Business setup In RAK
Steps for How to Start a Business in RAK
Key steps for streamlined company formation in RAK and business setup in Ras Al Khaimah, leveraging RAK’s key entities.
Key Benefits of Business Setup RAK
Business Activities for Business Setup in Ras Al Khaimah (RAK)
Trading
Manufacturing
Retail
Construction
Hospitality
Healthcare
Consultancy Services
Education
Types of legal forms in Ras Al Khaimah (RAK) Mainland
Ideal for professionals licensed to provide consulting, legal, or technical services with a local service agent.
Registered companies based in Gulf Cooperation Council (GCC) countries can open a branch in RAK. This option allows you to operate locally under your existing license while accessing RAK’s infrastructure and government-backed incentives.
Essential Documents for Company Formation in Ras Al Khaimah (RAK)
Passport Copies for Company Formation in RAK
Submitting a clear copy of the passport is a mandatory requirement when setting up a business in Ras Al Khaimah (RAK). Whether establishing a Mainland, Free Zone, or Offshore Company, providing accurate and up-to-date passport documentation is essential for processing your business license and registration application.
- Ensure the passport copy is clear and legible.
- Include the information page and any relevant visa endorsements.
- Check for expiration dates to ensure the passport remains valid throughout the business setup process.
Visit Visa / Residence Visa Copy, Emirates ID copy
When establishing a business in Ras Al Khaimah (RAK), the type of visa required varies depending on the business activity. Below are the common visa types required for company formation in RAK:
1. UAE Residence Visa: For this visa type, an NOC (No Objection Certificate) is mandatory from the current employer or sponsor. This visa is often required for long-term residence and business operations.
2. Tourist Visa: A Tourist Visa copy is necessary for those visiting RAK for short-term business activities. This visa type is typically used for initial setup procedures or business visits.
3. Canceled Visa: In case of visa cancellation, a copy of the canceled visa document is required to process new applications or update the business records.
4. On-Arrival Visa: This visa type applies to nationals from countries such as the USA, UK, and other eligible regions. A copy of the on-arrival visa is necessary when setting up a business or for specific business transactions.
5. Golden Visa: The Golden Visa allows for long-term residence in the UAE without requiring an NOC. A copy of the Golden Visa is essential for high-profile business investors and professionals.
NOC from the Current Sponsor (Under a Residence Visa)
When setting up a company in Ras Al Khaimah (RAK), individuals holding a UAE Residence Visa must obtain a No Objection Certificate (NOC) from their current sponsor. This document is essential to ensure that there are no legal obstacles when establishing the business.
Company Name Guidelines:
- The proposed company name should be unique and conform to RAK government regulations.
- It is essential to check the availability of the proposed name and obtain approval from the relevant authorities, such as the RAKEZ (RAK Economic Zone) or RAK ICC (International Corporate Centre).
Three (3) proposed names for Trade License (by order of preference)
When establishing a business in Ras Al Khaimah (RAK), selecting an appropriate trade license is crucial. Below are three proposed trade license names categorized by business activity and compliance requirements:
1. Business Plan Requirement:
A business plan may not be mandatory for all business activities in RAK. However, specific industries, such as those regulated by the Ministry of Health or KHDA (Knowledge and Human Development Authority), require a business plan to set up a pharmacy, educational institute, or other regulated entities.
2. Essential Documents for Specific Activities:
Certain business activities require additional documentation, including a Goods Standard Certificate, Resume, Personal Profile, and Education Certificate. These are typically necessary for:
- Military Trade: Requires a Good Standing Certificate and Education Certificate.
- Educational Institute Setup: Necessitates both a Resume and an Education Certificate to comply with RAK ICC or RAKEZ regulations.
- Chemical Activities: Demand a Goods Standard Certificate and a Personal Profile.
- Sports Academy Setup: Requires a Resume and Personal Profile to obtain a Professional License.
Cost of Business Setup In Ras Al Khaimah (RAK)
Our Business Setup services In Ras Al Khaimah (RAK) include:
Gain access to a full suite of professional services, including accounting, legal consultancy, PRO assistance, and visa coordination—all essential for smooth company operation in RAK.
Frequently Asked Questions about Business setup RAK
RAK offers a compelling environment for business setup due to its strategic location, business-friendly policies, and economic incentives. Key benefits include 100% foreign ownership, zero corporate and personal income taxes, and exemption from import/export duties in free zones like RAKEZ and RAKICC. The emirate’s proximity to Dubai (45 minutes) and access to five seaports and an international airport make it a logistics hub for the India, Middle East, and Africa (IMEA) markets. RAK’s modern infrastructure, cost-effective setup (25% lower than other UAE emirates), and liberal government policies attract entrepreneurs and investors. Additionally, the UAE’s Double Taxation Avoidance Agreements with over 90 countries enhance financial advantages.
