Ras al-Khaimah (RAK), one of the famous Emirates in UAE, is tucked on the eastern edge of the Persian Gulf. What is more notable about RAK is that it has emerged as a business hub because of its strategic location and impressive policies. A closer look at the RAK economy indicates it has performed excellently in the last ten years.
Even after the recent slump in 2020 because of the COVID-19 pandemic, RAK and the entire UAE have performed better than most countries in the region and globally. These attributes make RAK an excellent jurisdiction for offshore company formation. But how do you go about it?
It is true that the process of company registration in RAK can be challenging, but you can simplify it by working with an agency of experts. This post is a comprehensive guide to company incorporation in RAK, a high potential jurisdiction.
What are the Main Types of Companies that You can Form in RAK?
To ensure it attract as many investors as possible, RAK allows a wide range of companies. This means that whether you want a company that will be actively involved in business in RAK or operate from a different country; this is a perfect jurisdiction for you. Here are the main types of offshore companies that you can form in RAK:
- Limited liability companies
- Branch offices
- Joint ventures
- Public joint-stock companies
- Representative offices
Because each type of company comes with its unique features, pros, and cons, it is important to review them carefully. For example, limited liability companies are preferred by most foreign investors for protecting their assets. An agency of experts can come in handy to help you pick the right company format.
Special Benefits of Incorporating a Company in RAK
Here are the main benefits that you should expect for registering an offshore company in RAK:
- RAK is one of the fastest-growing economies in the Middle East with excellent facilities, such as inland container depot (ICD), internet network, and road network. As an investor, registering your company in RAK puts it in a good position to grow rapidly and achieve the revered global status.
- RAK administration allows 100% foreign shareholding of companies. If you open a company in a free trade zone, there is no limitation on ownership. However, this fact changes as you leave the free trade area.
Outside the free trade areas, you are required to form a joint venture with a local. Also, the local partner is required to have controlling shareholding in the company.
- RAK has a pro-business administration. One of the reasons why RAK stands out is its commitment to helping businesses succeed. They have installed policies that make opening and running companies easy. For example, if your offshore company in RAK does most of its deals away from UAE, it might qualify for 0% tax.
How to Register a Company in RAK
To register a company in RAK, you need to review all the requirements, prepare the required documents, and submit them to the Department of Economic Development. Here is the process:
- Determine your type of business activity.
- Select and finalize the preferred business form.
- Get initial approval and register a trading name.
- Apply to the Department of Economic Development using documents such as a copy of tenancy contract, consent of legal affairs, and copies of no objection letter.
- Get a business license and rent office space.
- Open a bank account.
As you can see, registering a RAK offshore company can be challenging because of the lengthy process and long list of required documents. This is why you should approach the process professionally by working with an agency of experts. With a good team of professionals, you do not just get support with company registration in RAK, but they can also come in handy in crafting strategies for growth.
