RAK ICC Offshore Company Setup (2026): Cost, Uses and Limitations

Last Updated: September 2026. Every fee below comes from the RAK ICC Fee Schedule 2026 or the JAFZA Offshore Companies Regulations 2023, and every structural rule is given with its regulation number, so you can check it against the text rather than take our word for it.

A RAK ICC offshore company costs AED 3,250 in government fees to incorporate for one year and AED 3,950 to renew, so the registry charges more for year two than for year one [1]. That is the first of several things about the RAK International Corporate Centre that package prices hide. The second is that RAK ICC's own company law, the Business Companies Regulations 2018, contains no provision at all on owning land outside its own zone [2], even though "hold Dubai property" is one of the most advertised uses.

The stakes are practical. A RAK ICC company is a good holding, IP and special purpose vehicle, and a poor choice for anyone who needs a visa, an office or UAE clients. Buying it for one of those three is the expensive mistake. The tax position is also widely misstated: it is a UAE Resident Person for corporate tax, taxed on worldwide income, not a company that pays nothing on what it earns abroad [3].

Since 2013, BusinessDubai.ae has set up companies across the UAE's free zones, mainland and offshore registries, and this guide reproduces the full 2026 fee schedule and separates the government fee from the agent's fee line by line, including our own. It covers what a RAK ICC company is for, the full 2026 fee schedule, structure rules, corporate tax, VAT and audit, Dubai property, JAFZA Offshore as the comparator, banking, foundations and a decision table by goal.

What is a RAK ICC offshore company, and what can it not do?

A RAK ICC offshore company is an International Business Company incorporated in Ras Al Khaimah under the RAK ICC Business Companies Regulations 2018 and administered through a licensed registered agent. It can hold assets and contract internationally, but it carries no trade licence, sponsors no residence visas and has no office of its own in the UAE [2].

RAK ICC is a corporate registry. It incorporates companies and foundations, and it does not license trading activity the way an operating free zone does. That one fact explains almost every limit in this guide. The company exists, it can own things and sign contracts, and it can be taxed, but it has no permission to sell into the UAE market.

The table below sets out the uses a RAK ICC company suits and the ones it does not, with the condition that decides each.

Three limits come straight from the Business Companies Regulations 2018 rather than from market practice. A RAK ICC company may not carry on business with persons in the Zone unless it is authorised to, may not carry on any business RAK ICC prohibits, and may not provide financial services by way of business anywhere in the world [2]. "The Zone" in the Regulations means RAK ICC's own designated area, not the whole of the UAE. The wider rule, that the company cannot trade in the UAE market at all, follows from the fact that it holds no trade licence for the mainland or for any free zone. The Regulations also say that keeping books, holding meetings or banking in the Zone does not count as carrying on business there.

Common Mistake: Reading "offshore" as "can serve UAE clients from a distance". A RAK ICC company that invoices a Dubai client is trading in the UAE without a licence, whatever the contract says about where the work was done. The fix costs less than people expect: a Dubai free zone licence with no visa starts from AED 12,500 at BusinessDubai.ae's 2026 prices, the same year-one headline as our RAK ICC package [17]. If you know UAE clients are coming, price the licence first.

If your use sits in the top half of that table, our offshore company formation page sets out what a RAK ICC package includes and how it compares with the other offshore registries.

Is RAK ICC the same as RAKEZ?

No. RAK ICC is a corporate registry for International Business Companies and foundations, while RAKEZ, the Ras Al Khaimah Economic Zone Authority, is an operating free zone that issues trade licences and residence visas. Both are Ras Al Khaimah government entities, and both signed the 2019 memorandum with the Dubai Land Department, but they sell different products [4].

The confusion is understandable, because the two sit side by side and are marketed together. The practical difference is what you walk away with. A RAKEZ company gets a trade licence, a visa quota and an office option; BusinessDubai.ae's 2026 RAKEZ package is AED 6,010 licence-only and AED 12,010 with one visa [17]. A RAK ICC company gets a certificate of incorporation and a registered agent.

The two also meet in one place that matters for tax and property. Commentary on Emiri Decree No. 12 of 2024 reports that a RAK ICC company can obtain a Free Zone Commercial Licence through RAKEZ, layered on top of its RAK ICC incorporation. We could not locate the primary text of the Decree, so treat that route as reported rather than confirmed. Our RAKEZ free zone setup guide covers what the operating licence itself involves.

How much does a RAK ICC offshore company cost in 2026?

The RAK ICC government fee for an International Business Company is AED 3,250 for one year, AED 6,700 for two and AED 9,600 for three, with renewal at AED 3,950, AED 7,250 and AED 10,650 [1]. BusinessDubai.ae's package is AED 12,500 in year one, including the registered agent's work, and AED 8,000 at renewal [17].

These are the figures on the RAK ICC Fee Schedule 2026, effective 1 January 2026, for a standard International Business Company [1].

Read the renewal row twice. Renewal costs more than incorporation at every term, which is the opposite of how most founders budget, and it is why a year-two quote often looks like a price rise when it is simply the schedule.

