2025 Ras Khaimah Company Registration Pit Avoidance Guide Full Analysis

As one of the most competitive offshore registration places in the UAE, Ras Al Khaimah (RAK) has attracted global companies to set up regional headquarters or offshore companies here with its advantages of zero corporate income tax, no foreign exchange control, and confidentiality of shareholder information. However, if you ignore the details of compliance during the registration process, you may face approval rejection, tax penalties and even legal disputes.

1. pre-registration: precise positioning and compliance review

1. Company type selection

offshore company (RAK ICC): suitable for international trade, asset protection and other business, no physical office, shareholder information is highly confidential, enjoy zero corporate income tax. However, it should be noted that certain industries (e. g. finance, insurance) require additional approval and cannot participate in the UAE local market.

Free Trade Zone Company (FZE/FZCO): Allows foreign holdings, can carry out regional and overseas business, suitable for manufacturing, logistics and other entities to operate. The physical office address is required, and some industries (such as medical and education) need to be certified by the competent department of the industry.

Local companies: suitable for deep into the local UAE market (e. g. retail, catering), but subject to local regulations, some industries may involve local partner requirements.

2. Name approval and industry classification

naming rules: Three English alternative names are required, and the suffix must be "Limited", "Corp" and other compliant suffixes. Religious and politically sensitive words are strictly prohibited.

Industry Classification: The UAE divides business activities into more than 2100 categories, which need to be accurately matched to 4-digit codes.

3. Policy and regional matching

regional selection: Ras Al Khaimah Economic Zone (RAKEZ) has low registration costs and is suitable for start-ups; if it involves special industries such as cryptocurrencies and financial derivatives, it is necessary to confirm whether RAKEZ has relevant license approval channels.

Policy Dividend: In 2025, the "Fast Track for Chinese Investors" will be launched in Khaimah. New energy and AI enterprises can pay attention to green subsidy policies and reduce operating costs.

2. document preparation: notarization and material authenticity

1. Shareholder/Director Documents

passport notarization: It must be certified by the provincial foreign affairs office or embassy or consulate of China, and the validity period must exceed 6 months.

Proof of address: English version of utility bill, bank statement or lease agreement within 1 month is required. The use of false addresses may be included in the "blacklist", affecting the subsequent visa processing.

Bank credit certificate: need to provide within 3 months of bank flow or deposit certificate, without notarization certification.

2. Business Plan and Funding Sources

business plan: need to include business model, target market, expected revenue and other core content. Void content can lead to delays in approvals.

Proof of source of funds: some banks need to provide a model contract or a description of the source of funds to open an account, and failure to provide reasonable proof may be suspected of money laundering, resulting in account freezing.

3. Agency selection

qualification review: Select RAK government-certified agencies to avoid registration failure or information disclosure caused by unqualified agents.

Transparent fees: confirm the composition of agency fees in advance to avoid hidden fees (e. g. notarization fees, translation fees).

3. Registration Process: Approval Time and Key Nodes

1. Approval cycle

offshore companies: the approval period is about 3-4 weeks, if the materials are incomplete and need to be supplemented, it may be extended to 2 months.

FTZ companies: the approval cycle is 7-10 working days, but the regional policy needs to be confirmed in advance.

2. Office address compliance

physical office: Ras Al Khaimah requires a physical office of not less than 20 square meters and a record lease period of ≥ 3 years. Shared station registration may be ordered to rectify.

Virtual office: only part of the free trade zone, subject to confirmation of compliance with the Ras Al Khaimah policy.

3, bank account opening key actions.

Bank selection: a detailed business plan, proof of source of funds and a model contract are required.

Face-to-face signing requirements: Most banks require face-to-face signing by legal persons, and some Chinese institutions support face-to-face signing by video.

4. After Registration: Compliance Operations and Tax Risk

1. Tax declaration and annual examination

enterprise income tax: "qualified income" in the free trade zone is subject to a 0% tax rate, but the annual profit exceeding 375000 dirhams is subject to a 9% tax. Failure to declare excess profits may result in tax recovery and penalties.

VAT Registration: VAT registration is required for annual revenue exceeding 375000 dirhams, and the deadline for filing is within 9 months of the end of the fiscal year. Late declaration penalty of 500-1000 dirhams per month.

Annual examination materials: updated shareholder list, registered address certificate and audit statement shall be submitted. The annual fee for the free trade zone is about 1-20000 dirhams, and the license may be frozen if it is overdue.

2. Management of business scope

license mark: the business license needs to mark the specific activity code, beyond the scope may face a fine. For example, an e-commerce enterprise was charged 850000 dirhams for failing to renew its license for adding live broadcast services.

3. Employment Compliance

visa quota: 3-6 places are allocated according to office space, technical talent visa is approved in 7-10 days, and Golden Visa needs to meet the annual salary threshold of 480000 dirhams.

Penalty for violation of regulations: each employee who violates regulations will be fined 20000 dirhams per month, and local labor force will be allocated at 1:2 for more than 50 employees.

Zhuoxin Enterprise provides agency services such as domestic and foreign company registration, bank account opening, annual tax return, agency bookkeeping, trademark registration, ODI Overseas Investment Filing, etc. If you have any business needs in this area, please feel free to consult our online customer service!