The Benefits of Setting up a RAK Company
This blog post is dedicated to uncovering the benefits of starting an RAK company. We’ll explore the unique advantages available here and discuss the costs of securing business licenses in this location.
Ras Al Khaimah, or RAK, is an integral part of the United Arab Emirates and has emerged as a vital hub for international businesses. Renowned for its supportive free zone and offshore company setup opportunities, it attracts many entrepreneurs, from starting to expanding their operations.
Why Choose RAK for Your Business?
RAK offers a compelling landscape for both free zone and offshore companies. Here’s why:
- Enhanced Confidentiality
Both RAK-free zone and offshore companies enjoy a high degree of privacy. Neither requires publicly disclosing financial information or shareholder and director details, ensuring confidential operations. Additionally, no mandatory audits offer further protection.
- Reduced Liability Exposure
Alongside the above, RAK’s business structures provide robust asset protection for your company. Both free zone and offshore setups create a legal barrier between your company’s assets and external parties, safeguarding them in legal disputes. This framework offers peace of mind for investors.
- Springboard to Global Expansion
Establishing your company in RAK, whether in a free zone or offshore, grants you a prestigious UAE-based address, enhancing your international credibility. This opens doors to exciting global partnerships and ventures. Additionally, you can benefit from opening a UAE bank account, facilitating seamless multi-currency transactions and international business activities.
- Significant Tax Advantages
While the UAE introduced a 9% corporate tax rate in 2023, both RAK-free zone and offshore companies are typically exempt. Due to specific restrictions on operating within the UAE mainland, this exemption translates to significant financial savings for your company.
While specific benefits, like the ability to operate locally, may differ between free zone and offshore structures, both offer a secure, cost-effective, and internationally recognized platform for your business to thrive in RAK.
Types of Business Setups in Ras Al Khaimah (RAK)
Ras Al Khaimah offers a favourable environment for business formation. Here’s an overview of two popular options:
Free Zone Company Formation
RAKEZ (Ras Al Khaimah Economic Zone) combines the advantages of the former RAK Free Trade Zone and RAK Investment Authority. It’s a cost-effective alternative to Dubai and Abu Dhabi’s free zones.
Benefits of RAKEZ
- Competitive pricing and low operating costs.
- Customization options for warehouses and land plots (ideal for industrial development).
- Online portal simplifies administrative tasks.
- Access to a vast business ecosystem (over 21,000 companies) for collaboration and networking.
Offshore Company Formation
RAKICC (RAK International Corporate Centre) is a modern corporate registry formed by consolidating RAK International Companies & RAK Offshore. It operates under common law legislation, offering access to courts in Abu Dhabi Global Markets (ADGM) and Dubai International Finance Centre (DIFC) if needed.
Benefits of RAK ICC
- Asset protection.
- Shareholder/director privacy (information not publicly listed).
- No corporate taxes.
- Access to corporate banking solutions.
- Simple administration and renewal processes.
- There is no minimum capital requirement.
- Flexible multi-currency accounts.
- There are no restrictions on the repatriation of capital/profits.
Important Notes:
- RAK IBC companies (international business companies) must use a registered agent for incorporation.
- Physical office space is optional for an RAK IBC company.
- Companies must maintain accounting records for seven years (no filing requirement with RAK ICC).
RAK Free Zone License Cost
The Ras Al Khaimah Free Trade Zone Authority (RAK FTZ) offers competitive pricing and frequent promotions to attract businesses. Here’s a breakdown of some of their cost-effective options:
- Zero-Visa License Packages: Perfect for companies that do not have an immediate requirement for residency visas. Starting at as low as 5,499 AED to sign a 1 year contract.
- BusinessWomen’s Packages: RAKEZ provides special discount rates for female entrepreneurs, which makes it an appealing option for female-owned companies.
- Long-Term Savings: Select a 3-year deal to receive 25% savings and free residency visas for employees of your company.
RAK Offshore Company Setup Cost
The cost of setting up an RAK offshore company can vary slightly depending on your chosen registered agent. Factors influencing price include:
- Location of the registered office
- Dedicated account manager services
- Professional expertise of the agent
Average Costs:
- Initial Setup: Approximately 3,000 USD
- Annual Renewal: Roughly 2,000 USD
Please Note: Costs are always subject to change. For an accurate quote, please contact us.
