Ras-al-Khaimah

The Emirate of Ras Al Khaimah (RAK) is located in the north of the United Arab Emirates. UAE is a country in southwest Asia, bordered by Saudi Arabia and Oman, and is one of the richest countries in the world, enters the World Trade Organization.

Capital

Ras Al Khaimah

Official language

Arabic. English is widely spoken.

Government

In the UAE there are no elections or legal political parties. The power belongs to seven hereditary sheikhs, also known as Emirs. The territory controlled by Emir is called emirate. The UAE has seven traditional Emirates (Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Qaiwain, Ras Al Khaimah and Fujairah). UAE President is elected from among the Emirs. There is also a Cabinet of Ministers of state, the positions of Ministers are also distributed among the Emirs. Despite the existence of Federal Government, Emir is fully sovereign in his emirate.

Currency

Dirham (AED). 1 EUR is approximately 5 AED

Economy

Due to the relatively small mineral deposits in Ras al-Khaimah, oil and gas industry does not play an important role in the development of the emirate. Industrial growth has been accelerated by the creation in Ras Al Khaimah Free Zone. Currently, the emirate is actively attracting international investors. In 2007 registration of offshore business began. RAK Offshore or RAKIA Free Zone was established to attract investors seeking alternatives to traditional offshore financial centers.

Legal system

Emirates have a constitutional right to choose whether to join the federal judiciary, or have its own independent system, as Dubai and Ras Al Khaimah. Each of the seven emirates has the system of Sharia courts.

Corporate law

  • Federal Law No 8 of 1984 (Companies law)
  • Federal Law No 12 of 1986 (Labour law)
  • Federal Law No 13 of 1988 (Commercial companies law) 
  • Federal Law No 37 of 1992 (Trademarks)
  • Federal Law No 40 of 1992 (Protection of intellectual property)
  • Emiri Decree No. (2)/ 2005
  • RAK Offshore Regulations, 2006
  • UAE Federal Law (8) 2004 on Financial Free Zones 

Types of companies

  • Limited Liability Company
  • Branches and Representative Office of Foreign Commercial Companies
  • Joint Venture Company 
  • Public and Private Shareholding companies
  • Public Joint Stock Company
  • Private Joint Stock Company
  • Free Zone Company
  • Free Zone Establishment
  • International Business Company
  • Trust

International Business Company (IC)

  • Minimum capital is DEA 1,000, it must be fully paid at the time of registration.
  • An International Company may issue ordinary shares, preference shares, deferred shares, and shares with or without voting rights.
  • Company name can be in English or Arabic.
  • IBC may conduct any lawful activity except insurance, banking and cash management activities funds. IC may hold shares in foreign companies and UAE companies, can own property in the UAE and other countries that have bank accounts in the UAE and foreign banks.
  • One shareholder and one director are required to establish a company. Corporate directors are allowed. There is no need to hold meetings of directors, file accounting reports or maintain accounting books.
  • Information on beneficiaries is not disclosed to third parties.

Trust

An offshore trust is a very useful and flexible tool for high income, tax benefits and inheritance planning.

  • Ras-al-Khaimah is the only jurisdiction in the Gulf, offering registration of Trusts. The following types of trust can be registered: general, charitable, business.
  • Trustee may have the authority to dispose of the trust assets or have no such authority.
  • A minimum amount of assets is not established .
  • The term of the trust may be more than 99 years (except for charitable and purpose trusts).
  • One may choose the law under which the trust will be governed. Rules for mandatory inheritance do not apply to a trust.
  • Trust can be revocable or irrevocable, registration of trust is anonymous, strict rules of confidentiality are applied .
  • Number of Trustees can be from 1 to 4. The trustee may be beneficiary or settlor.

Taxation of companies

The emirate of Ras Al Khaimah has no corporate taxes, no VAT, withholding taxes and taxes on individuals.

Agreements on avoidance of double taxation

Signed with a number of countries