Before forming a RAK company, one must decide on the type of corporate structure that will best suit their needs. The following is a list of legal forms that Ras Al Khaimah provides to its investors.
Limited Liability Company: In Ras Al Khaimah, a company can conduct business through an LLC. It can be formed with as few as two shareholders and as many as fifty. It is necessary to show that capital has been deposited in a UAE bank to register a limited liability company. The money may be released after a process with the Ras al-Khaimah Chamber of Commerce.
Joint Venture Company: In Ras Al Khaimah, a joint venture is a contract between a foreign and a local party. In a joint venture, there is no requirement for licensing or publication of the agreement.
Public/Private Shareholding Company: The Ministry of Economy and Commerce must license a Public Joint Stock Company with a minimum of ten shareholders. A minimum of 20% and a maximum of 45 percent of the company's capital should be subscribed to by the company's founders. More than 10% of the capital may not be subscribed to by a single shareholder. There can't be fewer than three shareholders in a private joint-stock company. Shareholders must subscribe to at least AED 2,000,000 in full capital. A private joint-stock company's shares cannot be sold to the general public.
Free Zone Company: A limited liability company (LLC) is a free zone company (FZCO). It can be registered by two or more shareholders. An FZCO must have a minimum capital of AED 250,000 to be established.
Free Zone Establishment: A Free Zone Establishment (FZE) is a distinct legal entity with a single owner. An FZE can be owned by an individual or a corporation. An FZE must have a minimum capital of AED 150,000 to be established.
International Business Company: The RAK Investment Authority (RAKIA) established the international business company concept in January 2007. A global corporate business has no restrictions on the number of shareholders or directors. A shareholder or director is not obligated to hold an annual meeting or file audited financial statements. The International Business Companies (IBC) Registry only displays the company's name and location.
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