If properly structured, Ras Al Khaimah (RAK) company setup is a legitimate, tax efficient, and cost effective way to conduct international business:
Advantages of RAK company setup
- RAK company registration is an excellent alternative corporate structure to Dubai free zone company formation, with faster incorporation procedures and a wide choice of office and warehousing facilities;
- If properly structured, Ras Al Khaimah international company is an ideal way to legitimately book international profits without paying local corporation tax. In addition, there are no capital gains or personal income taxes in RAK;
- 100% foreign ownership is permitted if the investor opts to set up a company in RAK Free Trade Zone. RAK Free Zone company is highly regulated and has a wide choice of office and warehouse facilities;
- A minimum of one shareholder and one director is required to comply with regulations of the RAK Free Zone Authority. There is no restriction on the maximum number of shareholders, and corporate shareholders are allowed. There is no register of shareholders or directors for RAK companies;
- Through an RAK offshore company, it is possible to have an entity and business address without the legal requirement to rent a physical office and employ staff;
- Through a branch company, investors can wholly own the entity and not be subject to an annual audit;
- RAK is strategically-located close to the Straits of Hormuz and only 40 minutes away from the center of Dubai;
- Investors can take advantage of abundant supplies of competitively priced energy;
- Healy Consultants will open a corporate bank account for our Client;
- Healy Consultants assists our Clients to obtain UAE residence and employment visas. For more information, kindly visit our migration and relocation services page;
- The UAE is perceived as the 28th least corrupt country in the world, according to the 2011 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians;
- Strategic location with access to over 1.2 billion consumers in the Middle East and Africa;
- The economy is estimated to grow up to 10% during 2013, according to the RAK Investment Authority (RAKIA);
- Tourism is set to increase dramatically thanks to openings of many new hotels and part of an initiative that is hoping to increase visitors numbers to over 2.5 million by 2012, as reported by Gulf News;
- Discussions are ongoing with countries such as the US and Japan to create free trade agreements, potentially giving UAE firms, including those in RAK, free access to a markets numbering over 500 million people.
Disadvantages of RAK company setup
- A limited liability company (LLC) requires a minimum of 51% shareholding by UAE citizens;
- An offshore company cannot trade products or provide services within the UAE, and cannot rent local premises or open a corporate bank account in the UAE;
- Most entities are required to submit annual audited accounts to the government.
Incorporation costs in Year 1 amount to US$3,550 and annual company costs in Year 2 and thereafter amount to US$1,500. The average fees per engagement amounts to US$8,100, including company incorporation, and corporate bank account. Refer to draft invoice embedded here.
Did you know about RAK?
- RAK is a popular tourist destination with visitors from the UK, Europe, Russia, and USA travelling to the Emirate for a truly relaxing break and staying in one of the five star hotels. Many Dubai residents also own properties here choosing to stay for the weekends to escape the hustle and bustle of the city;
- Nestled between the Hajar mountain range on the east and the ulf on the west, the emirate of RAK, which literally means “top of the tent” in Arabic, lies within the northernmost part of the UAE;
- RAK is estimated to have a total population of 300,000. While UAE citizens officially make up less than 20% of the population in the UAE, this figure is higher in RAK. Emiratis are thought to make up at least 50% of the emirate’s population;
- Not being a producer of oil, RAK has focused on developing its industrial sector. The emirate is home to many national institutions, government agencies, and international companies;
- On 17 February 2006, Space Adventures announced its plans to develop a US$265 million commercial spaceport in RAK for space tourism.
- RAK FAQs
- RAK Tax Authority
- Central Bank of RAK
- Investment Authority
- Chamber of Commerce
- RAK airport
- Visiting RAK