Business setup in RAK Free zone
The Ras Al Khaimah Free Zone, most commonly known as RAK FTZ, was established in 2000 and from that moment it become one of the fastest-growing and cost-effective Free Zone in the UAE. Nowadays, there are more than 12,000 companies established in RAK that take advantage of the outstanding benefits this privileged place has to offer.
Business owners and investors should know about the Company Formation in Ras Al Khaimah Free Zone if they want to take advantage of all the incentives and lower rates of this place. Thanks to its strategic location, RAK Free Zone is an ideal place to incorporate a company because it offers access to Africa, Europe and South East Asia markets.
Forming a company in RAK
Setting up a business in RAK is a pretty simple process, but it’s important to learn more about the rules and regulations, as well as the documentation needed, so you don’t incur in any issue.
To start the Business Setup in Ras Al Khaimah Free Zone you have to select a business activity allowed in this place. After that, you must determine which business license suits best the nature of your business. It’s also important to choose the legal form of your business and its trade name. You should submit your application along with the documents to get the initial approval, and after that, you can make the payments and collect your business license.
Here are the documents you need to incorporate a company in RAK Free Zone:
- List of trade name options
- Application form
- Passport copy for each shareholder
- Bank reference letter
- Declaration form
- Description of company’s business activity
RAK Business Activities
The Ras Al Khaimah Free Zone Company Setup requires investors to select among the following business activities permitted in this place:
- Trading and commercial activities
- Educational activities and consultancy
- E-commerce activities
- Product importing
- Manufacturing and packaging
- Media activities
- Professional services
Business Licenses for RAK
Businesses that want to carry out their operations in RAK FTZ should obtain a valid license that allows them to engage on the allowed activities.
Here we have the rakez license types:
- Commercial License: this type of license allows the company to engage in activities like export, import, distribution and warehousing of products. The company can carry out 2 different or 7 similar activities with this license.
- General Trading License: this license is aimed for businesses that want to carry out the same activities as the commercial license but the difference is that the General Trading License is for multiple activities.
- Services License: also known as consultancy license, it allows the business to carry out activities such as logistics, marketing, consulting, and other permitted activities. The license allows to engage on 2 different service activities.
- Industrial License: with the Industrial License, the company can carry out industrial-related activities and it allows 1 product per license.
Benefits of doing business in RAK
- Total exemption of income and corporate tax
- 100% foreign ownership
- Full capital and profit repatriation
- Easy and hassle-free business set up process
- Innovative and modern facilities
- No restrictions on foreign exchange
- Cost-effective Free Zone and low-cost of living
- The ras al khaimah free zone visa rules are easy to follow
Business entities in RAK
To start your Business in Ras Al Khaimah Free Zone you must determine which kind of legal form you want your company to have. In RAK Free Zone there are several options regarding the type of business entity you can incorporate.
If you’re considering the ras al khaimah free trade zone company search, here we have a list that may be of great help:
- Free Zone Establishment (FZE): an FZE should be incorporated with a single shareholder, and you should select the proper business license that matches the nature of your business.
- Free Zone Company (FZC): an FZE is a new company that must have two or more shareholders with a maximum of 5.
- Branch of a Company: a local company based in the UAE or an overseas company can establish a branch in RAK Free Zone. The requirement is that the parent company must have been active for a year at minimum.
RAK License costs
When it comes to the ras al khaimah free zone company setup cost, it’s important to know which payments you have to make to collect your business license and register your company.
Here we have some of the expenses for establishing a business in RAK Free Zone:
- Registration Fee: starts from AED 7,000 and it’s a one-time payment
- Commercial License fee: the ras al khaimah trade license cost is of AED 3,650 per year.
- Industrial License fee: starts from AED 5,000
- Service License fee: starts from AED 7,500
- General Trading License fee: starts from AED 15,000
- Visit fees: a visit visa of 30-days duration costs AED 800, and for 90 days costs AED 1,500
- Office rent: in RAK Free Zone there are many options for renting a physical space. The cheapest one is the flexi desk which costs AED 12,500 per year. For a warehouse rent, the price is of AED 245 per sq. m.
RAK Innovative Facilities
In RAK FTZ, businesses can find many options to rent a state-of-the-art facility from where they can carry out their operations.
Here we have the most outstanding facilities in RAK Free Zone:
- Industrial Parks: investors can rent plots of land, warehousing facilities, offices and housing in the industrial parks located in RAK FTZ. These offer several advantages such as various plot sizes, full amenities, customs office, workers’ housing, and more.
- Business Park: in RAK FTZ you can find the Business Park in the center, near to the airport. You can rent offices from various types such as flexi desks, flexi offices, and more. These fully furnished offices are at cost-effective rates.
- Technology Park: investors can opt for facilities from the Technology Park to carry out light industrial activities, or choose among the many offices available.
- Academic Zone: educational organization can also find a great place to conduct business from the Academic Zone.