Your Checklist for Setting up a Mainland Company in Ras Al Khaimah
Your business setup checklist is ready. Together, let’s launch your business successfully!
1. Decide on your business venture.
Prior to establishing a business in the UAE mainland, you need first choose the sector you want to operate in. The Department of Economic Development (DED) has listed hundreds of economic activities that are allowed. Among these are manufacturing, trade, agriculture, and hospitality. enterprises on the mainland are free to engage in any of the more than 2000 DED-listed activities, in contrast to many free zone enterprises that are prohibited from doing so due to their location.
2. Locate the Best Place for Your Company in the UAE.
Choosing where to operate is the next step after deciding on your company activity. There are no limitations on the locations of businesses on the UAE mainland. Numerous considerations, including your selected business activity and budget, will determine the best location. If your firm depends on imports and exports, it makes excellent commercial sense to locate close to one of the popular ports in the United Arab Emirates, such as Jebel Ali, Mina Zayed, or Mina Khalid. The simplicity of setting up branch offices is another benefit of establishing a mainland company in Ras Al Khaimah. This implies that companies can have a significant local presence over time and are not restricted to a single area.
3. Ascertain the Legal Form of Your Company.
From a legal perspective, international businesspeople can establish a variety of firms on the UAE mainland. Limited Liability Companies (LLCs) are the most prevalent business structure on the mainland. A limited liability company (LLC) is a separate legal entity that has two or more stockholders. To establish a business in the UAE mainland, a company that wants to engage in manufacturing and other commercial or industrial activities under a commercial or industrial license must create an LLC. A local sponsor would be needed for this. On the other hand, establishing a professional services business does not necessitate a foreign sponsor and can be entirely owned by foreigners. Next up, more on this!
4. Find a Local Service Agent or Sponsor.
In the past, international business owners could only oversee mainland company creation in Ras Al Khaimah by collaborating with a local service agent or sponsor. A local sponsor is necessary if the LLC is operating under a commercial or industrial license. A UAE-based business or a UAE national may serve as your local sponsor. 51% of the company will be owned by the local sponsor in both situations. You can designate a Corporate Nominee to serve as your Local Partner through Optima Business Services. This allows you to retain 100% operational and financial control of the business and protects you against any risk. When setting up a professional company in the mainland, only a local service agent (LSA) is required. The LSA will not own any share of the business and will only act as a representative in all administrative dealings and with the government.
5. Give your business a name.
One of the most crucial business decisions an entrepreneur can make is selecting a firm trade name that reflects your brand and professional beliefs. There are a few things to think about in the United Arab Emirates. It is prohibited to use derogatory language, make religious allusions, or make comparisons to other organizations. Your company’s trade name can only contain complete personal names. All of your company’s trade names in other languages should be spelled exactly as they are pronounced, without translation. Check out our Choosing a Company Name in the UAE guide to learn about the rules for naming your business.
6. Apply for a Trade License on the Mainland.
It’s time to submit an application to the Department of Economic Development for a mainland trading license. A trade license application must include a number of documents. To mention a few, these consist of a license application, a memorandum of sponsor agreements, ownership ratio among all partners, and shareholder visas.
7. Protect Your Workspace
It’s time to reserve an office space after obtaining a business trade license. Serviced offices on the UAE mainland often have everything you need to move in right away and are owned and maintained by a third party. Typical accommodations include desks, internet and phone access, and reception services. Typically, your lease payment covers utility expenses, office equipment use, and rent. A “shell and core” kind of office space is at the other extreme of the range. Typically, this calls for a complete fit-out and decoration, which comes with expenses in addition to rent. There is also a middle ground, where office spaces are already furnished and the owner of the company just supplies their own equipment and handles bill payment separately.
8. Apply For the Appropriate Visas
For business owners operating in the UAE mainland, there is no cap on the number of mainland visa applications. However, the quantity of office space needed should match the number of visas applied for. Typically, each visa is limited to 100 square feet of office or warehouse space. In some situations, this might not be the case. For instance, a domestic cleaning company with more than 500 remote workers would require significantly less office space than a textile or manufacturing company. You can sponsor dependents, including family members and domestic workers (such maids or drivers), for their visas if you own a business in the UAE mainland. Foreign business owners who open offices on the UAE mainland are also eligible for an investment visa, which allows them to stay and operate in the country for a maximum of three years with their families.
9. Collaborate with a Business Setup Advisor
Establishing a mainland business in the United Arab Emirates necessitates a thorough comprehension of the legal and corporate formation procedures. International business owners can reduce the burden of starting a firm by working with advisors based in the United Arab Emirates. A business consultant can work with you and comprehend your company’s objectives. This will give you the confidence you need to launch a profitable company on the mainland of Duabi.
