Ras Al Khaimah is one of the seven emirates that make up the UAE and is located in the northern part of the country. Known for its stunning natural landscapes, including mountains, beaches, and desert dunes, RAK offers a unique blend of business opportunities and a high quality of life.
So why choose a business setup in Ras Al Khaimah? There are several compelling reasons. The emirate offers various business incentives, including tax exemptions, 100% foreign ownership, and streamlined processes for setting up a company.
The emirate also provides a favourable business environment with a pro-business government and supportive regulatory framework.
If you’re too considering establishing a new company or expanding your existing business in RAK, here we will cover topics such as company formation requirements, process, legal considerations, licensing options, and more so you can make informed decisions for your entrepreneurial journey in the UAE.
Why Setup A Company in Ras Al Khaimah (RAK)?
Business setup in Ras Al Khaimah (RAK) offers several benefits for businesses:
1. Tax Advantages
RAK offers a tax-free environment for businesses, with little to no corporate or personal income taxes, making it a dream come true for investors and entrepreneurs alike.
2. Strategic Gateway to the World
Imagine your business at the crossroads of East and West. RAK’s prime location grants you easy access to lucrative markets in the Middle East, Africa, and Asia, opening doors to endless possibilities for expansion and trade.
3. Diverse Business Opportunities
RAK supports a wide range of industries, including manufacturing, trading, logistics, tourism, and services. The emirate has investment opportunities in sectors such as real estate, renewable energy, healthcare, and technology.
4. 100% Foreign Ownership
RAK welcomes full foreign ownership of companies, giving you complete control and flexibility over your business operations. This empowers you to make decisions quickly and adapt to market changes without restrictions.
5. Ease of Doing Business
RAK has streamlined processes for setting up businesses, with a business-friendly regulatory environment. The RAK Economic Zone Authority (RAKEZ) and Ras Al Khaimah Department of Economic Development (RAK DED) provide efficient services to support business formation and operation.
How to Register a Company in Ras Al Khaimah
Business Setup in Ras Al Khaimah involves several steps, and the process may vary depending on the type of company and the chosen business structure.
Here’s a general step-by-step guide:
1. Choose the Type of Company
Decide on the type of company you want to establish, such as a free zone company, mainland company, or offshore company. Each type has its own set of requirements and regulations.
2. Select a Business Activity
Determine the nature of your business activities and ensure they comply with the laws and regulations of Ras Al Khaimah.
3. Choose a Company Name
Select a unique name for your company that complies with the naming guidelines set by the relevant authority. The name should not infringe on any trademarks and should not be offensive.
4. Submit Application
Submit the required documents to the relevant authority, such as the Ras Al Khaimah Department of Economic Development (RAK DED) for mainland companies or the respective free zone authority for free zone companies.
5. Payment of Fees
Pay the registration fees and any other associated costs. The fee structure may vary depending on the type of company and the chosen business activities.
6. Obtain Approvals and Licenses
Await approvals from the authorities, which may include obtaining a trade license, an establishment card, and other relevant permits based on your business activities.
7. Finalize Legal Formalities
Complete any remaining legal formalities, such as signing the memorandum and articles of association and other incorporation documents.
8. Open Bank Account
Open a corporate bank account in Ras Al Khaimah to start conducting business operations.
9. Obtain Visas and Sponsorships
If required, apply for visas for yourself, employees, and dependents. Register with the General Directorate of Residency and Foreigners Affairs.
Business setup cost in Ras Al Khaimah generally starts from AED 14,999* for the license but can vary significantly depending on several factors, including your chosen setup, business activity, size and complexity of your company, office rent, and other add-ons that can increase the overall cost.
It’s always recommended to get assistance from a business setup consultant in UAE for your company formation needs and the costs.
Documents Required to Start a Company in Ras Al Khaimah
Gather the necessary documents for company registration in RAK, which may include:
- Passport copies of shareholders and directors
- Proof of address for shareholders and directors
- Business plan
- Memorandum and articles of association
- NOC (No Objection Certificate) from current sponsor (for mainland companies)
- Power of attorney (if applicable)
- Other specific documents based on company type and structure
Legal Requirements for Setting Up a Company in Ras Al Khaimah
- Share Capital: Minimum share capital varies depending on the company type. Limited Liability Company (LLC): AED 150,000 (around $41,140). Share capital requirements vary across different free zones.
- Physical Presence: Mainland companies require a physical office space in RAK. Some free zones require a physical office, while others offer virtual office options.
- Renewal and Compliance: All companies must renew their trade licenses annually and pay renewal fees. Certain licenses and permits may require additional renewals or certifications.
- Visa Eligibility and Sponsorship: Foreign company owners and employees require visas sponsored by the company. Visa regulations differ based on nationality, company type, and job position.
Types of Licenses in Ras Al Khaimah
Choosing the right business license in Ras Al Khaimah is crucial for your entrepreneurial journey. Here are some of the most common types:
- Trading License: For import, export, distribution, and general trade of goods.
- Industrial License: For manufacturing, processing, packaging, and related activities.
- Service License: For providing various professional services like consulting, engineering, and IT.
- E-commerce License: For conducting online business activities.
- Freelance Permit: For individuals offering professional services on a freelance basis.
Visa Options in Ras Al Khaimah
RAK provides diverse visa options for businesses across different setups to meet your specific needs.
1. Employment Visa
Essential for foreign employees working full-time in your company. Your company acts as the sponsor, applying through the relevant authority
2. Investor Visa
Granted to individuals investing a minimum amount (varies by company size) in a RAK company.
3. Freelance Permit
Ideal for individuals offering professional services on a freelance basis. It is more affordable compared to an Employment Visa.
Let Shuraa Help You Thrive in RAK
Ras Al Khaimah, with its pro-business environment, strategic location, and diverse offerings, has emerged as a compelling destination for entrepreneurs worldwide. Remember, while the path may seem clear, company formation and local regulations can be challenging. This is where Shuraa Business Setup shines.
Our team of experienced professionals becomes your trusted partner, ensuring a smooth and efficient company formation process in UAE including Ras Al Khaimah.
We will handle all the necessary paperwork, licensing, registration processes, and more allowing you to start your business operations quickly.
Contact Shuraa Business Setup today and let our team of professionals guide you every step of the way.