Ras Al Khaimah (RAK)
Set up your company in RAK
United Arab Emirates

Ras Al Khaimah is one of the fastest growing emirates in one of the fastest growing economies in the world, the United Arab Emirates. Renowned for its natural beauty and art de vivre, Ras Al Khaimah has also gained a reputation for being a transparent, tax-free, corruption-free and no-red tape to do business.
Its booming economy and proximity to other major international centres like Dubai has attracted hundreds of large, medium and small businesses from every part of the world.

1. Why choosing to incorporate a company in RAK?

Main advantages of RAK Offshore company

Choosing to incorporate a company in Ras Al Khaimah (RAK) — one of the seven emirates of the United Arab Emirates (UAE) — is often motivated by a mix of tax advantages, business flexibility, confidentiality, and cost-effectiveness. Below is a detailed overview of the main reasons why many entrepreneurs and businesses choose RAK for incorporation:

Tax Benefits

No corporate or income tax for most business activities (outside certain regulated sectors).
No capital gains tax or withholding tax.
Full repatriation of profits and capital — funds can be transferred freely without restrictions.
Double Taxation Avoidance Treaties (DTAs)
The UAE has an extensive network of DTAs with over 100 countries, enhancing international tax efficiency.

Business-Friendly Environment

100% foreign ownership is allowed in the RAK International Corporate Centre (RAK ICC).
No requirement for a local sponsor or shareholder.
Simplified incorporation process — companies can be formed remotely, often within a few days.
Wide range of permitted business activities (commercial, professional, holding, investment, etc.).

Cost-Effective Setup and Maintenance

Lower setup and renewal costs than other UAE jurisdictions like Dubai or Abu Dhabi.
Minimal reporting requirements — RAK ICC entities typically have less stringent auditing and filing obligations than onshore companies.
Efficient administration with streamlined procedures for incorporation, amendments, and annual renewals.

Confidentiality and Asset Protection

Strong privacy laws protect shareholder and beneficial owner information (though compliant with global AML/CFT standards).
Favourable holding structures for asset protection, wealth management, and estate planning.
Use of RAK ICC companies for international structuring, investment holding, intellectual property management, or yacht ownership.

Regulatory Reputation and Compliance

RAK ICC operates under common law principles, making it familiar to international investors.
It is a well-regarded, white-listed jurisdiction, compliant with OECD, FATF, and EU standards.
The authority has enhanced AML/KYC regulations and economic substance requirements to align with global best practices.

Strategic Location

Situated in the UAE, a global hub connecting Asia, Europe, and Africa.
Access to world-class logistics and banking infrastructure.
Proximity to Dubai (about 1 hour away), offering easy access to international business and transport networks.

2. Flexible Corporate Structures
Options included

International Business Company (IBC) — for holding, investment, or offshore operations.
Free Zone Company (FZC/FZE) — for onshore trade or manufacturing within the UAE.
Ability to redomicile companies into or out of RAK ICC, offering flexibility in corporate planning.

Modern Legal Framework

RAK ICC has adopted updated company regulations (aligned with UK and – -BVI standards) that provide:
Clear rules on corporate governance.
Recognition of fiduciary duties.
Modern mechanisms for share transfer, merger, and restructuring.

RAK offers a combination of tax neutrality, cost-efficiency, ease of setup, and international credibility, making it a popular jurisdiction for entrepreneurs, family offices, and multinational corporate structures seeking a compliant yet flexible base in the UAE.

3. What a RAK ICC (Ras Al Khaimah)
International Corporate Centre) company may do

Here’s a clear summary of what a RAK ICC (Ras Al Khaimah International Corporate Centre) company may do, according to the RAK ICC Business Companies Regulations and current UAE corporate practices:

A RAK ICC company is an international business company (IBC) incorporated in Ras Al Khaimah, UAE. It is primarily designed for offshore and international business activities — not for doing business within the UAE mainland. However, it enjoys a wide range of lawful and practical uses.

Conduct Business Outside the UAE

A RAK ICC company can engage in any lawful activity outside the UAE.
It may own and operate businesses abroad, trade internationally, or provide consulting, investment, or holding services.
It can enter into contracts and open bank accounts worldwide.

Hold Assets and Investments

May own shares in other companies (in the UAE free zones or abroad).
May hold bank accounts, bonds, and other financial instruments.
Can serve as a holding or investment vehicle for corporate groups or family offices.

Own Property (Subject to Approval)

A RAK ICC company may own real estate in designated areas of the UAE (notably in Dubai) — provided it obtains approval from the Dubai Land Department.
Commonly used to hold investment properties, yachts, or other movable assets.

Own Intellectual Property (IP)

Can register, hold, and manage intellectual property rights — trademarks, patents, copyrights, and licenses.
Useful for licensing and royalty structures and centralized IP management.

Act as a Holding Company

May hold subsidiaries or affiliated companies in other jurisdictions.
Commonly used for international group structuring, tax planning, or asset protection.

Enter into Contracts and Agreements

May enter contracts, issue invoices, and engage in legitimate financial transactions internationally.
Can borrow and lend funds, guarantee obligations, or own debt instruments.

Open and Maintain Bank Accounts

Permitted to open local (UAE) and international bank accounts.
Many banks in the UAE and globally accept RAK ICC entities, subject to KYC and compliance reviews.

Participate in International Trade

Can buy and sell goods or services internationally, provided activities are conducted outside the UAE.
May act as a trading intermediary or export/import facilitator through foreign operations.

