Business Setup in Ras Al Khaimah

Emirate of Ras Al Khaimah, located in the northern part of the United Arab Emirates, is a promising, yet not explored land for investment. The emirate sharing its border with the Sultanate of Oman has been inviting business entities with open hands. The visionary rulers of Ras Al Khaimah, which is also known as RAK, have set up infrastructure facilities, proper connectivity, and all amenities necessary for the growth of businesses.

Of late, businesspersons have been realizing the growth potential, the emirate offers. Those, who were early focussing on Dubai, for business set up, have shifted their attention to RAK too. You can establish Limited Liability Companies (LLC), Branch Offices, Representative Offices, Free Zone companies, and other forms of business firms here. The productive atmosphere and supportive policies will add momentum to your objectives. 

Kiltons Business Setup Services have extended our support to ex-pats and resident individuals dreaming of commencing business operations in Ras Al Khaimah. Business setup in Ras Al Khaimah will open your path to riches. Putting up the right marketing strategy, formulating business plans, and moving ahead with zest are the things required from you. Rest assured, your growth as a successful business entity in the Emirate of Ras Al Khaimah is guaranteed.

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Frequently Asked Questions on Business Setup in Ras Al Khaimah

  • Can I function from a virtual office?
    • Virtual office if permissible only for offshore companies. Other jurisdictions ask for a physical office.
  • Are there any Free Zone Parks dedicated to a particular type of industry?
    • Yes, there are four Free Zone parks, viz. Business Park, Industrial Park, Academic Park and Technology Park.
  • I don’t have a resident director for my company. Is it necessary to recruit one?
    • No. A resident director or shareholder is not necessary for company formation in RAK.
  • Which are the Free Zones in RAK?
    • There are four Free Zones in RAK, viz. RAK Investment Authority Free Zone (RAKIA), RAK Media Free Zone (RMFZ), RAK Economic Zone (RAKEZ), RAK Maritime City Free Zone (RAKMC)
  • Can I start an LLC without a local sponsor?
    • Yes. You can start an LLC without a local sponsor.

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Types of Business Setup in Ras Al Khaimah

The type of business setup you need will depend on the field of your business, the product, and other relevant aspects. Therefore, you can either undertake a detailed study to confirm the type of business to establish in RAK or consult with our experts to understand the growth probabilities, positive factors, and mandatory requirements. 

There are 3 types of business setup in Ras Al Khaimah, viz. RAK Mainland, RAK Freezone, and RAK Offshore companies. The benefits each type of company offers will differ. Besides that, there are limitations with respect to the jurisdiction of business in each type. 

RAK Mainland – The federal laws of the UAE promulgate the regulations, directives, and policies to be pursued by the companies located in the Mainland. The procedure for setting up of a business firm RAK Mainland is similar to the one in Dubai Mainland. 

RAK Freezone – RAK Freezone has been one of the most preferred business jurisdictions in RAK. The Free Zones in Ras Al Khaimah includes Ras Al Khaimah Investment Authority (RAKIA), Ras Al Khaimah Media Freezone, and Ras Al Khaimah Free Trade Zone (RAKFTZ). Also, there are Freezone areas designated for different types of businesses. The Free Zone areas such as Industrial Park, Technology Park, and Al Ghail Park have specific amenities and support systems in place to cater for the type of businesses intended there. This planned approach is advantageous for business firms, as they don’t have to run around to set up a business in the area.

The RAK Freezone Authority issues licences and approvals for starting a business in the Freezone domain. Establishing a Freezone company is budget-friendly. It also offers tax benefits, lenient regulations, supportive government policies, and a conducive atmosphere that will bolster the entity.  

RAK Offshore – Offshore companies in Ras Al Khaimah enjoy cent percent confidentiality in their financial transactions and the details about the shareholders in the company. Besides, additional pros include 100% foreign ownership, exclusion from personal tax, nil corporate tax, and flexibility in minimum capital required for starting the company and 100% repatriation.   

Any jurisdiction will not suit any business. You have to examine the pros and cons thoroughly to preclude going ahead with a wrong decision. You may contact us to discuss Company Setup in RAK. Our experience and expertise in the field will be advantageous for you in several ways. 

Company Formation Procedure in Ras Al Khaimah

The regulations and the laid down procedure for company formation in RAK is unfussy. Therefore, you can undertake the process without much complication. At the same time, support and guidance from a business setup service in RAK will be helpful to avoid erroneous process and mistakes in the application. The authorities will peruse the application, documents, and certificates submitted. Any irregularity can result in rejection of the application. Preparing the applications again, preparing the documents, and re-submission process may become cumbersome for you. It is advisable to seek expert help to prepare and examine the application and supporting documents. 

The company formation procedure in Ras Al Khaimah is given below:

- Decide on the area of business you want to establish

- Finalise the location of the business firm

- Confirm the jurisdiction, where you want to set up a business

- Fix a trade name for the business, according to the stipulated naming rules

- Register the trade name

- Obtain initial approval for setting up of the business

- Get approvals from departments and ministries, if required

- Prepare Article of Association (AOA), Memorandum of Association (MOA), and Local Service Agreement (LSA)

- Finalise and conclude a lease agreement

- Process the payment for the issue of trade license

- Apply for trade license along with all the requisite documents

- Obtain trade license in UAE

- Commence business (Approval from the Ministry of Labour will be compulsory for hiring employees)

Pros and Cons of Company Formation in RAK

As with every case, company formation in RAK has its pros and cons too. Weighing both will give you the exact idea of whether to go ahead with Company Setup in RAK or not. At the same time, setting up a business firm in the RAK region has proved beneficial for several organizations. 


- Investor-friendly policies and regulations. It has been formulated to support the investors, and not for troubling them. The official authorities understand that expats are essential for augmenting the financial strength of the emirate. 

- A company can have any number of shareholders. There are no limitations concerning the same, which may not be the case with other emirates. 

- Production and running costs are less comparatively, due to low charges for energy and other needs

- Well-planned infrastructure that is beneficial for the smooth functioning of the organization

- Well-connected to bigger markets around the area

- No tax on international profits. It means that you own whatever you earn. 

- No capital gain tax/ personal income tax 


- Annual audit has to be undertaken and the report has to be rendered to the government for perusal

- Offshore companies have limitations regarding trading

Why Kiltons Business Setup Services?

The legacy of Kiltons dates back to 1948 when the United Arab Emirates was not formed. Kiltons Business Setup services established in 1999, has been extending invaluable services to clientele for more than two decades. Their handpicked team of professionals has expert knowledge of setting up a business in Ras Al Khaimah, Dubai, or any region in the UAE. 

Reliability and dependability are the basic factors that define the quality of any service. The constant and persevering service to our clients and committed actions have made us the most credible business setup services in the UAE region.

Our team of proficient professionals will support you at every juncture of the formation of your company. It will begin with initial advice and ideas regarding the best business options, the jurisdiction that will be suitable for the same, and strategies to follow for a favorable outcome. 

Are you thinking of setting up a business in the Ras Al Khaimah region? Do you have queries regarding company formation in RAK?

Discuss your plans and dreams with our professionals. Let us help you to accomplish your dreams. Contact Kilotons now. 

Seek expert advice from our experienced professionals.
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