Ras al-Khaimah (RAK) is located on the eastern side of the Persian Gulf. RAK has emerged as one of the most renowned Emirates in UAE and appears as a financial and business hub due to its exceptional policies and favorable location.
Moving further, we will discuss the economic growth and upliftment of RAK in the last ten years.
Even though COVID-19 affected all the nation’s economy brutally, RAK and the entire UAE managed to perform better than almost all regions around the Globe. This makes RAK an exemplary jurisdiction to consider while starting an offshore company.
The registration process in RAK can be rigorous or complicated for some investors. However, a solution to this can be the agency of experts that are available to help you throughout the process. This post outlines the company incorporation in RAK extensively.
Starting an Offshore Business: What Kinds of Enterprises Can Be Formed in RAK?
RAK doesn’t limit the kinds of companies one can form in their jurisdiction. In order to attract diverse investors, the company choices available in RAK ranges from business companies to those operating from a different country. Following are the types of companies you can form offshore in RAK:
- Limited Liability Companies
- Branch Offices
- Joint Ventures
- Public Joint-Stock Companies
- Representative Offices
Each type of company available for formation in RAK, is unique in its type and has its own merits and demerits. Therefore, in order to ace your business in RAK, it is important to understand these forms thoroughly. For example, Limited Liability Companies are a highly favorable option for foreign investors whose priority is to protect their assets. In this regard, an agency of experts can help you choose the best option for your enterprise.
Core Advantages of Company Formation in RAK
Registering a company in RAK can prove to be beneficial for you in many ways. Some of these include:
- RAK succeeds as a jurisdiction to provide facilities such as Inland Container Depot (ICD), internet network, and road network. It is therefore known as a flourishing economy in the Middle East. Therefore, opening an offshore company in RAK can result in your company’s rapid growth with a renowned global status.
- RAK offers a special incentive for the companies opened in a free trade zone. If you start your company in a free trade zone, you get to enjoy 100% foreign shareholding of your companies, implying that there are no limitations on your ownership of the company. However, please note that this incentive is only applicable to the free trade zone.
If your company is outside the free trade zone, you need to join a venture with a local, where the local partner has a controlling shareholding in the enterprise.
- RAK is highly praised for its pro-business administration. It is committed to assist the business to grow and secure financial stability. These policies and laws make it easier for companies to start and grow rapidly. As an example, you might enjoy 0% tax if your offshore enterprise in RAK performs most of its dealings away from UAE.
The Registration Process
In order to register yourself as an offshore company in RAK, the process includes preparing, reviewing, and submitting all the essential documents to the Department of Economic Development. The step by step guide is mentioned below:
- Decide the type of business you wish to start.
- Choose and finalize your form of business.
- Receive initial approval and register your trading name.
- Submit the application to the Department of Economic Development with complete documentation, including a copy of the tenancy contract, consent of legal affairs, and copies of the no objection letter.
- Get a business license and a physical office space.
- Finally, open a bank account.
This marks the end of your registration process. The procedure mentioned above can be complicated due to the documentation and lengthy processes. However, in order to smoothly register an offshore company in RAK, you should consider approaching an agency of experts. They will guide you throughout the process and help you craft policies for efficient and rapid growth.