PROCEDURE FOR COMPANY REGISTRATION IN RAS AL KHAIMAH

Ras Al Khaimah (RAK) is rapidly gaining recognition as a business hub in the UAE, offering a range of benefits for international investors. With its streamlined company formation process, competitive tax policies, and strategic location, RAK is an attractive destination for entrepreneurs. This article outlines the key steps, requirements, and advantages of setting up a company in Ras Al Khaimah.

Key steps to registering a company in Ras Al Khaimah

Let’s investigate 7 steps to establish a company in RAK.

Step 1: Decide on your business activity

The first step in the company formation process is identifying the type of business activity you want to pursue. RAK offers various sectors, including trading, manufacturing, and services. Your chosen activity will determine the necessary licenses and approvals later in the process.

Step 2: Select the right business structure

There are three main business structures to choose from in Ras Al Khaimah:

Free zone company: Suitable for businesses with international clients, offering 100% foreign ownership.
Mainland company: Ideal for businesses aiming to trade within the UAE, though a local sponsor is often required.
Offshore company: Best for international investors focused on asset protection and privacy.

Each structure has different regulatory requirements, tax benefits, and operational rules.

Step 3: Choose an appropriate company name

Your company name should align with RAK’s naming regulations. It must be unique and follow guidelines provided by the Ras Al Khaimah Economic Zone (RAKEZ). Avoid any religious references or names similar to existing companies without special approval.

Step 4: Secure initial approvals

Based on your business activity and structure, you may need to obtain initial approvals from various authorities. These approvals ensure compliance with sector-specific regulations and allow you to proceed with the registration process.

Step 5: Prepare and notarize the Memorandum of Association (MOA)

The MOA is a legal document that outlines your company’s structure, shareholders, and governance. It is a critical document that must be drafted and notarized in accordance with local laws in Ras Al Khaimah before registration can proceed.

Step 6: Submit company registration documents

After receiving preliminary approvals, you must submit all required documents, including the MOA, to the relevant authorities, either through RAKEZ or the Department of Economic Development (DED). This formalizes your business entity in RAK.

Step 7: Apply for a trade license

Once your company is registered, you must apply for a trade license. This is the final step before you can officially begin operations. Depending on the nature of your business, you may need a commercial, industrial, or professional license.

Essential requirements for setting up a business in Ras Al Khaimah

Let’s investigate 4 requirements for establishing a business in RAK.

Requirement 1: Minimum capital investment

Capital requirements vary based on your chosen business structure. Free Zone Companies typically require less capital compared to Mainland Companies. Proof of capital must be submitted as part of the registration process.

Requirement 2: Local sponsorship for mainland companies

If you establish a Mainland Company, you will likely need a local sponsor who owns at least 51% of your business. Free Zone companies, however, benefit from full foreign ownership, eliminating the need for local sponsors.

Requirement 3: Leasing office space

Depending on the nature of your business, you may need to lease office space in Ras Al Khaimah. Free Zone businesses have the advantage of flexible office solutions, including shared spaces, while Mainland Companies may require more traditional office setups.

Requirement 4: Visa and residency applications

For expatriates looking to live and work in Ras Al Khaimah, acquiring work and residency visas is necessary. Free Zones provide easy access to visa packages for both business owners and employees, ensuring smooth immigration procedures.

Exploring different business structures in Ras Al Khaimah

Let’s investigate 3 different business structures in RAK.

Free zone company

This option is perfect for businesses with an international client base, offering:

100% foreign ownership.
Tax exemptions and full profit repatriation.
Zero import/export duties and flexible office solutions.

Mainland company

Mainland Companies allow businesses to operate within the UAE market. While they may require a local sponsor, these companies provide broader access to business opportunities throughout the UAE.

Offshore company

Offshore Companies are designed for international investors seeking privacy, asset protection, and limited liability. With minimal reporting requirements and no physical office space needed, this structure offers flexibility and cost-efficiency.

Benefits of starting a business in Ras Al Khaimah

Let’s investigate 4 main advantages of establishing business in RAK.

Advantage 1: Prime geographic location

Ras Al Khaimah’s location is ideal for businesses looking to tap into global markets. Its proximity to Europe, Asia, and Africa makes it an excellent hub for international trade.

Advantage 2: Investor-friendly environment

RAK offers a streamlined company formation process, with a regulatory environment that encourages business growth. The emirate is known for its ease of doing business and supportive government policies.

Advantage 3: Competitive tax policies

Ras Al Khaimah provides significant tax advantages, including zero corporate tax, zero personal income tax, and various tax exemptions for Free Zone businesses, making it a highly attractive destination for entrepreneurs.

Advantage 4: Advanced infrastructure and connectivity

RAK boasts modern infrastructure, from world-class office facilities to excellent transport and logistics networks. This ensures smooth business operations and efficient connections to global markets.

Contact us

Considering establishing a company in the Delaware? Let G2B be your trusted partner. With a commitment to reliability, transparency, and dedication, our team of experts will guide you through every step of the process, ensuring a seamless and compliant company setup.

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