Introduction

Over the years, the UAE has emerged as one of the most favorite places for initiating a new venture and expanding an existing one. The UAE has some of the best business locationss that cater to various business requirements. These include the Ras Al Khaimah Economic Zone (RAKEZ), which is favored by many businessmen, startups, and even international investors due to the ease of establishment and operational convenience of an offshore business in RAKEZ.

An offshore company in RAKEZ has several advantages, such as asset protection, business flexibility internationally, effective tax policies, and easier management. This article discusses all that you need to know regarding incorporation of an offshore company in RAKEZ.

What is a RAKEZ Offshore Company?

An offshore company can be defined as an incorporated business entity that has been officially established in the Ras Al Khaimah Economic Zone.

It is intended mainly to engage in business transactions overseas. Offshore businesses cannot transact business within the domestic territory of the UAE. They are normally engaged in trading, investment, asset management, and intellectual property management.

Benefits of Setting Up an Offshore Company in RAKEZ

1. Tax Efficiency

Being located in the UAE, which offers an attractive tax regime for business, RAKEZ offshore companies are a favorable choice for business people optimizing their global business activities.

2. 100% Foreign Ownership

Foreigners can wholly own their RAKEZ offshore company without the need for a local sponsor/partner.

3. Asset Protection

An offshore company can be used to hold intellectual property rights, investments, and other business ventures abroad.

4. Confidentiality

High confidentiality of company registration and operations is ensured by RAKEZ.

5. Easy Company Management

It is easy to manage RAKEZ offshore company due to simple registration procedures and low reporting requirements.

6. International Banking Opportunities

It is common practice among RAKEZ offshore companies to open international bank accounts.

Activities Permitted for RAKEZ Offshore Companies

RAKEZ offshore companies can conduct themselves in:

• Conducting international transactions
• Holding investments or shares
• Ownership of properties (as applicable)
• Providing consultation and professional services outside of UAE
• Intellectual property ownership
• Asset management

Requirements for RAKEZ Offshore Company Formation

The basic requirements for forming a RAKEZ offshore company include:

• Copy of passports of the shareholders and directors
• Documents for proof of residence
• Bank recommendation letter (as needed)
• Description of activities
• Information about shareholders and directors
• Properly filled-up forms

Corporate shareholders may have to submit extra documents from their companies.

Procedure for Establishing an Offshore Company at RAKEZ

Step 1: Think of a Unique Offshore Company Name

The name of your offshore company must be unique and should comply with the requirements for naming by RAKEZ.

Step 2: List Your Offshore Company’s Business Activities

There should be some business activities your offshore company wants to carry out. It will make sense in terms of filling out the application forms as there is a reason for setting up the offshore company.

Step 3: Collect All Required Information

Collect all required information which includes a copy of your passport, proof of address, and relevant information about your shareholders/directors.

Step 4: Fill Your Application Form

Submit your application form to RAKEZ once you have got everything sorted.

Step 5: Process Your Application Form

Your application form will now be processed and verified.

Step 6: Collect the Documents of Incorporation

After verification, the company incorporation certificate will be issued to you.

Step 7: Get Your Corporate Bank Account Set Up

A bank account needs to be set up for your offshore company.

Cost of Setting Up an Offshore Company in RAKEZ

Cost involved in offshore company incorporation:

• Registeration fees
• Fees charged by service providers
• Banking facilities
• Legal documentation charges
• Annual renewal costs

Buisnesses need to quote themselves with current prices from legitimate service providers.

Can a RAKEZ Offshore Company Own Property?

Yes, RAKEZ Offshore Buisness can possibly own properties under certain areas depending on the laws in UAE for property ownership.

Offshore Company vs Free Zone Company

Feature	RAKEZ Offshore Company	RAKEZ Free Zone Company
UAE Business Operations	Limited	Allowed
Office Requirement	Not Required	May Be Required
Visa Eligibility	No	Yes
International Trading	Yes	Yes
Physical Presence	Not Required	Optional/Required

Are You the Right Candidate for Setting up a RAKEZ Offshore Company?

Setting up a RAKEZ offshore company might be right for you if you are:

• An International Businessman or Investor 
• In need of a Holding Company Structure 
• Looking for Asset Protection 
• Desiring Tax Efficient Business Management 
• Investing in Global Markets

Businesses that intend to engage in transactions directly inside the UAE or require residence visas inside the country should rather choose the free zone or mainland companies.

Conclusion

One of the popular offshore jurisdictions for international businessmen in the United Arab Emirates is RAKEZ. With its quick setup procedures and business advantages, it can be a great destination for handling worldwide business. You should consult professional counsel prior to making any final decision.

FAQs

1. What Is a RAKEZ Offshore Company?

An offshore company in RAKEZ refers to a company registered in the Ras Al Khaimah Economic Zone which is structured for carrying out offshore businesses overseas. These include international trading, investment, asset protection, and international business operations among others.

2. Can a Non-UAE National Own 100% Of the Offshore Company?

Yes, a non-UAE national can own 100 percent of a RAKEZ Offshore Company. There is no need for the business to have a local sponsor or partner from the UAE.

3. How much time will it take for the incorporation of a RAKEZ Offshore Company?

The process of incorporation usually takes a couple of working days up to several weeks.

4. Is it possible for a RAKEZ Offshore Company to conduct its activities inside the UAE?

No, it is forbidden to do business within the UAE borders through RAKEZ Offshore Companies.

5. Does RAKEZ Offshore Company make entrepreneurs eligible for a UAE Residence Visa?

There is no possibility to receive a UAE residence visa by means of RAKEZ offshore company.