Alpha Management Limited

RAS AL KHAIMAH INTERNATIONAL COMPANY (RAK IC)

The Ras Al Khaimah Government introduced legislation in 2006 permitting the establishment of International Companies (IC's). This is only the second Free-Zone within the UAE that permits the incorporation of such entities. IC's incorporated under the International Companies Regulations 2006 are relatively quick and easy to set up, in-expensive to incorporate and manage when compared to alternative jurisdictions and offer all the advantages of standard offshore structures in the more established jurisdictions such as BVI and Cayman Islands. IC's can only be incorporated by Registered Agents such as Alpha Management Limited. 

FEATURES OF RAK IC's

Regulations have been framed to offer the same standards of convenience and efficiency as that offered by other globally recognised offshore jurisdictions. Some of the features are:

  • 100% income tax, corporation tax and capital gains tax exemptions.
  • 100% ownership permitted (no need for local sponsors).
  • Benefit from some 40+ double tax treaties (RAK IC's are regarded as "on-shore" companies with all the advantages of "off-shore" jurisdictions.
  • Unique ability to specify that the laws of another jurisdiction may apply to the RAK IC.
  • RAK IC's may own property throughout the UAE.
  • Bank accounts within the UAE are easier to open - without the need for expensive legalisation of documents.
  • Corporate directors are permitted.

The Directors do not have to be physically present in the UAE. There is a minimum requirement for one director, one company secretary and one shareholder. The same individual may retain all three positions.

LIMITATIONS

RAK IC's may not carry out their trade within the UAE and are not permitted to conduct  regulated activities such as Banking, Insurance etc.

DOCUMENTS REQUIRED FOR INCORPORATION

For individual applicants we need the following documents for each director and shareholder:

  • Brief CV - containing personal, educational and professional details.
  • Passport copy - either notarised or presented to us for verification.
  • Original bank reference letter addressed to Alpha Management  Ltd.
  • Original proof of personal address - not more than 3 months old.

If the client wants to instruct  us to act on his behalf, then we need a Power of Attorney properly notarised in the country of residence. Please ask for more details.

For Corporate applicants, we require:

  • Notraised copy of the Certificate of Incorporation.
  • Notarised copy of the Memorandum and Articles of Association.
  • Original Certificate of Incumbency (not more than three months old).
  • Original Board Resolution calling for the establishment of a RAK IC.
  • Original bank reference letter addressed to Alpha Management Ltd.

If the shareholders of the Corporate Entity want us / another person to act on their behalf, then we need a legalised Power of Attorney authorising the relevant person to act / sign on their behalf. Please ask for more details.

ADDITIONAL BENEFITS

A RAK International Company may take advantage of some 47 Double Tax Avoidance Agreements (DTAA's) which have been signed with the UAE. These allow a RAK IC to avoid tax that may arise in the source country where income / interest / capital gains may arise.

It is also possible to specify within the Memorandum and Articles of Association that the laws of another jurisdiction may apply to the governance of the RAK IC.  

INCORPORATION PROCESS

It takes approximately 3 days to incorporate a RAK IC once all the docments are ready. Various forms need to be signed by the client either in our office (subject to a Power of Attorney) and thereafter we manage the whole process.

 If a bank account is required, we introduce the client to a Bank, attend the initial meeting (normally held in our office) where the account signatory is required to sign the account opening forms. Again we manage the whole process and ensure that all issues are dealt with straight away and that the account is opened with the minimum of delay.

CONCLUSION

We believe that RAK IC's meet most client requirements with the added advantage that they are less expensive than alternatives, easy to incorporate, less expensive to open a bank account, offer valuable DTAA's,  and come with the unique facility of specifying the jurisdiction of choice for litigation and the resolution of disputes.