What is a RAK offshore company?
A RAK Offshore Company is a legal business entity registered in the Emirate of Ras Al Khaimah, UAE. It is designed mainly for international trade, asset protection, and holding structures. Unlike free zone companies, offshore firms cannot conduct direct business inside the UAE but can operate globally without restrictions.
This type of company is popular because it allows full foreign ownership, offers tax advantages, and gives international entrepreneurs access to UAE’s strong reputation as a business hub.
1. Overview of Ras Al Khaimah International Corporate Centre (RAK ICC)
The Ras Al Khaimah International Corporate Centre (RAK ICC) is the governing authority responsible for offshore company incorporation in Ras Al Khaimah. It manages company registration, records, compliance, and legal frameworks.
The RAK ICC is well-known for its transparent regulations, investor-friendly policies, and advanced digital services. Investors can use the RAKICC portal to handle documentation and filings efficiently.
2. Why entrepreneurs and investors choose RAK
Business owners and investors choose Ras Al Khaimah because it combines affordability with international recognition. Compared to Dubai or Abu Dhabi, RAK offers faster incorporation, lower fees, and simpler compliance rules.
Entrepreneurs also value:
- Its global banking network access
- Strategic location between Europe, Asia, and Africa
- Legal framework aligned with international standards
Key Benefits of a RAK Offshore Company
1. 100% foreign ownership
One of the biggest attractions of a RAK Offshore Company is the ability to own your business completely. Investors do not need a local sponsor or partner, unlike some other company structures in the UAE.
2. Zero corporate or income tax
RAK offshore businesses benefit from no corporate or income tax. This makes it highly attractive for global investors who want to minimize costs and increase profitability.
3. Confidentiality and asset protection
Shareholder and director information is kept private under RAK ICC regulations. This ensures confidentiality for investors and protects assets against external risks.
4. International trade flexibility
A RAK company can trade globally without restrictions. It can hold investments, own international assets, or act as a holding company for subsidiaries.
5. Cost-effective setup compared to other UAE jurisdictions
Compared to offshore structures in Dubai or Ajman, RAK is more affordable. Government fees and agent costs are lower, making it one of the most cost-effective offshore jurisdictions in the UAE.
Requirements for Setting Up a RAK Offshore Company
1. Eligibility criteria
Who can open a company in RAK?
Any foreign investor, entrepreneur, or corporate body can register a company in Ras Al Khaimah. It is ideal for:
- International traders
- Investors looking to hold property or assets
- Companies managing intellectual property
- Business owners needing global tax efficiency
Restrictions on local business activities
A RAK Offshore Company cannot:
- Conduct direct business inside the UAE market
- Rent office space in the mainland UAE
- Apply for UAE residence visas directly through an offshore status
However, it can own shares in other UAE companies, open bank accounts, and hold property (in designated areas).
2. Documents needed
To register a RAK offshore company, the following documents are required:
- Passport copies of shareholders and directors
- Proof of address (utility bill or tenancy contract)
- Bank reference letter confirming the credibility of shareholders
- Memorandum of Association (MOA) detailing business structure and operations
These documents ensure compliance with anti-money laundering and international regulations.
Step-by-Step RAK Offshore Company Registration Process
Step 1 – Choose a company name and activity
The first step is selecting a unique name under RAK ICC rules. The name must not conflict with existing companies in RAK and should not include restricted words like “bank,” “insurance,” or “university” unless special approval is obtained.
Investors also need to define the business activity, such as trading, holding, or investing.
Step 2 – Prepare documents
After choosing the name and activity, prepare all mandatory documents. This includes identity proofs, proof of residence, and the company’s Memorandum of Association.
Step 3 – Apply via RAK ICC portal
Applications are submitted through the RAKICC portal with the help of a registered agent.
- The portal manages document submission and payment.
- Only licensed agents are authorized to interact directly with RAK ICC.
- The agent ensures all paperwork complies with local regulations.
Step 4 – Certificate of Incorporation
Once approved, RAK ICC issues a Certificate of Incorporation. This document confirms that the company is legally registered. The approval process usually takes a few business days if the documents are complete.
Step 5 – Post-registration tasks
After registration, several additional steps are necessary:
- Bank account opening: A RAK company can open corporate accounts in UAE and international banks.
- Tax registration (TRN): If the company falls under taxable activities, applying for a Tax Registration Number is required.
- Accounting setup and compliance: Offshore companies must maintain proper accounting records, even if tax exemptions apply.
Cost of Registering a RAK Offshore Company
Starting a RAK Offshore Company is one of the most cost-effective ways to establish an international entity in the UAE. While costs vary depending on the service provider and package chosen, here are the main expenses:
1. Typical government fees
- Name approval and registration fees
- Certificate of Incorporation issuance
- Administrative and compliance charges
On average, government fees for a RAK offshore company range from AED 3,500 to AED 5,000.
2. Agent service fees
Since offshore companies can only be registered through a licensed agent, service fees apply. These charges usually cover document preparation, submission, and advisory support. Agent fees can range between AED 4,000 and AED 6,000, depending on the services included.
