RAK Company Formation | RAK Company Types
What We Mean by RAK Company Formation
RAK Company Formation is a ‘collective term’ encompassing Company Formation and Set Up of ANY type or RAK Company or Business (RAK Offshore Company, RAK ICC Company, RAK Free Zone Company or Mainland-Local RAK Company – Business) in ANY RAK Offshore Zone, RAK Free Zone Free or ANY other area location in RAK. In turn, RAK Company Formation is an important option among the many UAE Company Formation options available.
RAK offers the options of setting up RAK Offshore Companies, RAK Free Zone Companies or Mainland RAK ‘Local Businesses / Companies”.
Moreover, the term RAK Company Formation (RAK Offshore Company Formation and RAK Free Zone Company Formation being part of that) practically refers to the process, considerations, decisions and actions of legally setting up a RAK Company in ANY Location of RAK, under UAE and RAK Law and Regulations, intended to conduct business in the UAE and/or internationally.
Related and practically closely linked to the RAK Company Formation process is, additionally, all work connected to the establishment of the business per se of the New Company in RAK which is to be conducted after the incorporation stage is complete.
Such establishment work for Your RAK Company often entails arranging for Visas for the owners, managers and staff if permitted by the license type, opening bank accounts, arranging premises, again if permitted by the license type, arranging for professional services to support the company and other establishment work.
Now let’s take a closer look at what specific Company Types are available in RAK (Ras-Al-Khaimah, UAE)…
Type of RAK Companies Available:
You can Set Up a RAK Offshore Company, RAK ICC Company, RAK Free Zone Company, Mainland (Local) RAK Company or a RAK Local Professional Firm. There are 4 broad RAK Company Types that appeal to International Investors:
RAK Offshore Company
- The RAK Offshore Company or the RAK ICC Company – these are a non-resident companies exclusively conducting international business outside the UAE but which hold a UAE bank account in RAK.
- Activities of a RAK Offshore Company or RAK ICC Company are allowed ONLY outside the UAE
- No residence visa is issued for the RAK Offshore Company or RAK ICC Company
- Foreigner can own 100% of the RAK Offshore Company or RAK ICC Company
- RAK Offshore Companies or RAK ICC Companies are able to have UAE bank accounts and worldwide bank accounts
RAK Free Zone Company
- The RAK Free Zone Company – these are resident onshore companies but cannot do business in the UAE mainland (except, practically, services tot specially regulated like consulting and trading in free zones and internationally). They can open a bank account in RAK.
- RAK Free Zone Companies are conducting business mainly locally in special free zone areas and internationally outside the UAE and hold a UAE bank account.
- Types of Companies available for a RAK Free Zone Company are: FZ CO, FZE or Branch of foreign Company
- A RAK Free Zone Company is only able to trade freely within the free zone areas and worldwide – RAK Free Zone Companies in addition can also render services locally in the UAE as long as the services are not under a regulated regime (banking, investment, medical etc.)
- 100% foreign ownership permitted for a RAK Free Zone Company
- Goods out of the RAK designated free zone area and into mainland UAE must pay a low 5% customs duty
- Office space is required within the free zone for the operation of the RAK Free Zone Company
- A RAK Free Zone Company is able to open UAE bank accounts as well as bank accounts worldwide
- Membership of the Chamber of Commerce through the relevant office in the specific Free Zone is a privilege of the RAK Free Zone Company
- Activities are restricted to the scope of a specific license the RAK Free Zone Company type applied for – services, trading etc. – and cannot do all activities under one license – license fees apply
- A fixed place of business – office or cheap flexi-desk – must be used with full virtual offices as well by the RAK Free Zone Company
- Entitlement to a 3-year investor visa and ‘Emirates ID’ for each investor (including spouses and dependents).
- A RAK Free Zone Company, in the case the owners and managers have a UAE Residence Visa, enjoys onshore UAE tax resident status with access to tax treaties and issue of certificate of tax residence.
- A license for the RAK Free Zone Company is issued at ANY Free Zone Authority of choice and this entitles trading with Free Zone Companies in all. Additionally branches or subsidiaries of this FZ Company can be set up in any other Free Zone area if a physical presence is required in more than one Free Zone.
