Ras Al Khaimah is one of the seven Emirates in the UAE known for being a manufacturing and trading hub. For a few years, the government of RAK is committed to creating a favourable business environment by supporting the development of business and promoting Ras Al Khaimah as an international hub.
RAK also is one of the preferred destinations by investors for setting up their business. That is why the Emirate offers different legal entities for entrepreneurs and startups to register their business in RAK. Limited Partnership is one of the entities that business persons prefer.
What is a Limited Partnership in RAK?
According to the CCL, a Limited Partnership Company as a company which involves one or more active partners who are jointly and individually liable for the obligations of the company and act in the capacity of a businessperson, and one or more silent partners who are not responsible for the requirements of the business other than to the extent of their respective shares in the capital and do not act in the capacity of a trader.
Therefore, a limited partnership company is basically a modified joint liability company as in a joint liability company, and only UAE nationals may be active partners. Nonetheless, in a limited partnership company, foreigners may be silent partners who do not have a role in the management regarding third parties. In addition, a silent partner’s liability is limited to the extent of their share capital in the business. Silent partners may be included in internal control administration of the company but should, of course, ensure they do not lead third parties to believe they are anything other than a silent partner; otherwise, their limited liability will cease. The management of the limited partnership company is vested in the general (active) partners.
How to Register a LP in Ras Al Khaimah?
The steps to incorporate a business in Limited Partnership are as follows.
- Fill out the license application form at the RAK Department of Economic Development.
- Submit all the required documents
- Pay the fee
- Collect the license
The documents needed to register the LP in Ras Al Khaimah are -
- Passport copies for all partners and residency/visa details for expatriates
- Copy of the Citizen's Passport and ID card
- Copy of the Managing Director's Passport (if not one of the partners)
- Proof of Capital through a letter from a bank or Account Statements from an accredited auditor as requested by the Department
- Approval from other Governmental bodies according to activity
- No Objection letter for expatriate partners, certified by the Chamber of Commerce (if they do not work at the same establishment)
- Approved Rent Contract by the Municipality and a copy of property ownership after consent from the Inspection Division at the Department of Economic Development related to the site
- Certification of Partnership Contract by the Notary Public present at the Ras Al Khaimah DED
- Certification of Partnership Contract by the Ministry of Economy (through the typing centres at the Department of Economic Development)
How can we help?
Company formation in RAK is a lucrative proposition, and one must select the most appropriate legal entity to represent one's business. Commitbiz offers a wide range of highly consistent business management services that can help you realize your business initiatives in Sharjah. Our professionals specialize in company incorporation, registration, accounting, tax advisory, and bookkeeping services. If you are looking to set up a company in Sharjah or anywhere in the UAE, do contact us. We'll be glad to assist you.