Business Setup in RAK Mainland

Ras Al Khaimah (RAK) is a top choice for starting a business in the UAE, offering zero corporate tax, full foreign ownership, and flexible licenses. With easy access to global markets, RAK is ideal for trade and investment.

This guide will walk you through the steps to set up your business in RAK mainland, covering everything from getting a trade license to visa processing.

100% Foreign Ownership Allowed
Zero Corporate & Income Taxes
Access to Global Markets
Affordable Business Setup Costs
Diverse Free Zone Options

Business Setup

Company Formation

Bank Account Opening

Visa Services

Types of Business Setup in Ras Al Khaimah

RAK Mainland Business Setup

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 Free Zone Business Setup

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.

RAK Offshore Business Setup

Offshore businesses are designed to operate outside the UAE with minimal regulatory requirements. These companies do not require a physical office and are often used for international trade, holding assets, and investment activities.

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

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

 
 
 

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.

 
 

Types of Business Entities Permitted in RAK

Joint Venture: A partnership between a UAE national and a foreign investor. Profits and responsibilities are shared as per agreement.
Sole Establishment : Owned by one person with full control but also full liability. Common for consultants and service providers.
Limited Liability Company (LLC) : Popular business structure with 2-50 shareholders. Limits liability to invested capital. Ideal for local market access.
international Business Company (IBC) : For international trade, offering 100% foreign ownership and confidentiality. No physical presence needed in the UAE.
Public Shareholding Company (PJSC) : Allows public shareholding with a minimum of 10 shareholders. Common for large companies raising capital.
Offshore Companies : Used for international business outside the UAE. No physical office, 100% foreign ownership, and tax-free.
Free Zone Companies (FZC) : 100% foreign-owned, tax-free, and can repatriate profits. Operate within free zones and need a local agent to trade in the UAE.
Branch of a Foreign Company : Allows a foreign company to set up a branch under the parent company’s name and structure.
Private Shareholding Company : Similar to a PJSC but not publicly traded. Needs at least three shareholders, suitable for family or private businesses.
Professional Services Company : For professionals like lawyers and doctors. Allows 100% foreign ownership but requires a local service agent.

Benefits for Business Setups in RAK, UAE

Economic Stability Support

Flexible Licensing Choices

Strong Infrastructure Network

Full Foreign Ownership

Variety of Free Zones

Tax-Free Income

Types of Business Licenses in RAK

Professional License

For individuals or businesses offering specialized services like consulting, accounting, or medical services.

Industrial License

For businesses in manufacturing or industrial activities, including importing materials and exporting products.

Tourism License

For businesses in the tourism sector, such as hotels, travel agencies, and tour operators.

Commercial License

For businesses involved in buying, selling, and distributing goods. Covers both general and specialized trading.

Service License

For businesses offering non-physical services like IT or consulting. Suitable for companies that don’t trade goods.

General Trading License

A broad license for businesses trading various types of goods without restrictions.

Requirements for Starting a Business in RAK

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Capital Requirements

The capital required depends on the jurisdiction (Mainland, Free Zone, Offshore) and business type, with free zones generally having lower thresholds.
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Local Sponsorship

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

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

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

Investment Opportunities for Business in Ras Al Khaimah

Industrial and Manufacturing

RAK offers industrial parks, affordable energy, and market access, ideal for manufacturing.

Warehousing and Distribution

RAK’s ports and airports support efficient regional and global distribution.

Trade and Commerce

Tax incentives and transport access benefit import-export businesses.

Tourism, Real Estate, and Construction

Growing tourism and real estate sectors offer profitable opportunities.

Food Processing and Dairy

Infrastructure supports food processing and agricultural exports.

Mining and Minerals Exploration

RAK’s resources, like limestone, offer investment in mining.

Required Documents for RAK Company Formation

Passport Copies: Copies of passports for all shareholders, directors, and managers.
Visa and Entry Stamp: A copy of UAE entry stamp or resident visa for non-UAE nationals; Emirates ID if needed.
Passport-sized Photos: 2-4 passport-sized photos of shareholders, directors, and managers as per UAE requirements.
No Objection Certificate (NOC): For UAE residents with jobs, a letter from the employer approving the new company setup.
Trade Name Reservation Certificate: Proof of registered company name from DED or free zone authority.
Initial Approval Certificate: Approval from DED or free zone authority for business activity and legal structure.
Memorandum of Association (MOA): Document defining roles and responsibilities of shareholders; must be notarized in the UAE.
Articles of Association (AOA): Required for certain companies to outline their internal structure.
Lease Agreement: Agreement for business premises (for mainland companies) or virtual office (for free zones).
Local Sponsor Agreement: Required for mainland companies, showing a partnership with a UAE national sponsor.
Business Plan: Description of company’s activities, goals, and setup plan; needed for some business types.
Power of Attorney: If a representative is handling the setup, a document authorizing them to act on behalf of the owner.

Business Setup Consultants in Ras Al Khaimah RAK

How Leaders HUB Can Help?

Leaders HUB is renowned as one of the top business setup consultants in Dubai, with over 15 years of experience facilitating a wide range of businesses throughout the UAE. Our deep connections with government officials and key authorities, combined with our extensive expertise in consultancy, streamline the process of establishing your business in Dubai. Additionally, we offer comprehensive financial, legal, and corporate services to support our clients throughout their business endeavors.

We are here to provide comprehensive support for your Business Setup in Ras Al Khaimah RAK, from preparing your documents to completing the process. Connect with us now to begin your journey with a FREE consultation!

ASK WHAT YOU WANT TO KNOW

FAQS

How do I open an offshore company in RAK?
To open a RAK offshore company, submit the required documents (passport copies, application forms, and MOA), reserve a trade name, and pay the registration fees to the RAK International Corporate Centre (RAK ICC).

How to Choose Office Space in Ras Al Khaimah?
Office space in RAK depends on your business type and jurisdiction. Free zones offer flexible options like virtual offices, while mainland companies require a physical office space.
Is having a physical office mandatory for RAK business?
Mainland companies in RAK must have a physical office, but free zone companies offer options like flexi-desks and virtual offices for more flexibility.
Is it mandatory to have a local resident director in RAK?
For mainland companies, a local sponsor is required, but free zone and offshore companies do not need a local resident director or sponsor.
What are the benefits of RAK offshore company?
RAK offshore companies offer 100% foreign ownership, no corporate tax, full capital repatriation, and confidentiality of shareholder information.
Which are the free zone parks in Ras Al Khaimah?
RAK has several free zone parks, including RAKEZ Business Park, Industrial Park, Technology Park, and Academic Zone, each catering to different industries.
Still Have More Questions?
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Leaders Hub, a subsidiary of Happy Home Holding Ltd, was established 2002 in Dubai, UAE in 2024 and is a business centre includes private offices, virtual offices, coworking space, and meeting rooms.

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