Company Formation Dubai



Open RAK Offshore Company

Updated on Tuesday 19th April 2016

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We are specialized in forming RAK Offshore Companies. Foreign investors who decide to set up an offshore company in the Ras Al Khaimah (RAK) free zone will benefit of a lot of important advantages:

-    0% corporate tax;
-    100% foreign ownership allowed;
-    100% repatriation of their profits and capital;
-    no minimum share capital
-    confidentiality for their business;
-    business-friendly environment;
-    flexible jurisdiction.

The RAK free zone is situated in the emirate that has the same name, 112 km. away from Dubai.

In order to incorporate a company in the RAK free zone, you must submit a few documents and our specialists in company formation in Dubai will handle the entire procedure of incorporation. A foreign businessman is not required to travel to RAK for the registration because our specialists can act on behalf of him/her in front of the local authorities at the Trade Register. After you send the required documents, it will usually take only two or three business days for the registration of the offshore company in RAK.

The documents for registering an offshore company in RAK

-    copies of the directors and shareholders’ passports;
-    utility bills for the confirmation of the addresses of the directors and shareholders;
-    bank reference letter etc.

RAK free zone, one of the best for doing business

There are 22 free zones in operation in Dubai, the first emirate that introduced the free zone model, according to the local Department of the Economic Development. There are also other free zones in the other emirates, close to Dubai, such as RAK. The Ras Al Khaimah (RAK) is one of the most chosen free zones by foreign investors because it is located in a strategic position for easy access to the markets in Middle East, Africa, Asia and the Commonwealth of Independent States (CIS) formed after the dissolution of the former Soviet Union.

RAK is an important commercial center that offers a business-friendly environment and legislation, has a very good infrastructure – air and port facilities – and the local authorities are proactive in supporting and attracting the local and foreign entrepreneurs.  

This free zone is well-known for its favorable taxation and this is the main reason it has been chosen for opening offshore companies in different fields of activity. Entrepreneurs all over the world benefit from a relatively low cost and well trained workforce and a legislation that encourages the foreign investments in a free zone that offers a high quality of life.

RAK provides important opportunities for investing in tourism because it has 65 km. of beaches, mountains and desert and a green zone that can be used for agriculture. This free zone is close to important markets of the region: Saudi Arabia, Qatar, Iran, Oman etc. Ras Al Khaimah is known as a zone free of corruption and transparent for businessmen all over the world.

The foreign investors who want to open an offshore company in RAK will benefit from the double taxation treaties signed by UAE with a lot of countries, among which France, Germany, China, Italy etc. The foreign entrepreneurs have the possibility to outsource their businesses in different fields, such as accounting and back office operations.

The structure of RAK

RAK is organized in five areas:

-Industrial Park,

-Business Park,

-Technology Park,

-Academy Zone,

- Aviation Park.  

RAK was founded in 2000 and it is considered by the investors interested in setting up a company in UAE as an advantageous location due to the economic and political stability, the simple procedure of incorporation, a high number of double taxation treaties signed all over the years, exemptions from paying taxes.

Another advantage of setting up a company in RAK is that a legal entity opened there can have 100% foreign ownership, unlike other areas from UAE, where it is mandatory to have a UAE national as partner with at least 51% ownership of the entity.

Businesses in RAK

There are different forms of business met in RAK: the free zone establishment (a new business entity with a single owner) or the free zone company (a new business entity owned by two - five partners), public and private joint stock company, limited liability company, limited liability partnerships, branch and representative offices and professional firms.

The companies established in RAK must deliver at least 1,000 AED as share capital, they must appoint a registered agent in UAE and they have minimum one director and one shareholder (individual or corporate body).

The legal entities opened in RAK must apply for a company license, renewed every year. Even with this license, the companies established in RAK are not allowed to perform commercial activities in other areas of UAE.

Licenses for business

There are four types of licenses available for the investors:

- the commercial license,
- the industrial license,
- the general trading license,
- the consultancy/services license.

The application for issuing a business license must be accompanied by a proof from the bank that the specified amount of capital has been deposited.

Nowadays, more than 6,000 small and medium companies are operating business in RAK which is situated in top five of the most convenient free trade zones in the world.

For further information, you may contact our company formation agents in Dubai.

We invite you to watch a video about how you can set up a company in RAK free zone:


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