The UAE is known as a cluster of seven Emirates which have been performing exceptionally well to establish the nation as a business ground. The nation has spread its arms to all possible business ideas that one can ever think of. If you have a mindset that UAE is a tech hub and deals with only tech businesses, then you are not aware of the possibilities that Dubai holds. Ras-Al-Khaimah, the northernmost Emirate, located in the UAE region, is a ground for ceramic industries. Adding on to its horizon, the Emirate has also extended its arm toward the waste management business. This guide will provide you with a complete picture of what waste management is all about and how you can initiate an RAK company formation.
Back to topWhat is Waste Management Business?
The concept of waste management deals with the activities and actions that are required to manage waste, backed by the idea to figure out ways for re-usage. For a better understanding, refer to the Waste Management Cycle depicted below:
Waste Management Industry in RAK
The RAK Waste Management Authority takes multiple initiatives to innovate new ideas on waste management. The region focuses on the 5Rs of Waste Management, which highlights: Refuse, Reduce, Reuse, Recycle and Rot. According to recent news, the Emirate has set its foot to open the biggest waste management factory by Jan 2019, intending to reduce the nation’s waste by 75 percent by 2021. Some of the sources of waste production are listed below:
Waste Source | Generated in | Types of Waste |
|---|---|---|
Residential | Single and Multiple Dwellings | Food waste, textiles, papers, cardboard, yard waste, glass, metals, plastics, ashes, oil, batteries, e-wastes (laptops, phones) etc. |
Industrial | Light and heavy metal manufacturing, Fabrication, Power and Chemical Plants | Housekeeping wastes, packaging, food wastes, hazardous waste, ashes etc. |
Commercial | Stores, Hotels, Restaurants, Markets, Office, Buildings | Paper, cardboard, plastics, wood, glass, metals etc. |
Institutional | Schools, Hospitals, Govt. Buildings, Airports | Same as Commercial Waste |
Construction and Demolition | New construction sites, road repair, renovation sites, demolition of buildings | Wood, steel, concrete, dirt, bricks etc. |
Municipal Services | Street cleaning, landscapes, parks, waste-water treatment plans, other recreational areas | Street sweeping, land and tree trimmings, general waste from parks, beaches etc. |
Process | Heavy and light manufacturing, refineries, chemical plants, extraction and processing | Industrial process wastes, scrap materials, off-specification products etc. |
Medical | Hospitals, nursing homes, clinics | Infectious waste, Hazardous waste, Radioactive waste etc. |
Agricultural | Crops, orchards, vineyards, dairies, farms | Spoiled food wastes, agricultural, hazardous waste etc. |
As the first step in 2019, the RAK Education Zone plans to implement a school recycling program in 82 schools, which will help the youth to understand the importance of the subject. The Government is looking out for investors and businessman who wants to come forward and set up a business in the same domain.
How to Start a Waste Management Business in RAK?
If you wish to enter the waste management sector and start a business in RAK, then you need to follow the below mentioned steps:
1. Determine the Business Activity
The first step is to determine the business activity that you will be dealing with. When it comes to waste management bracket, multiple options are available for the investors, which include recycling, repackaging, etc. It would help if you are sure regarding the activities that will be carried out in the organization.
2. Choose a Preferred Location
The second step is to select a strategic location that will help your business to get a physical identity. The region of RAK provides multiple location options like the RAK Mainland, Free zone and Offshore, which will allow the investors to select the best according to the business needs.
3. Select the Business Entity Type
In the third step, you need to determine the business structure that will entirely depend on the number of shareholders you have who is seeking forward to invest. RAK offers a wide range of business structure options ranging from Sole Proprietorship to Limited Liability Partnership (LLP), Limited Liability Company (LLC), Joint-Venture etc. Depending on the availability of capital and number of investors, select the appropriate option.
4. Get a Trade Name Registered
Once you have ended up deciding the legal structure, you need to fix a name for your organization. While doing so, you need to make sure that the name should be unique and should not be a copied version of any company. Moreover, the name should not be offensive.
5. Obtain the Respective Approvals
The next process is to obtain the respective approvals from the Government authorities regarding the name approval. Violating the set standards might lead to cancellation of the approval.
6. Obtain the Business License
If you end up doing business like manufacturing or even trading, then you will require a manufacturing license or trading license depending upon the business activity carried out. The trade license will act as a legal permit that will allow you to carry out business operations legally. Without obtaining a permit, you will not be able to carry out the operations. Any forgery done in the process will reflect into permanent cancellation of the license.
7. Avail Post-Establishment Service
Once you are done with the company incorporation, the next step is to do an internal setup. To start with that you need to implement various services like accounting, taxation, VAT, and audit which will keep accountability of your work and will increase the business goodwill on the later part. Now, let’s have a look at the benefits.
Benefits of Setting up a Waste Management Business in RAK
By starting a business in the waste management business in RAK, an investor will be able to gain the following benefits:
- 100 percent Repatriation of capital invested and profits earned.
- 100 percent Foreign ownership.
- Exemption from all the import and export taxes.
- Exemption of corporate taxes for a period of 15 years.
- No minimum capital is required.
- Corporate tax.
In the end, we can say that the waste management business turns out to be a growing platform. Innovative methods have been built continuously to turn waste into productive materials to promote re-usage. Additionally, the Government is keen to invite more investors to invest in this domain. Starting a business in this domain thus turns out to be professional, but maintaining all the chores in-house turns out to be a burden. To ease the establishment process, business owners and investors get in touch with business consultants who can help them legally to carry out the business proceedings.
Commitbiz LLC is here to stand by your side and be your guide. Our business experts will help you to carry out the process in a hassle-free way by understanding the business proceedings and providing tailored solutions, that makes us as one of the top business consultants in the UAE. To have a word with our experts, do contact us we will be glad to assist.
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