Redomicile or Continue in Another Jurisdiction

RAK ICC companies can redomicile (migrate) into or out of RAK ICC.
This allows relocation of an existing company from another jurisdiction (e.g., BVI, Cayman, Seychelles) to RAK ICC without dissolving it, preserving corporate history.

Maintain Confidential Records

Must maintain registers of directors, shareholders, and beneficial owners, but these are not publicly accessible.
Required to keep accounting records for at least seven years, though no audit filing is mandated unless specifically required.

4. What a RAK ICC Company May Not Do

To remain compliant, a RAK ICC company cannot:

Carry on business within the UAE mainland (unless licensed onshore or via a free zone).
Lease office space or hire local staff (except through authorized service providers).
Issue visas or sponsor employees directly.
Engage in regulated financial activities (e.g., banking, insurance, investment management) without proper UAE or foreign licensing.

A RAK ICC company is a flexible, private, and internationally recognized vehicle ideal for:

Holding and investment structures
International trading and contracting
Asset protection and wealth management
Owning property or IP …

all while benefiting from the UAE’s stable and tax-neutral environment.

5. RAK ICC Company Post-Tax Regulations

Here is a detailed overview of the post-tax regulatory regime applicable to a RAK International Corporate Centre (“RAK ICC”) company (i.e., an offshore/international business company incorporated in Ras Al Khaimah, UAE). It highlights both the general tax framework in the UAE and the specific considerations for RAK ICC structures. This will help you assess compliance and structure implications for your firm.

UAE Corporate Tax Regime (Applicable since 1 June 2023)

• Under Federal Decree Law No. 47 of 2022 on the “Taxation of Corporations and Businesses”, a federal corporate tax (CT) regime applies to UAE businesses.
• The standard rate is 9% on taxable income above AED 375,000. For taxable income up to that threshold, the rate is 0%.
• Tax residency rules: companies incorporated or otherwise recognised under UAE law will generally be considered UAE tax residents.
• Registration: Even exempt persons (those with no UAE-sourced income) may need to register with the Federal Tax Authority (FTA) and file a return (including nil return) to maintain compliance.

Implications for RAK ICC Companies
Taxable vs. exempt status

• RAK ICC companies that derive income exclusively from outside the UAE, have no UAE-sourced income, no permanent establishment or effective management in the UAE, may be exempt from UAE corporate tax.
• If a RAK ICC company has UAE-sourced income, conducts business in the UAE mainland, or has a place of business/branch or dependent agent in the UAE, then the CT regime likely applies.
• Even when exempt from tax, filing obligations may still exist (nil returns etc.).

Maintaining tax-neutral status

Key criteria to preserve the favourable (“tax-exempt”) status include:

• Ensure the place of effective management/control is outside the UAE.
• Avoid carrying on business with UAE customers/suppliers or having operations on the UAE mainland (including leasing local premises, hiring employees in UAE, etc.).
• Document and maintain accounts/records showing foreign-sourced nature of income.

Accounting, record-keeping & other compliance

• RAK ICC companies are required to maintain underlying accounting records (for at least 7 years) even though they do not always have to file or publicly disclose audited financial statements.
• If engaging in “relevant activities” under the UAE’s Economic Substance Regulations (ESR), the company may need to file notifications and reports. 2.4 Withholding tax, capital gains, dividends
• There is no UAE withholding tax on dividends, interest or royalties paid to non-residents (provided proper structure) in many offshore circumstances.
• Capital gains from disposal of assets by a RAK ICC are often not subject to UAE tax if the company remains non-resident for UAE tax and income is foreign-sourced.

Risk Areas & Additional Considerations

• Permanent Establishment (PE) risk: If the RAK ICC has a branch/place of business in the UAE or a dependent agent in UAE with authority to conclude contracts, this may trigger UAE source taxation.
• Effective management and control: If board meetings, decision-making, control happens in UAE, the company may be deemed UAE tax resident.
• Economic Substance / Transfer Pricing / Anti-Abuse: Even if a company is exempt from tax, ESR and other transparency/anti-abuse rules apply. Non-compliance may lead to penalties.
• Double Taxation Treaties (DTAs): Although UAE has an extensive DTA network, a RAK ICC may not automatically obtain a UAE tax residency certificate and benefit from a DTA unless genuine substance/resident status is established.
• Changing regulations: The tax regime is relatively new (June 2023) and interpretations are still evolving, so positions should be reviewed regularly.

Practical Summary for Your Compliance and Planning

• If your RAK ICC company only carries on business outside the UAE, has no UAE-sourced income, and ensures its management/control is outside the UAE → it is likely to remain tax-exempt under UAE CT regime.
• However you must still ensure you meet accounting and record-keeping, possibly registration/filing (nil returns), and maintain strong documentation of foreign-sourced income.
• If the company starts transacting with UAE residents, providing services/goods in UAE, or establishing a presence in UAE → it will trigger UAE tax risk (9% CT on taxable income above AED 375k) and various compliance burdens.
• For clients/structures you handle (such as holding companies, IP vehicles, asset-protection vehicles), ensure you assess: whether there is UAE source income; where control is exercised; whether substance requirements apply; whether filings/returns are required.
• Document and implement internal governance controls (board meetings, minute-keeping, place of management) to support the non-UAE tax resident position.
• Monitor further FTA guidance, administrative decisions and rulings affecting RAK ICC companies — remain agile.