It is a well-known fact that the UAE has the most liberal trade administration in the entire Gulf. As a result, companies across the globe are changing their footing and starting offshore businesses here. The United Arab Emirates contains seven autonomous provinces including Ajman, Sharjah, Fujairah, Ras al-Khaimah, Umm al- Qaiwain, Abu Dhabi, and Dubai. Each one of these emirates has its own unique qualities. But what makes rak company set up exceptional from the rest of the emirates? Ras Al Khaimah holds their dignity in its conventional layers of economy. It offers both free and non-free zone business arrangements and lends easy entry to flourishing markets in the Middle East, Europe, North Africa, South, and Central Asia through the main logistical hubs in the UAE. Furthermore, it delivers a vast span of retail and commercial licensing for both professional consulting and commercial activities.
RAK saw an inpouring of foreign investors due to its extensively advanced economies in the Emirates. This steadily flourishing province keeps on attaining credibility as an outstanding hub for the industry with a vibrant and diversified economy. The aspects that entice substantial foreign investment are its avant-garde infrastructural development, liberal government strategies, and its peaceful trade relations with the adjacent countries.
Advantages of starting a business in Ras Al Khaimah Economic Zone
- Easy business incorporation
- 100% foreign ownership
- Business-friendly laws and ordinances
- Exemption from Tax
- No duties on export & import
- Easy access to the partners, workforce, and vicinity to consumers
- No customs duty for goods and services
Business set up requirements
The procedure involved in starting a business in Ras Al Khaimah is very cost-effective and hassle-free. It only requires less paperwork and time. Following are the main steps involved in the company registration in Rak. This entire procedure will be much easier with the help of a professional consultancy.
- Determine the type of business activity
- Choose the right jurisdiction
- Choose a trade name
- Government Approvals
- Apply for a business license
- Rent an office space
- Visa Application
Determine the Type of Business Activity
The first and foremost step is to determine the kind of business undertaking. This can be classified under retail, professional, and industrial activity. Also, it’s important to do proper research to understand the viability and success rate of each business activity. Industry and retail businesses are involved in the trade and sale of goods while professional businesses propose services like consulting, management, etc.
Choose the Right Jurisdiction
There are three different jurisdictions available in RAK; Free Zone, Mainland, and Offshore. Each of these has its own set of ordinances and laws in regard to the business layout. They also cater to different business needs. Determining jurisdiction for your business relies on your business prerequisites and your business undertakings. Also, you can select from a range of setups differing from multi-floor offices and industrial warehouses to Flexi-desks and core offices.
Choose the Trade Name
Selecting a name for your company is a remarkable and exhilarating point in the whole process of your company formation. For that, you have to submit the proposed business name to the Department of Economic Development. However, it is vital to confirm that the proposed name of your business is matching with the laws and regulations specified by authorities. Similarly, any irreverent or harsh language or any quotation to religion in the name of the company will not be licensed by the authority of RAK. Also, while using the name of the holder of the business must be incorporated entirely rather than the initial of the name, which is not allowed
Government Approvals
In Ras Al Khaimah, there are several deputies that you have to visit to obtain the relevant approvals through different steps such as the General Directorate of Residency & Foreigners Affairs and the Monitoring & Consumer Protection Administration in the Department of Economic Development. These authorities are further specified according to the necessary activities, although a few of them may need approval from the Department of Economic Development.
Apply for business license
Once you obtain the necessary approvals from the relevant authorities, you can move with the prerequisites for obtaining your license from the DED to carry out operations. The licenses are categorized into:
- Tourism License
- Industrial License
- Commercial License
- Professional License
The following documents are required for the company registration:
- Photocopies of the No Objection Certificate, Visas and Passports
- Approvals from the respective ministry
- MoA and Articles of Association
- Consent from the Ministry of economy
- Information on the shareholders and directors of the business
- License Application Form Commercial Premises
- Copies of Passport and Visa
- Copy of the Trade Name Certificate
Once you have collected your license, you can start operating under your trade name as a valid business entity in Ras Al Khaimah.
Rent an Office Space
In this phase, you may be required to lease the business site after meeting the Monitoring & Consumer Protection Administration in the Department of Economic Development. Because most of the business licenses need office space to perform business activities. Similarly, the size of the office depends on the number of workers and the category of business activity of your business. Again, you have to meet other concerned administrations to fully investigate and approve the company setting.
Visa Application
The final step after acquiring your business license is to apply for a visa. However, the number of visas that you can apply for will always depend on the size of the office. You can apply for both the shareholders and employee residence visas after receiving your business license. However, for the shareholders, the residence permit will be only valid for three years, and for the employees, it’s only valid for two years. Likewise, a Flexi Office package can provide up to two residence visas. The procedure involved in the visa application can be easily done with the help of a professional who is an expert in company formation.
Conclusion
The entire process involved in the company formation in Ras Al Khaimah is quite simple when compared to other provinces. However, there are a bunch of legal protocols and documentation procedures that have to be carefully handled. Our professional team of experts is committed to giving you favorable antidotes for your company formation in RAK. Our services can turn your company formation and registration procedure quick and simple. Also, we are 24/7 open to your inquiries, comments, and suggestions that may help us assist you in a better way
