Ras Al Khaimah (“RAK”) is one of the seven independent emirates (provinces) which together make up the United Arab Emirates (“UAE”), a constitutional federation located along the south eastern tip of the Arabian Peninsula. Qatar lies to the west, Saudi Arabia to the south and west and Oman to the north and east. The Federation was formally established in 1971.

RAK entered the International Business Company (“IBC”) market in 2007 and as an IBC centre offers:
• Exceptional infrastructure
• High Political/Economic stability
• OECD White Listing
• Strong yet flexible regulatory framework based on global best practices
• Exemption from all Corporate & Income taxes
• Confidentiality
• No local office requirement
• No need to file accounts

RAK is also a regional hub and booming trade centre with access to over 170 shipping lines and approximately 86 airlines connecting to over 100 cities worldwide.

And unlike most Offshore Centres RAK IBCs can own UAA property (both real and Intellectual Property)

Features and Benefits of Incorporation of an RAK IBC include:
• No public record of shareholders or directors
• No audit requirement or requirement to submit financial statements
• The registered office can be located in Dubai (see below)
• No minimum share capital requirements
• No capital restrictions (all capital and profits can be repatriated)
• Access to over 50 Double Taxation Avoidance Treaties (“DTATs”)
• Speedy Incorporation (2-4 days)
• Corporate directors are permitted
• Redomiciliation (IBCs from other companies can redomicile/migrate to RAK and vice versa ie RAK IBCs can migrate to another country)
• Minimum of 1 Director only is required
• Unparalleled Privacy (the UAE has signed ZERO Tax Information Exchange Agreements

RAK General Information

Population

RAK is one of the seven independent Emirates, the current population is approximately 250,000 but this is expected to raise to 400,000 by 2017. Over 50% of the population are expatriates.

Time Zone

The UAE is 4 hours ahead of GMT (+4 GMT).

Political Structure

Prior to 1971 each of the seven member emirates of the UAE (Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaima, Sharjah and Umm Al Quwain), previously known as the Trucial States, had its own existing institutions of government. The Rulers agreed to draw up a provisional Constitution (“the Constitution”) which provided for the establishment of the Supreme Council of the Rulers of all the Emirates as the foremost authority in the Federation and a Council of Ministers as the Executive Branch of the Federation. Federal Ministries of Foreign Affairs, Defence, Justice, Public Health, Communications, Information Interior, Finance and Industry, Economy and commerce, Education, Public Works, Agriculture, Labour and Social Affairs and Planning were established. As a Muslim country, one of the fundamental principles in the Constitution provides that Islamic Law (Sharia) is the main source for the legislation in the UAE. The main aim of the UAE Government Strategy is to ensure sustainable development and a high quality of life for all UAE Nationals.

Infrastructure and Economy

The UAE is one of the wealthiest countries in the world with a GDP of US $103 billion (2004). Dubai’s economy grew by approximately 16% in 2005 and is acknowledged as one of the fastest growing economies in the world. The UAE has the third largest proven oil reserves, however RAK has broadened its economic activity to include an industrial platform, real estate, trade and manufacturing. In addition Tourism is increasing rapidly with approximately 10 million tourists expected in 2007. The emirate of Ras Al Khaimah is strategically located between Africa and the Middle East and between the Far East and Europe, making it a gateway to over 1.5 billion consumers located in countries surrounding the Red Sea and the Gulf. Its infrastructure is of the highest standards with access to more than 170 shipping lines and approximately 86 airlines connecting to over 100 cities worldwide. The strong shipping and transportation sector is composed of most of the leading regional and international freight forwarders, insurers and shipping agents.

Language

Arabic, Persian, Hindi, and Urdu. English is widely spoken.

Exchange Control

None.

Type of Law
Federal, except for Dubai and Ras Al Khaima who maintain their own judicial systems. The Emirates had the constitutional right to opt to join the Federal judicial system or maintain their own independent system. The Federal UAE courts are divided into civil and criminal and are also generally divided to three stages of litigation namely:

• Courts of First Instance,
• Courts of Appeal
• Federal Supreme Court (colloquially referred to as Court of Cassation).

In addition to the Civil Courts each of the seven Emirates maintains a system of Sharia Courts which are organised and supervised locally.

Principal Corporate Legislation

• International Companies Regulations 2006
• Registered Agents Regulations 2006

RAK IBC Information

Type of Company

The International Company (IC) is the most popular option for foreign companies seeking to establish a presence in the UAE.

