RAK Free Zone License- RAKEZ
The UAE has more than 40 Free Zones. Each Free Zone is established for a specific set of activities. These Free Zones provide 100% ownership, 100% repatriation of profits, and tax exemptions along with many other benefits. RAK Free Zone is one of the most popular Free Zones. It was founded in the year 2000. Two Free Zones, RAK Free Zone and RAK Investment Authority were clubbed to form RAK. It is one of the largest Free Zone in the UAE. Its proximity to the airport and seaport is an additional benefit. RAK Free Zone license is most suited for companies that require warehouses. It provides customized warehouses for industrial land development.
RAKEZ is located within one hour’s drive from Dubai. In addition, it has a strategic location as it connects South East Asia, Africa, and Europe. RAK has an office in RAK and Abu Dhabi. In the year 2020, RAKEZ reported a growth rate of 20%. It moved to digitalization. RAK Free Zone offered a 12-year visa package for investors purchasing an apartment in the Free Zone.
Benefits of setting up a company in RAK Free Zone License
- 100% tax exemptions attracting industrialists to set up business in the Free Zone.
- RAK has dedicated industrial zones concentrating on a specific set of activities.
- Additionally, RAK provides business and industrial facilities like Flexi-desk, land, and warehouses, etc.
- Moreover, it provides a low-cost business setup. RAK provides tailor-made warehouses for different business setups. Customized solutions provide benefits to the investors.
- Quick and easy business setup. However, it is best to seek the advice of business consultants who assist you in the incorporation
- Additionally, setting up a business in RAK free zone provides easy access to the international market and the MENA region.
- You can rent ready-made staff and labor accommodations
- RAK free zone provides all benefits of Jebel Ali Free Zone but at a small budget.
- Special discounts are available for women entrepreneurs.
- Provides numerous incentives at a low cost as compared to other emirates.
- One can procure labor and materials globally.
Business Activities in RAK Free Zone
RAK Free Zone provides a wide variety of activities to set up a business. RAK has divided the activities into seven categories:
Some activities such as accounting, bookkeeping, architectural design, consultancy, aviation, communication, engineering, etc. require the manager to have a respective educational degree with certificate proof attested in the UAE Embassy in the country of origin.
How to Apply for Trade License
You can establish a business in RAK in a week. The owner need not be present in RAK at the time of incorporation. But can visit a representative office in Dubai. The owner can also apply to RAK’s offices in Turkey, India, and Germany. Around 13000 companies are registered in RAK. The authorities in RAK Free Zone have not opened the company register to the public. RAK provides a 100% refund in case of rejection of the application. To set up RAK Free Zone License, one needs to choose a business activity and apply for a trade license.
Steps to Acquire a Trade License:
- Firstly, the owner has to choose a business activity from the activity list offered by RAK Free Zone. The business activity decides the type of license required.
- Secondly, the owner has to decide the legal structure of the business.
- After that, a trading name has to be selected. The trade name must be unique and according to the rules and regulations. It should not be blasphemous or related to any religion.
- The owner has to then apply for incorporation to the authority. RAKEZ Free Zone License offers registration of the company in both the Free Zone and the mainland. In Free Zone, you have to apply to the managing authority in the Free Zone. The owner can apply online. Documents required:
- Copy of Visa/ entry stamps for shareholders, managers, directors
- Passport copies of shareholders, managers, directors.
- A NOC and the business plan.
- You will receive your license after the processing of the documents.
- After that, you have to apply for a visa. If you have selected a free zone package, then you can apply for a visa as soon as the license is issued. Otherwise, you can apply after you get your trade license.
- Finally, you have to open a bank account and rent an office.
Cost of trade license
The cost of the trade license depends on the location of the company and also the number of visas applied for. RAK Free Trade Zone Authority offers various discounts and promotion offers. For a zero visa company, the price starts from AED 8000. Besides, for women entrepreneurs, prices are 40% less. Moreover, a discount of 25% is offered for the three-year package. They provide different offers every month.
|Zero visa||AED 11,440|
|1 visa individual/professional package||AED 13,468|
|1 visa trading/service package||AED 15,868|
The renewal of the license is AED 1000 less costly than incorporation. Renewal of license can be done remotely without the shareholder’s presence. However, a financial audit is mandatory every year in RAKEZ.
Amendments regarding shareholder/ manager, company name, business activity, office facility can be done any time. However, the presence of the shareholder or manager is required for submitting the application.
The liquidation process takes 3-4 weeks and it costs AED 3,500.
Visa Allocation in RAK Free Zone
In case you are renting a ready-made executive office, up to 4 visas can be applied. However, in case you need a warehouse more visas will be required for appointing more staff.
For company owners in RAKEZ, health insurance is not mandatory for visa applications. However, it is required for applying visa for family members.
Two types of visas are available in RAK Free Zone. One is a residence visa (employee or investor of a company), non-resident visa (for family visits or temporary visits by clients/partners).
Firstly you have to register for a visa through an e-channel service. Secondly, you have to apply for an entry permit or an employment visa valid for 6 months. After that, you have to complete a status adjustment process to activate your entry permit. Finally, after completion of the mandatory medical test, the Emirates ID is received. It is necessary for the opening of bank accounts and other legal formalities.
RAKEZ is recommended to those industrialists or businessmen who want to set up a business with ready-made facilities. RAKEZ is an industrial hub and has two of the fastest-growing free zones. Moreover, it provides a cost-effective environment along with an end-to-end value chain. RAK free zone’s strategic location connects east and the western markets. It also has representative offices in India, Turkey, and Germany. It is located in Al Mamourah Street in Ras-Al-Khaimah. Beyond View assists you in setting up your business in RAKEZ and also provides you the necessary assistance in the legal formalities and other auxiliary activities of the business.
For those who want to consider business set up in other Free Zones in the UAE, Shams free zone is a good option providing a variety of business activities at a considerably low cost.