RAK ICC
RAK International Corporate Centre
Definition
Most cost-effective offshore registry in the UAE, with over 30,000 companies registered. Frequently chosen alongside JAFZA Offshore for international holding, IP, and trading structures.
Attributes
| Type | Free Zone |
|---|---|
| Jurisdiction | UAE |
| Founded | 2007 |
| Regulator | RAK ICC |
| Country | United Arab Emirates |
| ISO country code | AE |
| Applicable law | UAE Commercial Law |
What it is
RAK ICC is the offshore companies registry of Ras Al Khaimah, formed in 2016 by merging the older RAK Offshore and RAK International Companies registries. It is the largest UAE offshore registry by company count (30,000+) and the cheapest by some margin — typical setup AED 2,500–4,000 plus annual fees from AED 1,500.
RAK ICC companies are non-resident, cannot trade inside the UAE, cannot sponsor visas, and cannot own UAE real estate. They are widely used for international holding, IP-ownership, and structuring trade flows with non-UAE counterparties. Banking acceptance has tightened post-2020 — most major UAE banks still onboard RAK ICC companies but require thorough KYC and ownership-chain documentation.
Key characteristics
- Authority
- RAK International Corporate Centre
- Cost
- Cheapest UAE offshore — AED 2,500–4,000 setup
- Foreign ownership
- 100%
- UAE real estate
- Not permitted
- Audit
- Not required
How it works
- Company Formation: RAK ICC assists with the registration of companies, providing the necessary documentation and support. 2. Virtual Office: RAK ICC offers virtual office services, including a registered address, mail handling, and business support. 3. Corporate Services: They provide a suite of corporate services such as company secretarial, financial statement preparation, and regulatory compliance assistance. The process typically involves submitting required documents, paying registration fees, and obtaining the Certificate of Incorporation.
Types of RAK ICC
| Type | Description | When it applies |
|---|---|---|
| Offshore Company | RAK ICC facilitates the registration of offshore companies for international holding, IP, and asset protection. | Suitable for companies seeking to establish a presence in the UAE without requiring a physical office. |
| Virtual Office | RAK ICC provides virtual office services including a registered address, mail handling, and business support. | Ideal for businesses needing a professional address and administrative support without the need for a physical office space. |
Examples
Many international companies utilize RAK ICC for establishing holding companies, protecting intellectual property, and conducting international trade. Several companies in the technology, finance, and consulting sectors have registered with RAK ICC to benefit from the UAE's favorable business environment. RAK ICC's services are particularly attractive to businesses seeking a cost-effective and transparent offshore solution.
Why it matters
RAK ICC is the default UAE offshore vehicle for cost-conscious international structures. Where Dubai address, banking gravitas, or UAE property holding aren't needed, it gives the same legal effect as JAFZA Offshore at a fraction of the cost.
Common misconceptions
Misconception
RAK ICC is only for tax evasion.
Reality
RAK ICC is a legitimate business registry offering a cost-effective and transparent solution for international companies.
FAQs
- Can a RAK ICC company open a UAE bank account?
- Yes — most major UAE banks (Mashreq, Emirates NBD, RAKBANK) onboard RAK ICC companies, though scrutiny is higher than for free-zone or mainland entities. Plan for 4–8 weeks bank onboarding and have a clean ownership chain with source-of-funds documentation.
- Do RAK ICC companies pay UAE Corporate Tax?
- RAK ICC entities are taxable persons under the UAE Corporate Tax law and must register with the FTA. Most have no UAE-source income and no permanent establishment, so qualifying activities tax at 0% — but registration and annual filings are still mandatory.