RAK Local LLC
- Local RAK LLC Companies – these require a local sponsor /shareholder of 51% – these are used for local trading as well as GCC and international trading.
RAK Professional Firm
- RAK Professional License Companies – these are suited to professionals: doctors, accountants, lawyers that wish to practice their profession in the UAE.
Why Set Up a Company in RAK?
Constructive use of RAK Company Formation in the UAE can yield the investor significant advantages. Tax, Security, Confidentiality and Lifestyle advantages. Read about the RAK Offshore Company Advantages and the RAK Free Zone Company Advantages.
Advantages of a RAK Offshore Company or a RAK ICC Company
- A RAK Offshore Company or a RAK ICC Company enjoys UAE Corporation Tax and Personal Tax exemption as well as Custom Duty exemption
- No barriers restrictions or taxes to funds transfers internationally or repatriation of funds in the UAE for a RAK Offshore Company or a RAK ICC Company
- 100% foreign ownership is allowed in the RAK Offshore Company or the RAK ICC Company
- A number of activities can be combined in one RAK Offshore Company or RAK ICC Company
- It is not necessary for a RAK Offshore Company or a RAK ICC Company to have an office in the UAE but a registered office in RAK is mandatory – provided as part of the registered agent’s services
- Ownership of UAE Real estate property is allowed for a RAK Offshore Company or a RAK ICC Company
- Bank account in the UAE is allowed as well as overseas, in multiple currencies for a RAK Offshore Company or a RAK ICC Company
- Use of local professional services is allowed in t which are approved by the authorities of the UAE
- Faster incorporation times (a few days) compared to Free Zone or Local UAE companies
- Use of UK Common Law and the English Language in Company documents
- An offshore company is exempted from any income tax, corporate tax, personal tax or custom duty.
- It is not necessary for an investor to come to the UAE in order to form a RAK Offshore Company or a RAK ICC Company
- No audit is required
- A RAK Offshore Company or a RAK ICC Company in UAE provide a higher level of confidentiality than other legal forms
Advantages of a RAK Free Zone Company
- A RAK Free Zone Company enjoys UAE Corporation Tax and personal Tax exemption as well as custom duty exemption
- No barriers restrictions or taxes to funds transfers internationally or repatriation of funds in the UAE for the RAK Free Zone Company
- 100% foreign ownership permitted in the RAK Free Zone Company
- Residence visas are issued – No visa restrictions for investors, family and staff
- Goods out of the free zone and into mainland UAE must pay a low 5% customs duty
- The RAK Free Zone Company is able to open UAE bank accounts and bank accounts worldwide
- Membership of the Chamber of Commerce through the relevant office in the specific Free Zone via RAKEZ, the RAK Economic Zone
- Access to a large labour and executive pool
- Pre-built structures- offices, factories, warehouses are available in the RAK Free Zone
- Proximity and access to the MENA and Asia regions / markets
- Entitlement to a 3-year investor visa for each investor (and dependents)
- Onshore tax resident status with access to tax treaties and issue of certificate of tax residence for the RAK Free Zone Company
- A RAK Free Zone , by the very nature of its set up, possesses Commercial and economic substance which is VERY useful for tax planning: real presence (with premises, staff and equipment – ‘flexi office’ with virtual office permitted for a low annual cost – approximately 1.000 Euro per year) in an organised market / free zone with local presence among other active companies. Added commercial substance also if we opt for designated free zones in the specific field of our activity (e.g. a media company operating in “Media City” Free Zone where hundreds of companies in that sector are established and operating).
Advantages of a Local RAK Company or a RAK Professional Firm
Well first you enjoy ALL the advantages enjoyed by the RAK Offshore Companies and the RAK Free Zone Companies PLUS+ the added significant advantage of conducting any business activity (subject to approval) without ANY restrictions in any location in the UAE and the Gulf / GCC region. A huge market with exciting potential.
Well and how is a RAK Company or Business …Actually Set Up?
RAK Company Incorporation – Establishment Procedures
The 5 Stages of the RAK Company Formation Process
FBS EMIRATES are up-to date with ALL new laws and regulations and with our help you can cut through the whole process quite easily with minimum involvement on your side.
Below is a brief outline of the Main Company Formation Stages in RAK, UAE.
