For any entrepreneur, it is essential to be aware that a new business can thrive when operating in the right environment only. Start-ups need the proper facilities, regulatory framework, and location to trade effectively. The United Arab Emirates, with its pro-business initiatives, has become an ideal location for business investors. The jurisdictions provide a sense of clarity to the startups due to their advantages and disadvantages. Today, we are going to discuss on one such Emirate in the UAE, Ras Al Khaimah.
While it does not enter the global spotlight to the same degree as Dubai or Abu Dhabi, RAK has been quietly making a name for itself as a start-up haven in the UAE for several years now. It is cost-effective to run a start-up in RAK especially for a new entrepreneur who may want a competitive sandbox environment to try out a new concept or idea. Due to the same reason, the Emirate has witnessed an influx of foreign investors and have seen tremendous economic development over the years. The factors that have significantly attracted foreign investment are business-friendly relation with the neighbours, a thriving economy, state-of-art infrastructure, and liberal government policies.
For foreigners, it can be quite challenging to understand the system and regulation, but Ras Al Khaimah government allows foreigners to understand the rules easily- particularly when it comes to laws in specific business industries.
Apart from this, the presence of many logistics hubs such as seaports, international airports, and multilane superhighways has made the location turn out to be the first choice of investors. The proximity to one of the largest logistics hub in the world, Dubai makes RAK the most sought-after business destinations.
Overview on Procedure to Set up a Business in RAK
If you want to start a business in RAK, investors must select the appropriate business license. There are four main types of licenses available in RAK. They are as follows-
- Commercial License
- General Trading License
- Industrial License
- Consultancy License
Apart from this, the required documents to open a company in RAK are mentioned below-
- An application form
- Certificate of incorporation
- A brief description of the business objectives
- Bank reference letter
- Shareholders’ passport copies
- List of trade names application form
Entrepreneurs looking for forming a company must determine the business activities they would carry out. This will make it easy for them to choose their business license and run the company accordingly. Note that the company’s business license should reflect its services as well or else it would be considered illegal.
Why Must You Form a Company in Ras Al Khaimah?
Currently, more than 8,000 businesses are registered in Ras Al Khaimah due to low set up and maintenance cost provided by the Emirate. Other benefits of business setup in RAK include-
- No corporate or personal income tax
- No customs duty on exports, imports, or services
- Incentives for investors sponsored by the government
- 100% foreign ownership in the free zones
- Business-friendly environment and easy company setup process
- Hassle-free legal framework and security of investment ensured
- Companies in RAK offshore or RAK ICC companies can have the UAE bank accounts and worldwide bank accounts.
If you are interested in setting up a business in Ras Al Khaimah, then we at Commitbiz have time-tested options of registration and establishment of a modern and profitable business. All you need to do is contact us and get a free consultation. We assist with issues regarding business registration, visa registration, licensing of business and commercial activities, and PRO services.