Looking at setting up a company via a free zone? The Government of Ras Al Khaimah (RAK) has just made it even easier for you to set up precisely the type of company that suits your needs.
Earlier this year, the Government of Ras Al Khaimah (RAK) unveiled RAK International Corporate Centre (RAK ICC) as its premium Corporate Registry for International Business Company (IBC) incorporations. The Centre was formed following the merger of RAK International Companies and RAK Offshore in May 2017.
As a Corporate Registry, RAK ICC is responsible for the registration and incorporation of International Business Companies, as well as providing a full suite of Registry services related to IBC activity. IBCs are offshore companies that allow businesses and individuals to trade internationally, invest around the world and own real property globally. There are more than 10,000 foreign registered companies in RAK.
What does this mean for companies?
As the new offshore authority in RAK, all offshore companies registered with RAK IC and RAK Offshore need to be re-registered with RAK ICC. These re-registrations should be done immediately and is free of charge. Any new companies can only be incorporated through registered agents. From the submission of required documents, company set up should only take a few working days.
So what’s new?
One of the biggest changes and advantages of RAK ICC is that new types of companies can now be incorporated.
Company Limited by Shares
Company Limited by Shares means that the liability of the shareholders to creditors of the company is limited to the capital originally invested i.e. the nominal value of the shares and any premium paid in return for the issue of the shares by the company.
Company Limited by Guarantee
This type of company can take two forms. It can either be a company that is authorised to issue shares or a company that is not authorised to issue shares. At least one of the members of the company shall be a guarantee member and, where the company is authorised to issue shares, a guarantee member may also be a shareholder. The guarantors give an undertaking to contribute a nominal amount in the event of winding up of the company.
This is a hybrid company (corporation) incorporated with or without a share capital (and similar to its limited company counterpart) but where the legal liability of the members or shareholders is not limited: that is, its members or shareholders have a joint, several and non-limited obligation to meet any insufficiency in the assets of the company to enable settlement of any outstanding financial liability in the event of the company’s formal liquidation.
Special Purpose Company
Otherwise known as a Special Purpose Vehicle, this type of company only has limited corporate capacity to undertake certain specific purposes. The memorandum of a Company Limited by Shares may state that the company is a Restricted Purposes Company and shall state the purposes of the company.
Segregated Portfolio Company
This is a company which segregates the assets and liabilities of different classes (or sometimes series) of shares from each other and from the general assets of the SPC. Segregated Portfolio assets comprise assets representing share capital, retained earnings, capital reserves, share premiums and all other assets attributable to or held within the Segregated Portfolio.
Transfer of Domicile
Transfer of Domicile/Continuation is the process by which a company moves its domicile from one jurisdiction to another by changing the country under whose laws it is registered or incorporated, while maintaining the same legal identity. This can allow them to take advantage of a tax neutral environment and/or the availability of a network of Double Taxation Agreements, to align their place of registration with their shareholder base, or to access specialist capital markets.
How can De Hoon & Partners help?
Here at De Hoon & Partners (DHP), we provide professional and affordable international tax and legal advice to tailor a tax optimisation solution to match your needs. Our team of experts will advise you on the appropriate legislation governing company formation in the UAE, as well as how to obtain a business license and subsequently manage your business.
Contact us here for more information and advice about setting up a company in the UAE.