To take advantages of the trade flows between the East and the West, RAK is the best strategic location. As many types of uncertainties are prevailing on the political and economical situations of other countries, the foreign investors interest towards free trade zones of UAE are gaining momentum. The geographical location of the of the RAK Free Zone is making it a fast growing industrial hub for markets in South Asia, Europe and Africa.
RAK is evolving as a major global manufacturing destination with the availability of essential resources, space and manpower. Some of the core business areas that are developing faster in the zone are cement, building materials and ceramics. As RAK is rich in limestone, rock and clay many companies within the UAE and out of the country are booking manufacturing facilities in the RAK Free Zone. Services, tourism, pharmacy and trading are other businesses that are getting a big boost in the zone. Investors are looking for a business setup in friendly atmosphere, and RAK zone is able to offer it in all ways. While comparing the cost associated with setting up a business in other regions, it’s very low here. This helps companies in RAK zone to minimize cost, while maximizing profit.
To do business in this zone you should have a valid business license. You should apply for a license depending on the type of business activity you are going to do here. As a business consultant we are able to help you in identifying the license type applicable for your business and applying for it along with all required documents.
Commercial license
This license allows you to do all types of export, import, distribution and warehousing activities. You can apply for specific type of commercial license if you are doing trading activities of particular type of goods. Otherwise, you can apply for a general commercial license.
Industrial license
This license allows you to import raw materials from other regions or countries and manufacture products from the establishment in the zone. You can also process it, pack it and export the finished goods.
Consultancy license
With this license you can start a consultancy for providing services across any industry.
Educational license
Those companies that are interested in starting a training centre or a learning centre in the zone can apply for an education license. Some companies are interested in starting an education consultancy. Education license allows in starting a training centre or a consultancy.
In the RAK free zone you can set up a legal entity as a new business or a branch of an existing business.
New entities can be started as a Free Zone Establishment with a sole owner or as a Free Zone Company with 2 to 5 partners.
Branches can be of a domestic company or a foreign company with its parent company having at least one year old operational experience.
Customization of the package
First step is to select a service package that is essential for the type of business you are planning to do in the zone.
Submission of Application and Documents
With the help of a business consultant you can fill the application and submit it along with essential documents for approval. A panel will review you application and send a notification.
Letter from RAK approval panel
The RAK free Zone authorities will send letters related to obtaining an Emirates Postal ID and bank account for the proposed company based on the package selected by you.
Issuance of trading license
Once you complete all the formalities related to licensing, the approval panel will verify it and issue a valid business license. After that you can start visa application processing.
IN RAK zone there are Business Park, Technology Park, Industrial Park and Academic zone. Choose a location based on your business requirement. Those who are not able to find a location can approach us for finding the best one.
You can choose a free zone depending on the type of business activity you are going to perform there. Some of the free zones that are particularly meant for each activity include
The main capital requirement depends on the type of business activity that you are planning to set up in a Free Zone. Specifications regarding the capital requirement depend up on the Free Zone you select for trading activities.
Choosing a legal form depends on the business type, trading activities, nationality of the owner and the preferred ownership options. Some of the common forms are:-
The procedures for setting up a company in a free zone are direct and easy to complete. General steps involved in it are as follows.
Normally it will take 3 weeks to finish the whole procedures. If there is any delay in the documentation procedures, then it will take 6 weeks to finish the registration process.
Free zones are attractive as it provides lucrative options to the companies. Some are the following:-Free zones are attractive as it provides lucrative options to the companies. Some are the following:-
Yes, it is mandatory, below are the property options:
A Free Zone license will give you 100% ownership of your company and complete control of your business. Incorporating your business in a Free Zone also tends to be a cheaper and easier process.
An advantage of a Non Free Zone setup is that this type of license allows you to freely operate in any area of the UAE. Even though a local Emirati sponsor who would have 51% ownership of your company, certain businesses simply work better with a Non Free Zone license. In other words, when you have a Free Zone license, you are allowed to operate only within that Free Zone but with a Non Free Zone license, you will not be restricted to one area.
