Ras Al Khaimah is one of the seven Emirates located just 45 minutes from the city of Dubai with close proximity to Oman. Its location and government efforts to market the region as the ideal business incorporation location has positioned it as the go to investment region for foreign investors. The Emirate hosts a wide range of international companies that boost its economic growth making it ideal for investors seeking to tap into the international markets.
The business setup in RAK is affordable and also minimal in terms of costing. Thus, it is one of the best destinations in the UAE to start your business.
Advantages of Setting up a Business in RAK Mainland
The benefits of opening a company in RAK are –
- You can operate your company from any part of UAE
- No capital required for a local mainland license
- You can carry out business in all Emirates mainland
- Easy processing of employment visas
- Hassle free legal procedures to get the license and registration
- Simple incorporation process
- No audit requirement
- No restrictions on business activity
Requirements to Set Up a Company in Ras Al Khaimah Mainland
One of the most essential part of establishing a business in mainland RAK is to appoint a local sponsor. An appointed local sponsor for your foreign business will own 51% of the shares in the business and the remaining will be owned by the foreign owner. In case of professional license, foreigners hold 100% shares of their business. But they will appoint a local service agent for their assistance
apart from this, you must get approval from RAK DED (Department of Economic Development), (Municipality), MoL (Ministry of Labor), MoI (Ministry of Interior) and other related authorities are mandatory for mainland company formation. Special approval from concerned authorities may be required for certain business activities.
Procedure of Opening a Company in RAK Mainland
RAK mainland company formation is regulated by the UAE government policies and legal structure. RAK business setup process is easy but investors must adhere to documentation formalities and legal procedures that include –
- Choose the trade name for your business which is not similar to the name of any existing business in RAK
- Select the type of legal entity for your business. The options include –
- Limited Liability Companies
- Public Shareholding Companies
- Professional Firms
- Branch Of Foreign Companies, and
- Representative Offices
- Appoint a local sponsor as mentioned in the requirements
- Select the type of business activity and it will help you choose the appropriate business license
- Submit the documents required to obtain the license with the Chamber of Commerce and the DED
- Notarize the company’s Memorandum of Association
- Obtain the additional approvals if the business activity needs you to
- Pay fees and obtain the license
The documents required to incorporate business in RAK are –
- Certified copy of the tenancy contract
- Photocopies of no objection letter, visa, passport, and residence certificates
- Copy of land map or ownership certificate
- Obtaining consent of legal affairs
- License application form and sign board
- Obtaining approval ministry of economy
- Ensuring all important approvals from government entities, if required
- Receiving certification of partnership contract from the notary public
- Copies of national ID and family book
- Getting technical evaluation report
- Obtaining a trade name certificate
We at Commitbiz can help you with the business setup process in RAK mainland. Our consultants have years of experience in this field and can make the process hassle-free. Right from business incorporation to office space, we cover it all. Contact us today for more information.