3. Renewal costs
RAK offshore companies must be renewed annually. Renewal costs are typically lower than initial setup costs and include:
- Government renewal fee
- Agent service fee
- Accounting and compliance costs (if applicable)
Cost comparison of RAK offshore company vs. other UAE jurisdictions
| Jurisdiction | Initial Setup Cost (AED) | Annual Renewal Cost (AED) | Processing Time |
| RAK Offshore | 7,500 – 10,000 | 6,000 – 8,000 | 3–5 days |
| Dubai Offshore | 12,000 – 15,000 | 10,000 – 12,000 | 7–10 days |
| Ajman Offshore | 9,000 – 12,000 | 7,500 – 9,000 | 5–7 days |
RAK offers one of the most competitive packages in the UAE, both in terms of cost and speed.
Legal Requirements and Compliance for RAK Offshore Companies
Operating a RAK Offshore Company comes with responsibilities to ensure compliance with UAE law.
1. Annual renewal obligations
Every RAK company must renew its license annually. Failure to do so can result in penalties and even company deregistration.
2. Maintaining accounting records
Although offshore companies are tax-exempt, they are still required to maintain accurate financial records. These records should include:
- Income and expenses
- Balance sheets
- Transaction details
3. Filing requirements (if applicable)
In certain cases, authorities may request audited financial statements. Being prepared ensures smooth compliance with RAK ICC regulations.
4. Avoiding penalties
Non-compliance can lead to heavy fines, restrictions, or even the closure of the company. Working with a consultant ensures deadlines and requirements are met on time.
How to Maintain a RAK Offshore Company Successfully
Running a company efficiently requires proper management beyond initial setup.
1. Importance of accounting and bookkeeping
Accurate accounting helps you:
- Track financial health
- Stay prepared for audits
- Support international banking requirements
2. Renewals and license updates
Maintaining the validity of your offshore company requires timely license renewals and ongoing compliance checks.
3. Staying compliant with UAE corporate tax rules
Although offshore companies are tax-exempt, international tax laws may still apply. It is essential to check double taxation agreements and ensure compliance with global reporting standards.
4. Visa and immigration considerations for shareholders/directors
RAK offshore companies do not directly offer UAE residency visas. However, shareholders and directors can explore other structures or services through consultants to secure visas.
RAK Offshore Company vs Other Jurisdictions
1. RAK vs Dubai offshore companies
- RAK: Lower setup and renewal costs, faster processing.
- Dubai: Stronger brand recognition but higher fees.
2. RAK vs Ajman offshore companies
- RAK: More established regulatory framework and better global acceptance.
- Ajman: Competitive pricing but limited recognition internationally.
3. RAK offshore vs free zone companies
- RAK offshore: Ideal for holding, asset protection, and international trade.
- Free zone companies: Suitable for businesses that need UAE residency visas, physical offices, and local market access.
Why Register Through a Professional Business Setup Consultant?
1. Benefits of using a registered agent
Only registered agents can apply via the RAK ICC portal, making their role essential.
2. How consultants simplify the process
They handle:
- Documentation and legal compliance
- Liaising with authorities
- Bank account opening support
3. Avoiding mistakes and delays
Professional consultants ensure applications are submitted correctly the first time, reducing delays and rejection risks.
How Ripple Business Setup Can Help You Set Up a RAK Offshore Company
At Ripple Business Setup, we specialize in making offshore registration smooth and stress-free.
- Business setup packages: Full RAK offshore company formation, including name approval, MOA drafting, and registration.
- Tax registration and TRN support: Assistance with corporate tax compliance and obtaining a Tax Registration Number if required.
- Accounting and bookkeeping services: Customized accounting solutions to keep your company compliant and audit-ready.
- Visa and immigration assistance: Guidance on suitable visa options for shareholders and directors.
Book a free consultation with Ripple Business Setup today and take the first step toward your offshore company in RAK.
Visit www.ripplellc.ae | 📞 +971 50 593 8101 | ✉️ info@ripplellc.ae
FAQ
1. How long does it take to register a RAK offshore company?
Usually, it takes 3–5 working days if the documents are in order.
2. How long does it take to register a RAK offshore company?
Yes, but only in designated areas approved by authorities.
3. Do I need a physical office in RAK?
No, offshore companies cannot lease physical offices in the UAE.
4. Can I get a visa through a RAK offshore company?
No, offshore companies do not provide UAE residency visas. For visas, a free zone or mainland company is more suitable.
5. What is the difference between RAK ICC and free zone companies in RAK?
RAK ICC governs offshore companies, while free zone authorities manage entities that trade within the UAE and issue visas.
Conclusion
A RAK Offshore Company is a smart choice for global investors seeking confidentiality, low setup costs, and tax efficiency. With simple regulations, quick registration, and international recognition, RAK remains a top offshore jurisdiction in the UAE.
By partnering with Ripple Business Setup, you can ensure a smooth process, stay compliant, and focus on expanding your business worldwide.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Please consult a licensed business setup advisor for specific guidance.