronic means.
Electronic Signature: Permitted.
Re-domiciliation: Foreign entities can continue as RAK ICC companies, and vice versa.
Accounting and Audits: Annual accounts must be prepared but are not required to be filed. Audits are only necessary during liquidation.
Taxation
Corporate Income Tax: RAK ICC companies are exempt from corporate taxes as long as they are managed and controlled outside the UAE and do not constitute a permanent establishment within the UAE.
Other Taxes: No personal income tax, capital gains tax, real property tax, inheritance tax, estate duty, capital transfer tax, gifts tax, or wealth tax. VAT at 5% applies to most goods and services, but not typically relevant to RAK ICC companies that do not trade within the UAE.
Advantages of RAK ICC
Tax Benefits: Exemption from corporate income taxes and other forms of taxation.
Confidentiality: Non-disclosure of shareholder and director details.
Flexibility: No restrictions on international trade and investment activities.
Compliance: Simplified compliance requirements with no need for annual returns or tax filings, except in specific situations like liquidation.
Legal and Regulatory Framework
RAK ICC operates under a legal framework designed to facilitate international business while ensuring regulatory compliance. The key regulations include:
Ras Al Khaimah International Corporate Centre Business Companies Regulations 2016: Governs the establishment, operation, and dissolution of RAK ICC companies.
Anti-Avoidance Rules: Includes transfer pricing rules to ensure transactions between affiliates are at arm’s length.
Conclusion
RAK ICC offers a compelling solution for international businesses seeking a tax-efficient and business-friendly jurisdiction. With its robust legal framework, tax exemptions, and confidentiality provisions, RAK ICC is an ideal choice for companies engaged in global trade, investment, and asset protection.
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