On this page
- What you need to know now
- Confirm that the planned registration is mainland
- Obtain an activity-specific ownership answer
- Review the practical requirements alongside ownership
- Handle an existing company’s amendment as a separate project
- A practical way forward
- Frequently asked questions
- Official sources & further reading
What you need to know now
The 2020 RAK FDI announcement is historical. Current mainland ownership depends on the licensed activity, legal form and regulatory approvals.
The original article is preserved below as a historical record. Earlier deadlines, rates, offers and approval statements should not be used as current guidance.
- Confirm the exact licensed activity.
- Check sector-specific conditions before choosing ownership.
- Tax status is separate from company ownership.
Confirm that the planned registration is mainland
Ras Al Khaimah offers different business locations and licensing routes. Start by confirming whether the application concerns a mainland company or a free zone registration. The ownership question, authority process and operating permissions should be assessed against that actual route. A historical announcement about mainland companies should not be combined with a free zone package description as though they describe one application. Keep the proposed activity, legal form and licensing authority clear throughout discussions with advisers.
Obtain an activity-specific ownership answer
Prepare a concise description of the business’s products or services and ask the competent economic licensing authority to confirm the corresponding activity code and ownership eligibility. Explain any regulated services or additional activities that form part of the plan. The general availability of full foreign ownership does not establish that every activity can be carried on without further approval. Retain the application guidance so that incorporation documents are prepared using the same assumptions as the authority’s eligibility confirmation.
Review the practical requirements alongside ownership
Ask about premises, activity approvals, constitutional documents and the proposed management arrangements before committing to the structure. For an industrial or trading business, clarify any additional operational requirements relevant to the premises and goods involved. Obtain an itemised quotation that distinguishes authority charges from professional and facility costs. This produces a more complete comparison than selecting a route solely because it permits a particular shareholding percentage or appears to have a lower initial licence price.
Handle an existing company’s amendment as a separate project
Where the company already exists, review its licence, shareholding documents and relevant contracts before changing ownership. Confirm the resolutions, attestations and amended records required by the current process. Consider who needs to be informed after the change, such as the company’s bank and professional advisers. Keep the historical article as context for the reform, while relying on present authority instructions to complete the actual amendment and maintain an accurate corporate record.
YOUR NEXT STEPS
A practical way forward
- 01
Step 1
Prepare the activity description and proposed structure.
- 02
Step 2
Obtain current authority requirements.
- 03
Step 3
Review constitutional documents and related tax registrations.
CLEAR ANSWERS
Frequently asked questions
Does 100% ownership mean zero tax?
No.
Can an old activity list replace authority approval?
No. Confirm the present licensing conditions.
Read the original article First published 9 August 2020 · retained for context
This earlier article is preserved for context. Its rates, deadlines, approvals and announcements may have been superseded. Use the current guidance and official references on this page for your next step.
100% Foreign ownership for Ras Al Khaimah mainland companies
100% Foreign ownership for Ras Al Khaimah mainland companies: Ras Al Khaimah offers 100% foreign ownership for mainland companies.
Ras Al Khaimah Economic Zone announced its latest addition to company set-up offer
100% Foreign ownership for Ras Al Khaimah mainland companies: Ras Al Khaimah Economic Zone (RAKEZ) announced its latest addition to company set-up offerings, Foreign Direct Investment (FDI). The new formation structure allows a 100 per cent foreign ownership of companies in Ras Al Khaimah’s mainland, enabling investments in various booming sectors, such as industrial, agricultural, and service sectors, while owning and controlling all shares in non-free zone companies.
The list covered key sectors agriculture; manufacturing; transport and storage; hospitality and food services; information and communications; science and technology; healthcare; education; art and entertainment; and construction.The FDI formation structure is going to further increase Ras Al Khaimah’s appeal as a regional investment hub and are to welcome new ventures across different sectors.
Companies setting-up under this FDI structure will be considered national companies, and will have full confidentiality of technical, economic and investment information. FDI companies will also be eligible to make financial transfers outside the country for project returns, and will have their assets protected from being claimed by the state for public use or benefit through a guaranteed no expropriation.
RAKEZ will be collaborating with Ras Al Khaimah Department of Economic Development (RAK DED) in the setting up of FDI companies where RAK DED will receive and approve applications ensuring that they fall under the ‘positive list’ of eligible sectors issued by the UAE Cabinet under FDI Law, where 100 per cent foreign company ownership is permitted. RAK DED will then reserve the trade name and issue the FDI licence, according to the mechanism set by the UAE Cabinet. After which, RAKEZ will issue its licence and documentation to the investor.
Courtesy: Gulf News
VERIFY THE DETAIL
Official sources & further reading
- UAE Government — Full foreign ownership of commercial companies
- UAE Government: foreign direct investment
Source checks support this general guide. Your treatment depends on the facts, tax period and applicable legislation.
