RAK Business: A Strategic Guide for Business Setup

Ras Al Khaimah (RAK) is one of the seven emirates in the United Arab Emirates (UAE) and offers numerous opportunities for entrepreneurs and businesses. Its strategic location, favorable tax system, and business-friendly environment make it an attractive option for setting up a business.

This guide will provide you with an overview of the process of setting up a business in RAK, including the steps, requirements, and other important information.

Determine your business activity and structure

Before setting up your business, decide on the type of activity your business will engage in and the appropriate legal structure. Common legal structures include:

• Sole Proprietorship
• Limited Liability Company (LLC)
• Branch or Representative Office
• Free Zone Company (FZC)
• Offshore Company

Choose the appropriate jurisdiction

There are two main jurisdictions for setting up a business in RAK: Mainland and Free Zone.

• Mainland: If you want to set up a business with more freedom to trade across the UAE, choose the mainland. The Department of Economic Development (DED) governs mainland businesses, and a local sponsor (UAE national) is required for most business structures.
• Free Zone: RAK has several free zones, such as RAK International Corporate Centre (RAKICC), RAK Economic Zone (RAKEZ), and RAK Maritime City (RAKMC). Free zones offer 100% foreign ownership, tax benefits, and a streamlined process for company registration.

Register your business name

Choose a unique and appropriate name for your business that adheres to the UAE’s naming regulations. Reserve your business name with the relevant authority, which is either the DED for mainland businesses or the respective Free Zone Authority for free zone businesses.

Obtain necessary approvals and licenses

Depending on your business activity, you may require specific approvals or licenses from relevant authorities, such as the Environment Protection and Development Authority or the Ministry of Health and Prevention. Obtain the necessary approvals and apply for a trade license from the DED or the Free Zone Authority.

Set up your office space

Depending on your jurisdiction, lease an office space or a warehouse in the mainland or the free zone. Ensure that your office space complies with the requirements set by the authorities.

Open a corporate bank account

To manage your business finances, open a corporate bank account with a bank in the UAE. Different banks have varying requirements, so research and choose the most suitable one for your business.

Hire employees and obtain visas

If you need to hire employees, follow the UAE’s labor laws and regulations. Obtain necessary work permits and visas for your employees, including the Employment Visa, the Labor Card, and the Emirates ID.

Register for VAT (if applicable)

If your annual taxable supplies exceed the mandatory registration threshold of AED 375,000, you must register for Value Added Tax (VAT) with the Federal Tax Authority (FTA).

Ras Al Khaimah is not only an ideal destination for business ventures but also boasts a high-quality lifestyle with ample opportunities for real estate, job seekers, digital marketing and companies alike. The emirate’s modern infrastructure, affordable living costs, and diverse range of residential and commercial properties cater to various needs and preferences. Moreover, RAK’s thriving economy and diverse industries create a robust job market, attracting both local and expatriate professionals. The emirate’s rich cultural heritage, scenic landscapes, and leisure attractions further contribute to its appeal as a highly livable destination. All these factors make Ras Al Khaimah a perfect choice for those looking to establish a successful business while enjoying a well-rounded, fulfilling life.

If you would like to have more information about any of the above steps or need assistance throughout the process, please contact us at RAKBusiness. Our team of experts is here to guide you every step of the way, ensuring a smooth and efficient experience in setting up your business in Ras Al Khaimah.

Contact RAKBusiness today to get started on your journey towards a successful business venture in Ras Al Khaimah.