Quick Math: Incorporating for one year and renewing annually costs AED 3,250 + 3,950 + 3,950 = AED 11,150 in government fees over three years. Incorporating for three years upfront costs AED 9,600, a saving of AED 1,550. At renewal, a three-year term at AED 10,650 saves AED 1,200 against three single years at AED 11,850 [1]. If you are sure of the structure, buy the longer term.

What else is on the 2026 fee schedule?

The core fee is not the only government line. These are the other RAK ICC charges a company can meet in its life, all from the same 2026 schedule [1].

Most companies will only ever pay the core fee and one or two certificates. The two lines that surprise people are the high-risk differential, which can more than triple a year's government cost, and the per-property no objection certificate.

Government fee versus agent fee: where does the rest of the money go?

The gap between the AED 3,250 government fee and a package price is the registered agent's service, and the law makes that service compulsory. Regulation 92 requires every RAK ICC company to have a registered agent at all times, and Regulation 91 places the registered office at the agent's UAE office [2]. Only a person holding a RAK ICC Certificate of Agent Registration may act as one [5], and the agent itself pays RAK ICC AED 12,500 to onboard and AED 12,500 a year to renew that certificate [1].

Here is BusinessDubai.ae's own package set against the government fee, with the difference shown openly as the agent's service.

So a RAK ICC company costs roughly AED 12,500 to start and AED 8,000 a year to keep with us, of which the registry takes AED 3,250 and AED 3,950. Nobody can buy the company at the government fee alone, because the agent is part of the legal structure, not an optional adviser.

Pro Tip: Ask every provider, including us, to split the quote into three lines: the government fee, the agent's own fee, and what is excluded. The exclusions are where quotes differ, typically the high-risk differential of AED 7,000, activities beyond three at AED 550 each, certificates at AED 750 to AED 1,000 and bank account support. A quote that will not separate those lines is not a cheaper quote, it is an unexplained one.

For an itemised RAK ICC quote built around what the company will actually hold, get a free consultation→

What happens if a RAK ICC company renews late?

A late RAK ICC renewal costs the renewal fee plus 10% in the second month, 15% in the third, 25% in the fourth and 50% in the fifth, and RAK ICC issues a strike-off notice at the start of the sixth month [1]. Restoring a company once it has been struck off costs AED 550 plus everything outstanding.

The ladder below applies the 2026 surcharges to the one-year renewal fee of AED 3,950.

On top of the ladder, RAK ICC's schedule sets standard contravention fines in five levels, from AED 1,000 to AED 20,000, for breaches of its Regulations [1]. The filing most easily forgotten is the annual return, due within 30 days of each incorporation anniversary under Regulation 262 [2].

Common Mistake: Letting a company you no longer use drift towards strike-off because it is dormant. A dormant company still owes its renewal, and drifting costs the surcharge ladder, possible contravention fines and AED 550 plus arrears if you later need it back. Closing it properly by voluntary strike-off costs AED 1,500 [1]. If you have finished with the company, close it on purpose.

Renewal, the annual return, the beneficial ownership notice and the corporate tax return all fall due on different dates. Our post-setup services team keeps that calendar for offshore companies, so the ladder above stays theoretical.

How is a RAK ICC company structured, and who has to be where?

A RAK ICC company needs at least one director, who may be a company provided at least one director is a natural person, plus a licensed registered agent and a registered office at that agent's UAE office. No director has to live in the UAE, and there is no minimum share capital [2].

The table sets out each structural rule with the regulation that creates it, so you can check any claim a provider makes against the text.

Two rows deserve a second look. The annual return confirms the company type, its principal activity and that its filings are current. It is not a set of accounts, and nothing in the Regulations requires a standard company to file audited accounts with RAK ICC. The beneficial ownership row is the one founders forget: RAK ICC runs its own register under the Beneficial Ownership Regulations 2019, with a 15-day notice for changes [6], matching the 15-day rule in the federal regime under Cabinet Resolution No. 109 of 2023 [7]. "Offshore" does not mean exempt from disclosure. Our UAE UBO requirements guide covers the federal side in detail.

Formation itself is quick once due diligence clears. BusinessDubai.ae's published registration time for a RAK ICC company is three to five days after documents are cleared [17]. The documents are the slow part: identity and address evidence for every shareholder, director and beneficial owner, a clear description of the business, and source-of-funds evidence the agent can stand behind.

Real Talk: No UAE-resident director is required, but where your directors actually sit still matters for tax. A RAK ICC company is UAE tax resident because it is incorporated here, yet if every decision is taken by directors living in another country, that country's own rules may claim the company as its resident too. If you intend to rely on a UAE tax residency certificate, read our UAE tax residency certificate guide before you appoint the board.

Does a RAK ICC company pay UAE corporate tax?

Yes. A RAK ICC company is a Resident Person under Article 11(3)(a) of Federal Decree-Law No. 47 of 2022 because it is incorporated under UAE legislation, and Article 12(1) taxes a resident juridical person on its worldwide income: 0% on taxable income up to AED 375,000 and 9% on the excess [3].

This is the section most pages ranking for this topic get wrong, and the error is expensive. The word "offshore" describes how the company is marketed and where it does business, not how the law classifies it. Corporate tax asks where the company was incorporated, and a RAK ICC company was incorporated in the UAE. From that point the company is inside the ordinary regime, with the AED 375,000 band applied as a bracket rather than a cliff [3].

