The Ras Al Khaimah Department of Economic Development (RAK DED) signed a Memorandum of Understanding (MoU) in August with the Ras Al Khaimah International Corporate Centre (RAKICC) that will provide for offshore companies registered in RAKICC to expand their businesses in the mainland.
This means that investors will be able to enjoy both offshore and mainland benefits, inclusive of zero corporate and personal taxes, 100% repatriation of capital and profits, low import duty, no currency restrictions, options for office spaces and eligibility for UAE residence visas.
The move follows the recent amendments to the UAE Federal Law No. 2 of 2015 on Commercial Companies (UAE Company Law), which provided for 100% foreign ownership and eliminated the minimum Emirati ownership of 51% in the capital of any onshore limited liability company.
RAK ICC chairman Sheikh Mohammed bin Humaid Al Qasimi said: “Our latest partnership with RAK DED will play a key role in enhancing the competitiveness of the emirate by creating a world of business opportunities for investors from all around the globe and introducing innovative solutions to meet the evolving business needs of international companies.”
The RAKICC is a corporate registry operating in Ras Al Khaimah that is responsible for the registration and incorporation of International Business Companies. It was formed by the consolidation in 2016 of two company registries – the RAK International Companies, which was formerly part of the RAK Free Trade Zone, and RAK Offshore, which was formerly a part of RAK Investment Authority.
“Tying up with RAK DED is another milestone for RAK ICC where we support clients by offering offshore and mainland advantages and opening the door for a variety of business options that meet the Economic Substance requirements,” said RAK ICC chief executive Dr Al Ansari.
“Our clients can benefit from the offshore company features in a common law regulatory environment with RAK ICC and obtaining a mainland licence from RAK DED to expand their operations and extend them to Ras Al Khaimah’s market.”
This cooperation between the two government entities is very welcome. It will certainly boost onshore and international business in the Emirate of Ras Al Khaimah and will help to stimulate new investments in the UAE.
For further information or assistance, please contact Zijad Hanic, Business Development Manager at Sovereign Corporate Services, by phone on +971 4 270 3400 (Ext:7722) or by email below.