Structuring RAK Offshore Company for Trade Success

Ras Al Khaimah has established itself as a prominent international business jurisdiction due to RAK ICC. For businesses and entrepreneurs who are looking to take advantage of international markets, the best way is to establish an offshore company here for international trade purposes that will provide a unique combination of tax and other operational benefits. The entities have multiple business structure options which can be selected as per the requirements and the objectives. An offshore company is a company which is created or established outside of the primary operating territory. Hence RAK is one of the best go to locations for an offshore company formation.

The Right Legal Structure

The foundation of a successful trading business in RAK ICC is in defining the appropriate legal value. There is no single conventional and suitable structure for an international trade, hence the companies can select the structure based on the requirements. The common business structure that can be adopted by the entities in RAK include the following:

1. Company limited by shares: It is type of structure where the shareholders have the liability limited to the amount of capital they have invested. They don’t have to bear any additional liabilities. The CLS is designed to operate as an International Business Company, making it perfectly suited for international trading, joint ventures, and holding trading-related assets.
2. Company limited by guarantee: It is a type of company which can be established in RAK ICC where the company would have minimum of one member as a guarantee member who would in the circumstances of company being wound up would pay the nominal amount. The liability of such entities would be limited to the amount stated in the MoA and AoA. It is mostly used for real-estate management.
3. RAK ICC segregated portfolio company (SPC): It is a type of company which is limited by shares and also would have different segregated portfolios in order to distinguish the assets and liabilities of the company. The main objective of starting this company is to ensure that the assets and liabilities of different portfolios are manged and isolated from other assets and liabilities of the same company.

4. Intellectual property holding company at RAK ICC: It is a type of company which is created in order to manage and hold the patents trademarks and other intellectual properties of the global companies, it is usually a subsidiary of such global companies

5. Unlimited company: It is a company in which the members have unlimited liabilities and also, they can own the assets of such companies

6. Restricted purpose company: It is a type of company which established as a SPV and which is created for a specific purpose

 The Streamlined Setup Process

Creating a company for trade under RAK ICC is a relatively simple process, and can be conducted by a RAK ICC registered agent (which is mandatory). Usually, it takes not more than 15-20 days for the whole setup process.

• Initial Consultation & Name Reservation: Choose a distinct company name, and work with a registered agent to provide the proposed scope of activity (such as General Trading).
• Documentation Preparation: Provide your registered agent with passports and proof of address for the shareholders and directors.
• Application Submission: The registered agent prepares and submits the Memorandum & Articles of Association (MOA/AOA), and the application forms, to RAK ICC.
• Approval: RAK ICC conducts its due diligence and then approves the application.
• Document Issuance: After payment of fees, you will receive the official Certificate of Incorporation and the appropriate license (e.g., General Trading License) from RAK ICC.
• Corporate Bank Account: The final step is to use the documents that are issued to open a corporate bank account in the UAE so that your company can start trading globally.

Financial & Operational Benefits for Companies

International trade through the RAK ICC offshore jurisdiction offers many strategic advantages like tax advantages and enhanced operational efficiencies, both are essential to limit costs and maximize access to markets throughout the world.

• Tax Benefits: RAK ICC structure supports profit retention. The companies benefit from many tax exemptions like zero corporate tax, income tax, and VAT on sales and purchases. Most importantly for traders, the offshore structure means no import or export duties on any transaction done internationally, which results in dramatically simplified and lower-cost global logistics.
• Operational Efficiencies: Efficiency begins with low overhead and high security. RAK ICC removes any responsibility to have a physical office or local employees (No Physical Office Needed), vastly decreasing operational cost. It also guarantees maximum confidentiality; the identity of shareholders and directors will remain confidential.
• Global Financial Capabilities: The structure allows for effective cross-border trade, and the opening of a bank account guarantees banking access, so a corporate bank account can be quickly opened in the UAE for trade finance and globally. RAK ICC law provides a stable legal structure that protects your assets and your wealth.

How can CDA assist is setting up a business in RAK?

To ensure that your RAK offshore setup is impeccably carried out and entirely compliant with both RAK ICC regulations and broader UAE business regulations, especially related to due diligence and banking, you will need expert guidance. A local firm with a solid reputation will facilitate a seamless transition into your new international structure.

This is where the value of the strategic partnership comes in. Working with a firm like CDA, which is among the foremost business advisory and set-up firms in the UAE, offers you complete support. CDA will help you understand the complexities of the setup process and ensure that your corporate structure is designed efficiently for trade and provide ongoing compliance support, so you can simply focus on growing your business and engaging in transactions.

Take that next important step towards global trade. CDA is here to consult with you professionally on structuring your RAK offshore entity and maximizing your trade operations. Get in contact with CDA now!