Common Mistake: Believing the line repeated across most competing pages, that an offshore company pays "0% on foreign income and 9% on UAE income". That is a description of Article 13, which taxes Non-Resident Persons on UAE-source income [3]. A RAK ICC company is not a Non-Resident Person. Its foreign income is in the same tax base as everything else, and planning around the wrong rule means an unbudgeted 9% on every dirham of profit above AED 375,000.

The table summarises where a standard RAK ICC company stands on each corporate tax question, with the source for each answer.

Quick Math: A RAK ICC company trading with non-UAE customers earns AED 900,000 of profit on AED 3,400,000 of revenue. Under the "0% on foreign income" myth, the tax is nil. Under the actual law, it is 9% of the AED 525,000 above the band, AED 47,250 [3]. Revenue above AED 3,000,000 also rules out Small Business Relief. That is AED 47,250 a year the myth leaves out of the budget.

Registration, and the penalty for missing it

Corporate tax registration is compulsory for a RAK ICC company whether or not it has income. A juridical person that is a Resident Person, incorporated on or after 1 March 2024, must file its registration application within three months of incorporation under Federal Tax Authority Decision No. 3 of 2024 [8]. Missing that deadline carries an AED 10,000 administrative penalty, introduced by Cabinet Decision No. 10 of 2024 amending Cabinet Decision No. 75 of 2023, with effect from 1 March 2024 [9]. The return itself follows the ordinary cycle, covered in our UAE corporate tax filing guide.

Small Business Relief and the 2029 date

Small Business Relief lets a Resident Person with revenue at or under AED 3,000,000, in the current period and every earlier one, elect to be treated as having no taxable income [3]. Ministerial Decision No. 131 of 2026 extended it to tax periods ending on or before 31 December 2029 [10]. It is available to a RAK ICC company because the company is a resident that is not a Qualifying Free Zone Person. For a small holding or trading company this is the nearest legitimate route to paying nothing, and our Small Business Relief guide explains the election.

The participation exemption for holding companies

A RAK ICC company used purely to hold shares can often receive dividends and qualifying disposal gains free of corporate tax under Article 23 [3]. The Participating Interest needs a holding of at least 5%, held for at least 12 months, and it must pass further conditions in the Article, including a subject-to-tax test on the subsidiary and a test of what the subsidiary's assets consist of. This, not a blanket "offshore" exemption, is why the vehicle works for holding. Our holding company setup guide compares it with free zone and mainland holding structures.

Can a RAK ICC company be a Qualifying Free Zone Person?

We could not confirm, at any Federal Tax Authority or Ministry of Finance source, that a bare RAK ICC International Business Company is a Free Zone Person for corporate tax purposes. Treat any "0% QFZP" claim for one as unverified. The route commonly reported is a RAKEZ Free Zone Commercial Licence layered on top of the RAK ICC company.

The FTA's guide on Free Zone Persons defines a Free Zone Person as a juridical person incorporated, established or otherwise registered in a Free Zone, and a Qualifying Free Zone Person pays 0% on Qualifying Income and 9% on its other taxable income [11]. What the guide does not do is say whether RAK ICC, a registry that licenses no business activity, counts as a Free Zone for that test. No official list we could find settles it either way.

The layered route rests on commentary on Emiri Decree No. 12 of 2024, which reports that RAK ICC companies can obtain a Free Zone Commercial Licence through RAKEZ. That is consistent across independent commentators, but we could not read the Decree itself. Our Qualifying Free Zone Person guide explains the conditions any claimant then has to meet, including substance, qualifying activities and the de minimis limit.

Real Talk: For a small holding company, chasing QFZP status can cost more than it saves. A Qualifying Free Zone Person gets no AED 375,000 nil band [11], cannot elect Small Business Relief [10] and must have audited financial statements every year [12]. A RAK ICC company with AED 300,000 of taxable income pays nothing under the ordinary regime, because it sits inside the band. Run the numbers before paying for a second licence.

Does a RAK ICC company need audited accounts, ESR filings or VAT registration?

A RAK ICC company files no accounts with RAK ICC, because its annual return is a confirmation statement under Regulation 262 [2]. Corporate tax still requires financial statements, audited above AED 50 million of revenue [12]. Economic substance filings ended for years after 2022, and VAT applies only past AED 375,000 of taxable supplies.

The table separates what RAK ICC asks for from what federal tax law asks for, because they are different lists.

Economic substance deserves a sentence of its own, because older guides still describe it as a live annual filing. Cabinet Decision No. 98 of 2024 discontinued the notification and the report for financial years ending after 31 December 2022, and cancelled the related penalties for those years [13]. Obligations for 2019 to 2022 periods remain enforceable. Our UAE economic substance regulations guide sets out what is still owed for those years. On audit thresholds and when the obligation bites, see our statutory audit requirements guide.

Quick Math: A RAK ICC company that owns one Dubai office unit let at AED 400,000 a year is making taxable supplies above the AED 375,000 mandatory threshold, so it must register for VAT and charge 5%, AED 20,000 a year on that rent [14]. The same company letting a residential apartment for AED 400,000 makes an exempt supply, which does not count toward the threshold. The property type decides it, not the company.

