Ras Al Khaimah is an emirate in the north of the UAE. The formation of offshore companies became possible in 2006 after special Regulations were adopted[1].
Offshore companies are completely exempted from taxes in the territory of the UAE, but they may not conduct business in the Emirates.
Any individuals or legal entities (except for private funds and trusts) may be shareholders and directors of a company irrespective of their citizenship/country of incorporation, and the company is not required to have local shareholders. The minimum share capital is AED 1,000 (approximately 275 USD), but the deadline for its payment is not set. Shares of a company may either have or not have declared par value (in any currency).
An offshore company may not take on lease an office in the territory of the UAE[2] and, unlike a resident company, may not be used to obtain visas for its employees or directors.
A company may have a nominee director, but nominee shareholders are not allowed. The register of shareholders and directors of an offshore company is not available to third persons.
An offshore company is not obliged to file accounts with any state authorities in the UAE, however in accordance with part 7 of the Ras Al Khaimah Regulations on International Business Companies 2006 a company must keep documents on its economic activity to the extent that enables its directors to determine the financial position of the company.
The following documents have to be provided in order to incorporate a company:
The documents have to be translated into English; currently the translation is not required to be certified by a notary or professional translator.
The documents must not be older than 3 months.
Shareholders’ visit to the UAE is not required to incorporate a company.
The incorporation takes approximately 5 workdays after the full set of documents and information required for incorporation have been provided.
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Services
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Fees (USD)
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Offshore company registration in RAK, including[4]:
- company incorporation (name check; collection, preparation and submission of documents for incorporation; selection of a licence; delivery of original corporate documents); - liaising with government authorities regarding all matters of the company; - maintaining the company’s online service portal with the free zone and migration authorities; - monitoring changes in legislation, informing about changes and the need to revise the activities / structure of the company; - compliance check; - postal services (collection / delivery of documents and other correspondence); - company seal. The listed price also includes the state fees charged by the state authority for company registration and the issuance of a license for one type of activity. Other options are available upon request. |
4 200
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Annual renewal of the company, including:
- liaising with government authorities regarding all matters of the company; - maintaining the company’s online service portal with the free zone and migration authorities; - monitoring changes in legislation, informing about changes and the need to revise the activities / structure of the company; - keeping track of the deadlines and making payments for the company renewal and the office lease agreement; - postal services (collection / delivery of documents and other correspondence). The listed price also includes the state fees charged by the state authority for annual renewal of the license. Other options are available upon request. |
3 200
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Cost of services of a nominee director.
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640 USD / year
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Assistance with opening corporate and personal bank accounts:
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Stage I:
- upon your completing a special questionnaire, we get to know you and your business closer and offer several banks to choose from; - we help you to collect the necessary package of documents required for account opening; - we arrange an interview for the signatory to the account at the bank of your choice (or several banks, because it is better to apply to more than one bank, to increase the chances of opening at least one account). |
500
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Stage II:
- we accompany you to a personal meeting with a banker; - we prepare you for the interview, going again through the list of necessary documents and accentuating necessary points; - we also instruct you in detail about what questions the bankers usually ask and what they expect to hear from you; - we take care of further interaction with the bank on completion of the account opening process after the interview with bank officer. |
2 000
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Compliance fee
Payable in the cases of: - renewal of a company, - liquidation of a company, - transfer out of a company, - issue of a power of attorney to a new attorney, - change of director / shareholder / beneficial owner, except the change to a nominee director / shareholder, - signing of documents |
250 (standard rate – includes the check of 1 individual)
+ 150 for each additional individual (director, shareholder, or beneficial owner) or legal entity (director or shareholder) if such legal entity is administered by GSL + 200 for each additional legal entity (director or shareholder) if such legal entity is not administered by GSL 350 (rate for High Risk companies, includes the check of 1 individual) 100 (signing of documents) |
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Keeping company’s accounting records.
Maintaining a systematic archive of company documents and providing them to the client upon request. |
200 / hour[5]
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Preparing financial statements, conducting audit and submitting financial statements to the Free Zone authorities.
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400 / hour
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VAT registration.
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1 200
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Preparing and submitting VAT returns.
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200 / hour
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Tax advice on VAT and other matters.
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from 300 / hour
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[1] Regulations on International Business Companies 2006.
[2] An offshore company has the right to own immovable property located in free zones, and the list of such zones must be approved by a special state authority – RAK Investment Authority.
[3] VAT of 5% is applied.
[4] The cost of package may vary depending on the number of shareholders, type of licence, and size of office (office size dictates how many residence visas a company can have).
[5] The fees for preparing financial statements and conducting an audit are charged based on the time spent at hourly rates ranging from USD 100 to 400, depending on the type of work and qualification of a specialist involved, but not less than USD 1 900 – fees for audited financial statements with a minimum number of transactions.