Ras Al Khaimah

Company Formation and Doing Business in  Ras al-Khaimah

Introduction

Ras al-Khaimah is part of the United Arab Emirates, a constitutional federation of seven emirates located along the southeastern tip of the Arabian Peninsula. Qatar lies to the west, Saudi Arabia to the south and west and Oman to the north and east. The Federation was formally established in 1971.

Population

RAK is one of the Emirates of the seven independent emirates, the current population is approximately 345,000 but this is expected to rise to 400,000 by 2017. Over 50% of the population are expatriates.

Political Structure

Prior to 1971 each of the seven members emirates of the UAE (Abu Dhabi, Ajman, Dubai, Fujairah, Ras al-Khaima, Sharjah and Umm Al Quwain), previously known as the Trucial States, had its own existing institutions of government. The Rulers agreed to draw up a provisional Constitution (The Constitution) that provided for the establishment of the Supreme Council of the Rulers of all the Emirates as the foremost authority in the Federation and a Council of Ministers as the Executive Branch of the Federation.  Federal Ministries of Foreign Affairs, Defence, Justice, Public Health, Communications, Information, Interior, Finance and Industry, Economy and commerce, Education, Public Works, Agriculture, Labor and Social Affairs and Planning were established.  As a Muslim country, one of the fundamental principles in the Constitution provides that Islamic Law (Shari’a) is the main source for the legislation in the UAE. The main aim of the UAE Government Strategy is to ensure sustainable development and a high quality of life for all UAE Nationals.

Infrastructure and Economy

The UAE is one of the wealthiest countries in the world with a GDP of US$103 billion (2004). The UAE has the third largest proven oil reserves; however, RAK has broadened its economic activity to include an industrial platform, real estate, trade and manufacturing.

The emirate of Ras al-Khaimah is strategically located between Africa and the Middle East and between the Far East and Europe, making it a gateway to over 1.5 billion consumers located in countries surrounding the Red Sea and the Gulf. Its infrastructure is of the highest standards with access to more than 170 shipping lines and approximately 86 airlines connecting to over 100 cities worldwide. The strong shipping and transportation sector is composed of most of the leading regional and international freight forwarders, insurers and shipping agents.

Language

Arabic, Persian, Hindi, and Urdu. English is widely spoken.

Currency

The Dirham: 1 United Arab Emirates Dirham equals 0.27 US Dollar

Exchange Control

There are no exchange controls.

Type of Law

The type of law is federal, except for Dubai and Ras al-Khaima, which maintain their own judicial systems. The Emirates had the constitutional right to opt to join the Federal judicial system or maintain their own independent system. The Federal UAE courts are divided into civil and criminal and are also generally divided to three stages of litigation namely

  • Courts of First Instance
  • Courts of Appeal
  • Federal Supreme Court (colloquially referred to as Court of Cassation).

In addition to the Civil Courts, each of the seven Emirates maintains a system of Shari’a Courts which are organised and supervised locally.

Principal Corporate Legislation

International Companies Regulations 2006

Registered Agents Regulations 2006

Compliance

Authorised and Issued Capital

The minimum requirement for authorised capital is DHS 1,000 which must be fully paid up.

Classes of Shares Permitted

The classes of shares permitted may neither be negotiable or divisible. They include ordinary shares, preferred shares, deferred shares, and shares with or without voting rights.

Taxation

There is no Corporate, Withholding or Personal taxation.

Double Taxation Agreements

There are no double taxation agreements.

Financial Statement Requirements

A financial statement is required.

Directors

The minimum number of directors is one; powers and duties to be specified in the Memorandum. Corporate Directors are permitted.

Shareholders

The minimum number of shareholders is one.

Disclaimer
Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal or other professional advice. IQTESADI does not accept any responsibility, legal or otherwise, for any errors or omission.