DOING BUSINESS IN RAS AL KHAIMAH
For over a decade, Healy Consultants has been efficiently and effectively assisting our Clients with i) business registration ii) business licensing iii) RAK business banking solutions iv) accounting and tax strategies.
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Advantages and disadvantages
Advantages of RAK company registration
- RAK company registration is an excellent alternative to Dubai free zone company formation. RAK offers faster incorporation as well as a great range of office and warehousing facilities;
- If properly structured,a Ras Al Khaimah 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. Its strategic location provides access to over 1.2 billion consumers in the Middle East and Africa;
- Investors can take advantage of abundant supplies of competitively priced energy;
- 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 25th least corrupt country in the world, according to the 2014 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians;
- Since the past few years, RAK has averaged an astounding 8% of economic growth;
- 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 registration
- 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.
- Time to incorporate: Two weeks
- Cost to set up: US$14,850
- Minimum capital: US$40,850
- Physical office required: Yes
- Shareholders: 1
- Directors: 1
- Company secretary: No
- Resident director: No
- Corporate tax rate: 0%
- Corporate tax base: Territorial
- Shelf companies: Unavailable
- Main company type: Limited company
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.
Do I need a RAK free zone physical office or will a virtual address be sufficient?This depends on our client business. If our Clients will operate an offshore company a virtual office will be accepted. A physical office premises must be leased if our Clients intend to conduct business within the UAE.
If required, HC will assist our Clients with securing suitable office space within the RAK free zone.
I want to register a new business in RAK 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.
Useful links for Ras Al Khaimah
Government and public authority websites:
- RAK Free Trade Zone: The Gateway to Fast-Growing Global Market
- Doing Business in RAK Simple and Cost Effective
- RAK The Cost-effective Investment Destination
- Ras Al Khaimah Free Trade Zone set for expansion
- Taxation of Cross-Border Mergers and Acquisitions
- Destination Ras-al-Khaimah
- Invest in Ras-al-Khaimah
- Ras-alKhaimah; A Rising Emirate
- Investment Opportunities in Ras-al-Khaimah
- RAKFTZ – RAK Free Zone