RAK Offshore Company Formation

Empowering your business dreams

Ras Al Khaimah is renowned for its outstanding nature, leisure, adventure, and authentic offerings. The emirate sharing its border with the Sultanate of Oman has infrastructure facilities, proper connectivity, and all amenities necessary for the growth of businesses.

About RAK offshore

We bring the right people together to challenge established thinking and drive transformation. We work with our clients to build the capabilities that enable organizations to achieve sustainable advantage.

Benefits of setting up your company in RAK offshore

• No taxes applicable (in a majority of jurisdictions)
• Modern legislation
• Registered address
• Single and multiple directors are allowed
• No auditing and accounting requirements in a majority of jurisdictions
• Business can be conducted internationally
• No limitations on any nationality
• Capital expatriation does not have any limitations

Types of Companies

RAK offshore companies are used for various purposes including holding assets, company shares, and carrying out business activities internationally.

1. Company Limited by Shares (CLS)

A CLS is a type of company where the liability of its shareholders is limited to the initial investment in shares. Their liability is exhausted once the amount equivalent to their investment in shares is paid off. It is particularly effective in shielding the personal assets of investors in situations where the company is facing financial difficulties as the liability of its investors is limited.

Being one of the more popular choices, there are several uses of CLS companies, including but not limited to:

a) Holding Company
As a holding company, a RAK ICC offshore company can hold shares in a subsidiary company anywhere in the world and real estate property in Dubai. Shareholders can incorporate a subsidiary in a free zone jurisdiction such as RAKEZ with their RAK ICC offshore company acting as a holding company and carrying out activities onshore.

b) Special Purpose Vehicle (SPV)
These are very common for conducting specific business or work. An offshore company can hold specific assets and have an SPV to be used for a particular project or business.

c) Joint Venture (JV)
A RAK ICC company can be used to even form a joint venture. A joint venture is formed when two or more parties/entities come together to work under a single business name. Parties can specify their respective rights in their separate shareholder(s) agreement, memorandum of association, and articles of association.

d) International Business Company
These are formed to conduct business in several countries and provide opportunities to have an international presence and global investment.

e) Project Company
Some companies are specifically incorporated to carry out specific projects. This allows the shareholders and investors to reduce their exposure to risk.

f) Family Office
These are the companies that manage the affairs of a family including their wealth and asset management. This allows families to have their peace of mind while the financial management can be done through the company.

2. Segregated Portfolio Company (SPC)
An SPG is a type of limited by shares company where a party can incorporate a company with multiple portfolios. These portfolios can increase up to ten (10) different portfolios. This gives the client freedom to conduct business in more than one portfolio and accordingly divide its assets as well as liabilities to their respective portfolios. The result is that each separate portfolio is ringfenced from the general liabilities of the company as well as other portfolios which are part of the company.

3. Company Limited by Guarantee (CLG)
A CLG is another type of limited company where the limitation is extended only to a specified and agreed amount (called a guarantee). This amount of guarantee is to be paid in case the company is liquidated. Thus, a guarantee member/shareholder’s liability is fixed to the agreed amount. In the case at the time of liquidation, the liability of the company is more than the guarantee amount, the liability does not extend to the shareholder’s personal assets. This helps the shareholders to avoid any risk beyond the guarantee amount.

4. Unlimited Company (UC)
An unlimited company is a company where the liability of its investors is not limited and extends to their personal assets and beyond. Thus, all investors have joint and several liability to the amount of liability with no limitations on it. This is particularly close to functioning of a partnership where partners are liable for all debts and liabilities of their partnership. However, unlike a partnership, since a UC is a separate legal entity, it can also hold assets.

How to get an Umm Al Quwain license?

• Based on your business activity, select your business license with the help of our team.
• Submit the required documents with us and make the payment.
• Sign the lease agreement based on the selected solutions and move into your premises.

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