Ras Al Khaimah Investment Authority Free Zone (RAKIA)

Ras Al Khaimah (RAK) has gained a lot of popularity as an attractive commercial hub due to its robust economy and streamlined business registration process. The government established the Ras Al Khaimah Investment Authority (RAKIA) free zone to create an encouraging business environment. Given the slew of benefits offered to entrepreneurs, RAKIA is the ideal destination for setting up a business.

It needs to be mentioned here that the RAKIA free zone was merged into the Ras Al Khaimah Economic Zone (RAKEZ) in April 2017.

The article provides all the necessary information about the RAKIA free zone, helping you identify whether it is the right freezone for setting up your business. 

Benefits of Starting a  Business in RAKIA Free Zone

Some of the benefits you can access for setting up a business in the free zone are:

• Efficient Business Setup Process

Company formation in RAK is straightforward. With excellent infrastructure, support from regulatory bodies, and low setup costs, the authorities make business setup in the RAKIA free zone efficient.

• Double Taxation Avoidance Agreement (DTAA)

UAE’s Ministry of Finance has signed over 140 DTAAs. Given this, you can avoid getting taxed by both home and foreign countries during international trade.

• Numerous Business Opportunities

The Ras Al Khaimah Investment Authority free zone offers numerous business opportunities to entrepreneurs. The friendly business environment promotes prospects in sectors such as manufacturing, trading, and healthcare, among others.

• Complete Autonomy

Foreign investors can have full ownership for businesses setup in RAKIA free zone. There is no need for a local agent to hold 51 percent of company shares, allowing you to have complete control over capital and profits.

Facilities Available for Business Setup in RAKIA

Some of the facilities offered in RAKIA free zone for establishing a business are:

1. Industrial Land

RAK Investment Authority free zone offers land on long-term lease for industrial ventures in Al Hamra and Al Ghail.

2. Warehouses

Modern warehouse facilities are offered to companies engaged in trading, assembling, packaging, and light manufacturing activities in the RAKIA free zone. 

3. Offices

Different types of office spaces are available to meet the specific needs of businesses. You can choose between an executive and standard office as well as flexi desks based on your needs. 

Types of Company Setup in RAKIA Free Zone

Let us look at the common business entities in Ras Al Khaimah Investment Authority free zone:

1. Free Zone Establishment (FZE)

This type of business structure is suitable for a single member, who can be an individual or a corporate body. 

2. Free Zone Company (FZC)

An FZC accommodates multiple shareholders. A free zone company can have a minimum of 2 and a maximum of 5 shareholders.

3. Limited Liability Company (LLC)

In this type of business structure, the members of the company cannot be held personally liable for the company’s debts or liabilities.

Licenses to Avail for Business Setup in RAKIA free zone

Availing the relevant business license allows you to conduct business operations legally within RAKIA free zone. Listed below are some of the popular licenses opted for by entrepreneurs in the free zone:

• Commercial License

If you want to start a company that engages in import-export business, warehouses,  and other logistical activities, you must obtain this license.

• Industrial License

Having an industrial license authorises you to import raw materials and manufacture process, package, and export finished products.

• Consultancy Services

If you want to utilise your knowledge and expertise to conduct professional services or consultancies in RAKIA free zone, you need this license. 

• Media License

This licence permits you to participate in media-related endeavours like starting an advertising or agency.

Documents Required to Incorporate a Company in RAKIA

The documents which must be submitted to the RAK Investment Authority to set up a business and avail the relevant business licenses are:

• Copy of business plan
• Copy of board resolution
• Power of attorney
• Certificate of registration
• Passport copies of shareholders
• Notarised Memorandum of Association (MoA) and Articles of Association (AoA)
• Academic or professional certificates if you are offering professional services.

How to Avail a License in the RAKIA Free Zone?

Obtaining a relevant trade license in RAKIA free zone is straightforward if you follow the steps mentioned below:

• Select Company Structure

As mentioned earlier, you can choose from three types of business entities in RAKIA. Choose the appropriate structure that aligns with the business objectives and goals.

• Trade Name Certificate

Choose a trade name that is unique and does not violate any existing trademarks. Once done, check whether the chosen name is already registered on the RAKIA official portal and obtain the trade name certificate.

• Pay the Fees

You must pay the required fees before submitting the documents to the authorities. The RAK authorities will give you an invoice along with the license application form. 

• Complete Application and Documentation Process 

Once the payment is done, you can continue with the application process and submit the required documents to the authorities. Post verification by the RAK Investment Authority you shall receive approval to legally commence business operations in the Ras Al Khaimah free zone.

Why Commitbiz?

Commitbiz LLC not only provides clarity regarding company formation in RAKIA free zone but also provides comprehensive services to turn your business dream into reality. Our business setup professionals will understand the requirements and provide personalised services at competitive rates. Contact us to learn more about our services!