The commercial property rules are set out in our VAT on commercial property guide. Bookkeeping, the corporate tax return and any VAT filings are the recurring work an offshore company creates, and our post-setup services team handles them alongside the RAK ICC renewal. To see where your own structure lands, model your tax position→

Can a RAK ICC company own property in Dubai?

Possibly, but not because of RAK ICC's own law. The RAK ICC Business Companies Regulations 2018 contain no provision on owning real property outside the Zone [2]. The capability rests on a 2019 memorandum with the Dubai Land Department, conditioned on a no-objection letter and, for direct registration, natural-person shareholders, and its current status is contested [4].

Start with the regulation itself. A full-text search of the Business Companies Regulations 2018 for "land", "freehold", "immovable" and "title deed" finds nothing on owning property outside the Zone, only references to land within it [2]. RAK ICC's company law simply does not address Dubai property. Whatever right exists comes from somewhere else.

That somewhere else is a 2019 memorandum of understanding between RAK ICC, RAKEZ and the Dubai Land Department. We know its terms from RAK ICC's own press release, because DLD's release on the same memorandum no longer resolves [4]. On RAK ICC's account, registration was conditioned on a no-objection letter and, for direct registration, on the company's shareholders being natural persons, with DLD keeping discretion over companies with corporate or mixed shareholders [4]. The 2026 fee schedule supports the idea that RAK ICC expects these registrations: it charges AED 1,250 for a no objection certificate per property [1].

The 2024 commentary is where it gets contested. Several sources describe a position in which a RAK ICC company needs a RAKEZ commercial licence layered on top before DLD will register it, and they conflict with the plain reading of the 2019 memorandum. Our guide to buying property through a company in Dubai sets out that conflict, the DLD fees and the corporate tax treatment of rent. We will not repeat it here, because it cannot be resolved without primary text that has not been published.

Pro Tip: Put the property question before the incorporation, not after it. Get the answer in writing for the exact entity you intend to form, its exact shareholders and the exact property, and only then incorporate. The no objection certificate is AED 1,250 [1]. A company formed for a purchase DLD will not register costs you the whole package and a renewal before you can close it.

What does JAFZA Offshore allow that RAK ICC does not?

JAFZA Offshore writes property ownership into its own law. Regulation 14.2(e) of the JAFZA Offshore Companies Regulations 2023 says a JAFZA Offshore company may own property in the designated freehold areas of the UAE, and Regulation 31.2 lets such a company apply to the Authority for residency visas for its members, subject to eligibility [15].

The contrast with RAK ICC is the source of the right. A RAK ICC company's property capability rests on a side memorandum outside its company law. A JAFZA Offshore company's rests on its own Regulations, which is a stronger footing to stand on when a bank, a developer or DLD asks what the company is allowed to do.

Regulation 31.2 is the finding none of the pages ranking for this topic mention. A JAFZA Offshore company that owns property in a designated freehold area may apply to the Jebel Ali Free Zone Authority for a residency visa for its members, subject to the Authority's eligibility requirements [15]. Read every condition in that sentence. The company must own the property. The visa is for members, not employees. It is an application, not an entitlement, and the Authority decides. A JAFZA Offshore company with no property has no route at all.

This is a JAFZA Authority route under JAFZA's own regulations, separate from the federal property investor visa. How company-held property is treated under the federal routes is a question our property guide flags as unconfirmed on any government page, and nothing in Regulation 31.2 answers it.

Two other JAFZA points matter for anyone comparing. Regulation 31.1 lets the registered office be an office in the Zone, a property the company owns in a designated freehold area, or its registered agent's office in Dubai [15]. And the 2023 Regulations repealed the 2018 regulations under Regulation 4.1 [15], so a page quoting the 2018 text is quoting a repealed instrument.

Real Talk: Do not buy a JAFZA Offshore company for the visa alone. Regulation 31.2 is narrow, conditional and discretionary, and it needs a Dubai freehold purchase before it exists. If residency is what you need, a Dubai free zone company with one visa at AED 21,050 to 21,400 on BusinessDubai.ae's 2026 prices is a direct and predictable route [17]. Use 31.2 as a bonus on a property you were buying anyway.

RAK ICC or JAFZA Offshore: which costs less over five years?

RAK ICC is cheaper to start and JAFZA Offshore is cheaper to keep. On government fees, RAK ICC charges AED 3,250 to incorporate and AED 3,950 to renew, while JAFZA Offshore charges AED 10,000 and AED 2,500 [1][15]. BusinessDubai.ae's packages are AED 12,500 and AED 18,000 in year one, and AED 8,000 each at renewal [17].

The table compares the two registries using only their own fee schedules, plus BusinessDubai.ae's published package for each.

The comparison turns on how long you will keep the company, and the arithmetic shows it.

Quick Math: Over five years, RAK ICC government fees total AED 3,250 + 4 × 3,950 = AED 19,050, and JAFZA Offshore's AED 10,000 + 4 × 2,500 = AED 20,000 [1][15]. In year six JAFZA becomes cheaper: AED 22,500 against AED 23,000. At BusinessDubai.ae's package prices the five-year totals are AED 44,500 and AED 50,000, because both renew at AED 8,000 [17]. The real question is whether JAFZA's property and residency provisions are worth AED 5,500 upfront.

