Choosing the best place to register your client’s international business company can be tough.
But there are four big advantages that Ras Al Khaimah International Corporate Centre (or RAK ICC) holds for anyone looking to expand.
The first is control. RAK ICC helps directors keep hold of the reigns to their business. Then there is flexibility, especially concerning finances. Next, it’s security, because RAK ICC helps keep businesses compliant. Finally, savings, as starting an international business in RAK ICC means 0% taxation.
Let’s look in more detail.
1. Control
With an international company in RAK ICC, a business owner remains exactly that, the owner. There is no requirement to find a local partner. This is 100% foreign ownership, and the peace of mind that comes with it – something that will reassure your clients that, down the road, they aren’t going to be involved in any kind of ownership dispute.
RAK ICC also doesn’t have restrictions on the type of shares or shareholders. If your client were to set up a Company Limited by Share (LCS) for example, they would be able to issue bonus shares, partly paid shares or nil paid shares. They would have no restrictions on number of shareholders and also have the ability to register the share pledge.
In addition, they are permitted to have a corporate director and no attestation is required for corporate documents.
What impact will this have on your clients?
A big concern for business owners when considering the UAE is that they may have heard nationality is important. On the mainland, unless your client comes from another GCC country, it’s likely they will only be able to hold a maximum 49% stake in their company. The remaining 51% belongs to their Emirati sponsor/partner.
Since this can be off-putting, your clients can be sure that not only would they have full ownership at RAK ICC, but that this is a well-established path. In fact, currently RAK ICC has over 30,000 companies registered, with shareholders coming from over 160 countries.
2. Flexibility
When starting a mainland company, the government requires a minimum level of capital. This needs to be mentioned in the memorandum of association and must be deemed sufficient to ‘achieve the purpose of the business incorporation.’ For certain businesses there is an actual figure: for a public stock company, for example, a minimum of AED 30 million is required.
With RAK ICC there is no minimum capital. In fact, there isn’t currently a need to file financial accounts.
The ability to open bank accounts locally and internationally is often a serious challenge faced by international businesses. But the combination of RAK ICC and the UAE’s international reputation means your client has the flexibility to open corporate accounts within the UAE and hold them internationally as well. And because your client would be already considered a UAE entity, the normal extensive attestation of corporate documents for foreign businesses isn’t required. In addition, there is no restriction on repatriation of capital and profits.
Finally, if your client wants to carry out activities onshore, they can work with RAK ICC to establish a subsidiary at Ras Al Khaimah Economic Zone (RAKEZ) where the cost of doing business is often 50% less than Dubai.
What impact will this have on your clients?
The flexibility of RAK ICC removes the stress, worry and time that can blight the establishing of a company. The fact that your client has flexibility when it comes to so many key aspects of company setup and operation ultimately brings real peace of mind. It allows them to focus on what they do best: building their business.
3. Security
RAK ICC clients not only receive a business-friendly environment built on the reputation of the UAE, but legal benefits that they won’t find elsewhere.
RAK ICC operates under Common Law legislation. This means your client’s company will have access to the Common Law Courts of the Abu Dhabi Global Markets (ADGM) and the Dubai International Finance Centre (DIFC), as well as the local courts in Ras Al Khaimah. Companies also have access to a variety of legal structures and products to suit their needs.
What impact will this have on your clients?
With RAK ICC, your clients can rest assured. The strict legal regulations ensure companies are compliant with local and international laws at all times, and that investments in other countries are fully protected.
It is these strong links with the DIFC and ADGM courts that help make it easier for your clients when it comes to migration, or continuance of existing corporate entities from other jurisdictions.
4. Savings
With RAK ICC there is a whole range of other advantages that make registering here highly cost-efficient compared with other international setups.
First, business costs in RAK are generally much lower than the UAE average. Second, registration and renewal fees are extremely cost-efficient. Third, there is no requirement to make huge outlays on office space since each company has a registered office within the RAK ICC.
Finally, by registering in RAK ICC, your client will have access to a broad range of UAE Double Tax Treaty (DTT) networks. Currently, the UAE Ministry of Finance has signed over 200 tax agreements, including 123 to avoid double taxation and 87 to protect current investments.
What impact will this have on your clients?
Of course, one of the key reasons for companies wanting to register as an international business is to access the taxation benefits. No company wants to have to pay more than it needs to, especially when it can be reinvesting that money into its own business growth. By setting up in RAK ICC your clients will be pleased to discover that they save every step of the way.
The future is RAK ICC
RAK ICC is an internationally compliant registry and is growing in size and reputation. The benefits outlined are just some of the reasons that more and more international businesses are looking to RAK ICC for their international expansion and growth. Many are migrating international companies from other jurisdictions to RAK ICC. Be part of it!
