Set Up A Holding Company In RAK ICC – RAK ICC Holding Company Formation
RAK ICC Holding Company is established as a legal corporation to hold and control the shares of other companies. There are a number of available options (using unsubstantiated entities) to hold UAE or Foreign movable or immovable assets (residential or commercial properties), using UAE onshore entities, in particular, The RAS AL KHAIMAH INTERNATIONAL CORPORATE CENTRE (RAK ICC) – multiple vehicles in a common-law environment to cater all sort of tailor-made structuring, estate and tax planning. In the UAE, incorporation of holding companies is allowed in all the emirates including RAK. This allows foreign investors to incorporate holding companies in RAK under different forms although the holding companies in RAK ICC are not authorized to carry out business activities live service provision or manufacturing of goods. The main advantage of the holding company in RAK ICC is that it allows the owners have control over other companies in the UAE and abroad.
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RAK ICC Holding Company deploys within a common law jurisdiction – under the supervision of its own Regulatory authorities the permission to hold stocks, shares, real estate, shares of other companies, and various other participations.
Earlier in this year 2021, the RAK ICC signed an MOU with the RAK Municipality Department to provide the opportunity for investors to purchase and register properties in the Emirate of Ras Al Khaimah as well as structure their investments through a RAK ICC entity, all while contributing towards the development of Ras Al Khaimah as one of the world’s leading real estate investment destinations.
Following the recent Memorandums of Understanding (MoU) signed between RAK ICC and The Dubai Land Department (DLD), the DLD is now accepting registrations for freehold plots and properties by RAK ICC-registered holding companies (HoldCo). This makes it much easier for RAK ICC HoldCos to invest in property and expand portfolios across the UAE.
The numerous benefits of a RAK ICC Holding Company Formation include:
- Its cost-effective holding companies-, within a common law environment, could hold all kinds of assets and notably Dubai real estate pursuing a Memorandum of Understanding with the Dubai Land Department.
- The RAK ICC HoldCo can be used for holding stocks, shares, real estate, shares of other companies and various other participations.
- There is no requirement for paid-up share capital and profits are subject to the UAE’s 0% tax rate.
- Ability to isolate income from specific properties for tax purposes.
- Reduce the effective level of withholding tax on income and capital gains.
- Ease of transfer when buying and selling properties.
- Greater privacy, with no shareholder details on the public register.
- Easy transfer of domiciliation or continuation.
- As a shareholder in a RAK ICC HoldCo, you are also able to open a UAE bank account, allowing you to make and accept payments within the UAE, subject only to local taxes
- In addition, the RAK ICC has a cost-effective Free zone Foundation regime that is also available for holding and charitable purposes.
How Can Wincore Advisory assist you in setting up a Holding Company in RAK ICC?
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