RAK Company Registration in Dubai Ras Al Khaimah

A Complete Guide to Company Formation in Ras Al Khaimah (RAK)

The United Arab Emirates is actively working to diversify its economy and move beyond its reliance on oil. For a country where half the population was illiterate in the 1970s, the UAE has made remarkable strides, yet it still benefits greatly from foreign technology and talent. In response, the government has created exceptional conditions for foreign companies and startups ready to relocate.

In recent years, the UAE has effectively used its oil revenues to build a transparent and open bureaucratic system with zero corruption. It has become a home for some of the world's wealthiest individuals and largest investment funds.

These conditions have created an ideal environment for developing an international-focused business in the UAE. The country is perceived as a springboard for business development into the Gulf region, Africa, India, and Pakistan. Talent and investors flock here from all over the world; 85% of the population consists of immigrants and expatriates, and the nation hosts countless world-class events, conferences, and exhibitions.

Within the UAE, the emirate of Ras Al Khaimah (RAK) has emerged as a particularly attractive and cost-effective hub for business setup.

Why Choose Ras Al Khaimah for Your Business?

Registering a company in Ras Al Khaimah offers numerous advantages, including:

• A stable political situation;
• A relatively inexpensive company registration procedure;
• A favorable business climate;
• The ability to register companies with 100% foreign ownership;
• A stable national currency;
• High levels of confidentiality;
• The presence of dynamic free trade zones;
• Low-cost labor and energy resources;
• One of the highest safety and security ratings in the world;
• A lack of mandatory annual auditing requirements for many company types;
• No minimum share capital requirements for most setups;
• The absence of currency controls;
• A favorable geographic location;
• Various programs to support small and medium-sized enterprises (SMEs);
• A rapidly developing economy.

Despite the many advantages offered for business development in this jurisdiction, it's important to remember that each Emirate and each free zone has its own laws regulating the company formation procedure.

Understanding RAK's Business Jurisdictions

In Ras Al Khaimah, you can establish your business in one of three main jurisdictions: a Free Zone, the Mainland, or as an Offshore entity.

RAK Free Zones

Free zones in the emirate operate under a specific set of rules and regulations, separate from the mainland. Management is carried out by the administration of that particular zone. A business in a free zone typically operates within that zone's territory or internationally, but requires special permissions to trade directly on the UAE mainland. However, the licensing and registration process is often simpler and faster.

Ras Al Khaimah Economic Zone (RAKEZ)

RAKEZ is one of the largest and most dynamic economic zones in the emirate, formed from the merger of the RAK Free Trade Zone and RAK Investment Authority (RAKIA). It includes specialized parks for commercial, industrial, technical, academic, and aviation activities, as well as a separate area for media. A key advantage of RAKEZ is the ability to obtain a dual license, which grants the business owner the right to operate not only within the zone but also in other parts of the country.

RAK Maritime City Free Zone

Established in 2009, the "RAK Maritime City" Free Zone is located in a deep-water bay, allowing even large cargo ships to enter. It is a hub for maritime-related businesses.

RAK Media Free Zone (RMFZ)

This zone is attractive for those looking to open a company in the media sector, offering world-class facilities and a supportive environment for media, marketing, and communication businesses.

RAK Offshore (RAK ICC)

Opening an offshore company in Ras Al Khaimah takes the form of registering an International Business Company (IBC) with the Ras Al Khaimah International Corporate Centre (RAK ICC). These companies are designed for international trade, asset protection, and holding purposes and are not permitted to trade within the UAE.

RAK Mainland Company Setup

A mainland company is registered with the RAK Department of Economic Development (DED). The primary advantage is the freedom to conduct business activities anywhere in the UAE without restrictions. Unlike in the past, most mainland activities now allow for 100% foreign ownership. There is no requirement for annual audited verification or report submission for many company types.

Types of Legal Entities in RAK

Before you set up a company in RAK, you need to choose the legal structure of your company. Several options are available:

• Sole Establishment: This form is for individual entrepreneurs who want to make all decisions concerning their business independently. The owner is 100% liable for the business's debts.
• Limited Liability Company (LLC): An LLC can be established with at least one director and one founder, up to a maximum of 50 shareholders. A key requirement is a bank account with a minimum share capital, typically starting from AED 1,000.
• Joint Venture Company: This is a company that operates after an agreement is made between several partners. Such a company does not require a separate license, and the cooperation agreement is not published.
• Public/Private Shareholding Company: A public company can be opened if there are at least 10 participants, while a private one requires at least 3 shareholders. A permit from the Ministry of Economy and Commerce is required.
• Free Zone Establishment (FZE): This type of company is distinct in that it can be established with only one shareholder.
• International Business Company (IBC): This type of company does not require a specific number of participants or annual reporting. Only its name and date of incorporation are listed in the registry.

