RAK – Ras Al Khaimah Economic Zone (RAKEZ)
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Ras Al Khaimah (RAK) is located to the northern side of the United Arabs Emirates (UAE). It shares a border with the Oman Sultanate and settles between the Hajjar Mountains and Arabian Gulf. Ras Al Khaimah is among the areas in Emirates with the most developed economies. It is a popular trading and industrial hub.
The region is emerging as the ideal investment choice for investors due to its proximity to Dubai. Moreover, the political stability and tremendous development in the area also attract global financiers. Although Emirates has many free zones, RAK stands out because it is close to far eastern nations like Pakistan, China, the Commonwealth of Independent States (CIS) and India. What’s more, RAK is a top port and offshore center.
Other reasons that make investors want to establish businesses in RAK include:
- Ultra-modern infrastructural development
- Friendly trade relations with neighbors
- Liberal government policies
- Cost factor
Ras Al Khaimah Economic Zone (RAKEZ) (open a new window) is situated at the center of the Ras Al Khaimah (RAK) in the UAE. It’s an industrial hub, and it provides personalized solutions to free zone and non-free zone enterprises in a multinational region with more than fifty successful sectors.
Individuals that set up companies in RAKEZ enjoy benefits such as:
- Tax-free personal and corporate income
- No customs duty on services, import ad exports
- No trade barriers and quotas
- State-sponsored incentives
- Full ownership
- Favorable laws that enhance business security
- Business-friendly regulations
- Tax exemption on import and export commercial levies
- 100% profits and capital returns
- Favorable environment to set up enterprises
- Hassle-free process for registering businesses
How to Set Up a Business in RAK?
Although starting a business in RAK is easy, you need to prepare several documentations and follow specific procedures. It is crucial to find a company that can help you with all the necessary steps. The best team will have expert business advisors who will take care of the business registration process. Here are the steps for forming a company in RAK:
Decide on the type of Business
You need to determine the economic activity of your organization before initiating the license issuance process. Your firm can be categorized as a commercial, industrial or professional business. General trading or retail or businesses sell products to consumers or other businesses, while professional firms offer professional services like consulting or accounting. On the other hand, industrial companies manufacture, process or package goods. The government charges fees and sets rules based on the nature of the business. In addition, some companies need to fulfill specific conditions regarding their location.
Determine the establishment’s legal category
Companies can be divided into various corporate entities like Limited Liability Company. The company’s activities will determine its legal status.
RAK has three major jurisdictions: Offshore, Mainland and Free Zone. Investors that form startups in Mainland have a wide scope since they can set up companies inside and outside the UAE. The Free Trade Zone in RAK is located a few minutes from Dubai, and it has a business-friendly environment, incredible services and easy company forming procedures.
You may obtain initial approval before getting the company name certificate. Initial approval allows you to proceed with seeking a license. After getting the initial approval and fulfilling legal considerations, you should visit other concerned bodies to get their approval too.
Register the Company Name
After finalizing your firm’s location and activity, you should select a unique trade name for the enterprise.
Apply and submit
The next step is to submit your application with the required documents. The essential documents you need are:
- Certified tenancy contract copy
- No objection letter, residences certificates, visa and passport photocopies
- Company name certificate
- Copy of ownership certificate
- National identification and family book copies
- License application form
- Certificate of partnership
- Ministry of economy obtaining approval
Issuance of the business license
Once you receive the consent of relevant authorities, you move to fulfilling regulations for obtaining a business license from the Economic Development Department.
Rent Company Space
The company location you choose should be examined and approved first before you rent it.
RAKEZ offers business facilitation services to help foreign investors obtain the proper licenses and permissions from the government and other concerned bodies.
This could also interest you: Start a Business in Dubai
What are The Advantages to Set Up a Business in RAK?
If you are planning to start a company in UAE, RAKEZ offers an excellent option. There are several significant benefits that you can enjoy by setting up a business in RAKEZ.
