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RAK ICC – the New Merger of Offshore Companies

Guiding Principle
Announced in May 2016, RAK International Corporate Centre (RAK ICC) is a newly merged entity of RAK IC (companies registered by RAK Free Trade Zone Authority) and RAK Offshore (registered by RAKIA)

Previously the two different types of companies were comparatively similar in terms of the main features, but presented differences in the company names, in some of the incorporation documents, as well as some variations on the applicable regulations. Thanks to the merger, the whole structure and procedure is now simplified and more comprehensive and RAK ICC is now the sole entity in Ras Al Khaimah for the incorporation and formation of International Business Companies (Offshore companies).
By the end of 2017, the existing companies, which were registered with RAK IBC and RAK Offshore companies, will need to re-register under the Regulations of RAK ICC and amend their Memorandum and Articles of Association according to the same. The re-registration is free of charge.
The revised regulations are rather similar to the previous ones and the main changes are related to a clearer definition of the terms as well as bringing the regulations up to the current international standards.
Existing RAK IBC and RAK Offshore companies will not face vital changes. They will be able to maintain in fact their goodwill, their operational history as well as their existing legal status, therefore the same company name, registration details and the same Registered Agent.

RAK ICC regulation will not bring any changes to the main characteristics of the offshore companies, which will keep the typical features of the offshore:
• 0% corporate and personal tax;
• 100% foreign ownership;
• 100% repatriation of capital and profits:
• Regulations free from ambiguity which meet international best practices and standards;
• Simple and fast procedures.

Furthermore,
• UAE is a “’white listed” jurisdiction with OECD/FATF;
• UAE offers a “one-stop-shop” for business facilitation through its professional infrastructure;
• UAE offers a valuable alternative to traditionally labelled “offshore centers”;
• RAK ICC Regulations allow for flexibility in the company structure.

RAK ICC will also bring an innovation by granting the possibility to have two kind of companies:
(i) Companies Limited by Guarantee out of which two types will be allowed, the ones authorized to issue shares and the ones not authorized and

(ii) Unlimited Companies (authorized to issue cheques) usually used for the real estate planning.
Meyer-Reumann and Partners is a registered offshore agent for RAK ICC agent. We take care of all business requirements of our Clients and assist them with company incorporation and legal assistance.
For offshore company setup kindly contact us, our team will be glad to assist you.

October, 2016 Roberta Quacquarini
Meyer-Reumann & Partners, Dubai Office
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