Best New Business Formation Lawyers in Ras al-Khaimah

About New Business Formation Law in Ras al-Khaimah, United Arab Emirates

Ras al-Khaimah, one of the seven emirates that form the UAE, provides a favorable environment for start-ups and international businesses looking to expand their operations. Creating a new business in Ras al-Khaimah is governed by the UAE Federal Law No. 2 of 2015 on Commercial Companies, which outlines the types of businesses permitted to operate, business registration processes, and requirements for licensing. Specific zones such as Free Trade Zones and Industrial Zones offer advantages like tax exemptions and full foreign ownership.

Why You May Need a Lawyer

Formation of a new business in Ras al-Khaimah involves multiple legal aspects including company registration, licensing, compliance with local laws and tax planning. As the legal system in UAE is a combination of Sharia law and civil law jurisdictions, it can be complex and challenging to navigate for foreign investors. Additionally, numerous bureaucracy procedures may prove time-consuming. Hiring a lawyer can help you ensure that you are abiding by all local requirements while making the most of the available benefits. A lawyer can also provide support in drafting contracts, dispute resolution, and protecting your intellectual property rights.

Local Laws Overview

In Ras al-Khaimah, businesses and companies are governed by the UAE Federal Law No. 2 of 2015. Both local and international investors can establish a business entity within the mainland, free trade zones or industrial zones. For mainland businesses, at least 51% of the ownership must be Emirati. In free zones, however, full foreign ownership is allowed. Companies are also required to obtain relevant licenses depending on the type of business activity, such as commercial, professional or industrial licenses.

Frequently Asked Questions

1. Do I need local sponsorship to form a business in Ras al-Khaimah?

While Emirati sponsorship is required for mainland businesses, it is not necessary for businesses within the free zones, which allow 100% foreign ownership.

2. Are there any tax obligations for businesses in Ras al-Khaimah?

Businesses in Ras al-Khaimah benefit from 0% corporation and personal tax, making it a promising destination for global entrepreneurs.

3. How long does it take to get a business license in Ras al-Khaimah?

The time frame may vary depending on the type of license required, but it generally ranges between 2 to 4 weeks.

4. Can I open a bank account for my business in Ras al-Khaimah?

Yes, once your company is established, you will be able to open a corporate bank account.

5. What is the minimum capital required to start a business in Ras al-Khaimah?

There is no specific minimum capital requirement for most business types in Ras al-Khaimah, but it's best to check with a legal advisor as certain sectors may have different regulations.

Additional Resources

Before starting a business, it's beneficial to visit the website of the Ras al-Khaimah Economic Zone (RAKEZ) for important information. The Department of Economic Development (DED) in Ras al-Khaimah can also provide valuable resources. It is also advisable to contact a reputable law firm that specializes in UAE business formation.

Next Steps

If you need legal assistance in forming a new business in Ras al Khaimah, your first step should be to take legal consultation from a lawyer or legal consultancy specializing in UAE business laws. They can guide you on the legal framework, procedures, and documentation required.