- Seaport-Airport Availability. Ports are a critical component for the success of any industry. Businesses located near ports can easily ship their goods. RAKEZ has a variety of ports, including Sarq Port. Moreover, the location has RAK international airport that offers investors access to worldwide markets.
- Tax Exemption. One of the biggest advantages that drive entrepreneurs to RAK is tax exemption. The state exempts foreign investors from paying taxes to encourage them to establish business entities.
- Availability of Customized Warehouses. RAKEZ has dynamic warehouses that are available to all license holders. You can customize the warehouses to meet your business needs. Plus, the premises have incredible features like heat-insulated roofs and doors, on-site accommodation, sufficient space for loading and offloading items and an indoor office.
- Reduced Setup Costs. The UAE is an international business hub that attracts more entrepreneurs every day for many reasons. The costs of forming companies in different regions in the Emirates vary, but RAKEZ offers the lowest setup expenses. The region offers foreign investors unique cost strategies while forming firms.
- There are high, medium and small-sized warehouses to cater for various ventures depending on their activities. Typical activities that business owners can engage in are trading, security, manufacturing, utility and storage. With these solutions, investors can save a significant amount of money.
- Segmented Business Parks and Industrial Areas. RAKEZ aims to grab the attention of more entrepreneurs around the globe. So, they have set aside zones that are dedicated to manufacturing and trading industries. Some of the industrial areas in RAKEZ include the RAKEZ business zone and Al Ghail industrial zone. Also, there are several business parks in the area.
- Free Zone Advantage. In addition to setting up ventures in their non-free and offshore areas, RAKEZ allows the formation of companies in their free zones which offer the following perks:
- Fast licensing
- Storage facilities are pretty affordable
- Easy business operability
- Low-cost leasing spaces
- Convenient location, which gives RAKEZ a competitive advantage and potential for higher profits.
- Investors can register any business without restrictions.
What Opportunities You Have in RAK?
Over the past years, RAKEZ‘s popularity with entrepreneurs from different parts of the world has been rising. With its impressive growth trajectory, the region has been making headlines in business news. As a result, it has become one of the best locations for individuals to invest.
What’s more, RAKEZ has received several prestigious awards making it popular among global investors. The prime minister of UAE ranked RAKEZ as a 4-star region when it comes to delivering exceptional services. All these have made RAKEZ be a sought-after destination for many individuals. The region has a lot of opportunities for investors that include:
- Unlimited Business Facilities. Business professionals have a limitless number of facilities to conduct their business and meet its demands. RAKEZ offers Flexi-desk facilities, which are an excellent option for small to medium startups. These facilities have customized workstations and secretarial services. The region also has land and warehouse facilities with variable sizes ideal for logistics, manufacturing and trading companies. These solutions have a permanent power supply and are feasible for logistical hubs.
- RAKEZ is an ideal business location with various opportunities. By registering a startup in the region, you have the potential to grow your business to greater heights. However, you need to follow the right procedures and adhere to all the regulations for registering a business. The good news is that you can hire professional services to ensure you have a seamless incorporation process.
- RAKEZ has favorable terms that promote numerous business growth opportunities like:
- The region has partnered with Smart4Power to minimize water and energy consumption, hence reducing business production costs.
- They offer business packages tailored for women business owners and investors.
- The RAKEZ business Excellence magazine has a section that highlights new startups categories.
- Expedited Business Formation Process. Establishing a business in RAKEZ is simple since the region has favorable government policies. Additionally, you have a wide variety of business entities to establish: Individual establishment, foreign company branch, free zone establishment and more.
- RAKEZ has ultra-modern marine docks and container ports with adequate facilities to promote business growth.
- The region is rich in raw materials that different companies could use.
Ras Al Khaimah experienced an influx in global investors due to its thriving economy. The zone has hassle-free government policies, which have attracted significant foreign investment. Plus, if you establish in RAK, you will have a physical presence in the UAE and foster trust with the natives. Consequently, you will form long-term customer relations and trade contacts in the Emirates.