RAK Mainland Company Formation: All You Need to Know

Ras Al Khaimah is an attractive destination for investors and entrepreneurs. Its stable banking system, advanced infrastructure, and quick business setup process make it a preferred stop for setting up your business. You can choose any of the mainland, offshore, or free zones in RAK. Here, in this blog, we cover the RAK mainland company formation.

Business Setup HQ is a distinguished provider of professional services across the UAE. We help investors and entrepreneurs with the relevant help to set up a business in the UAE. Ras Al Khaimah mainland company formation is also one of our critical service offerings. You can get help with documentation, procedure, and approvals from authorities.

Let’s take you on an informational journey of RAK mainland company formation.

Ras Al Khaimah mainland company formation

Mainland Company Formation in Ras Al Khaimah: An Overview

Ras Al Khaimah is an emerging hub for businesses and entrepreneurs in the UA. It has a strategic location considering its accessibility to the Middle Eastern, European, and Asian countries. It is a well-developed Emirate of UAE with top-class infrastructure and well-developed healthcare and education facilities.

All these points are enough for any investor, business, or entrepreneur planning to enter RAK.

Besides, the following points make Ras Al Khaimah mainland company formation more preferable:

  • The government has introduced many initiatives for an easy and quick business setup.
  • Getting approvals from the Department of Economic Development (DED) and other relevant authorities is smoother.
  • Businesses with interests in oil and gas, tourism, manufacturing, education, financial services, real estate, agriculture, consulting, and many other industry sectors can form a base in RAK.
  • It also provides many other benefits like other mainland Emirates in UAE – less taxes, no currency restrictions, no limit on activities, and many others.

So, let’s look at the rules, things to consider, and the procedure for RAK mainland company formation.

Who Should form a Mainland Company in RAK?

Compared to the free zone, mainland RAK provides a broader reach for your business with the flexibility to operate anywhere in the UAE. Also, you can enjoy the flexibility of office location, type of business activity, and number of visas. It allows you to enjoy collaboration with government projects and a business-friendly environment.

Anyone looking to extract these benefits of mainland Ras Al Khaimah can form a company in RAK. But you must have a business idea or concept in mind. Like,

  • If you want to engage in the import and export of goods, you can obtain a trade license and operate in RAK. You can trade in one or two product categories with a general trading license.
  • If you want to be involved in the manufacturing of products, you can obtain an industrial license in RAK. This license allows you to import raw materials, use it to produce finished goods, and export them.
  • Individuals can also form a company in mainland RAK. You can get a professional license to engage in services like consultancy, design, IT, and many others.

Thus, Ras Al Khaimah mainland company formation is possible if you want to engage in any of these activities.  

Legal Structures Allowed for Companies in Mainland RAK

You can have any of the following legal structures as a company in mainland RAK:

Sole Proprietorship

A single owner forms and operates the company. It does not require any minimum capital for its formation in RAK.


Two or more partners enter into an arrangement to form and run a business. They share the profits and liabilities.

Joint Venture Company

It is an establishment formed due to a contractual agreement between a local and a foreigner. It can be a legal entity or an individual.

Limited Liability Company

It is an establishment with a minimum of two and a maximum of 50 shareholders. Each shareholder is responsible for the company’s liabilities only to the extent of their share in the company. A shareholder can be an individual or a legal entity.

Single person LLC

It is a limited liability company, but only one person operates it.

Public Joint Stock Company

It must have a minimum of 10 shareholders. It requires a minimum share capital to start it. You can offer the shares to the public.

Private Joint Stock Company

It must have a minimum of three shareholders. Like a public shareholding company, you cannot offer the shares to the public.

Branch Company

A branch can be a branch of a non-UAE company. It must engage in the same business activities as the parent company and operate under the same name.

A branch of a free zone company can also operate in mainland RAK, if the activity is permitted in RAK. If it is 100% owned by GCC nationals, you do not need approval from the Ministry of Economy; if not, you must.

Benefits of RAK Mainland Company Formation

RAK mainland company formation can lead to the following benefits for your business:

  • Ras Al Khaimah has a business-friendly environment and constructive policies for mainland business operations.
  • It has a strategic location with easy connectivity to global markets.
  • Easy availability of transport and logistics hubs like airports, highways, seaports, container ports, and marina docks.
  • RAK has top-class infrastructure, well-developed communication system, and modern facilities for its residents.
  • The government offers many options and initiatives for business promotion and sale.
  • It already has many global companies, contributing to its economic boost in the UAE.
  • There are no limits on the number of visas, giving you access to as many employees as possible.
  • You can find many diverse and qualified individuals for employment in your business.
  • You can save on your business costs with less taxes and cost-effective business operations.
  • There is no mandatory annual auditing requirement in Ras Al Khaimah for businesses.
  • There are no currency restrictions and 100% repatriation of profits and capital is possible.
  • 100% FDI permitted in more than 1000 business activities.
  • You can enjoy low-priced energy rates and ample amenities in RAK.
  • You can select any business activity and can carry out business with any company in the local market.

