Business Setup in Ras Al Khaimah (RAK) – Company Formation Options

Starting a Business in Ras Al Khaimah

Ras Al Khaimah, an Emirate in the UAE, boasts mountainous borders that it shares with the Sultanate of Oman. Situated near Dubai, it is renowned as an offshore jurisdiction for International Business Corporations.

RAK is making substantial investments in infrastructure and industrial setups like warehouses, office buildings, and business parks. These endeavors aim to transform RAK into one of the most bustling business hubs in the UAE.

Several factors drive the investment in RAK’s business infrastructure. The government’s liberal policies towards foreign investors’ business setups stand as a significant catalyst for the rapid growth of RAK.

Type of Business Setup in RAK

Setting up a business in RAK follows a process similar to that in Dubai and other Emirates of the UAE. Whether you’re conducting trade online or in person, having a valid trade license in the UAE is a must. In RAK, investors have three options for business setup: Mainland, RAKEZ Free Trade Zone, and RAKICC Offshore (located within RAKEZ Free Trade Zone premises). PRO Consultancy, a team of expert consultants, is well-versed in the latest business laws governing RAK and the entire UAE.

RAK offers a variety of Business License Types to choose from:

• Industrial License
• Commercial License
• General Trading Licensee
• Professional License
• Ecommerce License

Advantages of Establishing a Company in RAK:

• – Cultivating long-term positive relationships with neighboring emirates.
• – Building trust within the local population and benefiting from business-friendly measures implemented by the RAK Government.
• – Streamlined process for setting up a company in RAK.
• – Exemption from personal and income taxes.
• – Unrestricted international trade with no trade barriers.
• – Imports into RAKEZ enjoy exemption from customs duty.
• – Corporate-friendly business laws and framework that foster trade and economic growth.
• – Enjoy 100% foreign ownership and the freedom to repatriate profits.
• – Access to world-class, fully furnished infrastructure.
• Port Saqr, a prominent port in the UAE, offers convenient access to the sea, making it a vital hub for global trade and commerce.

1. RAK Economic Zone (RAKEZ)

Ras Al Khaimah Economic Zone is a sought-after hub for investors, particularly trading companies. It offers customizable warehouse facilities and industrial land plots for development. Additionally, affordable staff accommodation spaces are available, all bundled in an attractive package.

Custom Made Office Space, Warehouses and Industry Facility

RAKEZ offers a diverse range of business activities and office spaces to cater to investors’ needs. From flexible desks to fully furnished offices, we have options to suit every requirement. Our Free Trade Zone consists of three Industrial Zones, tailored for large-scale, heavy-duty manufacturing and light manufacturing industries. Additionally, we have two Business Centers dedicated to supporting Small and Medium Companies as well as freelancers. Join RAKEZ and discover a world of opportunities for your business.

To know more, read about: RAKEZ Free Trade Zone

2. RAKICC Offshore

RAK International Corporate Centre (RAKICC) serves as the Corporate Registry in Ras Al Khaimah, UAE. It oversees the formation of offshore companies (International Business Companies) and provides related services. RAKICC stands out as a highly reputable and secure jurisdiction for establishing International Business Companies.

Types of License Categories in RAKICC

RAKICC offers three distinct license categories for setting up an Offshore Company. These categories provide flexibility and options to cater to various business needs and preferences.

• Company Limited by Share
• A company limited by Guarantee
• Unlimited Company

Each of these companies possesses unique characteristics and serves specific purposes. Let’s categorize them as follows:

• Holding Company (Limited by shares)
• A Tax-Saving Mechanism (unlimited),
• Tenant Associations (limited by guarantee), real estate development companies, etc.

RAKICC offers a diverse range of business activities, including general trading, consulting, construction, marketing, and manufacturing, among others. However, it’s important to note that companies operating in RAKICC Offshore can only engage in international trade and cannot directly sell within the UAE. Additionally, it’s worth mentioning that Offshore Companies are not subject to local UAE legal laws and governance, and no resident visa is issued under the offshore company in the UAE.

RAK Premium Product Package – Host of Investor Benefits

The RAK Premium Product Package enables RAKICC Companies to establish subsidiaries within RAKEZ and conduct onshore activities in the UAE. Moreover, RAKICC Companies are now eligible to make property purchases in Dubai under their company name. This comprehensive offering empowers businesses with seamless expansion opportunities and facilitates their integration into the thriving Dubai market.

Read to know more: How to Purchase a Property in Dubai through a RAKICC Company

There are numerous significant benefits for investors who opt to register an offshore company in RAKICC. However, it is crucial to thoroughly research and consider the associated limitations. With the premium package, investors in offshore companies can enjoy the privileges of onshore status, conduct business in the UAE, lease space in RAKEZ, apply for a bank account, and continue operations both locally and internationally.

3. RAK Mainland Company Formation

RAK has recently implemented a game-changing policy by granting 100% foreign ownership in the mainland. This bold move not only promotes trade but also attracts a surge in investor interest. RAK has significantly enhanced the ease of doing business in the region, allowing investors to effortlessly add partners and transfer ownership to new stakeholders. These progressive measures solidify RAK’s position as a thriving hub for global investment and entrepreneurship.

100% Foreign Investment in Mainland Companies in RAK

Under this FDI structure, companies will be designated as national entities, ensuring complete confidentiality of technical, economic, and investment information. The RAK Economic Zone (RAKEZ) and RAK’s Department of Economic Development (RAK DED) have collaboratively established a novel company formation framework as part of the Emirates’ program.

New Company Formation Structure by RAKEZ & RAK DED

The program aims to attract increased foreign investment in key industrial sectors and services. For businesses falling under the eligible sectors for 100% FDI as per the UAE Cabinet, RAK DED will secure the trade name and issue the FDI license. Subsequently, RAKEZ will provide the necessary business license and documentation to investors. 

Exciting opportunities abound across diverse sectors such as agriculture, manufacturing, transportation, storage, food services, information and communications, healthcare, entertainment, and construction. 

To learn more about company formation in Ras Al Khaimah and explore the business prospects, reach out to our team of experts without delay!