Ras Al Khaimah company registration

DOING BUSINESS IN RAS AL KHAIMAH IN 2020

For over a decade, Healy Consultants Group PLC 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.

Summary table of Ras Al Khaimah company registration

SummaryLLCFree zone LLCLegally tax exempt LLCCommercial agencyBranch office
Also known asSharakah dhat masyuwlih mahduduhSharakah dhat masyuwlih mahduduhSharikat tijariat dualiaWikalat tijariaMaktab firei
Best use of company?Professional servicesAll products and servicesInternational servicesManufacturing and export tradingSpecific projects
How soon can you invoice Clients/sign sales contracts with local customers?2 months2 monthsCannot trade locally1 month3 months
How soon can you invoice Clients/sign sales contracts with international customers?2 months2 months2 weeks1 month3 months
How soon can you hire staff?2 months2 months2 weeks1 month3 months
How soon can you sign a lease agreement?1 month1 monthCannot rent office premises1 month2 months
How long to supply corporate bank account numbers?1 month1 month1 month2 months1 month
How long to supply company registration/tax numbers?2 months2 months2 weeks1 month3 months
Corporate tax rate on annual net profits?0%0%0%0%0%
Limited liability entity?YesYesYesNoNo
Government grants available?NoYesNoNoNo
Government approval required for foreign owners?NoNoNoNoNo
Resident director/partner/manager/legal representative required?YesNoNoYesYes
Minimum paid up share capital?US$41,000US$30,000US$41,000NoneNone
Can bid for Government contracts?YesNoNoNoYes
Can do business with UAE customers without appointing local agent?YesNoNoNoYes
Can do business with UAE customers by appointing local agent?YesYesNoYesYes
Corporate bank account location?First Arab BankADCBEmirates NBDRAK BankHSBC
Can secure trade finance?YesYesYesYesYes
VAT payable on sales to local customers?5%0%Cannot trade locally5%5%
Average total business set up engagement costs?US$23,400US$21,800US$11,870US$16,200US$23,400
Average total engagement period?3 months3 months6 weeks2 months4 months

Ras Al Khaimah company registration summary

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  • Advantages of RAK company registration

    business registration in RAK

    1. Setting up a company in Ras Al Khaimah Free Zone is straightforward and simple because:
      • Only a minimum of one shareholder and one director, who can be the same individual, is required to establish a company within Ras Al Khaimah Economic Zone;
      • There are no restrictions on the maximum number of shareholders, and corporate shareholders are allowed. Additionally, there is no register of shareholders or directors for RAKEZ companies;
      • Our Clients do not need to travel to Ras Al Khaimah to sign company incorporation forms and the incorporation process can be completed within 2 weeks;
      • The UAE has signed 94 double taxation agreements to eliminate double taxation an provide protection to taxpayers.
    2. Ras Al Khaimah is a strategic location to establish a business in UAE because:
      • Located close to the Straits of Hormuz and only 40 minutes away from the center of Dubai, Ras Al Khaimah (“RAK”) is a prime location that provides access to over 2.2 billion consumers in the Middle East, Africa, and the rest of the world;
      • Ongoing discussions with countries such as the US and Japan to create free trade agreements, potentially giving UAE firms, including those in RAK, free access to markets numbering over 500 million people;
      • In the past few years, RAK has averaged an outstanding 1.5%-2% of economic growth;
      • Due to its location at the mouth of the Arabian Gulf, RAK has massive logistical benefits including 5 seaports and an international airport led by Saqr Port which is the prime bulk port in the Middle East.
    3. Setting up a company in Ras Al Khaimah Economic Zone – (RAKEZ) will be advantageous to our Clients because:
      • Ras Al Khaimah Free Zone Authority (“RAKEZ”) company registration is an excellent alternative to Dubai free zone company formation. RAKEZ offers prompt incorporation as well as a vast range of office, warehousing facilities and land for development;
      • If properly structured, RAKEZ company is an ideal way to book international profits without paying local corporation tax legitimately. Besides, there are no capital gains or personal income taxes in RAK;
      • RAKEZ allows investors to register, i) Free Zone Company, ii) local branch of an existing UAE company and iii) foreign branch of an existing company;
      • RAKEZ company can wholly repatriate its capital and profits and there are not exchange controls imposed by the RAK Authorities;
      • Additionally, a branch company can be wholly foreign-owned, and is not subject to an annual audit;
      • A RAKEZ company can sponsor multiple UAE residence and employment visas for investors, entrepreneurs and employees. For more information, kindly visit our migration and relocation services page;
    4. Our Clients who wish to do business internationally can establish an offshore company in RAK International Corporate Center:
      • Ras Al Khaimah International Corporate Center (“RAK ICC”) company registration is an excellent alternative to the UAE offshore company formation;
      • Through a RAK ICC offshore company, it is possible to have an entity and business address without the legal requirement to rent a physical office and employ staff locally;
      • RAK ICC company allows conducting most business activities. Moreover, it allows multi-activity for the same company, such as trading, consulting, construction, real estate, marketing, travel, and tourism, and others;
      • RAK ICC registered company can own freehold properties and lands in the designated areas in Dubai. There are 23 freehold areas in Dubai, which include: Dubai Marina, Downtown Dubai, Jumeirah Village Circle, and Palm Jumeirah.
  • Disadvantages of RAK company registration

    1. A limited liability company (LLC) requires a minimum of 51% shareholding by UAE citizens;
    2. 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;
    3. Most entities are required to submit annual audited accounts to the government;
    4. Transportation is a major issue of concern within and outside RAK. There are no frequent public transport services in RAK, and the main means of transportation are taxis. Moreover, RAK is connected to other emirates by private taxis and infrequent public bus facilities.
  • Best uses of RAK company registration

    1. RAK offers an excellent corporate structure for clients looking for a legally tax-exempt structure to do business globally.

Company registration

  • Time to incorporate: 8 weeks
  • Cost to set up: US$21,800
  • Minimum capital: US$40,850
  • Physical office required: Yes

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 0%
  • Corporate tax base: Territorial
  • Shelf companies: Unavailable
  • Main company type: Limited company

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Contact us

For additional information on our Ras Al Khaimah free zone company registration services in Ras Al Khaimah, please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi