A recently inked agreement between Dubai Land Department (DLD) and Ras Al Khaimah International Corporate Centre (RAKICC) allows for companies listed and registered with RAKICC to own freehold plots and properties or any right in rem. This includes properties in 23 freehold areas such as Dubai Marina, Downtown Dubai, Jumeirah Village Circle and Palm Jumeirah.
Subject to the approval of DLD, RAKICC entities owned by juristic persons or a combination of natural and juristic persons may also enjoy such benefits as prescribed to RAKICC companies whose shareholders are natural persons.
What is Required of a RAK ICC Company to Hold a Property in Dubai?
Much in the same vein of most existing Dubai-based free zone companies that would like to hold property in Dubai, a resolution and a No Objection Certificate (NOC) from the governing authorities would be required with regards to the specific property intended for purchase.
There can be additional required documents for the initial application process with the DLD, including but not limited to, Certificate of Incumbency, Certificate of Good Standing, Letter of Undertaking.
Why should I hold my Dubai Property under the RAKICC Company?
Under the present regulations, the real estate ownership information on the property’s title deed would be the RAKICC Company. This is not to say that there are nefarious purposes for confidentiality, but, for the discerning and private investor, the security and privacy is an added benefit.
Additionally, ownership of the real estate can be in the form of a joint ownership, for the RAKICC holding Company can have more than one shareholder. This is also in line with best practices for estate planning and management; when the property falls under the management of a Company, a legal entity, it allows for smoother sales or inheritance planning, should it be required.
Why shouldn’t I hold my Property under the RAKICC Company?
Holding your Dubai freehold property with a RAKICC Company has its added benefits, and it allows for another additional use of an existing RAKICC company, should investors feel comfortable mixing the business operations side of the company with the investment holding aspect. It should also be worth nothing that investors cannot obtain a UAE residency through their investments under the UAE’s Residency by Investment (RBI) program, if the property is
wholly owned by a corporate legal entity.
I am interested in this newly-introduced function of RAKICC Companies. How can I know more about the specifics of this new development with RAKICC Companies?
Contact Freemont today for us to assist you where required.