Ras Al Khaimah
Ras Al Khaimah Situated in the northern end of UAE, Ras Al Khaimah (RAK) shares mountainous borders with the Sultanate of Oman, and is settled between the Arabian Gulf on the west, and Hajjar Mountains on the east. RAK is at a stone’s throw from Dubai, and is fast emerging as the preferred investment choice for global financiers. RAK is close to the far eastern nations:India, China, Iran, Pakistan and the Commonwealth of Independent States (CIS). Apart from the ease of access and hassle-free administrative procedures, Ras Al Khaimah as a prominent port and offshoring destinations in the northern Emirate.
Why A Business Needs Business Setup Services in Ras Al Khaimah
Ras Al Khaimah witnesses an influx of a plethoraof foreign investors as it is one of the most developed economies in the Emirates. Liberal government policies, state-of-the-art infrastructural development, thriving economy and friendly trade relations with neighbouring countries are some of the many factors that attract major foreign investment in RAK. Setting up a business in RAK requires one to decide upon the location, type of business entity, licence, follow a set of legal procedures, and submit the corresponding documents. All this, coupled with the local traditional practices, make it sensible to opt for business setup services in RAK, if one wishes to open a company there.
Types of Business Setup in RAK
The registration and issuance of business licenses to non-resident companies in Ras Al Khaimah is handled by the Free Zone Authorities and other licensing procedures are regulated by the individual Emirates and federal government.
There are 3 formats of business setup in RAK:
- RAK Free Zone :RAK free zones are the preferred destinations for company formation due to their cost-effectiveness, tax free status, and liberal government policies. The government body responsible for registering and issuing business licenses to non-resident or foreign companies is the RAK Free Zone Authority.
Understanding that investor requirements for offices, warehouses & land facilities are diverse, unique Free Zone Parks have been setup by the Ras Al Khaimah Free Trade Zone Authority. These free zones are setup at different locations across the Emirate of Ras Al Khaimah and include Technology Park, Business Park, Industrial Park, and Al Ghail Park. Each RAK free zone caters to the specific business interests and is fully equipped to meet the investors’ requirements.Major free zones for business setup in RAK are Ras Al Khaimah Free Trade Zone (RAK FTZ), RAK Investment Authority (RAKIA), and RAK Media Free Zone (RMFZ).
- RAK Offshore : RAK Offshore has flexible regulations and it is an ideal location for all types of business operations. If you are looking at an easy way of setting up an offshore company at a low cost then RAK Offshore in Ras Al Khaimah is the place for you as it provides many benefits, such as 0% corporate and personal tax, 100% foreign ownership, 100% repatriation of capital and profits, no requirement for the minimum share capital, and business-friendly regulations followed by confidentiality.
Mainland Company:Mainland companies are regulated by the UAE legal structure and government policies and are located within the limitation of commercialized geographical areas falling under the jurisdiction of the Emirates government. To establish a mainland company, an investor can choose one among Limited Liability Company (LLC), Representative Office, Public Shareholding Company, Branch of Foreign Company and Professional Firm
How Does the Process Work?
To set up a business in RAK, the following steps need to be carried out:
- Find a Local Sponsor
- Determine the type of economic activity and legal form your business will take
- Submit application for company registration
- Submit proposed company name to the Department of Economic Development (DED)
- Submit the company’s documents to DED and Chamber of Commerce and Industry to obtain a trade licence
- Get the company's Memorandum of Association (MOA) notarized
- Register trade name
- Obtain initial approval
- Get special approvals
- Sign the lease agreement along with MOA in public notary
- Obtain municipality’s approval for location and inspection
- Apply establishment card
- Process required documents for issuance of payment voucher
- Fulfil the licensing requirements
- Get trade license issued by paying the license fees
- Get approval from Name Board
- Get approval for the employees from Ministry of Labour
Get stamp on Visa from Immigration Department
Advantages and Disadvantages of Company Formation in RAK
- RAK is strategically situated, close to the strait of Hormuz, and just minutes away from the centre of Dubai. Such a location provides access to over 1.2 billion consumers in the Middle East and Africa.
- A company in RAK is a great way to legitimately book international profits without paying local corporation tax. Furthermore, there are no capital gains or personal income taxes.
- 100% foreign ownership is permitted to an investor if one chooses to set up a company in RAK Free Trade Zone. RAK Free Trade Zone is highly regulated and has a broad array of facilities available.
- There is no restriction on the maximum number of shareholders and corporate shareholders for a company in RAK. Also, there is no register of shareholders or directors for companies in RAK.
- RAK has abundant amenities at its disposal, and inexpensive energy rates.
- An offshore company in RAK is not allowed to trade products or provide services within the UAE, and cannot rent local premises or open a corporate bank account in the UAE.
- A limited liability company (LLC) requires a minimum of 51% shareholding by UAE citizen(s).
- Most entities are required to submit annual audited documents to the government.
Business Setup Worldwide is a one-stop-solution provider that helps businesses in not only setting up their operations in RAK, but also supports in necessary documentation and legal formalities. Wide domain experience and familiarity with the laws of Emirate help us to take care of passport, visa and licensing requirements of our clients, and ensure that their task is completed smoothly without unnecessary bureaucratic hassle.