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UAE companies - by far the cheapest jurisdiction to incorporate - Offshore Company in Ras Al Khaimah (RAK)

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Kakarot

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Mar 13, 2021
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#1
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If you look here and compare jurisdictional rates -- RAK in UAE is by far the cheapest -- so why isn't every corporation forming there instead of the other regions? Anyone know the regulations or limits there and can elaborate?

Click Here below, and then click the MIDDLE EAST tab to see what I mean:

https://gsl.org/en/offshore/offshore-zones/
 
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#2
RAK is hard work for a bank account, even their own bank is not accepting RAK Freezone companies. RAK ICC (Offshore) is only good for assets and IP. Bank account is very difficult if not impossible.
 
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#5
Kakarot said:
Bc my concern would be UAE incorporators trying to talk us into more expensive jurisdictions so they can make bigger fees off of us each year forever.
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The internet is full of agents and you can go directly to the Freezone yourself to cut costs. An agent can charge what they want because they know how to get the job done.

Different Freezone have different prices. Ajman is very cheap but also hard to get Bank account.

Remember it's all about convenience. If you are paying for an office in Ajman and don't use but live in Dubai then rent an office in Dubai. What's the point of that office in Ajman. That expenses can be used towards a Dubai company.

You will have to travel to the Freezone to renew your ID and stuff.

Also agents will work where they know they can get a bank account. So I don't use Ajman, Fujierah, Um Quwain, and RAK because banking is difficult. I use RAK ICC only for asset protection coupled with a Dubai or Abu Dhabi company for bank account, a defacto trust foundation set up.
 
#8
The regulations of RAK, Ajman and some cheap freezones are easy, mostly they collect money for renewal and leave you to do your own work. You can open bank accounts but very hard and need a lot of supporting documents to prove your business. Banks have data of many bad FZE, FZC from those freezones so they regulated them strictly
 
#9
Kakarot said:
If you look here and compare jurisdictional rates -- RAK in UAE is by far the cheapest -- so why isn't every corporation forming there instead of the other regions? Anyone know the regulations or limits there and can elaborate?

Click Here below, and then click the MIDDLE EAST tab to see what I mean:

https://gsl.org/en/offshore/offshore-zones/
Click to expand...
Reputation.
About everyone knows or has heard about Dubai. Compare that with who has heard about RAK / Ajman / etc.
 
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#10
RAK ICC Companies are in 2021 only used by people that already have a local UAE residence Visa and Onshore Company.

Many of our customers bank RAK ICC Company or even Foundation with Emirates NBD as they already have an Onshore Company Business Bank Account there.

However what all the previous guys mentioned is right if you don't have any connection to UAE at all beside of the RAK ICC Company you aren't able to get any decent banking.

Already 2019 RAKBANK the bank of the government of RAK closed all RAK ICC accounts from holders without any residence local UAE residence Visa. So the Government itself stopped to support the own jurisdiction.

See this post here as well:

https://www.offshorecorptalk.com/threads/rak-icc-bank-account.32500/#post-163486
If you want to go the cheapest route you will end up burning a lot of money - paying double and most likely never receive any normal decent retail banking in a reputable jurisdiction. Somebody that isn't willing to spend some money and leaving his house to get 0% tax and reputable retail banking simply won't achieve his goal in 2021. Period.
 
#11
ok but... I heard you need residence visa and a lease proving substance and a home to show banks anyway... regardless of which jurisdiction you use. That's what others said who also do these kind of incorporations.

So aren't these things applicable to all jurisdictions? You aren't going to get a bank account easily with any jurisdiction if you don't have a rental lease in dubai. So.... what's the difference really?
 
#12
Kakarot said:
ok but... I heard you need residence visa and a lease proving substance and a home to show banks anyway... regardless of which jurisdiction you use. That's what others said who also do these kind of incorporations.

So aren't these things applicable to all jurisdictions? You aren't going to get a bank account easily with any jurisdiction if you don't have a rental lease in dubai. So.... what's the difference really?
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Not true. It's a closed working system in Dubai.

We work with banks your office tenancy contract is already enough.

In practice it's looking like this:

Business Bank Account:

KAKAROT COMPANY
COMPANY ADDRESS
DUBAI
UNITED ARAB EMIRATES

Personal Bank Account:

KAKAROT PERSONAL NAME
OWNER
KAKAROT COMPANY
COMPANY ADDRESS
DUBAI
UNITED ARAB EMIRATES

Many people from EU have such things like Postcode system and or residence register in mind. Forget about it when it comes to the UAE. Your residence Visa is your entry to the local system - everything is based on this. People asking where the Emirates ID is delivered - you can choose PO Box of the Post Office itself. Bank Cards - all the time delivered by courier anyway no matter which address is on file. Imagine you have your company address on file but sitting at Hilton Hotel - courrier comes to the Hilton Hotel as for the handover your Emirates ID is required anyway.

The only thing I can imagine you are forced to what they told you is when you want to bank with banks outside the UAE that don't sit in the DIFC. But again for what? Most problems we have are with customers that bank the Dubai setup outside the UAE with lets say CIM Bank in Switzerland they are asking so much stuff the UAE itself even don't provide.

My advise - stick to the closed working system or get ripped off with some mix setup that isn't transactional at all at the end of the day.
 
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#13
CaptK said:
So I don't use Ajman, Fujierah, Um Quwain, and RAK because banking is difficult.
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If not those, what are the 2nd best options - emirates, zones - in terms of a) price b) ability to open a bank account?

And without having to have a substance in the UAE such as an office, but, *probably*, with staying there for 183 days for 1st year, if it's required to ease the things.
 
#14
rainy said:
If not those, what are the 2nd best options - emirates, zones - in terms of a) price b) ability to open a bank account?

And without having to have a substance in the UAE such as an office, but, *probably*, with staying there for 183 days for 1st year, if it's required to ease the things.
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Dubai and Abi Dhabi - forget about the rest.

In terms of pricing Dubai is more affordable then Abu Dhabi.

Just ask yourself - which Emirate has a real economy and which not.
 
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#15
rainy said:
If not those, what are the 2nd best options - emirates, zones - in terms of a) price b) ability to open a bank account?

And without having to have a substance in the UAE such as an office, but, *probably*, with staying there for 183 days for 1st year, if it's required to ease the things.
Click to expand...
Fred said:
Dubai and Abi Dhabi - forget about the rest.

In terms of pricing Dubai is more affordable then Abu Dhabi.

Just ask yourself - which Emirate has a real economy and which not.
Click to expand...
If you really must then Sharjah as it's only 30 minutes from Dubai and Sharjah Islamic Bank are ok.
 
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