LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name. The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct. Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity. Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.

Company Registration in Ras Al Khaimah |

Overview of the Process for Registering a Company in Ras Al Khaimah

The northernmost UAE emirate is Ras Al Khaimah. It is one of the seven emirates in the United Arab Emirates with several emerging potential. A variety of transportation options can be used to get there, and it is conveniently close to Dubai. International airports connect it to every region of the globe, and it has a sizable seaport. Due to this, Ras Al Khaimah offers a vibrant investment environment.

Overview

The city has convenient transportation because of its proximity to the Arabian Gulf. It is simple to ship a variety of goods because Ras Al Khaimah's port is located within the city. Investors frequently refer to Ras Al Khaimah by its popular acronym, "RAK." Two international airports serve the region, which is near to the Straits of Hormuz. Thus, a vast number of customers can reach this business hub.

Free zones can be found in every emirate. An equivalent free trade zone exists in RAK. An attractive substitute for Dubai for company registration is this free trade zone, also known as the Ras Al Khaimah Free Trade Zone. In this free trade zone, various business types can be found together with warehouses. Companies operating in this free trade zone do not pay any kind of tax. Personal tax and capital gains tax are both a part of this form of tax.

Comparatively speaking to other emirates, the process of registering a company in Ras Al Khaimah is relatively simple. For the company incorporation process in Ras Al Khaimah, a minimum of one shareholder and one director are required. So, as Ras Al Khaimah offers thriving prospects for firms to establish themselves, investors would choose the company incorporation process there.

The advantages of registering a business in Ras Al Khaimah

Having a company registered in RAK has the following advantages:
Free Trade Zone- Free zones can be found in every emirate. An equivalent free trade zone exists in RAK. An attractive substitute for Dubai for company registration is this free trade zone, also known as the Ras Al Khaimah Free Trade Zone. In this free trade zone, various business types can be found together with warehouses. Companies operating in this free trade zone do not pay any kind of tax.
Location- The emirate located furthest north is Ras Al Khaimah. This can be found in both the Straits of Hormuz and the Arabian Gulf. There are two international airports, namely the Dubai International Airport and the Ras Al Khaimah International Airport. Consequently, traveling would be advantageous for many investors. The center for nations in Asia, Europe, and Africa is also located there. Because of this, several investors would desire to conduct business in Ras Al Khaimah.
Taxation- Various types of double taxation agreements have been signed between RAK and other nations. More than 90 nations and the United States have similar agreements to prevent double taxation. Investors in these nations wouldn't therefore pay taxes on their investments twice. The process of registering a business can be completed without incident in the Ras Al Khaimah Free Trade Zone (RAKFTZ). In this free trade zone, there is no tax. Any personal taxes or capital gains taxes would also be included. To work together to create free trade zones, the Ras Al Khaimah government has engaged into a number of agreements with Japan.
A first-rate infrastructure- Ras Al Khaimah is thought of as one of the most important places to launch a business. This emirate has more than two sea ports, which facilitates travel. This area is a key seaport for receiving oil and freight in the Middle East.

Company Structures that are acceptable for Ras Al Khaimah Company Registration

In Ras Al Khaimah, there are the following types of business structures:
Company Limited via Shares- This kind of entity often carries a little amount of risk. In this case, the directors' and shareholders' liability would be constrained to a specific sum. International businesses looking to reduce their liability typically utilize this sort of corporation.
Company Limited by Guarantee- Usually, associations or non-profit organizations will be founded using this kind of corporation. Members' liability is constrained to a specific type of assurance.
Unlimited Company- The members of this type of entity are completely liable. In light of this, limited liability would not apply to the directors and stockholders.
Limited Liability Company- An LLC is another name for this form of entity. A certain amount of limitation applies to the members' liabilities. In Ras Al Khaimah Limited Liability Company, foreign ownership is not very widespread. For this type of organization, foreign ownership is limited to 49% of the total shares. The company's operations would, however, be under their control. The RAKICC Business Companies Regulations, which were adopted in 2016, apply to this business. When a company is formed in Ras Al Khaimah, this is the sort of business entity that is most frequently used. One director and two shareholders are required to start this firm. The incorporation process for this type of organization is very simple.
Company in a Free Zone- In order to establish offices, foreigners typically use this type of corporation. Utilizing this kind of business has a variety of advantages. On the business, there are no taxes imposed. This type of company would therefore not be subject to any corporate tax, capital gains tax, or other taxation. In Ras Al Khaimah, all kinds of entities are subject to local legislation and the Federal Commercial Transactions Law No. 18 of 1993 (the "Commercial Code"). This type of company may have foreign ownership.
Branch Office- Ras Al Khaimah uses this kind of entity frequently. The fact that this type of business can be owned entirely by foreigners is a benefit. It would be governed by the parent company's rules for the branch office. Thus, the parent firm would be responsible for the branch office's debts. A local representative is required to establish a branch office. National service agents are people who perform this function. Both individuals and businesses are eligible to serve as national service agents.
Company Sole Traders- In Ras Al Khaimah, only natives are permitted to establish sole proprietorships. The establishment of this kind of company by foreign nationals is prohibited. For a solo proprietor, the concept of limited liability is not relevant. As a result, the lone proprietor would be accountable for every transaction.