For a holding, IP or trading vehicle, RAK ICC usually wins on cost. For a property-holding company, JAFZA Offshore's written provisions are usually worth the difference. Our offshore company formation team prices both, and our JAFZA free zone setup guide covers the operating free zone that sits behind the JAFZA name.

Offshore, free zone or mainland: which do you actually need?

Choose a RAK ICC offshore company only if nothing you do needs a UAE licence: no visa, no UAE clients and no office. The moment you need one of those, a Dubai free zone licence from AED 12,500 without a visa, or a Dubai mainland licence from AED 18,200, is the right vehicle [17].

The usual reason to pick an offshore company over a licence is price. At BusinessDubai.ae's 2026 prices that reason disappears, because the year-one headline is the same AED 12,500 [17]. The difference is what the money buys.

If any row in the offshore column says "No" to something you need, the offshore company is the wrong starting point. Our free zone company setup and mainland company setup pages itemise both routes, including the year-two renewal the headline price leaves out. A RAK ICC company can still sit above either one as the holding company, which is often the right answer for a founder who needs both.

Will a UAE bank open an account for a RAK ICC company?

A UAE bank can open an account for a RAK ICC company, but no bank is obliged to, and offshore companies are typically reviewed harder than licensed ones. The rejection drivers repeated across independent sources are no UAE nexus, a vague activity description and weak source-of-funds evidence, and stacked multi-jurisdiction ownership is treated as an anti-money laundering red flag.

The bank's problem with an offshore company is that it has nothing to look at. There is no trade licence, no office, no staff and no UAE customers, so everything rests on the file you give it. The table sets out what the bank tests and what a thin file and a strong file look like against each test.

BusinessDubai.ae's RAK ICC package includes a bank-ready KYC dossier for this reason [17]. It does not guarantee an account, and nobody honestly can: the decision belongs to the bank. Our guides to opening a corporate bank account in Dubai, UAE bank accounts for non-residents and overcoming bank account rejection in the UAE cover the process, the non-resident position and what to do after a decline.

Common Mistake: Stacking jurisdictions for privacy, for example a BVI company owning a Seychelles company owning the RAK ICC company. Each layer adds a beneficial ownership trace the bank must complete, and multi-layered offshore ownership is exactly the pattern anti-money laundering reviews flag. The structure meant to look discreet reads as one built to be hard to follow. Every layer you remove shortens the review.

When is a RAK ICC foundation the better vehicle?

A RAK ICC foundation is the better vehicle when the goal is succession or keeping family assets together, rather than trading or holding for sale. It is governed by the RAK ICC Foundations Regulations 2019, amended in 2025, and its government fees are AED 1,500 to register, AED 1,500 to renew and AED 750 for the annual licence [16][1].

A company has shareholders, and shares pass on death through whatever succession rules apply to the shareholder. A foundation has no shareholders. It owns its assets in its own name and applies them for its beneficiaries under a charter and by-laws, which is why families use it to sit above a holding company rather than instead of one. The common structure is a foundation owning a RAK ICC or free zone holding company, which in turn owns the operating businesses.

The government fees are small. The high-risk differential for a foundation case is AED 8,500 on the 2026 schedule [1], and the real cost is drafting a charter and by-laws that actually say what should happen to the assets. Our foundation setup guide compares RAK ICC with DIFC and ADGM foundations, including the 2025 amendments and the property position.

Which structure fits your goal?

Match the vehicle to the goal: a RAK ICC company for holding shares, IP or an international trading book with no UAE clients; JAFZA Offshore where Dubai property is the point; a free zone or mainland licence for a visa or UAE clients. No structure delivers 0% on everything, whatever a brochure says.

The table is the decision in one place, one row for each goal a founder usually brings.

Real Client Stories

These are composite examples built from the situations that come up most often in offshore enquiries. Names and details are illustrative, and the only figures used are BusinessDubai.ae's published package prices and the official fee schedules.

The consultant whose holding company could not invoice Dubai

A German management consultant formed a RAK ICC company on our AED 12,500 package to hold his shares in two European ventures. A year later he won a Dubai retainer and planned to bill it through the same company. That is trading in the UAE without a licence, and a RAK ICC company holds none. He kept the RAK ICC company for the holding, where it works, and added a Dubai free zone licence from AED 12,500 without a visa for the consulting. His summary: "I bought one company to do two jobs, and the law only ever let it do one."

The family holding company that renewed in month four

An Indian family set up a RAK ICC company to hold a minority stake in a Singapore business. The renewal reminder went to an old email address, and they paid in the fourth month after the anniversary: AED 3,950 plus 25%, AED 4,937.50 in government fees alone. One month later it would have been AED 5,925, and a month after that a strike-off notice. They moved to a three-year renewal at AED 10,650, saving AED 1,200 against three single years. The father's comment: "The fee was never the problem. The calendar was."

