Complete Guide Business Setup in Ras Al Khaimah Free Zone

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    Complete Guide Business Setup in Ras Al Khaimah Free Zone

    The Ras Al Khaimah Economic Zone (RAKEZ) is strategically located in the emirate, offering immense growth opportunities for businesses. This has prompted both expatriates and residents to do business setup in Ras Al Khaimah, resulting in a steady inflow of business enthusiasts and establishing it as a promising business hub in the region.

    RAKEZ provides a wide range of options and supportive policies to ensure the successful establishment of businesses. Foreign investors can hold full ownership of their companies. The zone boasts top-notch warehousing facilities, which can be customized according to specific company requirements. Accommodations for employees and laborers are available, or businesses can choose to construct their own. RAKEZ authorities have taken all necessary measures to make sure a seamless and trouble-free company setup process for businesses.

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    Types of Companies in Ras Al Khaimah

    Ras Al Khaimah
    1. Limited Liability Company (LLC)

    LLC is the most typical type of company for business setup in RAK. It is a favored choice for small and medium-sized businesses. An LLC requires almost two stakeholders and permits 100% foreign ownership. The shareholders’ liability is limited to their acquisition of the company.

    Limited Liability Company (LLC)
    1. Free Zone Company

    Free zone companies are popular among foreign investors who wish to set up their businesses in RAK. These companies operate within designated free zones and enjoy tax immunities and other advantages. Free zone companies can be established as a Free Zone Establishment (FZE) with a single shareholder or as a Free Zone Company (FZCO) with multiple shareholders.

    Free Zone Company
    1. Offshore Company

    Offshore companies in Ras Al Khaimah are ideal for businesses that want to operate outside the UAE. These companies are registered in RAK but are not permitted to run a business within the UAE. Offshore companies offer tax benefits and require minimal reporting and accounting obligations.

    Offshore Company
    1. Branch of a Foreign Company

    Foreign companies can establish a branch office in RAK. This type of company requires a local agent, and the branch’s activities are restricted to the scope of the parent company’s business. The branch office does not have a different legal identity and is subject to the rules of the parent corporation’s jurisdiction.

    Branch of a Foreign Company
    1. Sole Proprietorship

    A sole proprietorship is a company in RAK that is held and conducted by a single person. This type of company requires a local service agent and is ideal for small businesses that do not require substantial capital investment.

    Sole Proprietorship

    The Process of Business Setup in Ras Al Khaimah

    1. Choosing a Business Structure

    When setting up a business in Ras Al Khaimah, the first step is to choose the appropriate legal structure. Business owners can choose from various structures, such as a sole proprietorship, limited liability company (LLC), or a branch of a foreign company.

    Choosing a Business Structure
    1. Obtaining a Business License

    After deciding on the business structure, the next step is to apply for a business license for company registration in Ras Al Khaimah. RAKEZ offers several licenses, such as commercial, industrial, and service licenses, each with its own set of requirements.

    Obtaining a Business License
    1. Leasing a Business Premises

    RAKEZ provides several options for business owners to lease premises, including office spaces, warehouses, and industrial units. Business owners can choose from ready-to-move-in facilities or opt for customized premises.

    Leasing a Business Premises
    1. Registering for Taxes

    All businesses in Ras Al Khaimah must register for taxes with the Federal Tax Authority (FTA). The FTA administers a value-added tax (VAT) of 5% in the UAE.

    Registering for Taxes
    1. Opening a Bank Account

    Opening a bank account is a crucial step for business setup in Ras Al Khaimah. Business owners must provide relevant documents, such as the business license and identification documents.

    Opening a Bank Account

    Advantages of Business Setup in Ras Al Khaimah

    Ras Al Khaimah (RAK) is one of the most sought-after business destinations in the United Arab Emirates (UAE). Its strategic location, business-friendly policies, and excellent infrastructure make it an attractive location for investors from all over the world.

    1. Strategic Location

    RAK’s location, close to major markets in the Middle East, Africa, and Asia, delivers companies with comfortable access to these regions. It is well-connected to major ports, airports, and highways, making it a logistics hub for businesses.

    Strategic Location
    1. Business-Friendly Policies

    RAK offers a business-friendly environment, with a variety of policies that encourage foreign investment. The government has executed a number of measures to support businesses, including 100% foreign ownership, tax exemptions, and streamlined licensing procedures.

    Business-Friendly Policies
    1. Cost-Effective

    RAK offers competitive costs, making it an appealing place for companies looking to decrease their operating expenses. The price of residing and conducting business in RAK is lower compared to other emirates in the UAE.

    1. World-Class Infrastructure

    RAK offers world-class infrastructure, including modern office spaces, warehouses, and industrial units. The government has supported laboriously in infrastructure assignments, making RAK an ideal location for businesses that require modern facilities.

    World-Class Infrastructure
    1. Skilled Workforce

    RAK has a highly skilled and multilingual workforce. The local population is well-educated, and there is a large pool of expatriate workers from around the world. Businesses can easily find skilled workers with relevant expertise in their industry.

    Skilled Workforce
    1. Supportive Business Environment

    RAK has a supportive business environment, with a range of organizations and associations that help businesses set up and operate in the emirate. These associations deliver an array of services, comprising market research, business development, and networking opportunities.

    Supportive Business Environment

    Documents Required for Business Setup in Ras Al Khaimah

    Business setup in Ras Al Khaimah (RAK) requires several legal and administrative procedures, which include submitting the necessary documents to the relevant authorities. The precise documents demanded may differ relying on the type of business and its legal structure. Nevertheless, some of the general documents mandated for business setup in RAK are –

    Documents Required for Business Setup in Ras Al Khaimah
    1. Passport Copies – All business owners and shareholders must submit copies of their passports. The passport must be valid for at least six months from the date of application.
    2. Residence Visa – If the business owners and shareholders are residing in the UAE, they must provide copies of their residence visas.
    3. No Objection Certificate (NOC) – A No Objection Certificate (NOC) is required from the current employer of the business owners and shareholders who are employed in the UAE. The NOC must state that the employee is allowed to do the business setup in RAK.
    4. Memorandum of Association (MOA) – The Memorandum of Association (MOA) is a legal document that outlines the company’s objectives, activities, and capital structure. The MOA must be notarized and attested by the UAE embassy in the country of origin.
    5. Power of Attorney (POA) – A Power of Attorney (POA) is a legal document that authorizes a person or company to act on behalf of the business owners and shareholders during the registration process. The POA must be notarized and attested by the UAE embassy in the country of origin.
    6. Proof of Share Capital – The company in RAK must provide proof of share capital in the form of a bank statement or a letter from the bank.
    7. Premises Lease Agreement – If the business requires a physical office or premises, a lease agreement must be provided. The lease agreement must be attested by the relevant authorities in RAK.
    8. Trade Name Reservation Certificate – A Trade Name Reservation Certificate must be obtained from the Department of Economic Development (DED) in RAK. This certificate confirms that the trade name is available and can be registered.


    The business setup in Ras Al Khaimah Free Zone is a wise choice for those looking for a dynamic and lucrative business environment. With a range of business-friendly policies, world-class infrastructure, and strategic location, Ras Al Khaimah Free Zone has become one of the most sought-after destinations for business setup in the UAE. The process of setting up a business can be complex and time-consuming, but with the help of a professional business setup consultant, the entire process can be streamlined and hassle-free.

    Whether you’re a local entrepreneur or an international business owner, Ras Al Khaimah Free Zone offers a range of options and advantages that make it an ideal destination for business setup. So, take the first step towards your entrepreneurial journey today and set up your business in Ras Al Khaimah Free Zone!

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