F.A.Q
What is the difference between Ras Al Khaimah Mainland and Freezone?
Mainland allows businesses to operate anywhere in the UAE, while Freezones restrict operations to the freezone area but offer tax benefits and simplified processes.
Which is better: Ras Al Khaimah Mainland or Freezone?
It depends on the type of business. Mainland is ideal for wider market access, while Freezones offer tax incentives and 100% foreign ownership.
Can a mainland company in Ras Al Khaimah have 100% foreign ownership?
Yes, in specific circumstances, such as when the business is set up as an LLC with a local agent.
What are the main advantages of starting a business in Ras Al Khaimah Freezone?
Key advantages include 100% foreign ownership, tax exemptions, no import/export duties, and simplified setup processes.
Do businesses in Ras Al Khaimah Freezone need a local sponsor?
No, businesses in the Freezone can have 100% foreign ownership without the need for a local sponsor.
Is there VAT in Ras Al Khaimah Mainland?
Yes, VAT is applicable at 5% on most goods and services in Ras Al Khaimah Mainland.
What industries are popular in Ras Al Khaimah Freezone?
Manufacturing, trading, logistics, IT services, and media-related businesses are popular in the Freezone.
Can I operate my Ras Al Khaimah Mainland company in Dubai or other emirates?
Yes, Mainland companies can operate across the UAE, including Dubai and other Emirates.
Do Ras Al Khaimah Freezone companies need a physical office?
Yes, most Freezone companies need to rent office space, even if it’s a virtual office in some cases.
What are the costs associated with setting up a business in Ras Al Khaimah Freezone?
Costs vary, but setup fees typically range from AED 10,000 to AED 50,000 depending on the business type.
How long does it take to set up a business in Ras Al Khaimah Freezone?
Setting up a business can take anywhere from 2 to 5 weeks, depending on the complexity of the business.
Can Ras Al Khaimah Mainland businesses hire employees from overseas?
Yes, businesses can hire foreign workers, subject to obtaining the necessary work permits.
Are there any tax exemptions in Ras Al Khaimah Freezone?
Yes, Ras Al Khaimah Freezone businesses benefit from tax exemptions, including no income tax for up to 50 years.
Can I start a business in Ras Al Khaimah with a small capital?
Yes, Ras Al Khaimah offers business setups with flexible capital requirements, especially in Freezones.
What is the minimum share capital required for a Ras Al Khaimah Mainland company?
For a Limited Liability Company (LLC), the minimum share capital requirement is AED 300,000.
Are there any restrictions on business activities in Ras Al Khaimah Freezone?
Yes, certain industries may be restricted based on the Freezone’s focus (e.g., IT, media, logistics).
How can I transfer my business from Dubai to Ras Al Khaimah?
Businesses can transfer by completing the necessary paperwork, transferring licenses, and ensuring compliance with Ras Al Khaimah’s regulations.
Do I need an audit for my Ras Al Khaimah Mainland business?
Yes, companies are required to submit annual audited financial statements in Ras Al Khaimah Mainland.
Can I open a bank account for my company in Ras Al Khaimah?
Yes, banks in Ras Al Khaimah offer business accounts for Mainland and Freezone companies.
Are there any work visa benefits in Ras Al Khaimah Freezone?
Yes, businesses can sponsor employees for work visas and residency permits in Ras Al Khaimah Freezone.