Ras Al Khaimah: Types of Company
Limited Liability Company
Foreign investors can conduct business through Limited Liability companies in Ras Al Khaimah under the UAE Commercial Companies Law.
An LLC can be incorporated with a minimum of two and a maximum of fifty shareholders provided a UAE national holds not less than 51% of the shares. Whilst a foreign partner's equity in the company may not exceed 49%, profit and loss distribution can be prescribed to favour the minority shareholder in ratios of up to 90/10 in Ras Al Khaimah. Foreign ownership of up to 70% may soon be possible under proposed legislative amendments.
Responsibility for the management of an LLC can be vested in the foreign or national partners or a third party. It is possible to enter into various side agreements with the UAE national partner to protect and define the interests of the minority partner, particularly in situations where in reality the minority partner provides all the capital in the company.
Whilst it is necessary to show that capital has been deposited in a UAE Bank in order to establish an LLC, the capital may be released once the company has been registered with the Ras Al Khaimah Chamber of Commerce.