The tourism sector turns out to be one of the most targeted business industries. The industry has been growing continuously in every possible way and has given birth to different business ideas in the sector. Technology has been a continuous catalyst that has provoked the industry to grow by making it easier for the customer to operate. A recent report states that the Global Tourism sector grew at about 3.9% in 2018, infusing $8.8 trillion and 319 million jobs worldwide. The UAE has always been a favourite tourist spot by worldwide tourists. All seven emirates have been adopting different methods of boosting the sector. Ras-Al-Khaimah stands as one of the Northernmost Emirate of the UAE has been one of the thriving tourist destinations, contributing 5% to the Emirates GDP, which is expected to boost to the next level in the coming years.
This turns out to be an alarming call for business investors, entrepreneurs and business owners who want to establish or expand their tourism business in the RAK region. If you are going to set up a business in RAK, in the tourism sector, then go through this blog to understand the essentials that you will need.
Tourism Industry in RAK
The year 2020 is considered to be one of the game-changer for the tourism industry in the UAE region. Backed by Expo 2020, the tourism industry is targeted to inject nearly $40 billion into the economy, which would have a tremendous impact on all the seven emirates. Ras-Al-Khaimah turns out to be one of the best destinations when it comes to ceramic industries, is now diverging towards strengthening the tourism industry to a great. Holding a rich history and culture of around 7,000 years, it serves to be the perfect gateway for the tourism industry, allowing the visitors to gain a different experience. Year after year, the number of tourists has been continuously growing, and because of the positive inclination, several initiatives have been taken by the Government to boost the tourism business. Let’s have a look at it.
RAK Tourism Development Authority (RAK TDA)
Since its inception, the RAK TDA has been focusing on developing and promoting Emirates tourism to a great extent. Recently, the following initiatives were taken by the Emirati Government in sync with RAK TDA.
- RAK TDA conducted a series of roadshows targeting the key cities in Eastern Europe
- The region has hosted the first ‘Belgium Travel Summit’ in the Emirates
- Destination Strategy 2019-2021 was launched effectively
- RAK enters into an agreement with Mantis group to operate on a luxury camp at Jebel Jais
These initiatives reflect the growth opportunities that RAK holds in its arena. It stands as a grabbing opportunity for business owners to come forward and set up their business. To know more about the three-year Tourism Development Strategy, click here.
How to Start a Tourism Business in RAK?
To start a tourism business in the RAK region, certain documents are to be submitted that initiates the business establishment process. The core steps include:
1.Determine the Business Activity
The first and foremost task is to decide regarding the business activities that you will be providing to your clients. Being involved in the tourism business, you have an option to offer customized packages, holiday packages, transportation, lodging services etc. It becomes important that at the initial stage itself you are clear about the business activities that you will be provided so that you can have a clear idea regarding the setup cost.
2.Select the Business Entity Type
In the next step, you need to finalize the business entity type that you will be following to start your tourism business. RAK provides the flexibility to business owners and investors to select any one from the below-mentioned business entity type:
- Sole Proprietorship
- Limited Partnership Company
- General Partnership Company
- Limited Liability Company
- Joint-Stock Company
- Branch Company
You need to have a clear view regarding the capital that you possess, and the number of shareholders that will be a part of your business, which will help you to select the suitable business structure accordingly.
3.Gather Essential Documents
Documentation turns out to be an essential aspect when it comes to business registration. To start a company in RAK, you need to present the following documents:
- Shareholder’s passport, visa and ID Card
- Residency visa details of the expats
- No Objection Letter from the Chamber of Commerce (if required)
- Approval from the Government Authorities
- Original Rent Contract certified by Municipality
- Copy of Property Ownership approved by the Inspection Division at the DED
4.Register the Trade Name
Every business entity needs to have a specific and unique name. While deciding a trading name for your business, you need to keep in mind that the name is not repeated, sound misleading or offensive. The Department of Economic Development in RAK possess the overall control to refuse the trade name if figured out to be violating the set standards.
5.Obtain the Required Approvals
Once you have decided the trade name, it becomes necessary to take approvals from the relevant Government authorities. After continuous scrutiny of the documents provided, an approval will be declared, and the certificate of the incorporation will be issued respectively.
6.Pay Fees & Obtain the Relevant License
Once you have received the necessary approvals from the concerned authorities, your next task is to obtain the necessary business license, which acts as a legal permit to carry out the business activities. In RAK, to start a tourism business, you need to obtain a tourism license by paying a stated fee amount that will help you to carry out the business operations legally.
7.Avail the Mandatory Business Services
The final step is to avail the mandatory services like accounting, bookkeeping, tax services so that you can maintain your business records in a professional manner from the very first day. This will help you to fetch the documents easily at any point in time, and avoid any misunderstanding.
The region of RAK has become a growing platform when it comes to the Tourism industry. Even though the business setup process turns out to be an easy one if you have all the essentials, it turns out to be complicated if you are not well-versed with the legal laws. To continue the business incorporation process in a hassle-free manner, business owners and investors strongly prefer to collaborate with business consultants who can help in the legal proceedings. Commitbiz consultants stand beside you to take care of the essential tasks related to incorporation.
Apart from the incorporation process, we help our clients to deal with core business pillars like accounting, taxation, visa and legal services etc. To get in touch with our experts, do contact us today-we’d be glad to assist.