Exploring Construction Companies in RAK
The UAE’s construction industry is booming, with projections for a 5.7% expansion this year and an estimated market value surpassing 300 million AED by 2027. Within this exciting landscape, RAK is emerging as a beautiful hub for construction companies for several reasons:
- Strategic Location: RAK’s close proximity to major ports and trade routes gives easy access to regional materials and markets.
- Helpful Government Initiatives: The RAK government actively helps the construction industry by implementing favorable policies as well as infrastructure development.
- Major Development Projects: RAK is witnessing an increase in significant construction projects in the commercial, residential and infrastructure sectors, which is driving demand for skilled construction firms. For instance, their Building Retrofits Program.
- Cost-Competitiveness: In comparison to its neighbors, RAK provides lower operating and setup costs to businesses.
- Talent Available: RAK offers a pool of semi-skilled and skilled workers that creates a favorable work environment for construction companies.
Setting Up Your RAK Company with Business Setup Consultants DMCC
Once you’ve figured out the advantages of setting up your business within RAK, the next step is to navigate the process of forming. This is the point where Business Setup Consultants DMCC comes in. We have a wealth of experience in UAE company formation, with a special concentration on the benefits RAK provides.
We recognize that each company has its own unique needs. This is why we begin with a consultation that is tailored to your needs, making sure that you make the right decisions to support your RAK venture.
Our team is able to handle the complicated legal and licensing processes, which allows you to concentrate on your business plan. Additionally, we’re here to assist you even after your business has been established, providing help with the processing of visas, opening bank accounts and other essential services.
To start benefiting from an RAK company setup, contact us today. On the other end will be a helpful representative who’s ready to help.
FAQs
Why should I consider setting up a company in RAK?
Ras Al Khaimah (RAK) offers a supportive business environment with enhanced confidentiality, reduced liability exposure, global expansion opportunities, and significant tax advantages. Whether you choose a free zone or offshore setup, RAK provides a secure and cost-effective platform for your business to thrive.
What are the types of business setups available in RAK?
RAK offers two popular options for business formation – Free Zone Company Formation through RAKEZ (Ras Al Khaimah Economic Zone) and Offshore Company Formation through RAKICC (RAK International Corporate Centre). Each option comes with unique benefits, such as competitive pricing, customization options, asset protection, and more.
What are the benefits of RAK Free Zone Company Formation?
RAKEZ provides competitive pricing, low operating costs, customization options for warehouses and land plots, an online portal for administrative tasks, and access to a vast business ecosystem for collaboration and networking.
What are the advantages of RAK Offshore Company Formation?
RAKICC offers benefits such as asset protection, shareholder/director privacy, no corporate taxes, access to corporate banking solutions, simple administration and renewal processes, no minimum capital requirement, and flexible multi-currency accounts.
How much does a RAK Free Zone license cost?
The Ras Al Khaimah Free Trade Zone Authority (RAK FTZ) offers various cost-effective options, including Zero-Visa License Packages starting at 5,499 AED for a 1-year contract, BusinessWomen’s Packages with special discount rates, and Long-Term Savings with a 25% discount on 3-year deals and free residency visas for employees.
What is the cost of setting up an RAK Offshore Company?
The cost can vary depending on factors such as the location of the registered office, dedicated account manager services, and professional expertise of the agent. On average, the initial setup cost is approximately 3,000 USD, and the annual renewal cost is roughly 2,000 USD. Please note that costs are subject to change, and it’s advisable to contact the relevant authorities for accurate quotes.
Why is RAK a favorable location for construction companies?
RAK is strategically located with easy access to major ports and trade routes, has supportive government initiatives and infrastructure development, witnesses major construction projects, provides cost-competitiveness compared to neighbors, and offers a pool of skilled and semi-skilled workers.
How can Business Setup Consultants DMCC assist in RAK company formation?
Business Setup Consultants DMCC has extensive experience in UAE company formation, with a focus on RAK. They offer tailored consultations, handle legal and licensing processes, and provide ongoing support for services like visa processing and opening bank accounts, ensuring a smooth setup and operation of your business in RAK.