Ras Al Khaimah: exceptional benefits with easy setup process.

Count on us for RAK mainland company formation services.

The Complete Process for RAK Mainland Business Setup

Since you have selected Ras Al Khaimah as your base for business, you must follow the licensing procedure. Before that, you must ensure proper paperwork and documentation. The procedure is simple and easy, but you must ensure not missing any step. Ras Al Khaimah mainland company formation includes the following steps:

Determine your business activity

You must be aware of the permitted business activities in mainland RAK. You must select your preferred business activity/activities as the first step of the business setup process. It determines the necessary approvals required in the later stages.

Select the appropriate legal structure

After the business activity selection, you must select the preferred legal structure. This choice depends on the number of owners, shareholding division, and allowed structure in RAK.

Reserve your trade name

Now, you must select 2-3 possible names for your business. These names must follow the naming conventions of RAK and must be unique. You need to apply to the DED to reserve a trade name for your business.

Get relevant approvals

Other than DED, your business activity might need approvals from other associations or authorities. These might include the Ministry of Economy, the Health Department, the Ministry of Interior, or others. You must get these approvals by submitting relevant documents to those authorities. The ministries and departments issue these approvals in your trade name. The Municipality will inspect the location and approve it.

For foreign investors, the approval from the General Directorate of Residency and Foreigners’ Affairs is essential.

Draft the MoA and AoA

Once you get the approvals, you create the necessary documents of Memorandum of Association and Article of Association.

Get a business license

Now, submit all the documents and approvals to the DED, along with the application form. Also, pay the relevant fee amount. After examining and processing your documents, DED sends you the business license.

Open a bank account and get visas

Once you get the license, you can move ahead with opening a bank account. You must also complete the procedure of obtaining company employees, shareholders, and directors’ visas.

What are the Documents Required for RAK Mainland Company Formation?

For Ras Al Khaimah mainland company formation, you must have many relevant documents ready. You need to submit these documents for further processing of the license. These documents include the following:

As identity proof of owner/s:

  • Photocopies of shareholders’ residence certificates, passports, and visas
  • Residence proof or copy of rental agreement
  • Copy of a no-objection certificate
  • Information sheet of every shareholder and/or manager

Proof for business:

  • Memorandum of Association
  • Article of Association
  • Business plan
  • Trade name reservation proof
  • Copy of ownership certificate or land map
  • Copy of tenancy contract
  • Schematic drawing of the business location
  • Bank reference letter

Besides these documents, you must fill up the application form with the correct details. Submit all these documents to DED for approval.

Business Setup HQ's RAK Mainland Company Formation Service

So, now you have all the details on Ras Al Khaimah mainland company formation. You have two choices in front of you. You can proceed ahead with the process by yourself. Or, partner with a professional services firm with expertise in business setup services. To ensure a smooth, error-free, and faster process, engaging a company formation specialist is a better option.

Business Setup HQ is a reliable provider of business setup services in the UAE. As an expert, we know the local rules and regulations of RAK. We also have years of experience helping businesses with Ras Al Khaimah mainland company formation. We have played critical roles in the setup and operations of reputed businesses in the UAE.

So, you get expert help with no risks of errors or delays.

We help you fulfil all the license requirements and legal formalities. We will keep all your relevant documents ready before the procedure. You can even enjoy a hassle-free process of obtaining approvals, document notarization, and processing visas. Also, our services are cost-effective, as compared to the market prices.

Let us extend you a helping hand in exploring your business idea in Ras Al Khaimah.

Choose RAK – the preferred investment destination.

Access our expertise in RAK mainland company formation.


Generally, business setup in mainland RAK takes 2-4 weeks.

RAK mainland company formation cost includes the factors of:

  • Reserving trade name
  • Initial approvals
  • Notarization
  • Licensing fees
  • Drafting documents
  • Professional fees
  • Registration fees
  • Visa fees
  • Office costs

Some of these costs are variable, depending on the firm you partner with. So, partner with us for cost-effective business setup services.

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