Establishing a business or Company formation in Ras Al Khaimah (RAK) is one of the best decisions business owners can make. Due to its close proximity to Dubai, it’s a city that has been rising and receiving foreign investment from people that want to conduct business in this place. It’s a city located close to the sea and it has several airports that connect it to the world.
Types of Licenses Approved by Ras Al Khaimah
Commercial License Ras Al Khaimah: The Commercial License, also known as General Trading License, enables businesses to conduct several commercial activities such as export, trading and import. In addition, businesses that want to get involved in industrial and manufacturing activities can also apply to obtain this license.
Professional License in Ras in Al Khaimah: The company that obtains the Professional License can conduct several activities related to offering professional services. Some of these services can be IT, development, consultancy, design and many more.
Industrial License in Ras Al Khaimah: The Industrial License is for businesses that want to conduct activities of importing raw material, manufacture products, carry out production processes, and export the final products. Any business that wants to carry out industrial activities.
RAK License Packages
Commercial / Professional / General Trading
Corporate Bank Accounts
We work closely with several banks in UAE so we can best assist our clients with opening their corporate bank accounts.
Requirements For Business Setup in Ras Al Khaimah
The required documentation for company formation in RAK is:
- 3-5 potential business names
- Passport copies of all shareholders
- Visa copies of all shareholders (if applicable)
- Emirates ID copies of all shareholders (if applicable)
- Entry stamp copies of all shareholders
- NOC from the sponsor (if applicable)
The process of Company Formation in RAK
1 - Trade Name and Initial Approval
2 - Document Signing and Submission
3 - Tenancy Contract and Approvals
4 - Trade license is issued
Why Choose RAK for Business Setup in Dubai?
Benefits of Company Formation in RAK
- It’s an economic hub for countries in Asia, Europe and Africa so it offers several opportunities to investors
- In RAK there are double taxation treaties with other countries
- It offers a smoothly company registration process
- Access to a strategic location
- It has two sea ports which ease the transportation
- Tax-free environment
- There’s no personal tax and companies don’t have to pay taxes on corporate income.
- Access to storage facilities
- Get access to low rental costs
- Foreign investors can receive government-friendly incentives
Setting up a company in Ras Al Khaimah is a simple process. However, you should be aware of important aspects before undertaking the company formation in RAK. Therefore, to perform this process easily and quickly, you can be guided through the following steps:
1.1 Commercial activity
The first thing you need to do for the company formation in RAK is to identify the type of economic activity of your business. In this sense, you must determine if your business will carry out commercial, technical or industrial operations.
1.2 Legal structure
The next step for the company formation in RAK is to decide the type of legal entity of the company. The requirements that regulate this structure are defined by the form and existence of the company. Also, among the types of legal entities permitted within the territory of Ras Al Khaimah are:
- Limited Liability Company (LLC): One of the conditions is that it must be formed by between 2 and 50 members. In addition, the capital of the company must be deposited in a bank in the UAE.
- Joint venture company: in this case, it is an agreement between a foreign group and a local entity.
- Public Limited Company: for the company formation in RAK of this type, you need a minimum of 10 shareholders. Likewise, it must have the approval of the Ministry of Economy and Commerce.
- Private Limited Company: in this case, the members must not be less than three people. In addition, the credits of this type of company cannot be sold publicly.
- Free Zone Company (FZCO): This is also a limited liability organization; in which 2 or more shareholders can register.
- Free Zone Establishment (FZE): This type of company can be owned by a single owner or corporation. Likewise, it can be registered by a natural or legal person, with a minimum capital of AED 150,000.
1.3 Define the location
As for the company formation in UAE, in RAK, you can choose between three jurisdictions: Mainland, Free Zone, and Offshore. In this matter, the first one allows a company to stay inside and outside the UAE, in addition to having many scopes.
On the other hand, RAK Free Trade Zone is less than an hour from Dubai and offers a highly efficient business environment. This is thanks to the fact that it has modern and varied facilities, adaptable to the needs of your business.
1.4 Initial approval
The next step for the company formation in RAK is to obtain initial support. This allows the investor to start the actions to obtain business licenses and receive government aid.
1.5 Trade name
One of the key elements to carry out the company formation in RAK is the name of your company. Besides, certain conditions apply to company names in Ras Al Khaimah, among which are:
- The name does not belong to another company.
- Do not contain a political or religious meaning.
- It must not contradict the Islamic Sharia, customs, or traditions.
- It should preferably be in Arabic.
- Must indicate the commercial activity, among other characteristics.
1.6 Apply and submit
The next step for the company formation in RAK is to contact the other relevant authorities. Therefore, you must know which ministries manage the activities that your company will carry out. Generally, certain operations require the exclusive permission of the Department of Economic Development.
1.7 Business License
One of the most important procedures for a company formation in RAK is obtaining a business license. In this case, you must process it in the Department of economic development before you receive the permit.
1.8 Renting a workspace
Finally, you can rent a commercial space by consulting the Consumer Protection and Supervision Administration of the DED. In addition, you must notify other competent authorities so that they inspect and authorize the placement of the company. Hence, this guarantees you legal placement at the time of company formation in RAK.
A RAK company (or RAK international trading company) is an alternative for foreigners who want to undertake company formation in UAE. Furthermore, Ras Al Khaimah has become a popular choice thanks to tourism, industry, commerce, and real estate. In addition, it has policies that favor companies toward foreign direct investment.
One of these advantages is that companies can do business in a tax-exempt environment. In this way, such companies can create an asset protection platform in the UAE. The advantages offered by the company formation in RAK, are:
- RAK International Company is 100% foreign-owned.
- Corporate, income, withholding, and import-export taxes are 0%.
