Choosing a business activity for your offshore company can be a challenging proposition especially when you need to ensure that the activity on your company documents is aligned with the actual business activity carried out by you. This can be important for various practical reasons including the corporate bank account opening and on-going management of the company.
RAK ICC has made this process easier by adopting the International Standard Industrial Classification (ISIC) system of commercial activities. ISIC is a standard system of categorization of commercial activities used across the world.
According to International Labour Organization “ISIC is a standard classification of economic activities arranged so that entities can be classified according to the activity they carry out. The categories of ISIC at the most detailed level (classes) are delineated according to what is, in most countries, the customary combination of activities described in statistical units and considers the relative importance of the activities included in these classes… The groups and divisions, the successively broader levels of classification, combine the activities of producing units according to: similarities in the character of the goods and services produced, the uses to which the goods and services are put, and the inputs, process and technology of production.” Source https://ilostat.ilo.org/resources/methods/classification-economic-activities/.
ISIC has a set of 99 broad business activities. The ISIC system has been in use since the year 1948. A vast majority of countries now use either ISIC business activities or similar business activities that have been derived from ISIC system. The system is essentially a classification of the kinds of economic activities instead of a classification of any goods and services.
All RAK international business and offshore companies are now required to select from the set of activities from the ISIC business activities. All the memorandum and articles of association generated by the RAK ICC now permit only the set of activities offered under the ISIC umbrella.
There is, however, no requirement from the RAK ICC to amend the business activities of the companies that have been incorporated before the implementation of ISIC system.