Business Setup in Ras Al-Khaimah (RAK) Free Zone UAEKWSME
Ras al-Khaimah is one of the seven emirates that constitute United Arab Emirates (UAE). It enjoys a strategic graphical location as being situated on the northern most side of UAE at the entrance of Persian Gulf. It is 45 minutes away from Dubai and also sharing its borders with Oman as well as proximity to Iran with Saqr airport being 100km away from it. Ras al-Khaimah has an international airport and many sea ports located near Persian Gulf.
In terms of global investment, the emirate of Ras al-Khaimah possesses enormous potential and its government has taken serious steps to transform it into regional as well as global business and investment center. Ras al-Khaimah free trade zone is the second largest free zone in UAE and it hosts more than 8500 businesses. Operating process costs in RAK free zone are low thus allowing the establishment of businesses with a 20% reduction in expenditures for companies, and total revenue increases approximately to 30-35% in comparison to other states and the rest of the region.
The most promising sectors in Ras al-Khaimah for investment perspective are industrial and tourism sectors. Also many industries have made their mark on national and international level which includes ceramics, medicine, fertilizer, mining, and information technology. If you want to setup your business in RAK free zone, you will have benefits such as;
- 100% foreign ownership
- Complete exemption from personal and corporate tax
- No import duty on raw materials for manufacturing units
- Complete repatriation of capital and profits
- Fast track visas
- Company formation is quick and cost effective
- Easy travel due to international airport
- Government has created support network for new businesses to grow
Business Registration Process
If you want to setup your business in RAK free zone, you must select an appropriate business license. These are,
It involves activities such as import of raw materials, manufacturing, processing, assembly, packaging, and distribution.
It includes import, export warehousing and distribution.
It allows consulting services in management, finance, investment, legal issues, labor relations, industrial development; logistical support in restaurants or food outlets, catering services, travel agencies, leisure and social activities, insurance, cargo and freight forwarding.
General Trading License:
It is issued as commercial license allowing maximum of seven product lines.
The business license is issued for a limited period of time that is one year. It can be renewed on a yearly basis provided that companies submit audit reports before applying for license renewal. Companies in free zones can also sell their products within UAE but they will have to take assistance from a local distributor or an agent licensed in UAE. But for such sales a duty of 5% is charged.
The company registration process in RAK free zone is very simple provided you have submitted required documents.
For Licensing individual Establishment
- Complete license application form
- Passport copy of the applicant
- Passport copy of manager in charge (if any)
- Educational degrees and previous work experience for the license owner or the manager in charge.
- The approval of the other government authorities depending on the business activity.
For Licensing Companies
- Complete application form
- Passport copies of all partners with residence /visa details for foreigners and naturalization identification copies for UAE nationals
- Passport copy of the manager in charge (if he is not one of the partners)
- a brief description of the business objectives,
- a bank reference letter
- a list of trade names application form
In some cases, additional information or documents can be required. After successful completion and submission of required documents, you will be issued a license to operate in Ras al-Khaimah free zone.
If you are looking to setup your business in RAK free zone, feel free to ask us at KWS Middle East. Our professional team of consultants will guide you in selecting the appropriate business structure, help you in filling out the documents so that all requirements are met, facilitating you in getting approvals from relevant authorities and in all matters related to cost, location and human resource. Also having excellent relations with government authorities and potential decision makers, KWSME will help you in your company formation process in less time and cost effective manner.