- The names of the shareholders and directors are confidential.
- The shareholder’s liability is limited to any unpaid amount of a share.
- the multitude of business fields.
- You just need to have standard corporate accounting practices.
- All documents related to business activities are in English, despite not being the official language in RAK.
For the company formation in RAK, it is necessary to obtain a business license. In this way, you will be able to start your business and you will comply with local laws. Below you can see the steps you need to follow to obtain this license.
- You must select what type of business your company belongs to commercial, professional or industrial.
- The following is to establish the various commercial activities that the election license will include (maximum ten activities).
- The next step is to choose the trade name for your business.
- Approval must be given by the RAK Department of Economic Development.
- The RAK licensing authority then approves the license details and makes any necessary changes.
- A voucher containing the payments to be made is assigned.
- After you make the appropriate payments, you will receive the business license in addition to the business registration certificate.
3.1 Necessary documents
To carry out the procedures for the company formation in RAK, you will need the following documentation:
- The license application form.
- The lease contract, certified by the notary public.
- Business name certificate.
- Photocopies of the passport, family book, and the ID of the citizens of the UAE.
- Certified No Objection Letter.
- Photocopies of visas, passports, or residence for foreigners.
- Technical Evaluation Report.
- Approvals from respective government departments.
- Service Agent Agreement approved by the Legal Affairs Section.
- Copy of the certified lease.
- Land map or property certificate.
- If necessary, Approval from other government authorities.
As well, the business license for the company formation in RAK is valid for one year. After this time, you must choose to renew it if you wish to continue with your trading activity.
The registration of a company in the territory of Ras Al Khaimah is a simple process if you have the legal requirements. These requisites are similar to those required for company formation in UAE.
4.1 Steps to register a company
The steps to follow are:
4.1.1 Establish the business entity of your company
You must determine the type of business before the company formation in RAK, based on the possible options. Focus on the services that your business will offer, in addition to the location and the products that you will market. After ending this process, you will need to find out about the legal requirements for the business.
4.1.2 Legal requirements
At this point, you need to set the corporate structure of your business under which you will need to meet certain requirements. In addition, you have to determine the requirements related to the location of your business. There are different jurisdictions in RAK which include Mainland, Free Zone, and Offshore
4.1.3 Register the name
The next thing you need to do for company formation in RAK is to register the business name of the company. Of course, it must be a name that is not only unique but also meets the legal requirements. In this way, your company will be able to have some kind of independence.
Also, this process includes an initial approval, as well as a final one. These help you to obtain the type of business license you require to run the business in RAK. In this sense, you must apply for the name in the Department of Economic Development (DED).
This department is the main authority in Ras Al Khaimah to carry out the business registration process.
4.1.4 Obtain regulatory approvals
The next thing you need to do for the company formation in RAK is to obtain approvals from the relevant authorities. This process includes getting a business license for your company. The types of licenses that are granted in RAK are general business license, professional license, and industrial license.
Therefore, once you obtain the consent of the authorities, you must get the business license from the DED to carry out operations.
4.2 Compliance with business registration
In the year 2019, the Ras Al Khaimah government established the Economic Substance Requirements (ESR), in addition to the rules. One is that companies joining the territory must carry out income-producing activities in the UAE. Also, to be able to carry out the company formation in RAK, you must rent an office space and have staff in the UAE.
In addition to this, all divisions, head offices, or locally incorporated companies must comply with the above rules. Likewise, companies according to these rules must report that relevant activities are carried out. This must be done and submitted on the official portal of the Ministry of Human Resources and Emiratization of the UAE.
Similarly, you should know that failure to comply with the above requirements carries a penalty of AED 400,000.
4.3 Documents for company registration in Ras Al Khaimah
In addition to the above, for the company formation in RAK, you must have the following documents:
- Memo of Association and Articles of Association.
- The consent of the corresponding ministry.
- The papers of the shareholders and directors of the company.
- Copies of Passport and Visa.
- Copy of the Trade Name Certificate issued by the DED.
- Consent of the Ministry of Economy.
- Copies of the Certificate of No Objection.
- Application form for the respective license.
- Commercial contract for the rental of an office.
RAK International Corporate Center (“RAKICC” or “RAK ICC”) is a government corporate registry in the Emirate of Ras Al Khaimah, UAE. This center offers you the necessary help to register and the company formation in RAK. Also, it does this with both international business companies and offshore companies.
Likewise, it provides a wide variety of complete registration services concerning the activity of said companies. This government entity was created through Decree No. 12 of 2015 (modified by Decree No. 4 of 2016). These decrees unified RAK International Companies (previously part of RAK Free Trade Zone) and RAK Offshore (formerly part of the RAK Investment Authority).
This corporate center is characterized by being a modern registration office that complies with the best international practices. Furthermore, RAK ICC is widely recognized and one of the most respected brands for company formation in UAE. Likewise, RAK offshore and RAK IBC refers to offshore companies registered with the RAK ICC.
The legislative framework for the RAK International Corporate Center includes the RAKICC Trading Companies Regulations 2016, as well as the RAK ICC, Registered Agent Regulations 2016.
5.1 Benefits of a company formation in RAK ICC
There are some advantages of a company formation in RAK, incorporated with RAKICC:
- Open a bank account in the name of the company.
- Own real estate in Ras Al Khaimah.
- Will have 100% foreign ownership.
- You can also own shares in a company from the mainland or a free zone in the United Arab Emirates.
- With the company formation in RAK you will get the benefit of 0% tax.
- Establish a subsidiary with RAK Economic Zone.
- This entity also offers advanced legislation.
- Strong compliance procedures.
We can help you with the processes in the following government departments.
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