How to Register a Company in Ras Al Khaimah

The applicant for company registration in RAK must complete the steps below:
Choose the category of business entity- The applicant must first select an appropriate business. The services, location, and products must all be considered during this process. After completing this process, the applicant would need to take into account the business's legal needs.
Analyze the legal requirements- In RAK, various business entity types are present. As a result, the applicant must choose the business type and corporate structure. For instance, setting up an LLC requires a certain amount of capital. Here, the candidate should also ascertain the location-related needs. RAK is divided into several jurisdictions, including the Mainland, Free Zone, and Offshore.
Think about registering the entity's trade name- The applicant then has to register the business's trade name. This needs to be done at RAK International Corporate Center (RAKICC). The company's distinctive name would be revealed on the trade certificate. The business needs this to maintain some semblance of independence. This procedure would need preliminary permission. Before requesting final approval, the petitioner must first obtain the initial permission. An initial approval would assist the applicant in obtaining the sort of business license needed to operate the business. The Department of Economic Development can register a trade name for a firm in Ras Al Khaimah (DED). The DED is the primary agency in RAK responsible for managing the registration of businesses.
Safe Approbations- The applicant would next need to obtain the necessary approvals from various regulatory bodies. Getting the licenses would be part of getting the approvals. In Ras Al Khaimah, there are three different licensing categories: general trade licenses, professional licenses, and industrial licenses.
Business Permit- The applicant for Ras Al Khaimah company registration may proceed with obtaining the DED's business license to conduct business once the authorities have given their approval.

Company Registration in Ras Al Khaimah Compliances

The Ras Al Khaimah administration adopted the corresponding regulations along with the Economic Substance Requirements (ESR) in 2019. According to these regulations, businesses that are formed in Ras Al Khaimah are required to engage in activities that would generate income in the United Arab Emirates, rent an office, and employ people there. All businesses, whether they have a branch office, a corporate headquarters, or are locally established, are required to follow the aforementioned guidelines.
Companies must abide by the ESR 2020 regulations and report that the necessary activities have been completed. Such compliance has to be done and filed.
Failure to comply with the aforementioned standards will result in an AED 400,000 fine.
Companies in the UAE are exempt from paying corporate income tax on their worldwide revenue.
The applicable VAT rate is 5%. From 2018, this rate would be imposed.
In the UAE, every LLC is required to set aside 10% of annual income until such reserves reach 50%.
Directors' and shareholders' information must be disclosed. For resident firms, this information would be necessary.
Only oil and gas firms would be required to pay tax in the United Arab Emirates.
Drinks, carbonated drinks, and other types of excisable items are subject to excise tax.
Both residents and non-residents are exempt from Personal Tax.
Commercial offices are subject to a 10% municipal fee.

Documents for Ras Al Khaimah Company Registration

Approval of the articles of association and the memorandum of association from the relevant ministry
Information about the company's shareholders and directors
Copies of the visa and passport
Copies of the Trade Name Certificate Consent,
No Objection Certificate

Visa and Passport
License Application Form
Commercial Premises (rent agreement).

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FAQs

Concept of LLP

LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.
The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.
The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.
Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.
Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.

Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.

Structure of LLP

LLP shall be a body corporate and a legal entity separate from its partners. It will have perpetual succession.

Advantages of LLP

LLP form is a form of business model which:

(i) is organized and operates on the basis of an agreement.

(ii) provides flexibility without imposing detailed legal and procedural requirements

(iii) enables professional/technical expertise and initiative to combine with financial risk-taking capacity in an innovative and efficient manner

Other Countries where this form is available

The LLP structure is available in countries like United Kingdom, United States of America, various Gulf countries, Australia and Singapore. On the advice of experts who have studied LLP legislations in various countries, the LLP Act is broadly based on UK LLP Act 2000 and Singapore LLP Act 2005. Both these Acts allow creation of LLPs in a body corporate form i.e. as a separate legal entity, separate from its partners/members.

Difference between LLP & ‘Traditional Partnership’

Under “traditional partnership firm”, every partner is liable, jointly with all the other partners and also severally for all acts of the firm done while he is a partner.
Under LLP structure, liability of the partner is limited to his agreed contribution. Further, no partner is liable on account of the independent or un-authorized acts of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful acts or misconduct

Difference between LLP & Company

A basic difference between an LLP and a joint stock company lies in that the internal governance structure of a company is regulated by statute (i.e. Companies Act, 1956) whereas for an LLP it would be by a contractual agreement between partners.
The management-ownership divide inherent in a company is not there in a limited liability partnership.
LLP will have more flexibility as compared to a company.
LLP will have lesser compliance requirements as compared to a company.

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Overview The advantages of registering a business in Ras Al Khaimah Company Structures that are acceptable for Ras Al Khaimah Company Registration How to Register a Company in Ras Al Khaimah Company Registration in Ras Al Khaimah Compliances Documents for Ras Al Khaimah Company Registration How to contact Estabizz?FAQs Blog

Overview of the Process for Registering a Company in Ras Al Khaimah

Overview

The advantages of registering a business in Ras Al Khaimah

Company Structures that are acceptable for Ras Al Khaimah Company Registration

How to Register a Company in Ras Al Khaimah

Company Registration in Ras Al Khaimah Compliances

Documents for Ras Al Khaimah Company Registration

How to contact Estabizz?

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