Ras AI Khaimah is one of the seven emirates in the UAE. In recent years, RAK has emerged as a popular destination for business owners looking to establish their companies in the region. Ras Al Khaimah Company Formation in UAE offers a range of benefits for entrepreneurs and businesses looking to establish a presence in the region.
From easy company registration procedures to a range of business license options, setting up a company in RAK is a straightforward process. Additionally, companies registered in RAK enjoy 100% foreign ownership, no currency restrictions, and access to a skilled workforce.
The importance of company formation in RAK cannot be overstated. Therefore, we are here to explain everything you need to know about company formation in RAK, its benefits, the license required and the cost of setting up a business in RAK.
Ras Al Khaimah (RAK) is both the largest city and capital of the Emirate of Ras Al Khaimah, situated in the United Arab Emirates (UAE). It holds the distinction of being the sixth-largest city in the country. The emirate boasts a coastline of 40 miles along the Arabian Gulf and an area of roughly 960 square miles.
The emirate’s economy is transitioning from its historical dependence on pearl diving and fishing towards a more diversified base. RAK is now focusing on tourism, manufacturing, and free trade zones to drive growth. Its proximity to Dubai and well-developed infrastructure position it for further development.
Starting a business in Dubai in Ras Al Khaimah comes with plenty of benefits for entrepreneurs in 2024, some of the key advantages includes:
1. Tax Exemptions
RAK offers significant tax exemptions, particularly for companies established in free zones. These exemptions typically cover corporate and income taxes which makes it an attractive location for businesses seeking to maximize profits.
The UAE, and by extension Ras Al Khaimah, has double taxation treaties with many countries. This can help avoid duplicate taxation on your business income.
RAK allows foreign investors to own 100% of their companies in designated free zones. This eliminates the need for a local partner.
Businesses operating in RAK free zones generally enjoy the freedom to repatriate their profits and invested capital without restrictions.
Free zones in RAK are known for their efficient processes and minimal bureaucratic hurdles which makes it easier to get your business up and running quickly.
Operational costs in RAK, including office space and labour, tend to be lower compared to some of its neighbouring emirates. This can be a significant advantage for businesses looking to control expenses.
Ras Al Khaimah (RAK) offers two main options for company formation, each with its own set of advantages and regulations:
Mainland companies operate within the legal framework of the UAE and the Emirate of Ras Al Khaimah. They can conduct business activities throughout the UAE, but face some limitations regarding foreign ownership.
Limited Liability Company (LLC) is the most popular option for mainland companies. It offers limited liability protection to shareholders, meaning their personal assets are shielded from business debts beyond their investment. Requires a minimum of one shareholder and one manager who can be the same person.
Other options include joint venture companies and public/private shareholding companies (for larger businesses).
Advantages:
In some cases, mainland companies may require a local sponsor, a UAE national who acts as a liaison with the government.
Free Zone companies operate within designated free zones which have their own independent business and legal frameworks. They benefit from significant tax exemptions and streamlined regulations. However, their ability to conduct business within the UAE mainland may be restricted.
The type of company formation available may vary depending on the free zone but commonly includes Free Zone Establishments (FZEs) and Free Zone Companies (FZCs).
Several Free Zones exist in Ras Al Khaimah, each catering to specific industries. Some popular ones include:
Advantages:
The best option for your company formation depends on your specific business goals:
It’s wise to consult with a business setup specialist in UAE to determine the most suitable structure for your company’s needs. We at Shuraa Business Setup can help you find the right type of company formation for your business needs.
Clearly identify the specific activities your company will undertake. This is crucial for determining the appropriate business license you’ll need.
Decide on the legal structure that best suits your business goals. Common options include Limited Liability Company (LLC) for mainland companies and Free Zone Establishments (FZEs) or Free Zone Companies (FZCs) for free zone companies.
Choose a unique and available trade name for your company and register it with the Department of Economic Development (DED) in Ras Al Khaimah.
Mainland: Decide on the specific location within Ras Al Khaimah for your company’s operations.
Free Zone: Choose a free zone that caters to your industry and offers the benefits you require. Research the different free zones in Ras Al Khaimah to find the best fit.
The documents may include:
Submit an application for a business license with the DED or the relevant free zone authority. This will involve providing the necessary documentation and paying the required fees.
Mainland Company: The DED will assess your application and may require additional approvals from specific departments depending on your business activity.
Free Zone Company: The free zone authority will handle your application and guide you through their specific requirements.
Secure office space and facilities as per the requirements of your business activity and the regulations of the jurisdiction where your company is registered.
Open a corporate bank account in a local bank. This step usually requires presenting the company’s legal documents, including the trade license and incorporation certificate.
If you plan to hire employees or require residency visas, apply for the necessary visas and permits for yourself and your employees through the relevant immigration authorities.
Throughout the company formation process, it’s advisable to seek professional guidance from legal advisors or business consultants like Shuraa Business Setup to ensure compliance with all relevant regulations and streamline the process.
Expect annual renewal fees for your business license on top of the initial cost.
Please note these costs are just rough estimates. Get quotes from Business Setup Consultants at Shuraa. They can offer a comprehensive breakdown of potential costs based on your specific business requirements.
Setting up your business in Offshore Ras Al Khaimah (RAK) is an exciting way to tap into the UAE’s booming economy. It’s a fantastic place for business growth with its strategic location, friendly regulations, and loads of opportunities. And guess what? You don’t have to tackle all the setup hassles by yourself.
Consider teaming up with pros like Shuraa Business Setup. We’ll walk you through the entire process, handle all the paperwork and legal stuff, and make sure everything runs smoothly. With our expertise on your side, you’ll be on your way to business success in RAK in no time.
So, what are you waiting for? Let’s make your entrepreneurial dreams a reality.RAK Offshore Company Formation in UAE
