Let us ask you a question. Which emirate, in your opinion, is the best emerging free zone in the United Arab Emirates? Is it Dubai? Abu Dhabi? Well, prepare to be surprised, it’s Ras Al-Khaimah. Fondly called as just RAK, Ras Al-Khaimah borders Oman’s exclave of Musandam and is the first port of call in all of the northern emirates.
RAK Free Trade Zone Authority was established in 2000 and today it is home to around 8700 companies from over 100 countries. This free zone represents around 50 different industries.
Business setup in RAK freezone: Investment Sectors
- Industrial sector
Since RAK does not have a primarily oil-based economy; it has diversified its industrial sectors to other areas. The industrial sector is one of the key pillars of sustainable growth. With upcoming numerous small and medium-sized industries cropping up, the quantity of imports has greatly reduced. A solid infrastructure system not only helps in diverting national income, adds further value to national infrastructure but also caters to societal needs in terms of intra-national products.
- Trade sector
Trade sector is also booming, with bilateral and multilateral trades happening between many developed nations of the world.
- Construction sector
World class real estate and state of the art urban planning projects are commonplace in Ras Al-Khaimah. The government wants to be future-oriented and progressive in terms of infrastructure and wants to strive for architectural excellence.T hus the construction sector remains a key sector.
- Banking and investment sector
Several financial institutions, money lending organizations and banks function in this sector. Whether it is managing somebody else’s assets through investment portfolios, granting loans or exchanging currencies – there is definitely a market. Within this sector, insurance and reinsurance are also forthcoming. Saving funds, housing investments, and securities market are also viable options for investors planning to set up base in Ras Al-Khaimah for business.
- Tourism sector
Though a large number of tourists prefer visiting the neighboring Dubai and also Abu Dhabi, Ras Al-Khaimah tourism is a budding contender for the country’s tourism.
- Agri/cultivation sector
Each nation has to be self-sufficient in terms of food products and this is applicable at least to the staple diet of the nation. Agricultural produce leads to community welfare and prosperity. Agri is an area of opportunity for a company set up in RAK freezone
- Service sector
Of all the above-mentioned sectors, the service sector is the fastest growing field with telecommunications being a forerunner in the service industry. The service sector is said to be a pivotal sector of the dynamic Ras Al-Khaimah economy by the government.
Foreign investors can invest in any of the investment sectors but with an upper limit of no more than 49%. This does put a limitation on business owners as they would want to utilize the benefit of 100% business ownership in the country. But investors need not worry, as they can own up to 100% business RAK free zone.
- Information technology
- Technical work services
- Consultancy services
- Sport and allied services
- Development and exploitation of natural resource-oil, energy, and mining
- Cultural services
Foreigners can also buy properties in certain areas of the state which is an added advantage.
Why Ras Al-Khaimah for your business?
Here is a list of benefits that Ras Al-Khaimah offers in terms of business facilitation to help your business flourish
- Low utility charges: electricity, water and gas consumption charges
- 0% tax on imports
- 0% income tax on individuals
- 0% tax on import of heavy equipment, spare parts, heavy machinery, and raw materials
- No quantitative quota on imports
- Easy lease process at nominal prices for lands allocated for industrial purposes
- No restriction on currency exchange and overseas profit transfer
- Flexible laws on immigration and residence for skilled and unskilled labor
- Easy resident permits for investors and family members
- The simplified company incorporation process
So what are the kinds of companies that can exist in Ras Al-Khaimah within the legal structure of business?
- Free zone limited liability establishment(FZE)- Corporate entity
- Free zone company(FZC)- the Individual and corporate entity
- FZE/FZC- Individual person
- Branch of a foreign company
- Branch of a UAE company
Based on the business activity that you have decided to pursue, the following are the available license types:
- Industrial: This license allows you to import raw material, manufacture, process, finish, package and export goods.
- Commercial: This is applicable in case your business activity involves imports, export, distribution or warehousing of goods
- Educational: Applicable to any kind of learning or training institution.
- Consultancy/Services: This is applicable in case you want to conduct services or consultancy for any industry
Speak to Commitbiz business consultants who ace business setup in Ras Al-Khaimah free zone and the surrounding Middle Eastern region to guide you on a choice of company type.
4 easy step process for applying for foreign investment application (higher than 49% to 100%)
- Step 1
Fill up investment license application
- Step 2
Attach all required mandatory and non-mandatory documents with the application
- Step 3
Submission of application and documents to customer service- registration and commercial licenses department
- Step 4
Study of documents by concerned authority in business development and investment promotion department.
The list of mandatory and non-mandatory documents is lengthy and varies from business activity type and company type.
For a detailed list of documentation, get in touch with international business consultants Commitbiz who will guide you through the documentation and licensing procedure.
RAK free zone parks:
Within the Ras al-Khaimah free zone, there are located four business parks to support your activity type
- Business park: For corporate and business offices
- Academic zone: Educational institutes
- Technology park: For trading and manufacturing
- Industrial park: For heavy manufacturing
Ras Al-Khaimah can be your next destination for business expansion; Ras Al-Khaimah can also be a testing ground of your dream business venture.
If you would like to know how to tread in this direction, then write to us at firstname.lastname@example.org and we’d glad to help you.