RAK or Ras Al Khaimah is located in the northern part of the UAE, sharing its borders with Oman. Located only 45 minutes away from Dubai, RAK is fast growing as one of the biggest investment destinations in the entire region.
Kinds of Business Setup for RAK
For establishing any business in Ras Al Khaimah, licenses of various kinds are needed. The authorities in the Free Zone take care of registration and issuing of licenses for non-resident companies in RAK. Other licensing related processes are controlled by individual Emirates and the Government.
There are these types of licenses available:
- Industrial Service License– This enables investors to easily import raw materials, execute production for specific goods, export finished products and use infrastructure like warehouses and land for rent in RAK Free Zones.
- Trading or Commercial License
- Professional or General Trading License– General Trading License enables importing and exporting of goods into and outside of the UAE. The regular general trading license may have categories like Cosmetics, Foodstuff and Building Materials. Professional Licenses enable services like IT, consultancy, development, design, etc.
Types of Jurisdictions in RAK
Here’s taking a look at the various types of jurisdictions in RAK:
Free Zone– Here is where companies can set up at rates which are comparatively lower than other Emirates in the UAE. The free zones include the Ras Al Khaimah Investment Authority Free Zone (RAKIA) which was set up in the year 2015 for development and promotion of investments in the Emirate.
Another Free Zone is the RAK Maritime City. This was established in the year 2001 and provides global port facilities and business services for companies who desire safe and effective environments for operations. RMFZ (RAK Media Free Zone) is another major jurisdiction that was set up in the year 2006 and is an alternative option for Dubai Media City. RAKEZ or the RAK Economic Zone is another option, located strategically in Ras Al Khaimah. There are four key free zone business parks, namely Technology, Business, Industrial and Academic.
Offshore– Offshore was setup for helping the administration garner investments for companies looking for such operations. More than 1,900 IBCs or international business companies have been operating likewise. There are exemptions from import duties along with 100% repatriation of profits and capital.
RAK Mainland Company– Business opportunities are fast growing in the Emirate of Ras Al Khaimah. The key advantages include no compulsory auditing (annual), no restrictions on currency, office rentals anywhere, no limits on business activity numbers, conducting business with the local market, etc. Mainland companies are required to possess local sponsors with majority shares in the same.
Types of Entities Allowed in Ras Al Khaimah
There are several types of entities that are allowed in Ras Al Khaimah. If you need help with company incorporation, auditing, accounting, VAT registration and VAT return filing in UAE, GCC Filings is a great option by all means.
Here are the types of companies that are legally permissible in RAK:
- LLC- Limited Liability Companies can be used for conducting business in RAK and they can be formed with 2-50 shareholders. Registration depends on capital deposit in any UAE bank and processing with the Ras Al Khaimah Chamber of Commerce.
- Joint Venture Company- Joint Ventures equate to contractual agreements between local and foreign parties.
- Public/Private Shareholding Company- Public Joint Stock entities should have at least 10 shareholders with licenses from the Ministry of Economy and Commerce. Founders should subscribe 20% (minimum) of company capital and maximum of 45%. For private joint stock companies, there should be at least 3 shareholders and they should subscribe to AED 2,000,000 of capital as a minimum threshold.
- Free Zone Company- FZCO is an LLC and two or more shareholders can be registered accordingly. AED 250,000 is the minimum capital needed for business establishment.
- Free Zone Establishment- These are legally separate entities with sole owners of businesses. FZEs can be owned by corporate bodies and or individual owners with AED 150,000 in minimum capital.
- IBC- International Business Companies do not have restrictions on shareholder numbers or director numbers. Annual meetings are to be held and audited accounts have to be filed. IBC Registry displays just the company name and incorporation date.