RAK offers a variety of licenses tailored to different business activities:
General Trading License: Ideal for importing, exporting, and distributing diverse goods.
Professional License: Suited for service-oriented businesses like consultancy, IT, or real estate advisory.
Industrial License: For manufacturing, processing, or assembling goods.
E-Commerce License: For online businesses.
Media License: For activities like broadcasting or event management in zones like RAK Media City.
These licenses are issued by the RAK Department of Economic Development (DED) for mainland businesses or by free zone authorities like RAKEZ for non-resident companies, ensuring flexibility for various sectors.
The process for RAK company formation is streamlined and typically takes a few days to weeks:
Choose a Business Activity: Select from commercial, professional, or industrial activities.
Select a Legal Structure: Options include LLC, Free Zone Establishment (FZE), Free Zone Company (FZC), or International Business Company (IBC).
Register a Trade Name: Ensure compliance with RAK naming guidelines.
Obtain Approvals: Secure preliminary approvals from RAK DED or RAKEZ.
Prepare Documents: Submit passports, MOA, and proof of capital.
Get a Trade License: Apply through RAK DED or free zone authorities.
Open a Bank Account: Facilitated by PRO services or consultants.
Consultancies like Commitbiz or Shuraa simplify documentation and compliance, ensuring a hassle-free setup.
The process for RAK company formation is streamlined and typically takes a few days to weeks:
Choose a Business Activity: Select from commercial, professional, or industrial activities.
Select a Legal Structure: Options include LLC, Free Zone Establishment (FZE), Free Zone Company (FZC), or International Business Company (IBC).
Register a Trade Name: Ensure compliance with RAK naming guidelines.
Obtain Approvals: Secure preliminary approvals from RAK DED or RAKEZ.
Prepare Documents: Submit passports, MOA, and proof of capital.
Get a Trade License: Apply through RAK DED or free zone authorities.
Open a Bank Account: Facilitated by PRO services or consultants.
Consultancies like Commitbiz or Shuraa simplify documentation and compliance, ensuring a hassle-free setup.
Costs vary based on business type, structure, and location (mainland, free zone, or offshore). General estimates:
Mainland: Starts at AED 25,000–40,000, including license fees, office rent, and visa costs.
Free Zone: AED 14,999+ for licenses, with additional costs like AED 7,000 for RAKFTZ registration and AED 1,200 annual service fees.
Offshore: Lower, around AED 10,000, as no physical office is required.
Additional expenses include share capital (e.g., AED 150,000 for LLCs) and optional services like PRO or accounting. Costs are 25% lower than other UAE emirates, making RAK cost-effective.
Yes, non-residents can establish businesses in RAK without UAE residency requirements for directors or shareholders. Free zones like RAKEZ and RAKICC allow 100% foreign ownership, and offshore entities (e.g., IBCs) require only one shareholder, with no physical presence needed. Mainland companies may require a local sponsor holding 51% shares, but free zones eliminate this need. RAK DAO and other authorities support non-residents with banking, visa, and licensing services, making RAK accessible for global entrepreneurs.
RAK offers diverse legal structures to suit various business models:
Limited Liability Company (LLC): Common for mainland, offering liability protection.
Free Zone Establishment (FZE): Single shareholder, ideal for free zones.
Free Zone Company (FZC): 2–5 shareholders, flexible for free zones.
International Business Company (IBC): Offshore, with minimal reporting and tax exemptions.
Limited Partnership (LP): Combines general and limited partners, ideal for real estate.
Joint Venture Company: For collaborative projects.
Sole Proprietorship: Single owner, full control.
These structures cater to sectors like trading, manufacturing, and consultancy, with free zones offering 100% ownership.
Required documents depend on the business type and jurisdiction:
Passport copies of shareholders, directors, and managers.
Proof of address (utility bill or bank reference).
Memorandum of Association (MOA) and Articles of Association (AOA).
Business plan or project description (for specific activities).
Proof of capital (bank letter or auditor statement).
No Objection Certificate (NOC) for expatriate partners.
Emirates ID (for UAE nationals).
Partnership contract certified by RAK DED or notary public.
Free zone and offshore setups may require fewer documents, and consultancies handle submissions to ensure compliance.
RAK hosts several free zones, each catering to specific sectors:
Ras Al Khaimah Economic Zone (RAKEZ): Supports over 23,000 companies across 50+ sectors, offering customizable packages, 100% ownership, and tax holidays. Includes zones like Al Hamra, Al Ghail, and RAKEZ Media Zone.
RAK International Corporate Centre (RAKICC): Focuses on offshore IBCs for global trade, with tax exemptions and confidentiality.
RAK Media City: For media-related businesses like broadcasting and event management.
RAK DAO: Dedicated to digital assets, blockchain, and Web3 businesses.
Free zones provide visa options, office leasing, and banking support, enhancing RAK’s appeal for international investors.
