Types of Companies in RAK ICC: A Complete Guide to RAK ICC Business Structures

Why RAK ICC? RAK ICC serves as a global hub for international business structuring, offering: 

• Zero corporate taxation for offshore entities 

• Full foreign ownership 

• No exchange controls 

• Access to international banking 

• Global compliance standards 

• Flexible migration and redomiciliation rules 

With investors increasingly seeking secure and transparent jurisdictions, understanding RAK ICC company types is essential for selecting the right structure. 1. Company Limited by Shares (CLS) A Company Limited by Shares is the most common entity type in RAK ICC. It offers limited liability to shareholders and is ideal for international business operations, holding structures, investment vehicles, or project-specific companies. Key Features 

• Minimum one shareholder and one director 

• Shareholders’ liability limited to their share capital 

• Ability to issue different types of shares (bonus, partly paid, nil paid) 

• Flexible shareholding (individuals or corporates) 

• Global business operations allowed 

Typical Uses 

• International trading 

• Holding company for cross-border assets 

• Investment holding 

• Joint ventures 

• Corporate restructuring vehicles 

2. Company Limited by Guarantee (CLG) A Company Limited by Guarantee does not have share capital. Instead, members guarantee a set contribution in case the company is wound up. Key Features 

• Used often for non-profits, associations, consortia, or clubs 

• Members’ liability limited to a pre-agreed guarantee amount 

• Can be incorporated with or without share capital 

• Suitable for entities requiring a stable governance framework 

Typical Uses 

• Professional associations 

• Trustee bodies 

• Foundations 

• Joint project councils 

3. Restricted Purposes Company (RPS/RPC) A Restricted Purposes Company (RPC) is a purpose-specific entity (a type of SPV) created to undertake only what is explicitly listed in its memorandum. Key Features 

• Activities restricted to a clearly defined scope 

• Legally binding limitations on purpose 

• High security and predictability for stakeholders 

• Cannot be converted into an RPC after incorporation 

• No nexus requirement (no need for UAE operational presence) 

Typical Uses 

• Asset holding 

• Securitization 

• Structured finance 

• Project-specific investment vehicles 

• Ring-fenced asset structures 

 4. Segregated Portfolio Company (SPC) A Segregated Portfolio Company allows the creation of legally separate portfolios (cells) under one parent company. Each portfolio’s assets and liabilities are isolated. Key Features 

• Up to 10 segregated portfolios 

• Asset and liability separation 

• Only shareholders of a specific portfolio bear its risks 

• Directors must demonstrate adequate financial and managerial competence 

• Ideal for multi-asset structures 

Typical Uses 

• Investment funds 

• Multi-asset holding vehicles 

• Insurance-linked structures 

• Venture portfolios 

• Structured product platforms 

 5. Unlimited Company (UC) An Unlimited Company allows members to have joint and several liability for deficits after liquidation. It offers a hybrid between limited and unlimited liability structures. Key Features 

• Can undertake any lawful activity 

• No limit on corporate powers 

• Liability arises only after formal liquidation 

• Useful for entities requiring higher creditworthiness 

Typical Uses 

• International tax planning structures 

• Companies seeking credit without shareholder guarantees 

• Specialist project vehicles 

• Multi-jurisdiction structuring 

 6. International Business Company (IBC) The IBC is the most widely used entity in RAK ICC—designed for international business conducted outside the UAE mainland. Key Features 

• Zero UAE corporate tax 

• 100% foreign ownership 

• Minimal reporting obligations 

• No physical office required 

• Redomiciliation from foreign jurisdictions permitted 

Typical Uses 

• Global trading 

• Asset protection 

• International consultancy 

• Cross-border investment holding 

• IP ownership and licensing 

 7. Foundations (If Needed for Completeness) RAK ICC also allows the creation of private foundations, which function similarly to trusts. 

Key Features 

• Excellent for wealth structuring and succession planning 

• Clear separation between founders and beneficiaries 

• Has its own legal personality 

Typical Uses 

• Family office structures 

• Estate planning 

• Holding company for family assets 

 How to Choose the Right RAK ICC Company Type Selecting a company structure depends on: 

• Whether the activity is operational or holding-focused 

• The need for asset segregation or legal ring-fencing 

• Whether liability should be limited, guaranteed, or unlimited 

• The intended geography of operations 

• Banking or investment requirements 

• Involvement of multiple shareholders or investors 

Each RAK ICC company type offers unique advantages depending on the nature of the business and the level of regulatory flexibility required.