Things You Must Know To When Incorporating a Company in RAK

Clare Louise June 12, 2018 Comments Off on Things You Must Know To When Incorporating a Company in RAK
Things You Must Know To When Incorporating a Company in RAK

Ras al-Khaimah (abbreviated as RAK) is one of the Emirates in the United Arab Emirates (UAE). It is located on the eastern end of the Persian Gulf and on the northernmost part of UAE. RAK has become an industrial hub and a leading investment destination. With the RAK economy on a steady growth projectile since 2011, investors are seeing it as the ultimate place to position their investments.

The main types of companies you can register in RAK

RAK allows investors to form many types of companies including branch offices, limited liability companies, representative offices, joint ventures, free zone companies, and public joint stock companies. The main type of company formation in the UK is a limited liability company.

The good thing about registering a company in RAK is that you can enjoy 100% ownership. However, 100% ownership is only allowed in the Free Trade Zone. If you want to operate in the entire RAK, you can only open the company jointly with a resident. Your shareholding in such cases is limited to 49% while the remaining 51% is controlled by the local resident.

The benefits of registering a company in RAK

In addition to allowing investors to own 100% of their company shareholding, RAK has become irresistible to investors. Many businesses, especially those in import and export niches, see the jurisdiction as the stepping stone to the success of their operations. Here are other benefits of company incorporation RAK.

  • RAK has been categorized as one of the fastest growing emirates in UAE. Joining it will present you with the perfect opportunity for growth at the same rate.
  • Companies that do their businesses outside RAK qualify for 0% taxes.
  • RAK commits to helping companies operate in total privacy. The companies’ law in RAK requires the companies’ shareholders names to be excluded from public records.
  • The process of registering a company in RAK is very straightforward. The process of registering a company is very easy and can be completed in only two days.
  • RAK has entered into very many DTAs that companies can utilize to grow rapidly.

Registering a company in RAK

In RAK, company registration is done by submitting all the documents to the Ras al-Khaimah Department of Economic Development. Note that the Company incorporation RAK can only be done by a registered agent. Therefore, here is the process of registering a company in RAK;

  1. Identify an appropriate agent to assist you with registration.
  2. Engage the agent to help with preparation of all the documents including articles of association, memorandum of understanding, and details of shareholders & directors.
  3. Deposit full capital to a licensed UAE bank. The funds will be released to the company after the registration is approved or declined.  

The main uses of limited liability company in the RAK

What is your main objective for company incorporation RAK? RAK allows companies to engage in a wide range of activities. The administration targets promoting diversity to keep growing its relevance both regionally and internationally. Here are the main uses of limited liability companies in RAK.

  1. The company can be a holding entity for other business shares in the world.
  2. It can operate bank accounts and brokerages across the globe.
  3. The company can be used to own assets such as real estates in RAK and other areas around the globe.
  4. Receiving and paying commissions or royalties.
  5. Direct trading such as import and export operations.
  6. Special purpose vehicles for asset protection.

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