Can Ras Khaimah Company operate locally in the UAE after registration?

With its flexible shareholding structure, zero tax policy and efficient registration process, Ras Al Khaimah has become a popular choice for companies in the Middle East. However, the question of "whether a company in Ras Al Khaimah can operate locally in the UAE after registration" needs to be judged comprehensively in the light of the type of company, industry attributes and the latest policies.

Company type determines business authority

offshore Company (RAK ICC)

the offshore company is registered in the Ras Al Khaimah International Company Centre (RAK ICC) and is typically an "offshore entity" and is not allowed to carry out any business activities in the UAE. Its core uses include:

international trade transit: as a transit platform, receive orders from Europe and the United States and re-export to other markets.

Asset protection: Holding intangible assets such as global patents, trademarks or real estate to achieve risk isolation.

Holding structure: as an offshore holding platform to optimize the global tax structure.

Legal basis: According to the UAE Commercial Companies Act and RAK ICC, if an offshore company needs to conduct business in the UAE, it must go through a local licensed agent or set up a branch, and the agency relationship is exclusive and protected by law.

2. Free Trade Zone Company (RAKEZ)

FTZ companies are registered in the Ras Al Khaimah Economic Zone (RAKEZ) and enjoy policies such as 100 per cent foreign ownership and tariff exemptions, but their scope of business is limited by FTZ regulations:

in-zone operation: Logistics, manufacturing and other business can be carried out in the tax-free zone designated by RAKEZ.

Cross-regional operation: If you want to do business in other emirates of the UAE or in your home market, you need to meet one of the following conditions:

apply for an additional license: obtain a commercial license through the Economic Development Department (DED) of the emirate and designate a local service agent.

Establishment of a branch: Register a branch in the target emirate and comply with local foreign ownership requirements.

3. Onshore company (local limited liability company)

onshore companies are registered in the UAE and can directly serve local customers, subject to the following conditions:

foreign ownership: Except for strategic industries (e. g., oil and gas, finance, telecommunications), 100 per cent foreign ownership is allowed in non-strategic industries.

Local Agent: If there is no physical presence, a local service agent (LSA) is appointed, but the agent does not hold equity or management rights.

Compliance requirements: UAE labor law, value added tax (VAT) declaration and economic substance regulation (ESR) are required.

Advantages: You can apply for a Golden Visa, apply for work permits for employees, and participate in government bidding projects.

Key industry restrictions and compliance points

1. Strategic Industry Restrictions

the UAE has imposed foreign shareholding restrictions or conditions on strategic industries such as security and defense, upstream oil and gas, utilities, banking and finance, and telecommunications. If the enterprise is involved in such business, it needs to go through special approval or joint venture with local partners.

2. Economic Substance Regulation (ESR)

from 2020, the UAE will require all international companies to submit an economic declaration to prove that they have substantial local economic activities (e. g. hiring employees, leasing office space). Offshore companies that fail to meet ESR requirements may face fines or license revocation.

3, Anti-Money Laundering (AML) Compliance

companies need to implement customer due diligence (CDD), transaction monitoring and suspicious activity reporting (SAR) systems. If a FTZ company does business through a local agent, it needs to ensure that the agent meets the AML requirements.

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!