Sole Establishment in Ras Al Khaimah

Are you looking to diversify products and services by looking for prospective places to start your business journey? Ras Al Khaimah, commonly referred to as the RAK, prides itself on providing a competitive advantage to entrepreneurs by providing support and promoting foreign investment. The Emirate has become a frontrunner for manufacturing and tourism, among other major industries in Ras Al Khaimah.

Before starting a business in the RAK, you must analyse which company structure best suits your business needs and objectives. It allows you to achieve excellence and grow sustainably. The article aims to focus on the benefits of choosing the Emirate for your business voyage and provide details about establishing a sole establishment in Ras Al Khaimah.

What is a Sole Establishment?

A sole establishment, also commonly known as a sole proprietorship is a business structure that is exclusively owned by a single individual. In other words, the trade license issued to the business is under the name of one individual.

Characteristics of Sole Establishment in RAK

  • Unlimited liability
  • Full profit repatriation
  • Can wrap up operations easily
  • The business has a sole owner
  • No minimum capital requirements
  • No need for setting up a separate legal entity

Note- Both ex-pats and Gulf Cooperation Council (GCC) residents can form a sole establishment in Ras Al Khaimah. However, the conditions and requirements differ.

Benefits of Starting Your Business in the RAK

Understanding the benefits prevalent within Ras Al Khaimah allows you to plan your business steps and set objectives. Let us take a look at a few prominent benefits:

Streamlined Business Setup

The company formation and licensing process is streamlined due to support provided by the authorities in the RAK.  Additionally, you can benefit from a favourable regulatory environment and various incentives promoting inbound investment within the freezone.

Tax Exemptions

You can exempt your liability towards personal, value-added tax (VAT) and customs duty on import-export within the GCC. Additionally, Ras Al Khaimah has signed several Double Taxation Agreements (DTA) with several nations ensuring you are not taxed twice during the import-export process.

Top-notch Infrastructure

Ras Al Khaimah provides entrepreneurs with modern amenities and access to world-class infrastructures. Other utilities include increased accessibility due to well-connected conveyance facilities and reliable telecommunication services.

Asset Protection and Business Confidentiality

RAK authorities have put in place strict laws thereby providing businesses security and protecting their assets. The transparent and robust regulations ensure business processes are easy and ensure confidentiality.

Access to Free Trade Zones

Ras Al Khaimah hosts multiple free trade zones, such as the RAK Free Trade Zone (RAK FTZ) and the RAK Investment Authority (RAKIA). These zones provide compelling benefits like full foreign ownership, tax exemptions, and simplified business set up procedures.

How to Establish a Sole Establishment in Ras Al Khaimah

The procedures for setting up a sole establishment in the RAK can differ depending on whether you are a GCC resident. In this article, we will mention the common steps to give you a general idea.

Step 1- Avail a trade name certificate from the Department of Economic Development (DED). The chosen business name should be unique and align with your business activity

Step 2- Obtain initial approval from the DED along with additional permits and clearance from relevant authorities

Step 3- Complete the application process and submit the requisite documents to the authorities

Step 4- Once the provided information and documents are verified, your company will be registered

After completing all the above-mentioned steps, you can apply for a relevant business license and start operating legally within Ras Al Khaimah.

Why Commitbiz?

Starting a business in RAK is a lucrative proposition due to the benefits prevailing. However, if you don’t have enough information about the markets in Ras Al Khaimah, our team at Commitbiz can guide you. We are dedicated to solving all your business problems. Our business advisors offer you top-notch services that provide end-to-end support throughout your business journey. Contact us if you want more information regarding setting up a sole establishment in Ras Al Khaimah.


What are the documents required while establishing a sole establishment in RAK?

A few of the documents that are required include a passport copy of the individual, a trade name certificate and a lease agreement.


Are foreign entrepreneurs allowed full ownership for setting up a sole establishment in the RAK?

Yes, ex-pats are allowed full autonomy over business operations and profits.


Is a local service agent (LSA) necessary for the formation of a sole establishment in Ras Al Khaimah?

No, having a local agent is not necessary for foreign entrepreneurs when setting up a sole establishment in the RAK.