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Business Setup in Ras Al Khaimah(RAK)

Ras Al Khaimah (RAK), one of the seven emirates of the United Arab Emirates (UAE), has been growing steadily in recent years as an attractive destination for investors and entrepreneurs looking to start or expand their businesses in the region. 

RAK offers a diverse economy, a business-friendly environment, and access to international markets, making it an ideal location for businesses of all sizes and industries. We will discuss setting up a business in RAK, including the types of legal entities available, the registration process, and the benefits of doing business in this emirate.

Our packages include the following:

  • Business License
  • Investor Visa
  • Memorandum and Articles of associsation
  • Incorporation Certificate

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Set up a Business in RAK

Why Set up a Business in RAK?

There are several compelling reasons entrepreneurs and businesses should consider setting up their business in Ras Al Khaimah (RAK). Firstly, RAK offers a strategic location with access to international markets close to major ports and airports in the UAE. Additionally, RAK offers a business-friendly environment with low costs of doing business, competitive company setup costs, and a simple and efficient business setup process. RAK also has several free zones that offer 100% foreign ownership, tax exemptions, and other incentives to foreign investors. 

Moreover, RAK has a diverse economy with thriving tourism, manufacturing, real estate, and trade sectors. Finally, RAK has a stable political and economic environment with a pro-business government committed to promoting foreign investment and economic growth. Overall, setting up a business in RAK offers entrepreneurs and businesses access to a dynamic market, a supportive business environment, and a gateway to the broader region.

    Types of RAK Company Formation

    Gryffin Capitalist is familiar with RAK company formation laws and regulations and can help you set up your business and obtain the necessary licenses. There are several types of company formation options available in Ras Al Khaimah, which include:

    • Free Zone Company (FZC)
    • Offshore Company
    • Limited Liability Company (LLC)
    • Branch Office

    Different Business Entities in Ras Al Khaimah

    Ras Al Khaimah (RAK) is one of the seven emirates of the United Arab Emirates (UAE). It is known for its business-friendly environment and tax incentives, making it a popular destination for entrepreneurs and investors. Here are some of the distinct business entities in Ras Al Khaimah:

    • Free Zone Company
    • Offshore Company
    • Limited Liability Company (LLC)
    • Sole Proprietorship
    • Branch Office
    • Joint Venture
    • Partnership

    Ras Al Khaimah Business License

    Ras Al Khaimah (RAK) offers different business licenses, depending on the business activity you want to conduct. Here are some common business license types in RAK:

    • Commercial License
    • Industrial License
    • Professional License
    • Tourism License
    • Media License
    • Educational License
    • E-commerce License

    Procedure to Set up a Company in RAK

    Setting up a company in Ras Al Khaimah (RAK) requires following a few steps and procedures. Here is an overview of the process:
     

    1.Determine the Business Activity

    First, you must decide on the business activity you want to conduct in RAK. This will determine the type of business entity you need to set up and the legal requirements that need to be fulfilled.
     
    2. Choose a Business Entity

    Choose a suitable business entity from the abovementioned options based on the business activity.
     
    3. Choose a Company Name

    Choose a unique name for your company and ensure it complies with the RAK Department of Economic Development (RAK DED) naming conventions.
     
    4. Obtain Initial Approval

    Obtain initial approval for your business activity and company name from RAK DED.
     
    5. Draft the Memorandum of Association (MOA)

    Draft the MOA outlining the company's structure, shareholding, and activities. This needs to be notarized by a public notary in RAK.
     
    6. Obtain Trade License

    Apply for a trade license from the RAK DED. This license allows you to conduct business in RAK.
     
    7. Obtain Other Required Approvals

    Depending on the nature of your business activity, you may need to obtain approvals from government departments such as the RAK Chamber of Commerce, Ministry of Economy, and Ministry of Health.
     
    8. Lease Office Space

    Lease office space for your company in RAK. This is a mandatory requirement for obtaining a trade license.
     
    9. Register for VAT

    If your company's annual turnover exceeds AED 375,000, you must register for Value Added Tax (VAT) with the Federal Tax Authority (FTA).
     
    10. Register Employees

    Register your employees with the General Authority for Pension and Social Security.
     
    11. Open Bank Account

    Open a bank account for your company in RAK.
     
    12. Commence Business Operations

    Once all the above steps are completed, you can commence business operations in RAK.
     

    It is advisable to seek professional advice from a legal or business consultant to ensure all legal requirements are met while setting up a company in RAK.

    Company setup in RAK offers several benefits for companies setting up operations in the UAE. With its strategic location, low operating costs, investor-friendly policies, excellent infrastructure, and proximity to Dubai, RAK is an attractive destination for businesses of all sizes and types. However, before starting a company in Ras Al Khaimah, it is essential to consider the key factors and seek professional advice to ensure a smooth and successful registration process.

    Working with a professional business advisor or lawyer familiar with company formation laws and regulations in RAK guarantees that all necessary steps are completed correctly and legally. Additionally, staying current on any changes in RAK company laws and regulations is important for guaranteeing compliance with local laws. So please contact us if you have any further questions.

    Document Requirements for Obtaining a Business License in RAK
    Application form
    Copy of passport and visa
    Business plan
    Memorandum of Association (MOA) (For Branch)
    Lease agreement for office space
    Trade name reservation certificate (For Branch)
    No objection certificate from sponsor (for expatriate investors)
    Power of attorney (if required)
    Benefits of Starting a Business in Ras Al Khaimah
    Strategic Location
    Business-Friendly Environment
    Infrastructure
    Skilled Workforce
    Free Trade Zones
    Diversified Economy
    Quality of Life
    Our Business Setup Services in RAK
    Company Formation Services
    Accounting Bookkeeping
    Visa Processing
    Assisting in bank accounting
    Virtual Office Space Setup
    Intellectual Property Services

    Top Freezones for Company Incroporation

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    Why Choose Gryffin Capitalist?

    While the procedures for establishing a business in the UAE are simple, some prior knowledge is required. Furthermore, remember that the application process is only simple if your business application is complete and error-free when submitted. Engaging a company formation professional when forming a new business in the UAE is a good way to ensure this.

    A business formation specialist can assist you in opening corporate bank accounts, selecting the best financial institution for your specific requirements, and managing your licensing application. We at Gryffin Capitalist can assist you with the required services regarding your company setup in the UAE. Contact us for further queries; we’d be glad to help you.

    Quality Professionalism

    High Confidentiality

    Strong belief in long-term client relationships

    Competitive Market Pricing

    Global Footprint

    Efficient and Transparent Process

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    Frequently Asked Questions (FAQs)

    The Essentials of Starting a Business in Ras Al Khaimah i) Identify the type of business activity. ii) Determine the Establishment's Legal Category. iii) Registering a Trade Name. iv) Obtaining Approvals from Concerned Authorities. v) The Business License is issued.

    Compared to neighboring emirates, the cost of labor and premises in Ras Al Khaimah is frequently lower. Ras Al Khaimah offers attractive packages through its free zone to entice UAE-based entrepreneurs to expand their horizons.

    Here are the essential steps for establishing a business in a free zone. i) Determine the legal entity type. ii) Choose a business name. iii) Make an application for a business license. iv) Select an office space. v) Obtain pre-approvals, register your company, and obtain your license.

    You can easily accommodate expenses such as utilities, restaurants, movies, school fees, and rent in your budget. Utilities such as car washing, cleaning, laundry, and house help are less expensive than in Dubai. Furthermore, Ras Al Khaimah is a peaceful, secure, and clean living place.