Ras Al Khaimah - Licenses

Ras Al Khaimah or RAK is located in the north of the UAE with gorgeous mountain borders surrounding the land. It is under an hour away from Dubai and is perfect for those global financiers who wish to invest. Among many other free zones in the Emirates, the RAK has the most strategic location as it is closest to China, Iran, India, Pakistan and CIS.

The benefits of setting up your business in RAK are as below:

• Easy and friendly process to setup a company
• No tax on corporate or personal income
• 100% reimbursement of capital and profits
• No foreign exchange controls
• 100% tax exemption for import and export
• No customs duty on import, export or services
• 100% foreign ownership

For starting a business in Ras Al Khaimah, proper licenses are required. The Free Zone Authorities handle the registration and issuance of business licenses to non-resident companies in Ras Al Khaimah. Other licensing procedures are regulated by the individual emirates and the federal government. The business setup requirements and regulations vary in each Emirate based on the type of business.

There are three options for RAK business setup by an expatriate:

1. RAK Free Zone

Commitbiz provides its RAK free zone company setup. The city offers all facilities for business setup at 25% lesser rates than any other Emirate in the UAE. As a result, all types and sizes of companies prefer RAK for company formation. The Ras Al Khaimah free zones are cost-effective, trouble-free, and have a customer-friendly environment that attracts foreign nations to set up their business.

2. RAK Offshore

RAK Offshore was established to cater to the high demand for offshore markets. This also helps the administration in increasing their sources of income for the incessant growth of their economy. Over 1900 International Business Companies (IBCs) are recorded in RAK offshore client portfolio. The first companies that are listed with RAK offshore are real estate and property investments. New policies are established by RAK offshore assuring that a welcoming environment is provided for the people.

3. RAK Mainland Company

Ras Al Khaimah business opportunities are booming in the Emirate. Foreign investors are swarming in, making it one of the most developed Emirates. Aside from this, the reason that business setup in Ras Al Khaimah is becoming widely known is that it boasts advantages in its place like:

• No existence of currency restrictions
• No mandatory annual auditing
• Rent office anywhere
• Conduct business with local market
• No limit on the number of business activities

To conduct business activity, one needs to have a valid license. Here is the list of the business license provided by Ras Al Khaimah:

1. General Trading License

Trading or General Trading License allows one to import and export goods in and out of the UAE. The standard general trading license can contain up to two different categories of products like ‘Foodstuff’, ‘Cosmetics’, and ‘Building Materials’. The permit allows one to trade goods without restrictions.

2. Professional License

With obtaining this license, one can carry out various professional services such as consultancy, IT, design, development, and many others. RAK free zone has the most extensive activity list, and one can be sure that they will find a suitable business activity in their company.

3. Industrial License

An Industrial License allows an investor to import raw materials, carry out the production of specified goods, and export the finished product. RAK Free Zone provides warehouse and land for rent, and unlike many other Free Zones, it always has handy warehouses for storage.

Before RAK company formation, one has to select the kind of corporate structure for their company. Here is the list of legal forms offered by Ras Al Khaimah to its investors.

1. Limited Liability Company

A company can conduct its business through an LLC in Ras Al Khaimah. It can be formed with a minimum of two and a maximum of fifty shareholders. To register a limited liability company, it is compulsory to show that capital has been deposited in a UAE Bank. After process with the Ras al-Khaimah Chamber of Commerce, the money may be released.

2. Joint Venture Company

A Joint Venture in Ras Al Khaimah is a contractual agreement between a foreign and a local party. There is no requirement for licensing in a joint venture or publishing the agreement.

3. Public/Private Shareholding Company

A Public Joint Stock Company must have a minimum of ten shareholders and must be licensed by the Ministry of Economy and Commerce. The founders of the company should subscribe at least 20% of the company's capital and a maximum of 45%. A single shareholder is not enabled to subscribe to more than 10% of the capital.

A Private Joint Stock Company cannot have less than three shareholders. Shareholders must subscribe to the full capital of at least AED 2,000,000. The shares of a private joint-stock company cannot be put up for a public subscription.

4. Free Zone Company

A free zone company (FZCO) is a limited liability company. Two or more shareholders can register it. The minimum capital for setting up an FZCO is AED 250,000.

5. Free Zone Establishment

A Free Zone Establishment (FZE) is a separate legal entity with a sole business owner. An FZE can be owned either by a person or a corporate body. The minimum capital for setting up an FZE is AED 150,000.

6. International Business Company

In January 2007, the RAK Investment Authority (RAKIA) established the international business company concept. There are no limitations on the number of shareholders or directors of a global corporate business. Shareholders and directors are not indebted to hold an annual meeting or to file audited accounts. The International Business Companies (IBC) Registry shows only the name of the company and the date of incorporation.