The investor who paid more for a sentence in the regulations

A British investor planned a RAK ICC company to hold a Dubai Marina apartment, drawn by the lower incorporation fee. Before forming anything, he asked for a written answer on whether his named entity would be registered, and his developer's payment deadline arrived before the answer did. He chose JAFZA Offshore on the AED 18,000 package instead, because Regulation 14.2(e) states the right directly. Over five years the government fees are nearly identical, AED 20,000 against AED 19,050. His view: "I paid AED 5,500 more for a sentence I could point to, and it was the cheapest certainty I have bought."

Buy the RAK ICC company for what it can do

A RAK ICC company is a sound, low-cost vehicle for three jobs: holding shares, holding IP and running an international trading book with no UAE clients. It is the wrong vehicle for a visa, an office or UAE customers, and its tax position is ordinary UAE corporate tax on worldwide income, with Small Business Relief and the participation exemption as the legitimate reliefs. On Dubai property, its own law is silent, and anyone telling you the position is settled is telling you more than the documents say.

BusinessDubai.ae has completed 700+ company registrations across the UAE, with itemised pricing and no hidden fees. Our offshore company formation team will price RAK ICC against JAFZA Offshore with the government fee and our fee shown separately. If the honest answer is that you need a licence, we will price a free zone company setup against a mainland company setup instead, and our post-setup services team will keep the renewals, UBO notices and corporate tax filings on time once the company is live.

Talk to a setup expert→

Frequently Asked Questions

How much does a RAK ICC offshore company cost in 2026?

A RAK ICC offshore company costs AED 3,250 in government fees to incorporate for one year, under the RAK ICC Fee Schedule 2026. Every company must also pay a registered agent, so all-in packages are higher: BusinessDubai.ae's RAK ICC package is AED 12,500 in year one and AED 8,000 at renewal as of 2026.

What is the RAK ICC government registration fee?

The RAK ICC government fee to incorporate an International Business Company is AED 3,250 for one year, AED 6,700 for two years and AED 9,600 for three years, effective 1 January 2026. A company carrying a corporate service provider activity pays AED 6,750 instead.

How much does it cost to renew a RAK ICC company?

The RAK ICC government renewal fee is AED 3,950 for one year, AED 7,250 for two years and AED 10,650 for three years under the 2026 schedule. The registered agent's fee sits on top, and BusinessDubai.ae's all-in renewal is AED 8,000 a year.

Why is the RAK ICC renewal fee higher than the incorporation fee?

RAK ICC sets renewal above incorporation at every term on its 2026 schedule: AED 3,950 against AED 3,250 for one year. The schedule gives no reason. The practical response is to budget year two at the higher figure and consider a multi-year term, which saves up to AED 1,550 over three years.

What happens if I do not renew my RAK ICC company on time?

A late RAK ICC renewal costs the renewal fee plus 10% in month two, 15% in month three, 25% in month four and 50% in month five. RAK ICC issues a strike-off notice at the start of month six. Restoring a struck-off company costs AED 550 plus all outstanding fees and penalties.

How many directors does a RAK ICC company need?

A RAK ICC company needs at least one director at all times under Regulation 114(4) of the Business Companies Regulations 2018. A company may act as a director, provided at least one director is a natural person, under Regulation 116(3).

Do I need a UAE resident director for a RAK ICC company?

No. The RAK ICC Business Companies Regulations 2018 contain no UAE-residence requirement for directors. Where the directors live can still affect whether another country treats the company as its tax resident, so it is a tax planning question rather than a legal one.

Is there a minimum share capital for a RAK ICC company?

No. Regulation 49 of the RAK ICC Business Companies Regulations 2018 sets no minimum share capital, and shares may be issued with or without par value. Additional share classes, up to three, cost AED 1,750 on the 2026 fee schedule.

Why does a RAK ICC company need a registered agent?

A RAK ICC company must have a registered agent at all times under Regulation 92, and its registered office is the agent's UAE office under Regulation 91. Only a holder of a RAK ICC Certificate of Agent Registration may act, so the agent is part of the legal structure, not an optional adviser.

Can I change my RAK ICC registered agent?

Yes. Changing from one registered agent to another costs AED 1,500 in government fees on the RAK ICC Fee Schedule 2026. The company's records, which must be kept for at least five years, need to pass to the new agent intact.

Can a RAK ICC offshore company do business inside the UAE?

No, not in the UAE market. The Regulations bar business with persons in RAK ICC's own zone unless authorised, and the company holds no trade licence for the mainland or any free zone. It can hold UAE assets, bank in the UAE and hold board meetings there.

What is the difference between RAK ICC and RAKEZ?

RAK ICC is a corporate registry for International Business Companies and foundations. RAKEZ is an operating free zone that issues trade licences and residence visas. Both are Ras Al Khaimah government entities, but a RAK ICC company gets no licence or visa, while a RAKEZ company gets both.

Can a RAK ICC company be used as a holding company?

Yes, holding shares is its core use. Dividends and qualifying gains can be exempt from UAE corporate tax under the participation exemption in Article 23 of Federal Decree-Law No. 47 of 2022, subject to a 5% holding, a 12-month period and further conditions.

How long does RAK ICC company formation take?

