United Arab Emirates

Company Formation in RAK Mainland

Emirate of Ras Al Khaimah — RAK Department of Economic Development (RAK DED)

Formation Time

4–6 business days

Min. Capital

No minimum required

Corporate Tax

9% (0% on profit up to AED 375k; Small Business Relief applies up to AED 3M)

Foreign Ownership

100%

Overview

Ras Al Khaimah (RAK) is the UAE's northern economic powerhouse, world-renowned for advanced manufacturing, ceramics (RAK Ceramics — one of the world's largest ceramic tile manufacturers), pharmaceuticals (Julphar), cement, and a booming luxury tourism and hospitality sector (anchored by the multibillion-dollar Wynn Al Marjan Island integrated resort). Supervised by the RAK Department of Economic Development (RAK DED), a RAK mainland company provides unrestricted commercial access to the entire UAE market at operating costs significantly lower than Dubai. RAK mainland companies benefit from proximity to Saqr Port (the largest bulk-handling port in the Middle East) and the dedicated RAKEZ free zone ecosystem for hybrid dual-license corporate structures.

Wynn Al Marjan Island boom

Largest bulk port in Middle East

RAKBANK headquarters

100% foreign ownership

Lower costs than Dubai

Why Choose RAK Mainland

Major industrial, pharmaceutical, and construction manufacturing capital of the UAE

Wynn Al Marjan Island multibillion-dollar gaming & hospitality development driving rapid GDP growth

Saqr Port — largest bulk cargo handling port in the Middle East

Competitive government formation fees and commercial rents 35% lower than Dubai

100% foreign legal ownership across commercial, industrial, and tourism licenses

Home to RAKBANK (National Bank of Ras Al Khaimah) with dedicated local commercial underwriting

Dual-license opportunities combining RAK mainland and RAKEZ free zone facilities

9% federal corporate tax with 0% tax on net profits up to AED 375,000

Business Entity Types

Entity	Ownership	Directors	Capital	Tax	Best For
LLC	100%	1	No minimum	9% corporate tax (0% on first AED 375,000)	Manufacturing, pharmaceuticals, construction, trading, tourism, hospitality
Sole Establishment	100% for professional licenses	1	None	9% corporate tax (Small Business Relief applies)	Tourism consulting, engineering advisory, commercial brokerage
Branch Office	100%	1	None	9% corporate tax	International industrial contractors and hotel operators

Step-by-Step Formation Process

Trade Name Reservation

1 day

Reserve commercial name with RAK DED.

Initial Approval

1–2 days

Obtain commercial activity approval from RAK DED.

MOA Execution

1–2 days

Execute electronic Memorandum of Association via RAK Courts.

Commercial Lease Registration

1–2 days

Secure physical office/facility and register with RAK Municipality.

License Issuance

1 day

Receive official RAK DED commercial trade license.

Banking & Visas

2–4 weeks

Open corporate accounts with RAKBANK or Wio and process residency visas.

Costs & Fees

Government / License Fee	AED 7,000 – 15,000
Our Service Fee	USD 3,500+
Annual Renewal	AED 5,500 – 12,000

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

RAKBANK is headquartered in Ras Al Khaimah and provides excellent commercial banking support for local entities, alongside digital banking networks.

Account Opening Time

2–4 weeks

Multi-Currency

Yes — multiple currencies supported

Recommended Banks

RAKBANK (Ras Al Khaimah HQ)Wio BankMashreqEmirates NBDADCB

Tax Overview

Corporate Tax

9% on net taxable profits exceeding AED 375,000 (0% up to AED 375k)

Personal Income Tax

VAT / Sales Tax

5% standard VAT

Capital Gains Tax

Withholding Tax

Double Tax Treaties

137 countries

Subject to UAE Federal Corporate Tax Law (Decree-Law No. 47 of 2022). Small Business Relief applies for revenues under AED 3M.

Frequently Asked Questions

Why is Ras Al Khaimah (RAK) experiencing rapid economic growth?

RAK is undergoing historic expansion driven by the multibillion-dollar Wynn Al Marjan Island integrated resort, massive real estate in-migration, and industrial exports from Saqr Port. This is creating immense demand for local contractors, hospitality suppliers, and commercial service firms.

Can a RAK mainland company trade across Dubai and Abu Dhabi?

Yes. A RAK mainland license gives you complete commercial authority to sell goods, deliver professional services, and sign contracts across all seven emirates of the UAE.

What is the difference between RAK Mainland and RAKEZ?

RAK mainland companies are regulated by RAK DED and can trade directly anywhere across the UAE domestic market and government procurement. RAKEZ is a free zone entity designed for international trading and export, though dual-licensing is available.

Does RAK permit 100% foreign ownership?

Yes. 100% foreign ownership is fully authorized for commercial, industrial, and tourism licenses in RAK mainland without requiring an Emirati sponsor.

What is the corporate tax rate in RAK?

RAK mainland companies pay 9% UAE federal corporate tax on taxable profits exceeding AED 375,000, with 0% tax on profits up to AED 375,000, and Small Business Relief available for revenues up to AED 3,000,000.

How accessible is banking for RAK mainland companies?

Because RAKBANK is locally headquartered and deeply invested in the emirate's growth, RAK mainland companies enjoy strong local banking support alongside digital options like Wio Bank.