Business setup in Ras Al Khaimah is laidback, but you need to take care of a list of lawful procedures and documentation procedures in which our team can help. 

The steps for Ras Al Khaimah company formation are:

1. Decide on the Business Activity

Under this step, determine the type of economic activity of your business. It can be categorized under commercial, professional, and industrial activity. Industrial or general trading businesses and retail businesses are involved in trade and sale of goods to consumers or businesses. Professional companies offer personal or commercial professional services like management, accounting, consulting, etc. Industrial companies usually conduct the manufacturing, processing, and packaging of goods.

2. Determine the Legal Form of the Business

The next step is to decide on the corporate entity. From the list above, you can choose one according to your business activity. The legal status conditions are determined by the type and nature of the business.

3. Finalize the Jurisdiction

There are three leading jurisdictions in RAK, Mainland, Free Zone, and Offshore. Mainland offers to have a business in and outside the UAE. There is much scope for a company who wants to register in RAK Mainland. Located just 45 minutes from Dubai, RAK Free Trade Zone gives a highly productive business-friendly environment with state-of-the-art services and an easy setup process with minimal bureaucracy. You can choose from a range of setups varying from Flexi-desks and core offices to multi-floor offices and industrial warehouses.

4. Obtain Initial Approval

The investor may receive initial approval before obtaining the company name certificate. The initial approval enables the investor to continue with business license issuance procedures and address the concerned authorities to get their support. It is taken to conduct the required business activity, though not performing the activity without first obtaining the license.

5. Register Your Trade Name

After finalizing the location of the business, the next step is to choose a unique and appropriate trade name for the organization. Submit the proposed company name to Department of Economic Development.

6. Apply and Submit

After getting the initial approval and fulfilling the requirements and legal conditions, the investor should visit the other concerned authorities to obtain their consent. These ministries are defined according to the required activity, although some types of activities may require the sole permission of the Department of Economic Development.

• Certified copy of the tenancy contract
• Photocopies of no objection letter, visa, passport, and residence certificates
• Copy of land map or ownership certificate
• Obtaining consent of legal affairs
• License application form and sign board
• Obtaining approval ministry of economy
• Ensuring all important approvals from government entities, if required
• Receiving certification of partnership contract from the notary public
• Copies of national ID and family book
• Getting technical evaluation report
• Obtaining a trade name certificate

A constitutional federation of 7 emirates located along the south-eastern tip of the Arabian Peninsula, Ras Al Khaimah (RAK) is an ideal location for an offshore company formation. Ras Al Khaimah is an authentic Arabian destination having one of the most luxurious accommodations and comfortable spots for starting a business. 

RAK offshore company formation provides a businessman with total banking security and privacy. RAK offshore is the fastest way to invest in offshore companies in the UAE. Ras Al Khaimah Investment Authority (RAKIA) is the governing body, and RAK offshore companies are regulated under the RAK Offshore Regulations 2006.

Advantages of RAK Offshore Company Formation

An offshore company in the UAE should not be mistaken with a UAE free zone company. An offshore company is a legal corporate body which is set up and operated outside of its registered authority. The main reasons why entrepreneurs go for RAK offshore company formation are:

• RAK is a gateway to the international market
• RAK has a stable and business-friendly legal system
• There is the availability of global funding
• There is a provision of protection tools for assets such as intellectual property
• RAK allows retention of capital, profits and international earnings
• Offshore companies in RAK enjoy total tax exemption
• The rules and regulations for a RAK offshore company are flexible
• Companies have the freedom to hold shares in a free zone company as well as in an onshore (LLC) company
• Companies can have multiple bank accounts in different currencies to carry out their international business operations
• Incorporation of a RAK offshore company requires just 1 director, shareholder, and secretary (they can be the same person)
• There is no restriction on citizenship and no residency limitation
• The highest level of privacy and confidentiality is guaranteed for a RAK offshore company

Ras Al Khaimah business opportunities are booming in the Emirate. Foreign investors are swarming in, making it one of the most developed Emirates. Aside from this, the reason that business setup in Ras Al Khaimah is becoming widely known is that it boasts advantages in its place like:

• No existence of currency restrictions
• No mandatory annual auditing
• Rent office anywhere
• Conduct business with local market
• No limit on the number of business activities

A mainland company in RAK must have a local sponsor. They will own the majority of shares in the company. Business setup services in RAK from Commitbiz can be of great help if you are planning to open an LLC or any other Mainland company in Ras Al Khaimah. We are aware of all the required procedures and our Public Relations Officers (PRO). We ensure that our clients are guided at each step and don't have to run around for any approvals or documentation formalities during company setup. We handle the red tape and ensure that their company is formed without any hassles affordably.