RAK Free Zone – Leaders Hub

Ras Al Khaimah Free Zone Company Setup

Ras Al Khaimah (RAK) is becoming a top spot for business setup in the UAE, offering zero corporate taxes, 100% foreign ownership, and flexible licensing options. With its prime location and easy access to global markets, RAK is perfect for both mainland and free zone companies.

This guide will cover the key steps for setting up a company in RAK, from getting a trade license to visa processing, to help your business succeed in this growing economic zone.

100% Foreign Ownership Advantage

Zero Corporate & Income Tax

Prime Trade Route Access

Cost-Effective Business Setup

Mainland Company

Free Zone Company

Offshore Company

Bank Account Opening

Visa Services

Types of Business Setup in Ras Al Khaimah

Businesses in the RAK Mainland are regulated by the Department of Economic Development (DED). Mainland companies are suitable for businesses looking to operate within the UAE market, without restrictions on local and international trading.

RAK’s free zones provide ideal conditions for companies looking for full foreign ownership and tax benefits. Each free zone is designed to cater to specific sectors and offers a range of services and infrastructure tailored to business needs.

Step-by-Step Process of Company Formation in Ras Al Khaimah

Determine the Business Activity

Choose the specific activity your business will engage in (e.g., commercial, industrial, professional). This will guide the type of license and approvals needed.

Select the Business Structure

Decide on the legal entity type (LLC, Free Zone Company, Offshore Company, Sole Establishment, etc.), which impacts ownership, liability, and operational requirements.

Choose the Jurisdiction

Select whether your business will operate in Mainland, a Free Zone, or as an Offshore entity. Each jurisdiction has different regulations and benefits, such as foreign ownership rights and tax incentives.

Reserve Your Trade Name

Reserve a unique trade name that complies with UAE regulations. It must reflect the nature of the business and adhere to the naming guidelines set by RAK authorities.

Obtain Initial Approval

Submit an application to the Department of Economic Development (DED) or the relevant Free Zone Authority to receive initial approval for your business activity.

Draft and Notarize Legal Documents

Prepare the required legal documents, including the Memorandum of Association (MOA) and Articles of Association (AOA), and have them notarized. These documents outline the structure and operation of the company.

Secure Office Space

Lease office space as required for the business. Free zones offer virtual office options, while mainland companies must rent a physical office space that complies with local regulations.

Submit Documents and Pay Fees

Submit the necessary documents, including the notarized legal papers, trade name certificate, and initial approvals, along with the required registration and licensing fees to the appropriate authority.

Obtain Your Business License

After the approvals, you will be issued your business license, enabling you to legally operate your company in RAK.

Apply for Visas

Apply for the relevant visas for business owners, employees, and dependents. Free zones provide flexible visa options depending on the size of the business.

Open a Corporate Bank Account

With your trade license, you can open a corporate bank account in the UAE to manage the financial operations of your company.

Investment Opportunities for Business in Ras Al Khaimah

Warehousing & Distribution RAK’s ports and airports support efficient overall distribution.

Trade & Commerce Tax incentives and transport routes make RAK ideal for import-export.

Industrial & Manufacturing RAK offers industrial parks, affordable energy, and market access.

Tourism & Real Estate Growing tourism and luxury projects attract real estate investments.

Mining & Minerals RAK’s limestone and ceramics create opportunities in mining.

Maritime Services RAK’s ports facilitate global trade, making it a key logistics hub.

Legal and Regulatory Requirements for Starting a Business in RAK

Capital Requirements

The capital required depends on the jurisdiction and business type, with free zones generally having lower thresholds.

Office Space Regulations

Mainland companies need a physical office, while free zone setups offer flexible options like virtual offices or flexi-desks.

Local Sponsorship

Mainland businesses require a UAE national to hold 51% ownership, but in RAK Free Zones, 100% foreign ownership is allowed.

Visa Requirements

Visa packages depend on office size and location, with free zones offering tailored options for foreign workers.

Benefits for Business Setups in RAK, UAE

Low Setup Costs

Robust Infrastructure

100% Foreign Ownership

Skilled Workforce Access

Flexible Licensing

Easy Setup & Visa

Zero Corporate Taxes

Diverse Free Zones

Required Documents for RAK Company Formation

Passport Copies

Copies of all shareholders’ and managers’ passports.

Visa & Entry Stamp

UAE entry visa copy for non-UAE nationals.

Passport Photos

2-4 passport-sized photos of shareholders and managers.

No Objection Certificate (NOC)

Required from current employer if UAE residents are employed.

Trade Name Reservation

Certificate showing approved company name.

Initial Approval Certificate

Approval for business activity and legal structure.

Memorandum of Association (MOA)

Defines shareholder roles and capital; must be notarized.

Articles of Association (AOA)

Required for public/private shareholding companies.

Lease Agreement

Proof of business premises or virtual office.

Local Sponsor Agreement

Agreement between foreign investor and local sponsor.

Bank Reference Letter

Demonstrates financial standing from the bank.

Power of Attorney

Authorizes a representative to act for the business owner.

Types of Business Licenses in RAK

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Commercial License

This license is for businesses involved in buying, selling, and distributing goods. It’s one of the most commonly issued licenses, covering trading activities, including both general and specialized trade.

Professional License

Issued to individuals or businesses that provide services requiring specific expertise, such as consulting, accounting, law, or medical services. This license allows for 100% foreign ownership.

Industrial License

Required for businesses involved in manufacturing or industrial activities. This license covers everything from importing raw materials to manufacturing and exporting finished goods.

Tourism License

Tailored for businesses in the travel and tourism sector, such as hotels, travel agencies, and tour operators, this license is crucial for operating within RAK’s growing tourism industry.

General Trading License

A broader version of the commercial license, allowing businesses to trade multiple types of goods without restriction.

Service License

For businesses offering services such as IT, consulting, or business support. This license is essential for companies that don’t trade in physical goods but provide non-tangible services.

Types of Business Entities Permitted in RAK

Foreign Company Branch

Foreign firms can operate in RAK under the parent company’s name, without forming a separate entity.