United Arab Emirates Ras Al Khaimah (RAK) Company Formation
A Ras Al Khaimah (RAK) is equivalent to a Limited Liability Company in the UK or a GmbH in Austria and Germany in that it is a legal entity which is separate and distinct from the individuals who run it. For sole traders and for people in partnerships, the individuals’ personal assets are at risk if there is a claim against the organisation but shareholders in a RAK are liable to lose only the value of the share capital to which they subscribe.
An RAK can be set up in several ways; ‘LLC setup’ allows trade within the UAE and globally’, ‘Free zone setup’ offers visas and sponsorship, and ‘offshore setup’ offers tax free international trade and provides maximum confidentiality for the company’s beneficial owners.
The United Arab Emirates is one of the worlds’ fastest growing economies and has a very high standard of living, making the UAE an attractive location for incorporating companies and offering vast growth opportunities. Because of the various ways it can be setup, a Ras Al Khaimah is the most common form of incorporation in the UAE.
Company names must be either derived from the primary business activities of the company or from one or more of the shareholders or directors names. The name must end with the suffix LLC or similar and the use of words depicting religious values or suggesting a connection with governmental bodies will be denied.
All companies registered in the UAE must have a registered office which must be a physical address in the UAE where official company documents may be legally served. We are able to provide a registered office as part of our incorporation package.
To incorporate in the UAE a minimum of one director is allowed and a maximum of 50 directors is permitted. There are no residency or nationality restrictions and director registers are not available for public inspection.
Only one shareholder is required and may be of any nationality. Non-residents are not permitted to control more than 49% of a company registered in UAE so a majority shareholder must be resident in UAE. There is no maximum number of shareholders and corporate entities are permitted.
There is no minimum share capital requirement and the amount of chosen capital may be expressed in any currency.
There is no obligation to file annual financial accounts or have accounts audited.
Incorporating is very quick; once we have received all the necessary documentation the process in complete in one to two working days.
Proof of Identity
As part of our due diligence we require proof of identity in the form of a passport copy for all directors and shareholders of the company.
There is no need to visit UAE in order to incorporate, although as the majority shareholder must be resident in UAE it may be necessary.