Types of Companies in RAK ICC
RAK
International Corporate Centre (RAK ICC) is a rapidly growing global corporate
registry known for its compliance and professional services. Its focus is on
registering International Business Companies (IBCs), providing a comprehensive
suite of off-shore registry services. It also offers diverse on-shore, and free
zone structuring solutions.
1. Company Limited by Share
A Company Limited by Shares
(CLS) signifies that shareholders are only liable to the company's creditors up
to the amount of capital they initially invested. This form of company must
always have at least one shareholder and one director. It has the flexibility
to issue bonus shares, partly paid shares, or nil paid shares. These share
certificates must be signed by at least one director of the company.
The main features include
limited risk for shareholders, the ability to issue different types of shares,
and the option for multiple people to own shares together. There are also extra
features like having no set limits, having a specific purpose, and keeping
assets separate from risks. A CLS is like a versatile business tool that can be
used for things like global business, owning other companies, handling specific
projects, and more, offering a straightforward and flexible way to manage
things.
2. Company Limited by
Guarantee
You can create a Corporation
Limited by Guarantee (CLG) with RAK ICC, and its name can include
"Limited," "Incorporated," or the short forms
"Ltd" or "Inc." In this setup, people who guarantee to
support the company promise to give a small amount if the company closes down.
These guarantors are only responsible for the specific amount mentioned in the
company's rules (memorandum and articles of incorporation), along with any
other mentioned responsibilities. If someone used to be a guarantor, they might
need to give money to help with the company's debts and responsibilities,
including closing down expenses.
3. Restricted Purpose
Company
A special kind of company
made for specific reasons is called a Restricted Purposes Company (RPC). If a
company limited by shares is called an RPC, it means its paperwork, like the
memorandum, clearly says what it's meant to do and that it's a restricted-purpose
company. An RPC is focused on doing one important thing, making people feel
more secure because it can't do anything that goes against its declared goals.
The company, the people who own shares, and the directors must follow the rules
and limits written in its paperwork. Importantly, a company can't become an RPC
later if it wasn't set up that way from the beginning.
4. Segregated Portfolio
Company
A Segregated Portfolio
Company (SPC), also known as a protected cell company, is a type of corporation
limited by shares. It has the ability to create up to 10 segregated portfolios
to separate the assets and liabilities held within each portfolio from those of
the overall company. The registrar may allow the incorporation of segregated
portfolios if the directors demonstrate the necessary skills. The assets within
these portfolios represent share capital, retained earnings, capital reserves,
share premiums, and other attributable assets.
The benefits of an SPC
include profit repatriation, 100% foreign ownership, the ability to open
domestic and international bank accounts, and the option to establish a
subsidiary in a free zone with double taxation treaty benefits.
Key features encompass a
distinct legal personality, limited liability for shareholders, up to ten
segregated portfolios, an independently kept register of members, flexibility
in the Memorandum and Articles, privacy in accessing registrar records, purpose
restrictions, adherence to strict anti-money laundering regulations, the option
for corporate directors, and the requirement for a registered agent at all
times.
5. Unlimited Company
An Unlimited Company (UC) is
a legal entity with the authority to own assets, and its members or
shareholders bear unlimited joint and several liability for any deficit in the
company's assets. This unique corporate structure combines features of both limited
and unlimited liability, as the members are jointly and severally liable for
any shortfall in assets only after the formal liquidation of the company. This
liability extends to the company's assets and outstanding debts, with creditors
or security holders having recourse prior to official liquidation. Notably,
this liability applies exclusively to the company's assets and does not extend
to the assets of its shareholders or members.
Unlimited Companies possess
the advantages of unlimited capacity, allowing diverse applications with either
limitless or finite purposes. In the context of RAK ICC, these entities offer
adaptability and straightforward administrative processes, making them
versatile tools for various purposes. UCs can facilitate credit without
requiring shareholder guarantees, making them suitable for specific scenarios,
such as when a UC has a single user. Additionally, the UC can serve as a
vehicle for international tax planning, providing further utility and
flexibility.
As pioneers in IBC formation
services, RAK ICC continuously evolves its products to meet customer needs.
How can Ascent Partners
help?
Ascent Partners is a
boutique consultancy providing bespoke, end-to-end corporate services ranging
from company formation to accounting, bookkeeping, and compliance services for
entrepreneurs looking to set up their next venture in the UAE. We work alongside
to strategise, startup, and scale businesses in the UAE and the broader region.
With a combined experience
of 50+ years, our expert consultants provide reliable and unparalleled guidance
throughout all strategic phases of a business' evolution.
To know more, get in touch
with us at ask@ascentpartners.ae or at 04 422 7339.