Free Zones

RAK ICC: Offshore Company Setup & Accounting Guide

2025-11-05 · 4 min read · By Aureus Worldwide

RAK ICC, the RAK International Corporate Centre, is the offshore corporate registry of Ras Al Khaimah, used to form International Business Companies (IBCs). Unlike a free zone licence, a RAK ICC company is a non-resident vehicle designed for holding assets, international trade and structuring rather than doing business inside the UAE. This guide explains what RAK ICC offshore formation is, what it suits, its limits, and the accounting, substance and tax considerations that apply.

What RAK ICC is, and is not

RAK ICC registers offshore companies (commonly IBCs) that can hold shares, property and assets and conduct business outside the UAE. It is not a trading licence: a RAK ICC company cannot operate within the UAE mainland, cannot lease local commercial premises in the ordinary way, and does not by itself grant residence visas. If you need to trade onshore, employ staff locally or obtain visas, you need a free zone or mainland licence instead.

Who it suits

RAK ICC offshore companies are typically used for:

• Holding shares in other companies (including UAE entities, where permitted)
• Holding real estate in designated areas, subject to rules
• International trading and invoicing outside the UAE
• Asset protection and succession or estate structuring
• Intellectual-property and investment holding

Key features

Always confirm the current company types, permitted uses and restrictions directly with RAK ICC.

Setup steps

1. Confirm the purpose, holding, international trade or structuring, to ensure offshore is the right route.
2. Engage a registered agent (offshore companies are formed through approved agents).
3. Reserve a company name that complies with the registry rules.
4. Decide the structure and shareholders/directors (corporate or individual).
5. Prepare and submit documents, passports, proof of address and, for corporate shareholders, attested corporate documents.
6. Receive the certificate of incorporation and constitutional documents.
7. Arrange banking, offshore accounts require careful preparation; see our bank account guide.

Our company formation team works with registered agents to set this up correctly.

Accounting, substance and tax considerations

Offshore does not mean obligation-free. Plan for:

• Records and accounting. RAK ICC companies are expected to keep accounting records that reflect their transactions and financial position, see our accounting service.
• Audit. An audit is not always mandatory but may be required by banks, counterparties or for a tax position; our audit team can arrange one via licensed partners.
• Corporate Tax. UAE Corporate Tax can apply depending on residence, place of effective management and any UAE-sourced income. Offshore status is not an automatic exemption, see our tax service.
• Economic substance and UBO. Holding and certain activities can trigger substance and beneficial-ownership obligations; see our ESR reporting guide.

Timeline, costs and ongoing administration

Forming a RAK ICC offshore company is usually quick, often a matter of days once the registered agent has your documents, but the harder work is frequently the banking, which requires clear evidence of the structure's purpose, ownership and source of funds. Costs depend on the registered agent's fees, the company type and any nominee or additional services, and the registry revises its fees periodically, so confirm current charges with RAK ICC and your agent rather than relying on third-party figures. The company must be renewed annually through the registered agent, and the agent relationship is a continuing requirement rather than a one-off, so factor ongoing administration into your planning.

Keeping an offshore company compliant

An offshore vehicle is not a way to avoid governance. Keep accounting records that reflect the company's transactions, maintain up-to-date registers and beneficial-ownership information, and renew on time through your agent to keep the company in good standing. Where the company holds UAE assets, earns UAE-sourced income or is managed from the UAE, take advice on Corporate Tax, economic substance and reporting, because none of these are switched off by offshore status. Treating the structure with the same discipline as an onshore company protects its standing with banks, counterparties and regulators.

RAK ICC versus a free zone licence

A RAK ICC offshore company is for holding and international business, not onshore trading or visas. If you need to operate, hire and obtain residence in the UAE, a free zone such as the UAQ Free Trade Zone or another zone is the right tool. Many groups use both, an onshore licence to trade and an offshore vehicle to hold. For a broader framework, see choosing the right UAE free zone.

How Aureus Worldwide helps

Aureus Worldwide helps clients decide whether a RAK ICC offshore company fits their structure, and sets it up correctly through registered agents via our company formation team. We then keep records, accounting and any audit in order, and assess Corporate Tax, substance and UBO exposure through our tax and accounting services. We confirm changeable rules with the registry before you commit. To explore a RAK ICC structure, contact us.

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