Procedure to Incorporate

The following steps are required to establish an International Company in RAK:
 Select a name for the company and have it approved by the RAK Free Zone Authority.
 Draw up a proposed memorandum including share capital, share value, power of Directors and object of the company and have it notarised by a Notary Public in the UAE Courts.
 Confirmation whether the share capital has been paid in cash or kind.
 Copies of the Memorandum & Articles of Incorporation and Certificate of Incorporation (if a company) is to be a participant duly notarised & Apostilled and legalised at the UAE Embassy.
 Board Resolution of each corporate shareholder approving the taking up of shares in the new company duly notarised & Apostilled and legalised at the UAE Embassy.
 Details of Company Auditors together with a letter confirming their appointment, if applicable.
 Bank Certificate confirming deposit of the minimum share capital.
 Seek approval from the RAK Free Zone Authority. Once approval is granted, the company will be entered in the Commercial Register and the licence will then be issued by the RAK Free Zone Authority.

Restrictions on Trading
Can only operate within the activities detailed on the Memorandum. An RAK Company can NOT undertake any Cryptocurrency related activity.

Powers of Company

Companies Law stipulates that an IC may engage in any lawful activity except for insurance, banking and the investment of money for others and restrictions apply to conduct local business.

Language of Legislation and Corporate Documents

English.

Shelf Companies Available

No.

Time to Incorporate

1-2 weeks.

Name Restrictions

Any name that is identical or similar to an existing name. Any name of a major international corporation where written consent to incorporate in not available. Any name that contains a registered trademark not owned by the company. Any name that the registrar may find undesirable, offensive or misleading.

Language of Name

English.

Names Requiring Consent or a Licence

In certain circumstances, the prior consent of a Federal Ministry or competent local authority will be required. These activities include: Oil & Gas, Banking & Investment, Financial Services, Insurance, Media, Transport, Construction, Telecommunications, Real Estate Management, Architectural and Engineering Consulting, Tourism, Shipping, Civil Aviation, Legal Services, Medical Services, Education. Any name that contains the words: state, government, municipal etc. and may wrongfully suggest a patronage of such.

Registered Office Required

Yes, must be maintained in RAK.

Suffixes to Denote Limited Liability

Ltd or Limited.

Disclosure of Beneficial Ownership to Authorities

Yes.

Authorised and Issued Capital

The minimum requirement for authorised capital is DHs 1,000 which must be fully paid up.

Classes of Shares Permitted

May neither be negotiable or divisible. Ordinary shares, preferred shares, deferred shares, and shares with or without voting rights.

Taxation

No Corporate, Withholding or Personal taxation.

Financial Statement Requirements

Yes.

Directors

Minimum one. Powers and duties to be specified in the Memorandum. Corporate Directors are permitted.

Shareholders

Minimum of one.

OCI RAK International Business Company Packages

At OCI we believe in giving you more for your money than would the average IBC formation service. Hence included in the incorporation package for your RAK IBC is the following:

Services:

• Unlimited name availability inquiries
• Advice from an experienced International Corporate Lawyer on how to structure your company
• Preparation (overseen by a lawyer) of application to incorporate the company
• Preparation (overseen by a lawyer) of the company’s memorandum of association
• Preparation (overseen by a lawyer) of the company’s articles of association
• Attending to filing incorporation request with the company registry
• Attending to payment of government filing fees
• One year’s Registered Agent service in the country of incorporation
• One year’s Registered Office service in the country of incorporation
• Mailing address in the country of incorporation
• Delivery of Incorp pack by international courier (ie DHL/Fedex/TNT etc)
• Unlimited free legal consultations for 12 months
• Doing Due Diligence on up to 3 owners/members

Documents included in your Incorp pack:
• Certificate of incorporation
• 2 sealed/stamped copies of the company’s Memorandum of Association
• 2 sealed/stamped copies of the company’s Articles of Association
• Resolution appointing first director/s
• Resolution appointing first shareholder/s
• Up to 5 share certificates
• Resolution to open a bank account
• Resolution to rent an office
• Resolution/s to engage a Phone, Internet & Website service provider
• Resolution to hire a staff member/s
• Resolution to appoint a company lawyer
• Resolution to appoint a company accountant
• Resolution appointing you as the company’s authorised representative in commercial negotiations
• Resolution issuing a Power of Attorney in your favour
• Agreement authorising you to represent the company in commercial negotiations
• Power of attorney authorising you to sign documents on behalf of the company
• Register of directors
• Register of shareholders
• Expression of wishes (ie an “Offshore” Will)
• Lawyer authored User Guide (“How to Use Your Offshore Company”)

Price (all inclusive): $US 2,750

With tax effective offshore company management (ie including Professional Corporate “Nominee” Director, Shareholder & Company Secretary): + $900

From 2nd year: $2,500 (+Nominees if required)

Would you like to know more? Then please Contact Us:

www.offshoreincorporate.com

info@offshorecompaniesinternational.com

ocil@protonmail.com

oci@tutanota.com

oci@safe-mail.net

ociceo@hushmail.com

DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.