+971 56 564 2164
P.O Box 51500,Sharjah Media City, Sharjah, UAE.
+971 56 564 2164
P.O Box 51500,Sharjah Media City, Sharjah, UAE.

RAK Free Zones

Free Zones in Ras Al Khaimah

Ras Al Khaimah (RAK) is one of the 7 emirates of the UAE. It is emerging as one of the fastest growing free trade zones in the UAE. Equipped with state-of-the-art infrastructure, RAK free zone is poised to take over the title of one of the most sought-after investment destinations in the UAE. Though there is a wealth of free zones in the entire Emirates, what makes RAK stand out in the UAE is its strategic location. RAK is closest to the far eastern nations: China, India, Iran, Pakistan, and the Commonwealth of Independent States (CIS). Apart from the ease of access, hassle-free administrative procedures and proximity Port Saqr (which is close to a primary shipping lane passing through the Strait of Hormuz), RAK functions as a prominent port and offshoring destination in the northern part of the Emirates.

Types of Licenses in RAK Free Zones

In order to set up a business in Ras Al Khaimah free zones, the suitable license is required. The registration and issuance of business licenses to non-resident companies in Ras Al Khaimah are handled by the Free Zone Authority, and other licensing procedures are regulated by the federal government. There are 4 types of licenses you can get from Ras Al Khaimah free zone authorities:

1. Commercial License

For trading, import and export activities

2. General Trading License

For businesses involved in industrial and manufacturing activities

3. Industrial License

Similar to a trading license but involves products from the industrial sector only

4. Consultancy/Service License

For service providers, professionals, artisans and/or craftsmen

How to Set Up a Business in RAK Free Zone?

Business setup in the free zones is a hassle-free process. For setting up a business in RAK free zones, you’d need to follow these steps:

1. Determine the Type of Business Activity

To start any business, not just in RAK, you need to first decide upon the type of business activity before initiating the license issuance procedure. Each activity has its own set of rules and regulations, which you must abide by. In addition to this, there are certain activities forbidden in certain locations – take a note of these before proceeding further.

2. Register a Trade Name

After determining the business activity, it is important to choose a unique and appropriate trade name for the company. The investor has to obtain an initial approval before registering the trade name with the authorities.

3. Obtain Approvals from the Free Zone Authority

After getting the initial approval for your trade name and fulfilling all the requirements, you must obtain approval for issuance of the business license.

4. Issuance of License

Once the approval of the concerned authority is obtained, the investor may proceed to the stage of fulfilling all the legal requirements of business license issuance from the free zone authority.

After you are through with the process, the license will be issued within a week. The license is provided for one year, after which it can be renewed on a yearly basis, provided that its audit reports are submitted while applying for the renewal.

Procedure to Obtain a License from RAK Free Zone

Starting a business in Ras Al Khaimah free zone is easy, but you need to take care of certain legal procedures and documentation formalities that must be submitted to the free zone authority. The list varies by the type of business activity. Below is a general guideline for the steps and documents needed to get your business license in RAK free zone.

  • Determine the type of economic activity and legal form of your business
  • Submit an application for company registration
  • Submit the proposed company name to the free zone authority
  • Submit the company documents to obtain a trade license
  • Get the company’s Memorandum of Association (MOA) notarized
  • Register the company’s trade name
  • Obtain initial approval
  • Get special approvals
  • Submit the required documents for issuance of payment voucher
  • Fulfill the licensing requirements
  • Get a trade license issued by paying a license fee

Documents Required to get a License from RAK Free Zone

  • An application form
  • A certificate of incorporation
  • A brief description of the business objectives
  • A bank reference letter
  • Passport copies of the shareholder
  • A list of the proposed trade names

Below is an estimation of RAK free zone company setup cost:

Trading License Fee [without visa] AED 11,440
Pre-approval AED 100

Why Set Up a Business in RAK Free Zone?

Ras Al Khaimah witnesses an influx of foreign investors as it is one of the most developed economies in the Emirates that have seen tremendous economic development. Liberal government policies, state-of-the-art infrastructural development, thriving economy, and friendly trade relations with neighboring countries are some of the many factors that attract major foreign investment in RAK free trade zones.

Apart from this, another reason why you should consider setting up a business in RAK free trade zone is that having a physical presence in the Emirate builds trust among the natives and helps in forging long-term customer relationships and obtaining trade contacts in the UAE.

Apart from this, there are many incentives enjoyed by investors in RAK free zone company formation:

  • No tax on personal or corporate income
  • No foreign exchange controls, quotas or trade barriers
  • No customs duty on import, export or services
  • Hassle-free and business-friendly legal framework and company laws that ensure the security of investment
  • Government-sponsored incentives for investors
  • 100% ownership
  • 100% tax exemption on all commercial levies for import and export
  • 100% return on capital and profits
  • Business-friendly environment and easy process to set up a company
  • Access to all large airports and seaports in the UAE

Ras Al Khaimah has become a true trading hub with an economy that continues to expand and thrive. RAK free zone authority is committed to its promise of empowering free zones by offering cost-effective and world-class economic zones with customizable packages and services. If you are looking forward to RAK company registration, Xcellence is a one-stop solution provider that helps businesses not only set up their operations in RAK but also fulfill the necessary documentation and legal formalities. Wide domain experience and familiarity with the laws of Emirate help us to take care of the passport, visa and licensing requirements of our clients and ensure that their task is completed swiftly without unnecessary red tape.

We can help you own your own share in this growing economy – contact us for business setup services in RAK, we’ll be glad to assist.

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