As was previously announced in our earlier newsletter issue, there are some organization changes taking place on RAK IBC and RAK Offshore companies in the UAE.
Beforehand these were 2 different types of companies in the UAE being registered by 2 different registries – RAK IC companies were registered by RAK FTZ Free Trade Zone Authority, and RAK Offshore companies were registered by RAKIA Free Trade Zone. These 2 companies were comparatively similar in terms of the main features, however had some difference in the company names, had different incorporation documents as well as some variations on the applicable regulations.
Starting from May 2016 both registries have joined together under the new legal entity under the Name RAK ICC (RAK International Corporate Center). Below are the answers to the most frequent questions we receive in respect of this change.
1. What do these changes mean and how such changes are applicable to the existing RAK IBC and RAK Offshore companies?
First of all we need to clearly emphasize that there are no any vital changes for the existing companies.
The RAK IBC and RAK Offshore companies would keep its existence under the same company names, with the same registered agent and with the same registration number, registration date, address and other incorporation details.
The only change which would be applicable is that, as the time of the company renewal, the company shareholders would be requested to sign the declaration on adoption by their exiting company of the revised RAK ICC regulations. The revised regulations are rather similar to the previous regulations. The main changes are related to the more clear definitions of the terms as well bringing the regulations up to the current international standards.
2. Where can I see the new RAK ICC regulations ?
Complete text of the revised regulations – see on our web site under the link: RAK ICC – companies law.
3. How different would be the RAK ICC company in comparison with RAK Offshore or RAK IBC company ?
There are no differences in terms of taxation regime, regulations on shareholders, reporting requirements, permitted activities or other core regulations. RAK ICC company is exactly the same company from its fundamentals as the previous RAK IC or RAK Offshore company.
4. What shall you do as the owner of RAK IC or RAK Offshore company to adopt its status to new regulations?
You do not need to do anything right now. At the time of the company renewal we, as the registered agent, would send our clients the necessary paperwork to be signed and returned to us.
5. Are there any costs for me as shareholder for the change to RAK ICC company ?
No. The entire procedure of adaption of the company documents does not imply any changes to the company or its owners.
6. What happens on the company renewal and the change on the exiting RAK IBC and RAK Offshore companies.
At the time of company renewal we would provide you the paperwork which you would need to sign and return to us. Upon provision to us of this paperwork and the payment of the regular company renewal fee your company would be renewed with the ICC abbreviation at the end. The respective company re-registration certificate would be provided to you.
7. How much time is available for the company change to RAK ICC ?
The transition period for adoption of the new regulations is extended over time thus all companies have sufficient time period to proceed with the provision of the consent on adoption of the new regulations.
8. Are there any changes on the exiting company’s costs?
No, the adoption of the revised regulations does not result any changes in the company registration and renewal costs.
9. Are there any changes to the registration procedure of the new RAK ICC company in comparison with the previous procedure ?
No, there are no fundamental changes. The only change – the new company application documents have different logo – RAK ICC (International Corporate Center) – instead of the previous RAK IBC (International Business Company) or RAK Offshore.
10. What is the reason of joining of the two different registries into one under the RAK ICC name ?
As the corporate service industry in UAE develops highly intensively, the joining of the two registries are done in order to bring the service standards to the next level and increase the overall efficiency of servicing of companies of this type.