Planning to set up a business in Ras Al Khaimah? It’s essential to familiarize yourself with both federal and local laws that govern your business activity. Compliance with these laws is essential to avoid potential legal consequences.
You’ll find several professional business advisors and legal experts in Ras Al Khaimah who can offer help and guidance in these areas.
Here are some of the most important business laws in Ras Al Khaimah and the UAE.
The Commercial Companies Law
This law governs the formation, operation, and dissolution of companies in the UAE. It sets out the legal requirements for different types of companies, such as minimum share capital, management structure, shareholders’ rights and obligations, and financial reporting.
The Labor Law
This law regulates the relationship between employers and employees in the UAE and sets out the minimum standards for employment contracts, working hours, wages, leave, termination, and other employment-related matters. It also establishes the rights and obligations of employers and employees and provides dispute-resolution mechanisms.
Entry and Residence of Foreigners
This law governs the entry, stay, and exit of foreigners in the UAE. It sets out the different types of visas and permits, such as residence visas, work permits, and investor visas, and the requirements and procedures for obtaining them. It also establishes penalties for violations and illegal immigration.
Copyright and Intellectual Property Rights
Intellectual property rights are protected under UAE federal law by the UAE Ministry of Economy. Federal Decree Law no. 38 of 2021 on copyrights and neighbouring rights aims to enhance patent, trademark, copyright, industrial design, and trade secret protections and enforcement mechanisms.
The Taxation Law
This law governs the taxation of individuals and companies in the UAE. It sets out the different types of taxes, such as corporate income tax, value-added tax (VAT), and excise tax, and the rates, exemptions, and procedures for their payment and filing. It also establishes the penalties for tax evasion and non-compliance.
Regulation of Competition
This law aims to promote fair and efficient competition within the market and combat monopolistic practices. The law provides a stimulating environment for companies and investors to enhance effectiveness, competitiveness, consumer interest and achieve sustainable development.
Financial Crime Compliance
Upon setting up your business in the UAE, whether with the DED on the mainland or in a free zone, you must adhere to the customer due diligence laws and regulations. This includes providing details of ownership structures, ultimate beneficial ownership, shareholders, IDs, source of wealth/funds, the purpose of the entity, and disclosure of the entity’s ultimate controller. This is part of the UAE’s commitment to prevent money laundering, funding of terrorism, evasion of sanctions, bribery, and corruption, and financial transparency improvement.
Freezone Regulations
When establishing your business within a freezone, it is essential to familiarize yourself with the laws, regulations, and circulars that govern business and economic activities within that freezone. In Ras Al Khaimah, you can always seek information from the licensing authorities of Ras Al Khaimah’s free zones and the mainland’s Department of Economic Development.
These are some of the key laws you need to be aware of and understand as a business owner in the UAE. You should always consult a licensed professional who can guide and help you navigate these laws effectively to ensure the success of your business.