Established in 2000, the Ras AL Khaimah(RAK) Free Trade Zone is one of the fastest-rising free zones in the UAE. It has earned global recognition by accommodating more than 15,000 businesses from over 50 industry sectors. It further aims to continue easing the RAKEZ Free Zone Company Setup process for global investors and aspiring entrepreneurs by offering cost-competitive packages and attractive incentives.
This article below will explore all the significant areas of the RAK Free Zone company formation, including the advantages, procedures, associated costs, licensing options, and more.
Benefits of RAKEZ Free Zone Company Setup
Ras Al Khaimah Free Zone is exceptionally hospitable to a diversity of businesses. The minimalbureaucracyand simple incorporation procedure allow investors for an easybusiness setup in Ras Al Khaimah. Apart from that, RAK Free Zone Company Formation provides the following benefits to the companies and their respective owners –
- Availability of all entrepreneurial services
- Reasonable cost of operating and living in the RAK Free zone
- Exclusive business packages for female entrepreneurs
- Customized packages for Indian entrepreneurs as well
- Strategic partnership with banks allows quick opening of accounts and access to innovative financing solutions
- Facilitates Dual license structure; allows operation from the free zone and mainland with one office
- Convenient logistics
- On-site staff and labor accommodation facility
- Access to customized offices, state-of-the-art warehouses, and industrial land plots for large projects
- Extensive highway network, excellent digital infrastructure, and world-class utilities
- Separate free zone parks are dedicated to heavy and light manufacturing, trading, and educational institutions
- 100% business ownership
- Complete repatriation of earned profits and invested capital
- Tax-free environment
- Investment-friendly environment
- Quick issuance of UAE visa
- Efficient administrative services
- Permits more than 4000 business activities
- Allows remote registration
- Business centers and secretarial services
- Various alternatives for investor and employee visas
- Opportunity to network with various international firms and big corporations established in the RAK Free Zone
- Freedom to travel to Gulf Cooperation Countries(GCC)
Types of licenses in RAK Free Zone
- Commercial License – This license allows you to engage in several commercial activities such as the export, import, distribution, and warehousing of goods.
- Industrial License – With this license, companies can import raw materials, carry out the manufacturing of specified products as well as export the finished product.
- Service License – This particular permit allows you to carry out various professional services such as consultancy, IT development, and many others.
Types of legal entities for RAK Free Zone company setup
- Free Zone Company– An FZC is usually owned by two to five shareholders.
- Branch of Local Company – A local company branch is a subdivision of a UAE-based company (parent company). The parent company has to be functioning for more than one year in order to set up a branch.
- Branch of Foreign Company – A foreign company branch is a unit of a foreign company/non-UAE-based company. The parent company must be in operation for more than one year to establish its branch in RAK Free zone.
RAKEZ Free Zone Company Setup: Procedure
You can begin the process of company setup in RAK Free zone with the following steps –
Finalize the business activity
To start a business anywhere in the UAE, one has to determine the activities one wish to carry out in the country. So, before finalizing, make sure those activities are allowed in the Ras Al Khaimah Free zone. Besides, the activity you choose for your business operation decides the type of license you can apply for.
Find a suitable trading name
While forming a new company in the UAE, you need to look for a trading name that is unique, appropriate, and most importantly, not already in use. Before settling on a name, make sure it is not registered in the general journal of the UAE authorities.
Nowadays, there are several tools available online to find the status of a desired company name. Alternatively, you can also discuss this concern with the consultants of UAE Expansion who can lead you through the UAE government’s naming rules, and also help you find a catchy and elite name for your business.
Determine the company structure
One of the key decisions in forming a company in the Ras Al Khaimah zone is choosing the proper company structure. For example, Sole proprietorship, Limited Liability Company (LLC), Branch, etc. The right choice of structure helps in running the business efficiently.
Apply for a RAK license
Initially, you have to submit an application for license. The respective licensing authorities will review your application and you will be asked to obtain various approvals from different agencies and government bodies based on the activities you choose. Once you get all the approvals, gather all the requested documents and submit them together to the RAK authorities. Further, pay the requisite fee for the license.
The essential documents may include the following:
- Passport copy of the shareholders
- Entry visa/permit
- Passport Size Photograph of the shareholders
- Company trade names
Submission of documents and getting all the required approvals can be really stressful. Besides, if you plan to do it on your own, it can consume a considerable amount of your time. So, you can choose the services of UAE Expansion to get these tasks done without any errors and delays, avoiding any setbacks that may occur.
Choose a corporate facility
To start a business in the RAK Free Zone, it is mandatory to lease a facility that is suitable for your business needs. There are a wide variety of corporate facilities such as coworking spaces, serviced, standard, and executive offices, etc. available for new companies, especially start-ups, and SMEs. Hence, based on your business activity, size, and budget, you can lease office premises, warehouses, land, etc. for development.
Get the license and launch the business
After successfully completing all the above documents, you can get your business license, launch your company and perform activities as planned.
Cost of business setup in RAK Free Trade Zone
There are a host of factors that determine the cost of company formation in the Ras Al Khaimah Free zone. For instance, the type of business, type of license, registration fee, and many others. The quantity of the workforce is also among the factors that decide the RAKEZ Company Setup cost.
Nonetheless, to get a vague idea, speak with the experts of UAE Expansion to get assistance regarding the total cost and how to spend it wisely.
Significant points to remember:-
- The validity of theRAKEZ free zone license is one year. After the due date, the company must either renew the license or simply deregister in order to avoid any fines and penalties.
- While applying for license renewal, the applicant needs to present the audit reports. These reports should be prepared by a registered audit company in UAE.
- In case the holder wants to make any kind of modification to the license, then they need to fulfill the standard approval process and pay the relevant fees.
- As an efficient authority, Ras AL Khaimah Free Zone conducts regular inspections of business facilities and weighs its activity level.
- The RAKEZ FTZ license holders must ensure that companies comply with the UAE customs regulations.
Get Your RAKEZ Free Zone License
UAE Expansion is a leading consultancy firm in the UAE that has been providing expert, specialized, and effective services for the past two decades. Our qualified and experienced consultants with their skilled knowledge and expertise provide quality services and innovative ideas related to business setup in Dubai and other Emirates.