Company Registration in Ras Al Khaimah
The city of Ras Al Khaimah is situated in the region to the north of the emirate. Dubai is conveniently close by to this city. This city is growing and has received significant international investment and business. It is the ideal location for conducting business because it is so near to the sea. In addition to this, there are numerous international airports that facilitate travel. As a result, investors would choose the Ras Al Khaimah company registration process.
- Procedure for Company Registration in Ras Al Khaimah
- Documents required for company registration in Ras Al Khaimah
- Liaising with the regulatory authority for company registration in Ras Al Khaimah
- End-to-End Support
Company Registration in Ras Al Khaimah- An Overview
The UAE’s northernmost emirate is Ras Al Khaimah. One of the seven emirates of the United Arab Emirates, it offers a variety of new options. It is within close proximity to Dubai and reachable by several forms of transport. There are international airports that connect it to every region of the world, and it has a sizable seaport. As a result, Ras Al Khaimah offers growing investment opportunities.
Its proximity to the Arabian Gulf makes transportation inside the city simple. Ras Al Khaimah’s port is located within the city, making it simple to ship a variety of goods. Investors frequently refer to Ras Al Khaimah by the acronym “RAK,” which is another name for the city. It has two international airports and is close to the Straits of Hormuz. As there are billions of consumers, this commercial hub is reachable.
When compared to other emirates, Ras Al Khaimah’s company registration procedure is fairly simple. In Ras Al Khaimah, a minimum of one shareholder and one director are needed for the incorporation process.
Due to the fact that Ras Al Khaimah offers thriving prospects for businesses to establish themselves, investors would choose the procedure of company incorporation there.
Benefits of Company Registration in Ras Al Khaimah
The following are the benefits of company registration in RAK:
- Zone of Free Trade
Every emirate is well renowned for its free zones. RAK has a free trade zone as well. The Ras Al Khaimah Free Trade Zone, a great substitute for Dubai for company registration, is known by this name. This free trade zone is home to a variety of businesses and warehouses. Companies operating in this free trade zone are not subject to any kind of taxation.
The emirate that faces the north is Ras Al Khaimah. This is present in the Straits of Hormuz and the Arabian Gulf. Both the Ras Al Khaimah International Airport and the Dubai International Airport are international airports. ye.commastmastmastmastmas, and. Also, it serves as a hub for nations in Asia, Europe, and Africa. As a result, a variety of investors would be drawn to Ras Al Khaimah.
RAK has signed several types of double taxation agreements with various nations. Such double taxation arrangements with foreign nations number over 90. As a result, any investments made by investors in these nations would not be subject to double taxation. The procedure of registering a corporation can go smoothly in the Ras Al Khaimah Free Trade Zone (RAKFTZ). There is no tax present in this free trade zone. Any personal or capital gains taxes would also be included in this. With Japan, the Ras Al Khaimah administration has entered into a number of agreements to work together to create free trade zones.
- Outstanding Infrastructure
Ras Al Khaimah is regarded as one of the most advantageous places to base a business. This emirate has more than two sea ports, which makes transportation straightforward. This area is one of the principal seaports that receives oil and cargo in the Middle East.
Eligible Business Structures for Company Registration in Ras Al Khaimah
The following business structures are present in Ras Al Khaimah:
- Organization With Shares
This kind of entity typically has constrained liability. This would imply that the directors’ and shareholders’ responsibility is constrained to a specific sum. International businesses who wish to reduce their responsibility frequently employ this kind of company.
- Limited Liability Company
It is typical to utilise this kind of corporation to create associations or non-profit organisations. Members’ obligation is restricted to a particular type of guarantee.
- Unlimited Business
The members of this type of entity have unrestricted liability. This would imply that the liability of the shareholders and directors is not restricted.
- Limited Liability Company
Another name for this kind of organisation is an LLC. Members’ responsibility is constrained to a certain degree. A small percentage of Ras Al Khaimah Limited Liability Company’s stock is owned by foreigners. Foreign ownership of this type of organisation is limited to 49% of the total. They would be able to manage the business’s operations, nevertheless. This business is subject to the 2016 RAKICC Business Companies Rules. The most popular sort of business entity used in Ras Al Khaimah’s company creation procedure is this one. This corporation can be founded with minimum of 1 director and two shareholders. This kind of company can be incorporated pretty easily.
- Business in a Free Zone
Foreigners typically use this type of corporation to establish offices. The use of this type of business has a variety of advantages. The business is not subject to any kind of taxation. So, this type of company would not be subject to corporate tax, capital gains tax, or any other type of taxation. All types of entities in Ras Al Khaimah would be governed by the Federal Commercial Transactions Law No. 18 of 1993 (the “Commercial Code”) and local legislation. For this kind of business, foreign ownership is acceptable.