BusinessDubai.ae's published registration time for a RAK ICC company is three to five days once documents are cleared, and five to twelve days for JAFZA Offshore. Due diligence on shareholders, directors and beneficial owners is usually the slower step, not the registry.

What documents are needed to set up a RAK ICC company?

The registered agent needs identity and address evidence for every shareholder, director and beneficial owner, a clear description of the business and its counterparties, and source-of-funds evidence. The agent carries out the due diligence RAK ICC requires and confirms the exact list at application stage.

Does a RAK ICC offshore company pay corporate tax?

Yes. A RAK ICC company is a Resident Person under Article 11(3)(a) of Federal Decree-Law No. 47 of 2022 and is taxed on worldwide income under Article 12(1): 0% on taxable income up to AED 375,000 and 9% on the excess, as of 2026.

Is the foreign income of a RAK ICC company tax-free?

No. The "0% on foreign income" rule describes Non-Resident Persons under Article 13, not a company incorporated in the UAE. A RAK ICC company's foreign income sits in the same 0% and 9% tax base as the rest of its income, unless a specific relief applies.

Does a RAK ICC company need to register for corporate tax with no income?

Yes. Registration is mandatory for a Resident Person regardless of income, within three months of incorporation for companies formed on or after 1 March 2024 under FTA Decision No. 3 of 2024. Late registration carries an AED 10,000 administrative penalty.

Is a RAK ICC company a Qualifying Free Zone Person?

Not confirmed. We could not find any Federal Tax Authority or Ministry of Finance source confirming that a bare RAK ICC company is a Free Zone Person, so treat any "0% QFZP" claim for one as unverified. The route commonly reported is a RAKEZ commercial licence layered on top.

Can a RAK ICC company use Small Business Relief?

Yes, if its revenue is at or under AED 3,000,000 in the current and all earlier tax periods. Ministerial Decision No. 131 of 2026 extended the relief to periods ending on or before 31 December 2029. It is available because the company is a resident that is not a Qualifying Free Zone Person.

Does a RAK ICC company need audited accounts?

Not for RAK ICC, whose annual return under Regulation 262 is a confirmation statement rather than accounts. Corporate tax still requires financial statements, and they must be audited once revenue exceeds AED 50 million under Ministerial Decision No. 84 of 2025, or if the company claims QFZP status.

Is ESR still required for a RAK ICC company?

No, not for current years. Cabinet Decision No. 98 of 2024 discontinued the economic substance notification and report for financial years ending after 31 December 2022. Obligations for the 2019 to 2022 periods remain enforceable.

Does a RAK ICC company need to register for VAT?

Only if its taxable supplies pass AED 375,000 in 12 months, the mandatory VAT threshold, with voluntary registration from AED 187,500. Letting commercial property is a taxable supply that counts toward the threshold, while letting residential property is generally exempt and does not.

What is the RAK ICC beneficial ownership filing deadline?

A RAK ICC company must notify the Registrar of any change to its beneficial ownership register within 15 days under the RAK ICC Beneficial Ownership Regulations 2019. Being offshore does not exempt a company from beneficial ownership disclosure.

Can a RAK ICC company own property in Dubai?

Possibly, but the position is contested. RAK ICC's own Business Companies Regulations 2018 contain no provision on property outside its zone, and the capability rests on a 2019 memorandum with the Dubai Land Department. Get a written answer for your specific entity and property before incorporating.

Can a RAK ICC offshore company get a UAE residence visa?

No. RAK ICC is a registry and does not sponsor residence visas for owners or staff. A founder who needs residency needs a free zone or mainland licence, from AED 21,050 with one visa at a Dubai free zone on BusinessDubai.ae's 2026 prices.

Can an offshore company get a residency visa by owning property?

Only through a narrow JAFZA route. Regulation 31.2 of the JAFZA Offshore Companies Regulations 2023 lets a JAFZA Offshore company that owns property in a designated freehold area apply to the Authority for residency visas for its members, subject to eligibility. It is discretionary, and no RAK ICC equivalent exists.

Can a RAK ICC company open a UAE bank account?

Yes, it can, but no bank is obliged to open one and offshore companies are reviewed more strictly than licensed ones. A file showing a UAE nexus, a specific activity with named counterparties and documented source of funds is what gives an application a realistic chance.

Why do banks reject RAK ICC offshore companies?

The rejection drivers repeated across independent sources are no UAE nexus, a vague activity description and weak source-of-funds evidence. Multi-layered ownership through several offshore jurisdictions is also treated as an anti-money laundering red flag and lengthens or ends the review.

Is RAK ICC or JAFZA Offshore better?

RAK ICC is cheaper to start, at AED 3,250 against AED 10,000 in government fees, and JAFZA Offshore is cheaper to renew, at AED 2,500 against AED 3,950. JAFZA's regulations state a property right and a property-linked residency route, which RAK ICC's do not.

How does RAK ICC compare with Ajman Offshore on price?

On BusinessDubai.ae's 2026 packages, Ajman Offshore is AED 8,400 in year one with AED 6,800 renewal, against AED 12,500 and AED 8,000 for RAK ICC. We have not reproduced an official Ajman offshore fee schedule here, so compare on the full package and on what each registry allows.

