The Ras Al Khaimah Free Trade Zone Authority International Companies Regulations 2006 has been introduced for registering and governing offshore companies in the Ras Al Khaimah Free Zone. The RAK International Registry has sparked interest throughout the U.A.E and overseas and has proved successful in incorporating a large number of International Companies since its launch in October 2006.

1. Under the RAK International Companies Regulations 2006 an International Company with limited liability can be formed with a minimum of one shareholder, one director and one secretary.
2. The capital structure can be decided by the shareholder(s). However, all the shares must be fully paid when allotted and the international company is also allowed to create different classes of shares, including “Restricted Bearer Shares”.
3. An International Company is required, at all times, to have:

   1. A registered agent, approved by the Ras Al Khaimah Free Trade Zone Authority (“the Authority”). Such registered agent shall be located in the Free Zone or elsewhere in the UAE;
   2. A registered office, which must be an office maintained in the Free Zone by the company or an office maintained in the Free Zone or in UAE by its registered agent, to which all communications and notices may be addressed.
4. An International Company may conduct any lawful business subject to the following restrictions as provided by the Regulations. The International Company shall not carry on:

   1. business with persons/entities in the Ras Al Khaimah Free Trade Zone or in the UAE except as otherwise provided in the Regulations;
   2. any other business which may, by regulations made by the Authority, be prohibited;
   3. banking business or business as an insurance or reinsurance company, insurance agent or insurance broker, unless it is licensed under applicable UAE law and authorized to carry on that business.
5. If the International Company wishes to conduct trade or other business outside the Ras Al Khaimah Free Trade Zone elsewhere in the UAE, it must obtain the appropriate license to conduct such trade or other business activity from the competent authorities in the UAE.
6. An International Company can hold a bank account in the UAE for the purpose of conducting its routine operational transactions.
   

Features of RAK International Companies

• Private company limited by shares.
• May own shares in other UAE companies or elsewhere
• Can Maintain bank accounts in the UAE.
• Can employ services of local professionals in the UAE
• Limited liability Company.
• Option of one or more shareholder.
• Minimum of one director required.
• Shareholder may be appointed as a director and/or secretary.
• Restricted Bearer shares.
• Multiple classes of shares.
• No requirement to hold directors or shareholders meeting on a regular basis.
• Mechanism for alternate dispute resolution.
• The accounting books, records and minutes of the company may be kept in any place or country at the director’s choice.
• Annual accounts are neither required nor to be filed.
• Able to trade in or own an interest in real property in the UAE.

Advantages of RAK International Companies

• Zero taxes and duties.
• No Tax Information Exchange Agreement with any country.
• No Record-keeping requirements.
• No Public disclosure of information.
• No minimum share capital.
• Easy transfer of shares.
• Able to issue restricted bearer shares, held by Registered Agent.
• Bearer shares can be converted to registered shares.
• Simple accounting requirements.
• Minimal Government and registered agent fees and costs.
• Confidentiality & Protection.
• Easy transfer of assets.
• Facility for company name reservation (Up to 90 days).
• Company Name can end up with “Limited”/ “Ltd” or “Incorporated”/ “Inc”.
• Multiple classes of shares.
• Able to conduct business in the UAE as long as licensed by the appropriate authorities.
• Has the option to choose the applicable law.

Highlights of the RAK Free Zone International Companies

• Transparent, Tax Free, Corruption Free and No – Red Tape location to do business.
• Political Stability.
• Benefits from the bilateral non-double taxation treaties in the world including with France, Germany, Italy China & India.
• Assurances and mechanisms for total confidentiality, unless suspicion of criminal activity and hence required by the UAE regulatory bodies.

Ras Al Khaimah Free Trade Zone offers numerous incentives to its companies:

• 100% foreign ownership
• 100% income and corporate tax exemption
• 100% Capital & Profit repatriation
• Long term renewable lease
• Strategic location with access to over 1.2 billion consumers
• Transparent laws and regulations
• Promotion centers in Dubai and Abu Dhabi
• Simple and fast application procedures
• State of the art communication facilities
• Excellent Sea port and International Air port facilities
• Easy international Access
• Abundant energy supply
• Marketing support services

License Types

Industrial License : Activities allowed: Import of raw materials, manufacturing, processing, assembling, packaging, and exporting finished products. Feasibility and environmental impact studies and clearance from RAKFTZ are required.

Commercial License : Activities allowed: Import, export, distribution, consolidation, storage or warehousing of items specified on the License. Maximum limit is seven similar product lines.

Consulting and Service License : Activities allowed: Offering consulting services in management, finance, investment, legal issues, labour relations, economics (including feasibility studies), industrial development, marketing, and related subjects. Other services include logistical support such as: restaurants or food outlets, catering services, travel agencies, leisure and social activities, insurance, cargo & freight forwarding, accounting, and audition services.

