Navigate the legal landscape of Ras Al Khaimah with confidence. A comprehensive guide to the regulatory framework, compliance requirements, and legal best practices for businesses operating in RAK.
Understanding RAK's corporate legal structure, including company formation, shareholding structures, and corporate governance requirements.
Comprehensive guide to business licenses, trade permits, and regulatory approvals required for different business activities in RAK.
Ongoing compliance obligations, regulatory reporting requirements, and best practices for maintaining good standing.
Legal distinctions between RAK Free Zone and mainland entities, including ownership restrictions and operating permissions.
Import/export regulations, customs procedures, and international trade compliance for RAK-based businesses.
RAK offers several corporate structures to suit different business needs:
RAK's corporate law provides comprehensive shareholder protections including voting rights, dividend entitlements, information access rights, and minority shareholder protections. Free zone entities enjoy full repatriation of capital and profits.
RAK has introduced several progressive legal reforms to enhance the business environment:
All businesses require a valid trade license. License types include:
Trade licenses must be renewed annually. Requirements include:
Ongoing compliance requirements:
UAE companies conducting "relevant activities" must demonstrate adequate economic substance in the UAE. This includes having adequate physical presence, qualified employees, and incurring adequate operating expenditure in the UAE relative to the activities carried out.
Relevant activities include banking, insurance, investment management, lease-finance, headquarters, shipping, holding company, intellectual property, and distribution/service center businesses.
RAK businesses are subject to UAE Federal Labor Law. Key provisions include:
All employment relationships must be documented with written contracts specifying terms, salary, benefits, and notice periods. Contracts are typically limited or unlimited term.
Employees are entitled to end-of-service gratuity calculated based on years of service and final salary. This is a statutory obligation for all employers.
Employing foreign nationals requires proper work authorization: