STATUTORY REQUIREMENTS OF A R.A.K. COMPANY

Type of Company.  The International Company (IC) is the most popular option for foreign companies seeking to establish a presence in the UAE.

Restrictions on Trading.  Can only operate within the activities detailed on the Memorandum.

Powers of Company.   Companies Law stipulates that an IC may engage in any lawful activity except for insurance, banking and the investment of money for others and restrictions apply to conduct local business.

Language of Legislation and Corporate Documents.  English.

Name Restrictions.  Any name that is identical or similar to an existing name. Any name of a major international corporation where written consent to incorporate in not available. Any name that contains a registered trademark not owned by the company. Any name that the registrar may find undesirable, offensive or misleading.

Language of Name. English.

Names Requiring Consent or a License.  In certain circumstances, the prior consent of a Federal Ministry or competent local authority will be required. These activities include: Oil & Gas, Banking & Investment, Financial Services, Insurance, Media, Transport, Construction, Telecommunications, Real Estate Management, Architectural and Engineering Consulting, Tourism, Shipping, Civil Aviation, Legal Services, Medical Services, Education. Any name that contains the words: state, government, municipal etc. and may wrongfully suggest a patronage of such.

Registered Office Required.  Yes, must be maintained in RAK.

Suffixes to Denote Limited Liability.  Ltd or Limited.

Disclosure of Beneficial Ownership to Authorities.  Yes.

Authorized and Issued Capital.  The minimum requirement for authorized capital is DHs 1,000 which must be fully paid up.

Classes of Shares Permitted.  May neither be negotiable or divisible. Ordinary shares, preferred shares, deferred shares, and shares with or without voting rights.

Directors.  Minimum one. Powers and duties to be specified in the Memorandum. Corporate Directors are permitted.

Shareholders. Minimum of one.

Taxation.  No Corporate, Withholding or Personal taxation.

Double Taxation Agreements.  None.

Financial Statement Requirements. Yes.

Procedure to Incorporate

The following steps are required to establish an International Company in RAK:

1.   Select a name for the company and have it approved by the RAK authority.

2.   Draw up a proposed memorandum including share capital, share value, power of Directors and object of the company and have it notarised by a Notary Public in the UAE Courts.

3.   Confirmation whether the share capital has been paid in cash or kind.

4.   Copies of the Memorandum & Articles of Incorporation and Certificate of Incorporation (if a company) is to be a participant duly notarised & Apostilled and legalised at the UAE Embassy.

5.   Board Resolution of each corporate shareholder approving the taking up of shares in the new company duly notarised & Apostilled and legalised at the UAE Embassy.

6.   Details of Company Auditors together with a letter confirming their appointment, if applicable.

7.   Bank Certificate confirming deposit of the minimum share capital.

8.  Seek approval from the RAK authority. Once approval is granted, the company will be entered in the Commercial Register and the licence will then be issued by the RAK authority.

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any error omission.