Question 2022 RAK ICC bank account update

[nawsaafa]

Hi everyone,

Having read the previous threads regarding this topic, I am currently in Dubai trying to open a bank account for my newly incorporated RAK ICC company... (obviously I ddin't come accross this forum before doing so).

Thus here is my situation, I have been working in the renewable energy field for the past 12 years (CV proving it and currently still employed with a multinational publicly listed company in the field). I am planning to start a consulting business, initially sort of freelancing but later on with possibilities to expand. Expected revenue around 200k-300k euro for the first year with a contract already signed with another multinational publicly listed company leader in the renewable energy field.

I looked at RAK ICC for tax purposes and to mantain a currency account in EUR offshore as I reside in Morocco which has very strict borders when it concerns currency leaving the country, also CIT + Tax on revenue are unbelievably high.

Now the issue, the bank account set-up, my agent introduced me to few local banks, the first one said almost straight-up no, until they started selling me some other banking products and then became a maybe. The second one, just handed me the application form and made me sign it and said the process should take 3 weeks. Obviously, I was talking to a commercial agent and I have no idea what the compliance department will say.

Any clue? Any update on the threads? Is RAK ICC still a lost option for opening a bank account even if I have a solid personal background and even a contract for an ammount of 200k euros per year for a 2 year duration?

Many thanks!

 

[rowena]

Unfortunately, you just incorporated a trash company type. It is extremely hard to open a bank account for RAKICC and it is useless. Who recommended this?

Close your company and open a free zone company in Dubai.

 

[nawsaafa]

Unfortunately, you just incorporated a trash company type. It is extremely hard to open a bank account for RAKICC and it is useless. Who recommended this?

Close your company and open a free zone company in Dubai.

An agent recomended it, I even paid 800 euros for bank account introduction service which was obviously not helpful. They are suggesting to try ABC mauritius as they have a contact there.

Obviously the agent knew about this and still pushed me to incorporate with a fake promise that bank account is easily set-up..

Should I give up on a real bank in the UAE? What about an EMI option such as Paysera?

 

[Fred]

@rowena named it already.

Forget about low risk EMI's like Paysera for a RAK ICC - it won't work.

You can approach several Lithuania or UK based high risk EMI's charging you 1000s of EUR each year in maintenance fees + % for incoming and outgoing transfers - this sums up to far more costs compared with a proper FZCO setup, Residence Visa and local UAE Business Bank Account and of course a High Risk EMI is SEPA EUR only and in rare case they have TARGET2 but for sure no USD.

Same goes for ABC Bank Mauritius - while in theory with the Fee Structure and IBAN etc. it's the best alternative to UAE Banks - it's in reality no serious alternative at all for day to day business you have to schedule a Skype Call to explain each transfer with the Banker at ABC Bank - that's of course due to the fact you have with a RAK ICC a company with reputation equal to Seychelles and it's a complete non-resident setup.

A RAK ICC in 2022 is only used as a Holding Company for holding assets, IP and Property -Banking is done with Private Banks who require millions under wealth management and not for day to day business at all. And of course it's used by joker Corporate Service Provider scaming people for no reason.

 

[Sols]

In the long term, it will be much cheaper to start over with a more sensible setup than try to make a RAK ICC work, unfortunately.

Yes, you can find banks/EMIs for it. But you will be paying through the nose. If your business has decent turnover, banking fees will end up costing you more than scrapping the current setup and starting over.

 

[nawsaafa]

@rowena named it already.

Forget about low risk EMI's like Paysera for a RAK ICC - it won't work.

You can approach several Lithuania or UK based high risk EMI's charging you 1000s of EUR each year in maintenance fees + % for incoming and outgoing transfers - this sums up to far more costs compared with a proper FZCO setup, Residence Visa and local UAE Business Bank Account and of course a High Risk EMI is SEPA EUR only and in rare case they have TARGET2 but for sure no USD.

Same goes for ABC Bank Mauritius - while in theory with the Fee Structure and IBAN etc. it's the best alternative to UAE Banks - it's in reality no serious alternative at all for day to day business you have to schedule a Skype Call to explain each transfer with the Banker at ABC Bank - that's of course due to the fact you have with a RAK ICC a company with reputation equal to Seychelles and it's a complete non-resident setup.

A RAK ICC in 2022 is only used as a Holding Company for holding assets, IP and Property -Banking is done with Private Banks who require millions under wealth management and not for day to day business at all. And of course it's used by joker Corporate Service Provider scaming people for no reason.

Thanks Fred, I feel stupid trusting this other agent.

Trying to reach you through your company website phone number, I am in Dubai can we meet and start the process for the freezone route.