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 2012 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.
Frequently asked questions
Is it mandatory to have a local resident director for registering a company in Ras Al Khaimah free zone?No. Neither a resident director nor a resident shareholder is required for business registration in the Ras Al Khaimah free zone. Companies registered in the Ras Al Khaimah free zone can be 100% foreign owned.
Companies outside the free zone must be at least 51% owned by a UAE citizen.
Is Healy Consultants able to provide Ras Al Khaimah free zone company registration services?Yes. As Ras Al Khaimah company registration experts, Healy Consultants can advise you on the best entity to incorporate, and successfully complete your company’s registration in Ras Al Khaimah. We advise our Clients to incorporate in the free zone, as the company can enjoys exemption from taxes and can be fully owned by a foreigner.
I want to register a new business in Ras Al Khaimah free zone. What type of entity should I setup?Clients can register a Free zone Establishment (FZE) or a Free Zone Company (FZC). An FZE has only one shareholder whereas a FZC can have between 2 to 5 shareholders. Foreign companies can also register a branch if the parent company has existed for more than a year.
How to register a company in Ras Al Khaimah?For business registration in the Ras Al Khaimah free zone, our Clients will be required to submit to the free zone authority the following documents i) copies of passports of shareholders, directors and managers (if applicable) ii) incorporation forms iii) brief project description iv) company M&AA v) bank deposit showing minimum share capital of US$30,000. Branches of foreign companies will be required to show the certificate of incorporation of the parent company.
Healy Consultants will assist our Client to successfully complete the registration process.
Do I have to visit Ras Al Khaimah to setup a company?No. Healy Consultants does not require our Clients to travel to Ras Al Khaimah to register a company.
What is the Ras Al Khaimah company formation fee?To register a Ras Al Khaimah free zone company/establishment, the Healy Consultants fees will be US$13,650, including corporate bank account opening.