Ras Al Khaimah is one of the most prominent emirates of the United Arab Emirates, and it is well known for its free trade zone (RAKEZ). It was historically recognised for low-cost business formation and is one of the UAE's oldest and largest free zones.
However, the freezone has outgrown itself in recent years, and the procedure is no longer straightforward. If you want to establish a new business or expand your business, you can seek the help of business consultants.
An Overview of Ras Al Khaimah Free Zone
Ras Al Khaimah Free Zone, also known as RAK Free Zone, was established in 2000. Currently, more than 8000 companies are registered in RAK Free Zone. In addition to that, RAKEZ does business with firms from over 100 different nations.
RAK Free Zone offers both free zone and non-free zone entity solutions and a variety of warehouse offices. In addition, RAK free zone can assist you in obtaining industrial land if you are planning a large-scale industrial project.
RAK Free Zone has effectively developed its footprint in worldwide markets. It has also won awards for the Middle East's seven greatest free zones.
Benefits of Starting a Business in Ras al Khaimah Free Trade Zone
Knowing the advantages of starting a firm in the RAK free zone is necessary.
- 100 per cent foreign ownership
- Free from the restriction on repatriation of capital or profits
- Exemption of import and export tax
- Quick immigration procedure
- Real estate prices are competitive, and properties are available for leasing.
- Business-friendly liberal economic policy
- All major UAE airports and seaports are accessible.
- A well-defined legal framework
- No corporate income tax
- The straightforward and speedy inclusion procedure
What are the Free Zones in RAK?
The different types of free zones in RAK are
- Ras Al Khaimah Economic Zone
- Ras Al Khaimah Media City Free Zone
- Ras Al Khaimah Free Trade Zone
- Ras Al Khaimah Maritime City
What are the Types of Licenses Required in the RAK Free Zone?
To form a business in this free zone, a business person must select an appropriate business license.
The four main types of licenses that can be obtained in the RAK free zone are:
- Commercial License
- Industrial License
- Consultancy or Service License
- General Trading License
The business licence is valid for one year and can be renewed once that time has passed.
RAK Free Zone Companies – Legal Entities
Corporates can form two types of companies or legal entities in RAK Free Zones based on the type of shareholding. They are:
1. Free Zone Establishment (FZE)
It is a limited liability company with only one stakeholder.
2. Free Zone Company (FZC)
It is a limited liability corporation with numerous owners that can have between two and five stockholders.
What are the Steps for Setting up a Company in RAK Free Zone?
The RAK free zone is an excellent place for your company. This location provides an option that could appeal to you if you're beginning a new business or need to expand an existing one.
The steps of Ras al Khaimah free zone company set up are as follows:
1. Choose the Type of Business Activity
The first and foremost step in forming a business is deciding on the type of business activity. Before obtaining a company licence, an investor must first choose the business activity. Each activity has its own set of legal requirements and costs according to its nature.
2. Decide the Legal Category
After selecting the business activity, you can proceed with the next one is finding a suitable business structure. The legal category is the business structure. It can either be FZ-LLC or FZC.
3. Choose a Suitable Name
Ensure your company's name does not conflict with any other legal form or that you are not breaking any restrictions while searching for a name.
Note: You can choose three names suitable for your business entity.
4. Obtain Your Business License
The most important aspect of every business formation is securing a licence. This is because the license is an essential part of your company.
A company stakeholder is expected to meet the requirements for obtaining a license. Before you can receive a license, you must first get permission from the respective free zone authorities, which will allow you to undertake the activities listed in the licence.
RAK Investment Authority grants RAK free zone e-commerce permits after acquiring the authorisation. Business experts can aid you in determining what sorts of licenses your company need.
5. Apply for Visa
One should know about the formalities of applying for a visa. It is not an easy process. You can acquire your visa with the help of our business consultant. Our company formation expert will take care of applying for & obtaining a visa.
6. Renting an Office Space
The next step is to rent office space. However, before proceeding with the office space, the stakeholder or business owner should visit the Monitoring and Consumer Protection Administration of the Department of Economic Development (DED).
They will also be visiting other relevant authorities to inspect and approve the company location.
If you need help hiring an office space, our business specialists will make the process easier for you.
7. Bank Account Opening
At the end of every process, the final requirement is the need to open a bank account. Unfortunately, opening a bank account in RAK is a lengthy procedure. To make the process in a trouble-free way, you seek our expert's help.
Following the processes outlined above, learning the steps for forming a company in the UAE free zone will be beneficial.
What are the Documents Required for Obtaining RAK Free Zone License?
Below are the documents required for obtaining RAK free zone license.
- Copy of passport
- Copy of visa or entry stamping in UAE
- Passport size photos
Expenditure of Setting Up an Office in the RAK Free Zone
Look at the table to learn more about the approximate cost break-ups in the RAK free zone.
|Cost of license with visa||13,900|
|Cost of license without a visa||11,400|
|Cost of setting up a free zone company||19,500|
I hope the above details about the company formation have benefited you in so many ways. After reading this, if you have an idea of starting a free zone company, you may seek advice from our business advisors.
If you consider starting a business in UAE, Business Setup Worldwide will help you every step of the way.
Our business consulting advisors have extensive knowledge and will guide you down the right road to reach your dreams. If you have faith in us, please do not hesitate to contact us for more clarification.