Question 1

What types of companies can I register in RAK?

Accepted Answer

Mainland LLCs, RAK Free Zone companies (RAKEZ), Offshore companies, and Branch offices are available structures.

Question 2

Is 100% foreign ownership allowed in RAK?

Accepted Answer

Yes, Free Zone and Offshore companies allow full foreign ownership. Mainland companies also permit 100% foreign ownership for many activities.

Question 3

What licenses are available?

Accepted Answer

Commercial, Professional, Industrial, and specialized Free Zone licenses through RAKEZ cover a wide range of business activities.

Question 4

How fast can I set up a company in RAK?

Accepted Answer

Free Zone setups usually take 1–5 working days; Mainland registrations typically take 1–3 weeks; Offshore companies can be set up within 7–10 days.

Question 5

What are the capital and office space requirements?

Accepted Answer

Capital requirements depend on company type and activity. Physical office space is mandatory for Mainland companies; Free Zones offer flexible options.

Question 6

What taxes apply in RAK?

Accepted Answer

Corporate tax is 9% above AED 375,000 profit threshold. VAT at 5% applies if turnover exceeds AED 375,000. Free Zones provide attractive tax incentives.

Question 7

What documents do I need for registration?

Accepted Answer

Passport copies, trade name reservation, MOA/AOA or LSA, tenancy contract, initial approvals, business plans, and bank references are required.

Question 8

Can I open a bank account in RAK?

Accepted Answer

Yes, after license issuance, banks require standard documentation and may conduct interviews.

Question 9

Are there compliance requirements?

Accepted Answer

Annual license renewal, VAT submissions, audit reports if necessary, and corporate tax filings are mandatory.

Question 10

Can RAK Free Zone companies trade on the mainland?

Accepted Answer

Free Zone companies can operate internationally and within the Free Zone. Mainland operations require a local distributor or dual license.

Ras Al Khaimah (RAK) Company Formation

Frequently Asked Questions