Stage 1 – Get Initial Consulting from Trusted UAE Advisors
It is valuable that FBS EMIRATES provides free initial advice on UAE Business Set Up. This is so as you DO need Our Services as there are many different options for company formation and complex residency and labour and immigration regulations as well as complex processes, red tape and requirements.
Stage 2 – Submit Documents – Get License – Incorporate
Once all the necessary documents have been obtained from you and certified, the incorporation process starts. The Company, at the completion of this stage is Legally Formed and Licensed and Ready to Operate.
Stage 3 – Open Bank Account
Bank account Opening comes next. A very important stage as Companies with no bank account are considered by Tax Authorities and market counter-parties as Companies without economic subsstance in most cases and therefore not useful. In our capacity of Official Professional Introducer with many banks in the UAE and internationally rest assure the account opening will be fast and quite smooth. We will handle the process and guide you through the documentation requirements.
Stage 4 – Issue UAE Visas
Immigration Residence Visas and Emirates ID is then obtained for you, your family and your staff. All details and actions required will be handled efficiently. Generally the medical examination takes a maximum of 5 working days, although this can faster with an urgent medical application.
Stage 5 – Complete Establishment and Set-Up
The next stage, with our support, involves setting up the corporate image (business – office address, telephone answering, logo, business cards, website) as well as substance (premises, telephone, utilities, virtual office,staff, business plan). We can discuss what is appropriate for Your case.
Summary of Our Simple 8-Step Approach to Your RAK Company Formation Process
Our Simple 8-Step Process aims at addressing all the actions and decisions necessary to successfully, smoothly and in a problem-free fashion Form, Set Up and Establish Your RAK Company and Business in RAK, UAE.
Our 8-Step process revolves around 8 central actions and related decisions for your RAK Company Formation:
Step 1 – Choose Your UAE Company Formation Agents
Choosing a suitable UAE-based UAE, Dubai & RAK Company Formation Expert and Consultant and submitting to them the Required Documents and Forms and obtaining a proper consultation.
Step 2 – Decide on Business and License Type and UAE Location
From then on with our guidance comes deciding on the Business and License Type and a specifically chosen UAE Location and Registration Authority to set up the company.
Step 3 – Decide on Ownership Type
Weather 100% ownership or use of a local partner / sponsor.
Step 4 – Choice of Specific Legal Form
Free Zone, Offshore, Local and which particular Legal Entity type.
Step 5 – Decide on UAE, Dubai & RAK Company Trade Name
Trade Name choice and approval is the first step and 3 names must be submitted for official approval.
Step 6 – Determine Share Capital – Shareholders – Managers
Taking into account UAE Rules and Legislation on the above.
Step 7 – Decide where and with which Bank to open a Bank Account with
There is a wide choice of banks in the UAE and internationally.
Step 8 – Set out plans for the Establishment Logistics – Premises, Marketing and other set up work
This is the last step and, naturally, necessary before the launch of your UAE business.
How Our Services Help You in the RAK Company Incorporation Process
- We Collect all RAK Company Owner identity and passport personal documents, CV, bank reference letter, 6-months bank statements, proof of address and a draft business plan and activities list AND in the case of a corporate shareholder the relevant company documents of the shareholding company
- We prepare all incorporation documents for your RAK Company
- We complete, check and submit all RAK Company Formation, Bank Account and Visa applications to the relevant bodies, institutions and Authorities
- We process RAK Company Name approvals and other governmental approvals (after approval, MOA and application forms will be signed)
- We will be Monitoring and controlling the progress of the RAK Company formation process through the various steps ensuring smooth and problem free set up
- RAK Company Bank Account Opening – we introduce banks to clients to act as the RAK Company’s bankers
- We provide Full-Scope professional services to support your RAK Company operations from A to Z (VAT, Tax, Accounting, Bookkeeping, Audit)
Following the Formation Stage our role is to continuously support you in all related matters pertaining to your RAK Company needs for professional services, as required.
Part of FBS Kotsomitis International Network
7th floor, Offices 7F-6A-6B
RAKEZ Amenity Centre, Tower 2
P.O.Box 322762, Al Jazeera Al Hamra
Ras Al Khaimah, United Arab Emirates