The UAE business entities
Why choose a company in Ras Al-Khaimah?
Often when talking about companies in Dubai you will also hear about another Emirate called Ras Al-Khaimah or shortened to RAK. So why would somebody want to set up in RAK if Dubai has everything, the simple answer is often financial, if it is not such a necessity to be in the center of Dubai then why pay the premium.
The cost to set up, the cost of office space, in fact most things in RAK tend to be cheaper. However, cost is not the only thing if you are thinking about an offshore entity, RAK is only one of two free zones in the UAE that offer offshore options, Jabel Ali (JAFZA) being the other, and RAK comes with less restrictions unlike Jabel Ali, where corporate director and shareholder are not permitted, a minimum of 2 directors are required along with an AGM and submission of audited accounts. So if you are looking for a UAE offshore company or a free zone without the price tag then maybe RAK is the option for you.
Free zone or not free zone
Choosing which free zone depends on the business activities of the company as some free zones are more beneficial to certain types of activities.
As mentioned above there are two free zones you can choose between for offshore entities RAK and JAFZA.
For offshore, the company can be fully owned by a foreigner, the activity of the company can only be executed outside of the country , and it is not possible to receive residency inside the UAE. Restrictions for IBC’s within the UAE include:
- Employment of staff from the local population,
- No visa’s granted,
- Renting office space,
- Trade with local businesses (not including accountants, legal and banking services)
For onshore, the company can be fully owned by a foreigner, activity can operate inside the free zone, and it is possible to receive residency inside the UAE.
For non-free zone onshore companies, at least 51% of the company must be owned by a local citizen(nominees are allowed), these companies are used to provide a direct service to the residence of the UAE, for example shops and restaurants, receiving residency is possible with this type of company.
It is probably worth noting that Jabel Ali (JAFZA) is the only free zone that allows for the purchase of real estate in Dubai.
Contact our professionals regarding company registration in Ras Al-Khaimah.