2022 RAK ICC bank account update

[nawsaafa]

Hi everyone,

Having read the previous threads regarding this topic, I am currently in Dubai‌ trying to open a bank account for my newly incorporated RAK ICC company... (obviously I‍ ddin't come accross this forum before doing so).

Thus here is my situation, I have⁠ been working in the renewable energy field for the past 12 years (CV proving it⁤ and currently still employed with a multinational publicly listed company in the field). I am⁣ planning to start a consulting business, initially sort of freelancing but later on with possibilities⁢ to expand. Expected revenue around 200k-300k euro for the first year with a contract already︀ signed with another multinational publicly listed company leader in the renewable energy field.

I looked︁ at RAK ICC for tax purposes and to mantain a currency account in EUR offshore︂ as I reside in Morocco which has very strict borders when it concerns currency leaving︃ the country, also CIT + Tax on revenue are unbelievably high.

Now the issue, the︄ bank account set-up, my agent introduced me to few local banks, the first one said︅ almost straight-up no, until they started selling me some other banking products and then became︆ a maybe. The second one, just handed me the application form and made me sign︇ it and said the process should take 3 weeks. Obviously, I was talking to a︈ commercial agent and I have no idea what the compliance department will say.

Any clue?︉ Any update on the threads? Is RAK ICC still a lost option for opening a︊ bank account even if I have a solid personal background and even a contract for︋ an ammount of 200k euros per year for a 2 year duration?

Many thanks!

 

[rowena]

Unfortunately, you just incorporated a trash company type. It is extremely hard to open a‌ bank account for RAKICC and it is useless. Who recommended this?

Close your company and‍ open a free zone company in Dubai.

 

[nawsaafa]

An agent recomended⁠ it, I even paid 800 euros for bank account introduction service which was obviously not⁤ helpful. They are suggesting to try ABC mauritius as they have a contact there.

Obviously the agent knew about this and still pushed me to incorporate with a fake promise⁣ that bank account is easily set-up..

Should I give up on a real bank in⁢ the UAE? What about an EMI option such as Paysera?

 

[Fred]

@rowena named it already.

Forget about low risk EMI's like Paysera for a RAK ICC‌ - it won't work.

You can approach several Lithuania or UK based high risk EMI's‍ charging you 1000s of EUR each year in maintenance fees + % for incoming and⁠ outgoing transfers - this sums up to far more costs compared with a proper FZCO⁤ setup, Residence Visa and local UAE Business Bank Account and of course a High Risk⁣ EMI is SEPA EUR only and in rare case they have TARGET2 but for sure⁢ no USD.

Same goes for ABC Bank Mauritius - while in theory with the Fee︀ Structure and IBAN etc. it's the best alternative to UAE Banks - it's in reality︁ no serious alternative at all for day to day business you have to schedule a︂ Skype Call to explain each transfer with the Banker at ABC Bank - that's of︃ course due to the fact you have with a RAK ICC a company with reputation︄ equal to Seychelles and it's a complete non-resident setup.

A RAK ICC in 2022 is︅ only used as a Holding Company for holding assets, IP and Property -Banking is done︆ with Private Banks who require millions under wealth management and not for day to day︇ business at all. And of course it's used by joker Corporate Service Provider scaming people︈ for no reason.

 

[Sols]

In the long term, it will be much cheaper to start over with a more‌ sensible setup than try to make a RAK ICC work, unfortunately.

Yes, you can find‍ banks/EMIs for it. But you will be paying through the nose. If your business has⁠ decent turnover, banking fees will end up costing you more than scrapping the current setup⁤ and starting over.

 

[nawsaafa]

Thanks Fred, I feel stupid trusting this︉ other agent.

Trying to reach you through your company website phone number, I am in︊ Dubai can we meet and start the process for the freezone route.