Limited Liability Company in Ras Al Khaimah

Ras Al Khaimah, a vibrant business hub offers business enthusiasts like you a wide range of opportunities for growth. With its strategic location, Ras Al Khaimah or RAK is a popular choice for entrepreneurs across the globe when it comes to setting up a business.

You have the option of choosing among different business structures in RAK. A Limited Liability Company (LLC) is a popular type of business structure and we take a look at what an LLC is and other important details related to it and how to go about starting a Limited Liability Company in Ras Al Khaimah.

Details of an LLC in RAK

An LLC is a legal business structure that allows its shareholders to be accountable only for their investment in the company’s capital. It is controlled by the Department of Economic Development (DED), RAK and must abide by the Commercial Companies Law (CCL).

When you establish an LLC, you can avail tax benefits such as no corporate and personal income tax. This type of business structure permits you to protect your assets, provide clients with confidentiality, and own properties in the UAE among others.

A Limited Liability Company in RAK can trade all over the UAE and GCC. An LLC can also be used as a holding company for other companies' shares and can participate in loaning and borrowing funds.

Features of an LLC Company in Ras Al Khaimah

There are some features of a limited liability company. Let us take a look: 

1. By establishing an LLC in RAK, you get full ownership.
2. An LLC in RAK must have a minimum of two shareholders and a maximum of 50 shareholders.
3. Your LLC in Ras Al Khaimah must have at least one director and a maximum of five directors.
    

Documents Required to Start a Limited Liability Company at RAK

For starting the process of LLC business setup in RAK, the following documents must be submitted along with the application form- 

• Trade Name Certificate
• Copy of the rent contract
• Initial approval from the relevant authorities
• Confirmation of Funds (Letter from the Bank)
• Partnership contract issued by the DED, RAK
• Passport copies of all the Managing Directors and Partners.
• Certified No Objection Certificate (NOC) from the partners (Certified by the Chamber of Commerce)
   

How do you Start an LLC in Ras Al Khaimah?

The step-by-step guide for setting up an LLC in RAK is discussed below - 

1. Decide Business Activity and Name 

To establish a Limited Liability Company in RAK, you will need to decide a business activity and a trade name. The name of the LLC should match the business activity and conform to the naming conventions set by the Ras Al Khaimah Economic Zone (RAKEZ).

2. Choose a Jurisdiction

The Emirate offers LLC company formations in three jurisdictions. They are - RAK Offshore, RAK Mainland, and RAK free zones.

3. Register with the Authority

You need to register the LLC with the authorities by submitting the application along with the required documents to the DED authorities in RAK or other relevant authorities in your chosen jurisdiction by paying the requisite fee.

4. Secure Necessary Licenses

You need to apply for the Trade License and other specific licenses from the respective authorities to start business operations.

Follow these steps carefully to avoid any complications. You can also seek the assistance of business experts from Commitbiz to guide you through this procedure.

Now that you have gained insights into the nuances of LLC setup in Dubai, you can tread down the path of company formation with us. Reach out to us today and let our business experts guide you through the legalities and application process and help reach new heights in the world of entrepreneurship.