Commercial - General Trading License : A General Trading License can be obtained under a Commercial License, which allows for more than seven product lines.

Note: Special licence fees are applicable for certain activities and are not listed above.

RAK Free Trade Zone Parks

RAK Free Zone Park : Ras Al Khaimah Free Trade Zone Authority revolutionized the way free trade zones function in the UAE. By segregating business activities according to function, operational requirements, and the needs of the surrounding communities, Ras Al Khaimah Free Trade Zone Authority has created a system of three Free Zone Parks that will suit and serve every investor.

The Business Park : Centrally located, this is the vibrant heart of the business district. The World Trade & Business Innovation Centre is ideally located within Ras Al Khaimah Free Trade Zone, next to our headquarters, and situated between both the Industrial and the Technology Parks.

Offices are equipped with state of the art communication links and the Free Zone Authority provides all utilities and cleaning services. We are always on hand to provide local and international marketing knowledge, support and information services to assist with your business development.

Added advantages are the RAK Exhibition Centre, five star hotel and a premier shopping and entertainment complex.

The Industrial Park : Situated approximately 15 kilometers north of Ras Al Khaimah and very close to Saqr Port. To honor environmental obligations, the Industrial Park is surrounded by a protected and native stand of mangrove trees providing an ecologically friendly environment in which to operate.

Plot sizes are provided to suit individual client requirements and are fully serviced with water, electricity and telecommunications. On-site employee accommodation can be provided. There is an administrative and service support centre located within the Park.

The Technology Park : This 71- hectare Park is located in a rapidly expanding area devoted to automate manufacturing and capital intensive quality lifestyle projects.

South of Ras Al Khaimah, this Park offers ease of access to the city centre, RAK International Airport and Saqr Port, with other areas of business activity such as easy and quick accessibility to Dubai by road. A premier five star hotel is situated just across the highway, with a lagoon and a golf course under development.

Promotion Services

Another exciting initiative by Ras Al Khaimah Free Trade Zone Authority is the introduction of Promotion Centres in Dubai and Abu Dhabi. RAK Free Trade Zone Promotion Centres have increased the awareness of RAK Free Zone considerably, and have presented investors with substantial scope from which to broaden and expand their marketing and management operations, while continuing with their assembly, industrial and manufacturing activities in the RAK Free Zone Industrial and Technology Parks. By taking advantage of this initiative, investors can also capitalize on all the exhibitions, conferences, events and seminars being held in other emirates.

RAK Business Center (Dubai)
RAK Business Center has a range of solutions that lets you setup your business in Dubai quickly and cost effectively. Located on the seventh floor of The Fairmont Dubai, the Business Center offers one-stop shop facilities to businessmen. The Business Center provides you all the support you need to make your operations highly successful by assisting you in obtaining necessary licenses, providing fully furnished office space, conference facilities, front desk secretarial services, marketing services, call-center services, mail forwarding services and other administrative services

Operations in the UAE

Licensees are not permitted to display or sell their products or services themselves directly in the local market. However, the holder is permitted to operate outside the UAE.

Marketing Licensee's Products or Services in the UAE need to be undertaken either by an Agent, Representative, Distributor or the Mother Company with a License issued by relevant authorities in the UAE.

Potential customers may visit the premises of a Free Zone Licensee, in the Free Zone, for the purpose of viewing goods or availing the services.

The restrictions do not apply to Trade Exhibitions, which are approved by the relevant authority in the UAE. Free Zone Licensees may themselves display and sell their products or Services at such exhibitions in the same way as any other foreign company.

Security

All vehicles and personnel moving in and out of the Free Zone require to have the appropriate pass or permit.

The Free Zone Security shall inspect or search the body or vehicle upon entry and exit from the parks.

Pass or permit holder shall not take photograph or film in any part of RAK FREE ZONE parks without prior permissions from the RAK FREE ZONE Authority. The Authority may withhold the permissions for no reasons.

Business Center Services 

The RAK Innovation and Promotion Centre is a free zone facility which gives investors an opportunity to start business with minimum hassles. Some of the key features of the RAK Innovation and Promotion Centre are the serviced, fully-functional and ready-to-use offices, flexi-offices and flexi-desks, plus a wide variety of services. All of these are offered at highly cost-effective rates.

The RAK FTZ Business Centre is designed to be one-stop shop.

EXECUTIVE OFFICE (14-28 square m)

The Executive Offices are serviced, fully-functional and enclosed offices. The standard offices range from 14 to 28 square m, expandable as per client requirements.

Features:

• Fully furnished
• Cisco phones
• Dedicated fax number
• Private e-mail address
• Shared printer (optional)
• Shared post box (optional)