Ras Al Khaimah (RAK) is one of the fastest-growing emirates in the United Arab Emirates (UAE). Known for its business-friendly environment, RAK offers several free zones that cater to various industries. This article provides a comprehensive guide on the costs, processes, and benefits of setting up a business in Ras Al Khaimah free zones in 2024.

What are Ras Al Khaimah Free Zones?

Ras Al Khaimah free zones are designated areas where businesses can operate with special regulations and incentives. These zones are designed to attract foreign investment by offering benefits such as 100% foreign ownership, tax exemptions, and streamlined company setup processes. The main free zones in RAK are:

• Ras Al Khaimah Economic Zone (RAKEZ): One of the largest and most versatile free zones in the UAE, RAKEZ caters to a wide range of industries, including manufacturing, trading, services, and logistics.
• RAK Maritime City Free Zone: Focuses on maritime and port-related industries, providing facilities and services for shipping, logistics, and shipbuilding companies.
• RAK International Corporate Centre (RAKICC): Specializes in international business company formations, offering a variety of corporate structures and business solutions.

Why Choose Ras Al Khaimah Economic Zone (RAKEZ)?

Situated in the heart of Ras Al Khaimah in the United Arab Emirates, Ras Al Khaimah Economic Zone (RAKEZ) is a powerhouse business and industrial hub that offers customizable solutions to free zone and non-free zone businesses in a multinational community flourishing in over 50 sectors.

Established by the government of Ras Al Khaimah, RAKEZ supports startups, entrepreneurs, SMEs, and industrialists with their business setup requirements by providing clients with a range of licenses and customizable facilities as well as first-class support services such as visa facilitation.

RAK Free Zone Business Setup Requirements

Setting up a business in RAK-free zones involves meeting certain requirements. These include:

• Business Plan: A detailed business plan outlining your business activities and goals. The business plan should include information on your business model, target market, marketing strategy, and financial projections.
• Passport Copies: Copies of passports for all shareholders and directors. Ensure that the passport copies are clear and valid.
• Proof of Address: Recent utility bills or bank statements showing the address of the shareholders and directors. The proof of address should be no older than three months.
• Bank Reference Letter: A letter from your bank confirming your financial standing. The bank reference letter should be from a reputable bank and include details of your account and financial history.
• No Objection Certificate (NOC): If you are currently employed in the UAE, an NOC from your employer. The NOC should state that your employer has no objection to you starting a business in the free zone.

RAK Free Zone License Types

RAK-free zones offer various types of licenses to cater to different business activities. These include:

• Commercial License: For trading and commercial activities. This license allows you to trade in goods and services within and outside the UAE.
• Industrial License: For manufacturing and industrial activities. This license is required for businesses involved in manufacturing, production, and industrial activities.
• Service License: For professional and consultancy services. This license is suitable for businesses offering professional services such as consulting, accounting, and legal services.
• General Trading License: For businesses involved in multiple trading activities. This license allows you to trade in a wide range of products and services.
• Educational License: For educational institutions and training centers. This license is required for businesses involved in educational and training services.

Ras Al Khaimah Business Registration Cost

The cost of registering a business in RAK-free zones includes several components:

• Company Registration Fee: AED 10,000 to AED 15,000. This fee covers the cost of registering your company with the free zone authority.
• Business License Fee: AED 5,000 to AED 15,000. The license fee depends on the nature of your business activity and the type of license you choose.
• Office Space Rental: AED 5,000 (flexi-desk) to AED 50,000 (executive office). The cost of office space depends on the size and type of facility you choose.
• Visa Costs: AED 3,000 to AED 5,000 per visa. This fee covers the cost of obtaining residency visas for you and your employees.
• Miscellaneous Costs: AED 1,000 to AED 3,000 (for legal and administrative services). These costs include fees for notarization, translation, and other administrative services.

RAK Free Zone Company Registration Process

The company registration process in RAK-free zones is designed to be efficient and hassle-free. Here’s a detailed overview:

1. Initial Consultation: Discuss your business requirements with a free zone consultant. The consultant will provide you with detailed information on the setup process, costs, and required documents.
2. Documentation: Prepare and submit the required documents, including passport copies, proof of address, and business plan. Ensure that all documents are accurate and complete to avoid delays.
3. Name Approval: Get approval for your company name. The name must comply with the free zone’s naming conventions and should not be similar to any existing company names.
4. License Application: Apply for the relevant business license. Choose the type of license that best suits your business activity.
5. Office Selection: Choose your office space (flexi-desk, shared office, or private office). Select an office space that meets your business needs and budget.
6. Fee Payment: Pay the registration, license, and office rental fees. Ensure that you make the payment on time to avoid any delays in the registration process.
7. Legal Formalities: Sign the memorandum of association and other legal documents. These documents define the structure and operation of your company.
8. License Issuance: Receive your business license and start operating. Once the free zone authority processes and approves your application, you will receive your business license.
9. Visa Processing: Apply for visas for yourself and your employees. Submit the required documents and fees for visa processing.
10. Bank Account Opening: Open a corporate bank account to manage business finances. Choose a bank that offers convenient banking services and facilities for your business.

What Types of Licenses are Available for Company Setup in Ras Al Khaimah?

RAK-free zones offer various types of licenses to cater to different business activities. The main types of licenses available are:

1. Industrial/Service License: For businesses involved in manufacturing, production, and industrial services.
2. Trading/Commercial License: For businesses involved in trading, import/export, and commercial activities.
3. Professional/General Trading License: For professional services and general trading activities that encompass multiple trading categories.

What are the RAK Free Zone Business Setup Packages in 2024?

RAK-free zones offer various business setup packages to cater to different business needs. These packages typically include:

1. Basic Package: Includes a trading or service license and flexi-desk facility. Cost starts from AED 16,000 annually.
2. Standard Package: Includes a trading or service license, flexi-desk, and one visa. Costs around AED 20,000 annually.
3. Premium Package: Includes a trading or service license, executive office, and multiple visas. Costs start from AED 35,000 per year.
4. Industrial Package: Tailored for industrial businesses, including an industrial license, warehouse facility, and multiple visas. Costs vary based on specific requirements.

Conclusion

Setting up a business in Ras Al Khaimah free zones is a strategic move for entrepreneurs looking to capitalize on the UAE’s business-friendly environment. With competitive costs, streamlined processes, and a supportive ecosystem, RAK offers a compelling destination for business establishment. For comprehensive assistance with your business setup in RAK-free zones, trust GCS Group. We are a business setup company in Dubai dedicated to helping you navigate the intricacies of business setup in RAK-free zones with ease and efficiency.