Setting up a company in Ras al Khaimah

Ras Al Khaimah (RAK), one of the seven emirates of the United Arab Emirates (UAE), offers a variety of company structures that are suitable for different types of businesses and investment activities. The process of company formation in RAK typically includes the following steps:

- Choose a company name: The name must be unique and not similar to existing companies.

- Register the company: This step involves submitting the necessary documents, such as the memorandum and articles of association, to the RAK Department of Economic Development (DED).

- Obtain a business license: Depending on the type of business, a specific license may be required from the DED.

- Register for taxes: All companies in RAK are required to register for taxes, including VAT and corporate income tax.

- Open a bank account: To start business operations, a company must open a bank account in RAK.

- Appoint the directors: The directors are responsible for the company's management and must be appointed by the shareholders.

It's important to note that the process of company formation in RAK may take several weeks, and it's recommended to seek the assistance of a local lawyer or accountant to ensure that all the legal requirements are met. Overall, RAK offers a stable political and economic environment, and its strategic location in the UAE provides access to a large market and the ability to conduct business with other countries.

Ras Al Khaimah (RAK) offers a variety of company structures that are suitable for different types of businesses and investment activities. These include:

1 - Free Zone Company: This type of company is set up in one of RAK's free zones, which are designated areas with special regulations and incentives for foreign investors. These companies are 100% foreign-owned and have exemptions from certain taxes and tariffs.

2 - Offshore Company: This type of company is set up in RAK's offshore jurisdiction, which allows for 100% foreign ownership, tax exemptions and confidentiality in business operations.

3 - Local Company: This type of company is set up outside of RAK's free zones and offshore jurisdiction, and is subject to the laws and regulations of the UAE. A local company must have a local sponsor (a UAE national) who holds a majority stake in the company.

4 - Branch Office: Foreign companies can also set up a branch office in RAK, which is an extension of the parent company and is legally and financially separate.

5 - It's important to note that each type of company has its own legal and financial requirements, and it's recommended to seek the assistance of a local lawyer or accountant to ensure that the chosen structure is appropriate for your business and that all the legal requirements are met.

Business Setup in Ras Al Khaimah

Ras Al Khaimah (RAK) is situated in the northern end of the UAE. It shares the mountain borders with the Sultanate of Oman and is settled between the Arabian Gulf on the West and the Hajjar Mountains on the East. The Emirates is just 45 minutes away from Dubai and has easy access to various other countries due to its interconnectivity.

It is an emirate of opportunities and caters to various sectors, making it an ideal destination for more RAK business setups. Individuals are looking to set up businesses in such places because it is strategically located close to far eastern nations and have impressive logistical connections to the RAK Free Trade Zone and Port Saqr. We will look at the essentials, types and steps for business setup in Ras Al Khaimah.

Why is RAK an ideal place for Business Formation?

In recent times, Ras Al Khaimah saw an inflow of foreign investors due to the growing economy and business-centric developments in the emirate, such as government policies, modern infrastructure, and friendly international relations, attracting investors and entrepreneurs for company registration in Ras Al Khaimah.

The following are the facilities and incentives issued by the authorities of the Emirate –

- 100% Ownership.Ensures Security of Investments.

- 100% Return of Capital and Profits.

- No Taxes on Personal/ Corporate Income.

- No Custom Duty on Import, Export or Services.

- Government-sponsored incentives for Investors.

- Hassle-Free and Business-Friendly Legal Regulations.

- No Foreign Exchange Controls, Quotas, Trade Barriers.

- Business-Friendly Environment and Easy Incorporation Process.

- 100% Tax Exemptions on Commercial Levies for Import and Export.

A) RAK Mainland Company:

A mainland company is nothing but an onshore entity that is registered under the relevant emirate’s government body. The Department of Economic Development issues trade licenses and allows commercial activities in this zone.

Mainland in Ras Al Khaimah must have a local sponsor where they will own a majority of shares in the company.

There are various benefits of mainland companies in Ras Al Khaimah, and they are - No currency restrictions.No annual auditing. Facilitates renting offices.Conducting business with the local market.No limit on the number of business activities, etc.

B) b) RAK Free Zone:

A free zone is another type of business structure used for establishing companies that are regulated within special jurisdictions that come under the respective emirates. Their regulatory body is called the Free Zone Authority.

Furthermore, this zone offers different advantages like fewer packages for setting up a business in RAK, lower tax rates, a customer-friendly environment, etc.

Some of the best business setup in Ras Al Khaimah are mentioned below –

i) RAK Maritime City Free Zone.

ii) RAK Media Free Zone (RMFZ).

iii) RAK Economic Zone (RAKEZ).

iv) Ras Al Khaimah Investment Authority Free Zone (RAKIA).

C) RAK Offshore:

Offshore refers to any business activity that takes place outside an entity’s home base. They are established to cater to the high demand for offshore markets. These offshore companies ensure growth in the economy and create a business-friendly environment for business owners and investors.

There are several benefits to business setup in Ras Al Khaimah Offshore, and they are -

-Privacy.

-Rational cost packages.

-Import duty exemptions.

-Keeping business details safe.

-100% repatriation of capital and profits, etc.