RAK Mainland Business Set Up Requirements
The federal government in the UAE has laid down policies and regulations for setting up a business entity in RAK. You have to abide by the subject rules to conclude the process of company formation in RAK without any complications. Identifying the right business activity for you and the type of license you need will play a pivotal role in making your venture a success.
The business license and the procedure for obtaining the same will depend on the type of company you are starting. The business entity can be a Limited Liability Company, Joint Stock Company (JSC), Public Joint Stock Company (PJSC), Partnership Firm, Branch Office, Representative Office, Professional Agency or Industrial Establishment.
It is mandatory to have a local Emirati sponsor for ex-pats to set up a company in RAK. The local sponsor will hold 51% of the shares of the company. Remaining 49% of shares can be held by the shareholders. This underscores the necessity to have a reliable and dependable local sponsor. Owners of professional firms can hold 100% shares of the company, subject to certain regulations.
A brief regarding the process for mainland company formation in RAK is given below:
- Decide the business activity
- Confirm the location
- Finalize the type of license
- Find a local sponsor
- Formulate the legal structure of the firm
- Submit an application for company registration
- Fix a trading name and obtain approval
- Prepare Memorandum of Association (MOA) and notarize
- Obtain approvals from the Department of Economic Development (DED), Ministry of Labour, Ministry of Commerce and Industry, Municipal Authorities and other departments depending on the type of business activity
You must know the procedure and official formalities for obtaining initial approval and subsequent trade license immediately. And that’s where Kiltons will help you. Our professionals, well-versed with the documentation aspects, will process the application and conclude everything in a short time.
RAK Company Formation Procedure
Kiltons is there to support you during the entire process of company formation in RAK. We will look after the whole process judiciously. You can remain unconcerned about company formation and concentrate on other activities related to business.
The procedure for establishing a business entity in RAK is elaborated in the succeeding paragraphs.
Type of Business – The category of license, the location that is ideal for the business and the approvals necessary for commencing the business activity will depend solely on the type of business you are planning. Therefore, you need to finalize the type of business before we begin the company formation process.
Trade Name – The initial approval and approvals from various departments and ministries will be issued on the company’s name. You must finalize a trade name and obtain approval. The authorities have promulgated guidelines about do’s and don’ts concerning trade names. Select a business name accordingly and register it with the authority.
Initial Approval – The Department of Economic Development (DED) in RAK issues initial approval for company formation. Further, the issuance of a business license is also entrusted with the DED. Approvals and authorizations from the departments and ministries associated with the type of business will be necessary before applying for a trade license.
Finding a Local Sponsor – A local Emirati sponsor is unavoidable for a business setup in RAK mainland. You must conclude an agreement with a trustworthy local sponsor, who will be holding 51% of shares in your company.
Legal Structure – The legal structure, Memorandum of Association (MOA) and Article of Association (AOA) have to be formulated and notarized.
Corporate Bank Account – Open a corporate bank account. The banks have stipulated criteria for opening a corporate account. You need to submit requisite documents for starting an account in the name of the business.
Trade License – Obtain the final license, complete the incorporation formalities and commence the business.
Documents Required for Mainland Company Formation in RAK
The documents necessary for processing the request for mainland company formation in RAK are:
- Copies of passport of shareholders, directors and other responsible persons
- Copy of passport and family book of the local sponsor
- Formulated business plan
- Copies of the visa of the shareholders and directors
- Bank documents
Setup Your Business in Ras Al Khaimah Mainland with Kiltons
Kiltons Business Setup Services have been serving clients for more than two decades. Established in 1999, we have been a key player in the inception and growth of several reputed business entities across the UAE. Trustworthy and transparent services have been our identity.
We will dedicate ourselves to keeping your business objective our prime aim. You can discuss your goals and we will custom-tailor our packages to suit your needs. Unparalleled expertise in the field makes us a prominent business setup service in the country. Reach out to us to explore the business opportunities in Ras Al Khaimah and obtain optimal benefit from it.
We are there to help you with every juncture.
To set up a business in RAK and get the best result, contact us now.