- Division Office
This is a frequently used type of entity in Ras Al Khaimah. Using this type of business has the benefit of 100% foreign ownership. The parent company’s rules would apply to the branch office. As a result, the parent firm would be responsible for the branch office’s liabilities. An appointed local representative is necessary to establish a branch office. The title “national service agent” is given to this representative. A person or a business can serve as the national service agent.
- Single Trader Businesses
Only citizens of Ras Al Khaimah are permitted to create sole trader businesses. This kind of company could not be established by foreigners. For a solo proprietor, the concept of limited liability is not relevant.
Procedure for Company Registration in Ras Al Khaimah
The applicant for company registration in RAK must complete the steps below:
- Choose the category of business entity.
The applicant must first select an appropriate business. The services, location, and products must all be considered during this process. After completing this process, the applicant would need to take into account the business’s legal needs.
- Analyze the legal requirements.
In RAK, various business entity types are present. Consequently the applicant must decide the type of business and the corporate structure. For instance, setting up an LLC requires a certain amount of capital. Here, the candidate should also ascertain the location-related needs. RAK is divided into several jurisdictions, including the Mainland, Free Zone, and Offshore.
- Think about registering the entity’s trade name.
The applicant then has to register the business’s trade name. This needs to be done at RAK International Corporate Center (RAKICC). The company’s distinctive name would be revealed on the trade certificate. The business needs this to maintain some semblance of independence. This procedure would need preliminary permission. Before requesting final approval, the petitioner must first obtain the initial permission. An initial approval would assist the applicant in obtaining the sort of business licence needed to operate the business. The Department of Economic Development can register a trade name for a firm in Ras Al Khaimah (DED).The DED is the primary agency in RAK responsible for managing the registration of businesses.
- Safe Approbations
The applicant would next need to obtain the necessary approvals from various regulatory bodies. Getting the licences would be part of getting the approvals. In Ras Al Khaimah, there are three different licencing categories: general trade licences, professional licences, and industrial licences.
- Business Permit
The applicant for Ras Al Khaimah company registration may proceed with obtaining the DED’s business licence to conduct business once the authorities have given their approval.
Compliances for Company Registration in Ras Al Khaimah
- Economic Substance Requirements: In 2019, Ras Al Khaimah’s government passed the ESR along with the corresponding regulations. As per these guidelines, organisations which are incorporated in Ras Al Khaimah have to engage out activities which would create income in UAE, rent an office space, and have workers in the UAE. All businesses, whether they have a branch office, a corporate headquarters, or are locally established, are required to follow the aforementioned guidelines.
- Businesses must abide by the ESR 2020 regulations and report that the necessary activities have been completed. Such compliance has to be done and filed in the portal down below.
- Failing to comply with the aforementioned standards will result in an AED 400,000 fine.
- Businesses in the UAE are exempt from paying corporate income tax on their worldwide revenue.
- The applicable VAT rate is 5%. From 2018, this rate would be imposed.
- In the UAE, every LLC is required to set aside 10% of annual income until such reserves reach 50%.
- Directors’ and shareholders’ information must be disclosed. For resident firms, this information would be necessary.
- Only oil and gas firms would be required to pay tax in the United Arab Emirates.
- Drinks, carbonated drinks, and other types of excisable items are subject to excise tax.
- Both residents and non-residents are exempt from Personal Tax.
- Commercial offices are subject to a 10% municipal fee.
Documents for Company Registration in Ras Al Khaimah
- Approval of the articles of association and the memorandum of association from the relevant ministry
- Details about the company’s shareholders and directors
- copies of the visa and passport
- a copy of the Ministry of Economy’s Trade Name Certificate of Permission
- copy of the No Objection Certificate, the Visa and Passport Application Form, and the Commercial Premises License Application Form (rent agreement).
Frequently Asked Questions
How much time does it take to register a business in Ras Al Khaimah?
In Ras Al Khaimah, the registration of a company would take roughly three days.
What kinds of licences are available in Ras Al Khaimah?
In Ras Al Khaimah, there are three different licencing categories: general trade licences, professional licences, and industrial licences.
Is registering my trade name required?
Absolutely, reserving the trade name is required.
Does a suffix need to be added to a business name?
The name typically has a suffix depending on the type of company that was incorporated.
Which statutes are upheld in RAK?
RAK abides by both federal laws of the United Arab Emirates and Ras Al Khaimah’s regional laws.