What is a RAK ICC foundation and how is it different from an IBC?

A RAK ICC foundation is an ownerless entity for succession and asset holding, governed by the RAK ICC Foundations Regulations 2019 as amended in 2025. An IBC has shareholders. Foundation government fees are AED 1,500 to register, AED 1,500 to renew and AED 750 for the annual licence.

References

[1] RAK International Corporate Centre. RAK ICC Fee Schedule 2026, effective 1 January 2026. International Business Company incorporation and renewal fees by term, certificates, the per-property no objection certificate, registered agent onboarding and renewal fees, the late renewal surcharges and strike-off timing, restoration, contravention fine levels, continuation and exit fees, and foundation fees. rakicc.com

[2] RAK International Corporate Centre. RAK ICC Business Companies Regulations 2018, including Regulation 49 on shares, Regulations 91 and 92 on the registered office and registered agent, Regulations 102 and 103 on records, Regulations 114(4) and 116(3) on directors, Part VI on directors, Regulation 262 on the annual return, and the restrictions on business in the Zone, prohibited business and financial services. Full-text searched for any provision on real property outside the Zone. rakicc.com

[3] Ministry of Finance. Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, including Article 3 on rates, Article 11(3)(a) on Resident Persons, Article 12(1) on worldwide income, Article 13 on Non-Resident Persons, Article 21 on Small Business Relief and Article 23 on the participation exemption. mof.gov.ae

[4] RAK International Corporate Centre. "DLD Strengthens Ties With RAK Government Entities", July 2019. RAK ICC's published account of the memorandum of understanding between the Dubai Land Department, RAK ICC and RAKEZ, including the no-objection letter and natural-person shareholder conditions. Cited for the 2019 position only; the Dubai Land Department's own release on this memorandum no longer resolves. rakicc.com

[5] RAK International Corporate Centre. RAK ICC Registered Agent Regulations 2018, including the General Prohibition on providing registered agent services without a Certificate of Agent Registration. rakicc.com

[6] RAK International Corporate Centre. RAK ICC Beneficial Ownership Regulations 2019, including the duty to notify the Registrar of changes to the beneficial ownership register within 15 days. rakicc.com

[7] UAE Cabinet. Cabinet Resolution No. 109 of 2023 on Regulating the Real Beneficiary Procedures, in force from 16 November 2023, including the federal 15-day update rule. uaelegislation.gov.ae

[8] Federal Tax Authority. FTA Decision No. 3 of 2024 on the timeline for Corporate Tax registration, effective 1 March 2024, including Article 3(3) requiring a Resident juridical person incorporated on or after that date to apply within three months of incorporation. tax.gov.ae

[9] Ministry of Finance. "AED 10,000 Penalty for Late Corporate Tax Registration", announcing Cabinet Decision No. 10 of 2024 amending Cabinet Decision No. 75 of 2023 on administrative penalties under Federal Decree-Law No. 47 of 2022, effective 1 March 2024. mof.gov.ae

[10] Ministry of Finance. Ministerial Decision No. 131 of 2026 amending Ministerial Decision No. 73 of 2023 on Small Business Relief, extending the AED 3,000,000 revenue relief to tax periods ending on or before 31 December 2029, and confirming it is unavailable to Qualifying Free Zone Persons. mof.gov.ae

[11] Federal Tax Authority. Corporate Tax Guide: Free Zone Persons (CTGFZP1), May 2024, including the definition of a Free Zone Person and the Qualifying Free Zone Person rates. tax.gov.ae

[12] Ministry of Finance. Ministerial Decision No. 84 of 2025 on the requirements for preparing and maintaining audited financial statements for Corporate Tax purposes, including the AED 50,000,000 revenue threshold and the requirement for Qualifying Free Zone Persons. mof.gov.ae

[13] Ministry of Finance. Announcement of the amendment to the Cabinet Decision on Economic Substance Requirements (Cabinet Decision No. 98 of 2024), 14 October 2024, discontinuing the notification and report for financial years ending after 31 December 2022. mof.gov.ae

[14] Federal Tax Authority. VAT registration, including the AED 375,000 mandatory and AED 187,500 voluntary thresholds and the treatment of property supplies. tax.gov.ae

[15] Jebel Ali Free Zone Authority. JAFZA Offshore Companies Regulations 2023, including Regulation 4.1 repealing the 2018 regulations, Regulation 14.2(e) on owning property in designated freehold areas, Regulations 31.1 and 31.2 on the registered office and the property-linked residency application, the one-director minimum, and the Schedule 2 fees for incorporation, renewal and certificates. jafza.ae

[16] RAK International Corporate Centre. RAK ICC Foundations Regulations 2019, consolidated with the 2025 amendments. rakicc.com

[17] BusinessDubai.ae. 2026 published package pricing and internal data from offshore, free zone and mainland registrations since 2013: the offshore company formation page (RAK ICC AED 12,500 in year one and AED 8,000 at renewal, JAFZA Offshore AED 18,000 and AED 8,000, Ajman Offshore AED 8,400 and AED 6,800, with stated registration times and package inclusions), the 2026 free zone package prices by visa count and the mainland company setup page. businessdubai.ae