Get Information on Offshore Companies and Bank Accounts in Dubai

Business Licenses in Ras Al Khaimah

When applying for a government license to operate in the Ras Al Khaimah Free Economic Zone, it is important to consider the following:

• A government license is issued for a specific period, meaning you are only permitted to conduct entrepreneurial activity for the duration specified in the license. It must be renewed annually.
• A prerequisite for license renewal is the provision of appropriate financial and audit reports (where applicable).
• Rates and tariffs applicable in a specific economic zone may change, and companies will be notified accordingly.
• If an applicant registering a company in the Emirates has a residence visa through another legal entity, they must submit written consent from their sponsor to register the company.
• If you plan to engage in consulting activities, be prepared to verify your qualifications and professional skills in the relevant sector.
• The implementation of certain activities with special features, such as medicine, requires obtaining the appropriate permit from the state authorities of the Emirate.

How to Get a RAK General Trading License?

This license is issued to businesses engaged in various trading and trade-related activities.

Professional license: This type is issued if the work involves a narrow specialization. The instructions may vary, but the license is of the same type.

Industrial license: This type enables manufacturing, packaging, and other activities necessary for the production of goods.

How to Register a Company in Ras Al Khaimah?

Company registration takes place in several stages. The procedure is not overly complicated, but you must follow all steps and rules precisely for the registration to be successful.

1. Determine Business Activity: You need to decide what type of activity the company will be engaged in. This is a crucial decision that will determine the subsequent steps.
2. Choose the Legal Form: Companies can be local (able to operate within the Emirate) or offshore (cannot operate within the Emirate). For local companies, the most popular forms are the LLC and the Free Zone Company.
3. Select a Jurisdiction: Choose between Mainland, a specific Free Zone, or RAK ICC (Offshore).
4. Reserve a Trade Name: The registration of an offshore company in Ras Al Khaimah usually begins with the selection of a suitable company name. The name can contain up to one hundred permitted characters.
5. Initial Approval & Documentation: The registrar checks all documents and whether all conditions have been met. A package of all documents required for the full activity of the company is prepared at this stage.
6. Finalize Legal Documents: Once approval is received, the company's articles and memorandum of association are prepared and notarized.
7. Obtain the Business License: The Department of Economic Development is responsible for issuing all business licenses in the Emirate. In some cases, permission from other government agencies may be required.
8. Rent Office Space: Those who want to register a 100% foreign-owned company need to open an office on the territory of a free economic zone.

Why should you invest in Ras Al Khaimah?

For foreign and domestic investors, the Emirate of Ras Al Khaimah - RAK has become one of the most economically attractive regions. It is worth noting that the profit growth from real estate investments here has exceeded the 100% mark in some projects. Such an increase in income is due to significant factors such as a favorable environment for starting a business, a geographically advantageous location, the development of the tourism industry, tax and customs advantages, and the presence of constant consumer demand for real estate.

How long does it take to register a company in Ras Al Khaimah?

An offshore company is registered within 3-4 business days. For an onshore company in Ras Al Khaimah, the registration of a normal company takes 3-5 days. If the activity of an onshore company falls into a category requiring additional permits, the time for obtaining such permits depends on the type of permits and required regulations and can range from several weeks to several months.

What types of licenses are available in Ras Al Khaimah?

You can obtain one of several types of licenses in the Emirate: a business license, a general trading license, and a professional license.

Do I need to register my trade name?

Yes, the company name must contain a maximum of 100 permitted characters, taking into account the following additional words or abbreviations.

Do I need a suffix in the company name?

The name of a RAK ICC limited liability company must end with the words "Limited" or "Incorporated" or the abbreviation "Ltd" or "Inc". The name of an offshore company with unlimited liability must end with the word "Unlimited" or the abbreviation "Unltd". The name of a RAK ICC company with segregated portfolios must include the phrase «Segregated Portfolio Company» or «SPC» placed immediately before one of the above words or abbreviations.

What laws are observed in RAK?

To do business and open a company in Dubai, you need to consider that the legal system in Dubai is based on the principles of Civil Law and Islamic Sharia law. The legal sources for legal issues include the Constitution, Federal Laws and Regulations, the laws and regulations of each emirate, and Islamic Sharia.