RAK Free Zone is one of the Free Zones based in Ras Al Khaimah, UAE, which provides an open and vibrant environment for businesses to set up shop with immense opportunities as well. The RAK Free Zone certainly offers the right platform to international companies to grow in the UAE and the larger Middle East market, which is well-known to have business-friendly policies. Opportunities like tax exemptions, low regulatory demands, and advanced units to be availed can be exploited by entrepreneurs as well.
Key Features of RAK Free Zone:
- Exemptions from tax (up to 50 years).
- FDI at 100 per cent is permissible.
- Complete repatriation of capital and profit.
- Advantaged position near shipping lines and international airports.
Benefits of Setting Up a Company in RAK
There are a few benefits of starting a business in the RAK Free Zone, which make it lucrative to investors and entrepreneurs.
1. Cost-Effective Setup:
The setup charges in the RAK free zone are quite low compared to the setup charges in other UAE free zones. Licensing and registration procedures are cheap and easy to start a business. Moreover, RAK provides competitive prices in office spaces and other facilities.
2. Tax Incentives:
RAK Free Zone is extremely tax-friendly, given that the following are subsidized:
- Tax exemption of 100 %.
- No income tax on half of the salary.
- No import/export taxes on goods.
- No limits on any foreign ownership.
Such advantages ensure that it is an ideal option when a business is keen on reducing operational expenses.
3. Strategic Location:
The location of RAK Free Zone within the UAE also makes it strategically close to major markets in the world, and it is accessible to the Gulf, Europe, and Asia. The advanced infrastructure of the region(state-of-the-art airfields and seaports) boosts the connectivity to international trade.
4. Availability of Financing: This was easily available.
RAK Free Zone assists entrepreneurs in several ways, including financing opportunities, connections with banks, both local and international, and assists the business in managing the financial requirements
Steps for Company Registration in RAK Free Zone
This process of registering a company in the RAK Free Zone is easy. The following is a fast learning guide:
Step 1: Selection of Business Activity
Choose the nature of business activity in which your company will operate. RAK Free Zone permits businesses in different industries, including trading, services, and manufacturing.
Step 2: Company Structure Decision
Some of the company structures which RAK Free Zone can offer include:
- Free Zone Establishment (FZE): For single shareholder type companies.
- Free Zone Company (FZC): For companies having multiple shareholders.
- Branch Office: It is used when starting a branch of a company that already exists.
Step 3: Fill in the application
Once you already decided on business activity and company structure, you should apply with the required documents, which will include:
- Shareholders, directors and passport duplicates.
- Evidence of residence.
- Business plan for your targets.
Step 4: Get a License
After approving your application, you will be given a business license. The license is not limited, as it can be designed to suit your company’s needs, A trading license, an industrial license and a service license.
Step 5: Office setup
RAK Free Zone has flexible office space arrangements where they can choose shared office units, flexi-desk arrangements, and custom office construction units.
RAK Free Zone License Cost
The cost of obtaining a license in RAK Free Zone varies based on the type of business activity, company structure, and office space requirements. Here’s a general breakdown:
License Types and Cost Range:
- Trading License: Starting from AED 11,500.
- Service License: Starting from AED 9,500.
- Industrial License: Starting from AED 15,000.
- Additional Costs:
- Office space: From AED 8,000 per year (depending on the type of office chosen).
- Visa fees: Around AED 3,500 per visa.
The costs are competitive when compared to other UAE Free Zones, making it a cost-effective option for businesses looking to establish themselves in the UAE.
How to Register a Company in RAK Free Zone
Further on to make it even easier, here is a more step-by-step guide:
Step 1: Introduction Analysis
It is recommended to use consultations with a RAK Free Zone expert who is able to assist you with the requirements and ask you questions which are difficult to find, such as the selection of the business activity which is best for you.
Step 2: Getting ready with documents
Compile the required documents, and they can be:
- Passport copies.
- Shareholder evidence.
- A very short business plan or company profile.
Step 3: Making an application
Make your application and submit it to the RAK Free Zone Authority. Make sure everything has been put in order on the paperwork side to prevent delays.
Step 4: Obtaining a License and Company Establishment
When the application is accepted, you will have a license to the business. That allows you to go ahead and rent the office, recruit your staff and open your business.
Conclusion
RAK Free Zone is a smart choice for anyone who wants to start a business in the UAE. It offers low costs, tax savings, and a friendly business setup. By following the simple steps to register, you can start your company and enjoy many benefits.
Whether you want to grow your business, save money, or enjoy tax breaks, setting up in the RAK Free Zone can help you reach your goals.
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