Ras Al Khaimah is an Emirate in UAE that shares its mountain borders with the Sultanate of Oman. It is in proximity to Dubai and is a well know offshore jurisdiction for International Business Corporations.
RAK is investing heavily in infrastructure and industrial setups such as warehouses, office buildings, business parks, etc., to transform it into one of the busiest places to do business in UAE.
There are several factors driving the business infrastructure investment in RAK. The liberal government policies towards business set up by foreign investors is a major reason for the rapid growth of RAK into a business hub of UAE.
Type of Business Setup in RAK
The business setup in RAK is similar to the processes followed in Dubai, and the other Emirates of UAE. To conduct any form of trade in UAE be it online or physically, one must be having a valid trade license here in UAE.
In RAK there are three types of business setup options available for investors. It is the Mainland, RAKEZ Free Trade Zone, and the RAKICC Offshore (operating at the same premises of RAKEZ Free Trade Zone).
Specialist Consultants such as AURION is well equipped with the latest business laws governing the business setup in RAK and the whole of UAE.
In RAK, there are several Business License Types Available:
- Industrial License
- Commercial License
- General Trading Licensee
- Professional License
- Ecommerce License
Advantages of Setting Up a Company in RAK
- Long term good relations with neighboring emirates
- Trust among the local population and business-friendly measures by the RAK Government
- Ease of setting up a company in RAK
- No personal or income tax
- No trade barriers for international trade
- No customs duty on imports into RAKEZ
- Corporate friendly business laws and framework to promote trade and economy
- 100% foreign ownership and profit repatriation
- World-class infrastructure, fully furnished office spaces,
- Easy access to the Sea Port – Port Saqr is one of the prominent ports of UAE facilitating global trade
1. RAK Economic Zone (RAKEZ)
The Ras Al Khaimah Economic Zone is a popular investor destination mainly for trading companies.
There are customizable warehouse facilities and plots of industrial land for development. Also, there are spaces for staff accommodation, all at an affordable package.
Custom Made Office Space, Warehouses and Industry Facility
RAKEZ also offers a host of business activities for the investors and suitable office spaces ranging from Flexi-desk to fully furnished offices.
To cater to a wide audience group of investors with varying business activities, the RAKEZ Free Trade Zone consists of three Industrial Zones.
They are specifically built for establishing large scale, heavy-duty manufacturing, and light manufacturing industries. RAKEZ also has two Business Centres for Small and Medium Companies and freelancers.
To know more, read about: RAKEZ Free Trade Zone
2. RAKICC Offshore
The RAK International Corporate Centre (RAKICC) is the Corporate Registry operating in Ras Al Khaimah, UAE that governs the offshore (International Business Companies) company formation and allied services.
RAKICC is one of the most trusted and secure jurisdictions for setting up an International Business Company.
Types of License Categories in RAKICC
There are three types of license categories in RAKICC for Offshore Company setup.
- Company Limited by Share
- A company limited by Guarantee
- Unlimited Company
All these companies have distinct characteristics and are formed for various purposes. The companies can be structure into:
- Holding Company (Limited by shares)
- A Tax-Saving Mechanism (unlimited),
- Tenant Associations (limited by guarantee), real estate development companies, etc.
There is a wide range of business activities such as general trading, consulting, construction, marketing, manufacturing activities, etc., available in RAKICC.
It is to be noted that companies operating in RAKICC Offshore can only conduct international trade and not directly sell inside UAE.
Also, the Offshore Company is out of the purview of local UAE legal laws and governance and there is no resident visa issued under the offshore company in UAE.
RAK Premium Product Package – Host of Investor Benefits
RAK Premium Product Package allows RAKICC Company to set up a subsidiary in RAKEZ and carry out activities onshore in UAE. Also, the RAKICC Company is now eligible for property purchases in Dubai under the company name.
Read to know more: How to Purchase a Property in Dubai through a RAKICC Company
Hence, there are several key advantages for the investors to register an offshore company in RAKICC. The choice has to be made with thorough research on the limitations too. With the premium package, offshore company investors can enjoy the onshore status, conduct business in UAE, rent out space in RAKEZ, apply for a bank account, continue business locally and internationally.
3. RAK Mainland Company Formation
RAK is allowing 100% foreign ownership in the mainland. In measures to promote trade and drive in more investors. RAK has improved the ease of doing business in the mainland. RAK also allows investors to add partners and transfer ownership to new investors.
100% Foreign Investment in Mainland Companies in RAK
Companies setting up under this FDI structure will be considered national companies and will have full confidentially of technical, economic, and investment information.
The RAK Economic Zone (RAKEZ) and RAK’s Department of Economic Development (RAK DED) have agreed on a new company formation structure under the Emirates’ program.
New Company Formation Structure by RAKEZ & RAK DED
The program aims to drive in more foreign investment into key industrial sectors and services. For those business activities that fall under the eligible sectors for 100% FDI issued by UAE Cabinet, the RAK DED will reserve the trade name and issue the FDI license.
After which, RAKEZ will issue the required business license and documentation to the investors. There are huge opportunities across various industrial sectors like agriculture, manufacturing, transport and storage, food services, information and communications, healthcare, entertainment, construction, etc.
To know more about company formation in Ras Al Khaimah and the business opportunities, talk to our expert team right away!