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Branch and Representative Office in Ras Al Khaimah (RAK) - ChoiceUAE.com


Branch of A Foreign Company - Ras al-Khaimah

Branch and Representative Office in Ras al-Khaimah (RAK)    Ras al-Khaimah
   Type of Government: Constitutional Monarchy
   Name of Emir: Sheikh Saud bin Saqr al Qasimi
   Area: 2,480 sq km (647 sq mi)
   Population: 272,000+ (2013)
   Major Sectors: Industries, Real estate

Intro: Situated on the extreme northern tip of UAE around the coastline of Gulf of Persia RAK is expanse at land area of 2480 sq km.

Traditionally this place has been settled around the Persian Gulf because of the region being fertile and rich in agriculture and easy source of fisheries, this led to cultivation and fishing being the most developed sources of income in the first half of 19th century. During the 1950’s mining sector was explored and the rich iron mines contributed hugely to the economic development.

In modern times RAK is a well accomplish economy well rooted in fields of manufacturing, pharmaceuticals, service sectors making it one of the widest spread and secured financial system in and across the nation. The government is further exploring new avenues to further enhance the economy with Tourism and Construction industry being the top priority.

Ras al-Khaimah Ownership:
Just like other 6 emirates in the UAE, Ras al-Khaimah also allows the main company to hold a complete control (100%) if it intends to obtain license to establish a branch of a foreign company over a condition that they must operate under the same name and conduct the same business as the managing firm.

A foreign company can lead its commercial trade activity Ras al-Khaimah once it gets a nod from the authorities and departments.

After the attainment of legal documents from the relative departments this company can perform the financial occupation and trade only as per the head conglomerate.

Ras al-Khaimah Economy: This emirate has undergone sea of changes in the last decade, unlike Umm al Quwain which benefitted from the development of its neighbouring places this place built itself with solid policies and investor encouraging policies for future development.

Ras Al Khaimah is one of the Persian GulfArab sheikhdoms forming the United Arab Emirates (UAE). Its name means "Top of the Tent". The emirate had a population of 210,063 at the 2005 Census, of which 41.82 percent or 87,848 were Emirati citizens. Latest estimates put the total population at between 250,000 and 300,000. Locals accounted for 97,529 in the population estimate for 2010.
Not being a producer of oil, Ras al-Khaimah has focused on developing its industrial sector. As of 1920, Ras al-Khaimah was mining iron ore.
Ras al-Khaimah is becoming a new destination on tourist maps. Ras Al Khaimah is an emirate in the North, famous for beautiful landscapes, sand streets, forts, towers, old mosques, houses built from coral, palm trunks and mangroves. Opportunity for both residents and visitors and more new tourism projects are under construction. Setting up Branch – Base Ras Al Khaimah The branch will be considered the company’s headquarters in Ras Al Khaimah , and its business shall be subject to the provisions of the laws of Ras Al Khaimah and the UAE.

Ras al-Khaimah Ownership:
Just like other 6 emirates in the UAE, Ras al-Khaimah also allows the main company to hold a complete control (100%) if it intends to obtain license to establish a branch of a foreign company over a condition that they must operate under the same name and conduct the same business as the managing firm.

A foreign company can lead its commercial trade activity Ras al-Khaimah once it gets a nod from the authorities and departments.

After the attainment of legal documents from the relative departments this company can perform the financial occupation and trade only as per the head conglomerate.

Ras al-Khaimah Economy: This emirate has undergone sea of changes in the last decade, unlike Umm al Quwain which benefitted from the development of its neighbouring places this place built itself with solid policies and investor encouraging policies for future development.

1. Ownership
The parent company retains 100% ownership of the branch or representative office, which must operate under the same name and conduct the same business as the managing firm. There is no separate legal identity. A branch or representative office needs to appoint a local services agent, who has no rights, interests or financial involvement in the business. This can be a UAE National, or a company owned by one or more UAE Nationals, who will manage the necessary government procedures and administration. The branch office must have an independent budget, its own profit/loss statements and must appoint a UAE-accredited auditor.

2. Activities
The requirements for registering a branch office in Ras Al Khaimah differ, depending on whether the parent company and the branch are involved in commercial and industrial activities or professional Activities

3. Commercial and Industrial Activities
A foreign company can conduct trade, commercial or industrial activities in Ras Al Khaimah by registering first with the UAE Ministry of the Economy (MOE), then with the Ras Al Khaimah Department of Economic Development (DED). For indirect commercial activities such as construction contracting, registration must first be done with DED then with the MOE.
After obtaining MOE and DED approval, the company must engage a UAE National Local Service Agent before the business license can be issued. The Local Service Agent can be an individual or a company. If it is a company, it must be a UAE-based company licensed by the Ras Al Khaimah Department of Economic Development and 100% owned by UAE Nationals. The appointed Local Service Agent is subject to the approval of the MOE.
The obligations of the Local Service Agent towards the parent company, the branch office and third parties are limited to rendering the services required for the company, for example dealing with government requirements. The Local Service Agent has no responsibility or financial commitment in respect of the company's business or activities inside the Emirate or abroad.

4. Branch Imports
A branch can conduct all the business of the company apart from importing its goods into Ras Al Khaimah , which will be managed by a local trade or commercial agency. The registered agencies must be UAE Nationals, or companies 100% owned by UAE Nationals and will receive a commission or profit on sales.

5. Professional Activities
The Local Service Agent for a branch of foreign company undertaking professional activities must be an individual UAE National and not be a corporate body (a person, not a business). For professional activities, the branch office does not need to be registered with the Ministry of Economy. The registration and licensing process can be completed directly with the DED.

Summary of setting up of a branch, representative or liaison office:
• Foreign investors may establish a branch, representative or liaison office in Ras Al Khaimah after obtaining license from DED;
• The branch shall merely represent the parent company and carry out business only under the name of the parent company;
• A branch office is permitted only to promote and market the products and services of the parent company;
• A representative or liaison office shall only promote its parent company by gathering information, soliciting orders and works projected to be executed by the head office;
• Prerequisite to set up a branch, representative or liaison office, the parent company must appoint an UAE national as a local sponsor or agent under a written agreement; and
• Agent’s liabilities shall be limited to the rendering of services like obtaining licenses, visas and permits necessary for operation of a branch, representative or liaison office
• Foreign company’s branch or representative offices are required to submit a bank guarantee of AED 50,000/- favouring to the Ministry being part of the licence application documentations. The licence of the foreign company’s branch/representative office shall be cancelled if it is not renewed within two years after the expiry date and the fee due to the Ministry shall be deducted from the guarantee.

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