RAK ICC Segregated Portfolio Company (SPC)

Overview of RAK ICC Segregated Portfolio Company (SPC)

RAK International Corporate Centre (RAK ICC) offers a versatile and legally robust structure known as the Segregated Portfolio Company (SPC). This structure allows for the creation of separate, protected portfolios under a single company, making it ideal for managing various investments, assets, or business ventures while maintaining a high degree of asset protection and legal separation.

Key Features of RAK ICC Segregated Portfolio Companies (SPCs):

Legal Separation: Each portfolio under the SPC structure is legally segregated, meaning that the assets and liabilities of one portfolio are protected from the creditors of another.
Single Legal Entity: An SPC is a single legal entity but operates through distinct segregated portfolios. This allows a company to manage different activities or assets without cross-liability between them.
Registered Office and Agent: The SPC must have a registered office and agent in RAK ICC to ensure compliance with local laws and regulations.
No Public Disclosure: RAK ICC ensures confidentiality, meaning that the details of individual portfolios and their assets are not publicly disclosed, providing a high level of privacy.

Benefits of RAK ICC Segregated Portfolio Companies

Asset Protection: The primary advantage of an SPC is that each segregated portfolio’s assets are legally isolated, offering protection from claims against other portfolios or the parent company.
Cost Efficiency: Instead of creating multiple companies, an SPC allows you to consolidate various projects or investments under one legal entity, reducing setup and administrative costs.
Ease of Management: Each portfolio operates independently, yet all remain under the umbrella of the main company, simplifying overall management and governance.
Customizable: SPCs are customizable to meet the specific needs of businesses engaged in diverse activities, from investment funds to holding intellectual property or managing family wealth.
Tax Efficiency: SPCs benefit from the UAE’s favourable tax environment. In addition, by establishing a subsidiary with Free Zone SPCs avail double taxation treaty benefits.

Uses of RAK ICC Segregated Portfolio Companies

Investment Funds: SPCs are commonly used for setting up investment funds, where each portfolio can represent a distinct pool of investors or assets.
Asset Management: Business owners can segregate various types of assets (e.g., real estate, intellectual property, and other holdings) to protect each asset from liabilities arising in others.
Insurance Captives: SPCs are frequently utilized by insurance companies to ring-fence risks associated with different lines of business, ensuring that claims against one line do not impact others.
Family Wealth Management: High-net-worth individuals can use SPCs to manage and segregate different family assets or investments under one structure, simplifying estate planning

and succession planning. Each segregated portfolio can be used to hold distinct assets or investments for different family members or purposes.

Incorporation Process

1. Appoint a Registered Agent: The SPC must appoint a registered agent in RAK ICC to assist with the incorporation process.
2. Submit Required Documents: The registered agent will submit the necessary documents, including the company’s articles of incorporation, detailing the creation of segregated portfolios.
3. Approval from RAK ICC: Once the documentation is reviewed and approved by RAK ICC, the SPC will be officially incorporated, and the Certificate of Incorporation will be issued.
4. Establish Segregated Portfolios: Following incorporation, the company can create and manage its segregated portfolios as needed.

Requirements for RAK ICC Segregated Portfolio Companies

Directors: An SPC requires at least one director who can be an individual or a corporate entity.
Registered Office: The SPC must have a registered office in RAK ICC.
Segregated Portfolios: The SPC must clearly define and manage its segregated portfolios, ensuring that the assets and liabilities of each portfolio are distinct from others.
No Minimum Capital Requirement: There is no minimum capital requirement for establishing an SPC, offering flexibility to businesses of all sizes.

Why Choose RAK ICC Segregated Portfolio Companies?

RAK ICC Segregated Portfolio Companies offer a flexible, efficient, and legally sound solution for managing multiple assets or ventures under one umbrella. With the advantage of legal separation between portfolios, businesses and individuals can protect their assets, reduce administrative costs, and maintain privacy. RAK ICC’s business-friendly environment and strong legal framework make it an ideal jurisdiction for setting up an SPC.

Contact Us

If you are interested in establishing a RAK ICC Segregated Portfolio Company or need further information on how this structure can benefit your business, please use the below form to contact us. Our team of experts is ready to assist you through the incorporation process and help tailor the SPC structure to meet your specific needs.