Free Zone Business Parks in RAK
1.Business
This park is dedicated to businesses and corporates to invest in
2.Industrial
This area is designated to accommodate heavy manufacturing industries
3.Technology
This section has companies involved in trade as well as light manufacturers
4.Academic
RAK free trade zone aims to be a premier education destination by demarcating an area for the world’s best educational institutions
Types of Licenses in Ras-Al-Khaimah Free Zone
In order to start a business in this free zone, a businessman must select an appropriate business license. There are four main types of licenses that can be obtained in this free zone;
- Commercial License
- General Trading License
- Industrial License
- Consultancy or Service License
The business license is issued for one year and can be renewed after the completion of one year.
Benefits of Setting up a Company in RAK Free Zone
- Provision of 100% foreign ownership
- No restriction on repatriation of capital or profits
- Exemption from import and export duties
- Speedy immigration process
- Competitive real estate price, with properties being available on lease
- Liberal economic policies favorable to business
- Access to all large airports and seaports in the UAE
- A clear regulatory legal framework
- No corporate tax
- Easy and quick incorporation process
RAK Free Zone – Legal Entities
Two types of companies or legal entities can be formed by corporates in RAK Free Zones based on the type of shareholding. These are:
1.Free Zone Establishment (FZE)
It is a single shareholder limited liability company
2.Free Zone Company (FZC)
It is multiple shareholder limited liability company that can be set up with a maximum of 2 to 5 shareholders
Process of Setting up a Business in RAK Free Zone
Setting up a company in RAK free zone takes a pretty systematic route, being guided by the laws of the Emirates. The process of business formation follows these steps:
- Determining Business Activity Type- It is important for an investor to decide the type of business activity before initiating business license issuance procedures. Each activity has its own unique legal regulations and fees according to its nature
- Determining the Legal Category- Legal category is the business structure. It can either FZ-LLC or FZC
- Selecting a Name for the Company- Post determining the type of business activity and legal status of the business, it is important to choose a unique and appropriate business name for the establishment. The investor may obtain initial approval before obtaining the trade name certificate from the Ras Al Khaimah Free Zone Authority
- Obtaining Initial Approval- The initial approval allows the investor to continue with the business license issuance procedure and address the concerned authorities to obtain their approval to conduct the business activity
- Obtaining Approvals from the Concerned Authority- After you get the initial approval from the FZ Authority and fulfilling the legal requirements, the investor should visit the other concerned authorities to obtain their approval. These authorities are defined according to the required activity, although some types of activities may require the sole approval of the Department of Economic Development.
- Issuance of Business License- Once you get approval from all the concerned authorities, the investor can proceed to the stage of fulfilling all the legal requirements for issuance of business license from FZ Authority
- Obtaining the shareholder(s)’ signatures on the company formation documents, with completion of other business setup formalities in the presence of RAK free zone authorities
Documents Required for Company Formation in RAK Free Zone
- Proof of trade name reservation
- Proof of initial approval for business activities
- Passport copies for the shareholders
- Passport copy and CV of the manager
- Personal Information sheet for each shareholder & manager
- Lease agreement [possessing a physical address for one’s office is mandatory in the UAE]
- Third party/authority approval for activities, where applicable
There are a lot to choose from UAE free trade zones and a lot to know about RAK free zone company setup. When you have the right people, you can be ensured to have a good start. Since company formation in UAE should not be taken lightly and be done hastily, people who are specialized in this field are needed to advise you further.
Why Us?
Business Setup Worldwide is a one-stop-solution provider that helps businesses in not only setting up their operations in RAK, but also supports in necessary documentation and legal formalities. Wide domain experience and familiarity with the laws of Emirate help us to take care of passport, visa and licensing requirements of our clients, and ensure that their task is completed smoothly without unnecessary bureaucratic hassle. To know more, contact us today.
