UAE RAK / LLC /Limited Liability Company
A UAE RAK / LLC / Limited Liability Company is officially known as a Ras Al Khaimah Limited Liability Company operating under the United Arab Emirates (UAE) Commercial Companies Law. Foreigners can only own 49% of the shares but still be able to control the company and obtain up to 90% of the profits.
Management responsibilities can be vested in the foreign partner. Side agreements can be executed between the majority partner (UAE national) and the foreign minority partner to protect the interests of the minority partner.
The RAKICC Business Companies Regulations 2016 governs the formation, activities, and dissolution of limited liability companies in the RAK. Any type of business activities including professional services can be conducted by a LLC.
Seven independent federal emirates make up the United Arab Emirates (UAE). Simply known as the “Emirates” it is situated in the Persian Gulf. There are more expatriates from all parts of the globe residing in the UAE than natives by a margin of nearly 6 to 1. The UAE gained its independence from the United Kingdom in 1971. Shortly after that, a total of seven independent Emirates joined forces to establish the UAE. The political structure of the Emirates is a Federal Absolute Monarchy.
Ras Al Khaimah (RAK) is located very close to Dubai and is one of the fastest growing UAE emirates. The RAK has a reputation of being tax free, transparency, free of corruption, no red tape, and cost effective to do business.
UAE RAK Limited Liability Company (LLC) Benefits
A UAE RAK Limited Liability Company (LLC) can have these types of benefits:
• No Taxes: By doing all of its business outside of the UAE, a LLC pays no taxes.
• Privacy: Shareholders’ names are never part of any public records.
• Limited Liability: A shareholder’s liability is limited to the full capital contribution.
• Fast Registration: The LLC can be registered within two business days.
• Two Shareholders: A minimum of two shareholders
• One Director: Only a minimum of one director is required.
• Low Minimum Share Capital: Only $1,000 USD is required.
• English: While not an official language, English is widely spoken. All documents can be prepared in English.
UAE RAK Limited Liability Company (LLC) Name
The name of a LLC cannot be one already used by a UAE company.
The suffix to be used at the end of a company name must be in accordance with the type of company. Therefore, a limited liability company’s name must end with “LLC”.
Uses for a LLC
• Holding company of other companies shares around the world;
• Owning brokerage and bank accounts worldwide;
• Investment plans and international business transactions;
• Owning global real estate and other assets;
• Lending or borrowing money, receiving or paying commissions and royalties;
• Conducting international trade;
• Providing additional layer of privacy for clients; and
• Asset protection.
Registration for a new LLC must be made with an application submitted to the Ras al-Khaimah Department of Economic Development. The application and all supporting documents can be in English.
Companies can only be incorporated by using registered agents. A LLC can be incorporated in the RAK within two business days.
In order to become registered, the applicant must prove that the full capital was deposited into a UAE bank. After approval by the Ras al-Khaimah Chamber of Commerce, the funds can be released.
All shareholders’ liabilities are limited to their unpaid amounts for their share capital.
A minimum of two shareholders is required to form a LLC. The maximum of shareholders is 50. UAE citizens must hold 51% of the total shares. Profits can be agreed upon to provide up to 90% for the foreign minority shareholders and 10% for the UAE citizen shareholders.
The law allows for side agreements between the partners. For instance, one agreement can provide that the foreign partners will have full management responsibilities.
A company may issue shares with or without par value, bonus shares, treasury shares, and fractional shares. A share with par value can be issued in any currency.
Bearer shares are not allowed.
At least one director is required to form a LLC. The directors can be citizens of and reside in any country. Local directors are not required.
Minimum Share Capital
The required minimum share capital is $1,000 USD. Only one share capital is required to be issued and paid. Shares can be issued in any currency.
Registered Agent and Office
A local registered agent is required who makes the application for registration. A local office is also required which can be the registered agent’s office address.
The RAK does not impose any type of taxes on LLC’s. This means there are no corporate tax, no income tax, no withholding tax, no sales tax, and no wealth tax. Only gas and oil exploration companies and foreign bank branches pay taxes. There is no requirement to file tax returns.
Every LLC must maintain accounting records which do not have to be kept in the RAK. Financial statements and accounting records do not have to be filed. There are no requirements for corporate tax returns or audited accounts.
Annual General Meetings
There are no requirements for annual general meetings.
Shareholders’ names will not appear in any public records. However, the names and details of all directors are part of the public records accessible to the public.
Time for Registration
LLC’s can be registered within two business days.
There are no shelf companies in the RAK.
A UAE RAK Limited Liability Company (LLC) can enjoy these types of benefits: No taxation, privacy, two shareholders, one director, limited liability, fast registration, low share capital, and English is widely spoken with all documents in English accepted.