To develop an investment climate and promote Ras al-Khaimah’s economic sector, Ras Al Khaimah Investment Authority (RAKIA) Free Zone was founded in 2015. It is composed of 2 industrial parks for investors to choose from while setting up a business in the free zone. RAKIA free zone provides great support to its investors and ensures smooth and hassle-free business setup at a very low cost, thus helping companies to thrive in the region and beyond. Its vision to build a diverse economy that enjoys strong and sustainable growth by attracting foreign investment is what makes RAKIA one of the best free zones in the UAE. Also, given the strategic geographical location at the crossroads between the east and the west, excellent infrastructure, strong support from the government, and, not to forget, the unmatched natural beauty, it is no surprise that RAKIA has emerged as a destination of choice for investors and leisure travelers alike.
Types of Company Setup in RAKIA
1. Free Zone Establishment (FZE)
This type of business is allowed for just 1 shareholder. The owner can be an individual or an already established company in the UAE or abroad.
2. Free Zone Company (FZC)
This type of business accommodates multiple shareholders. A free zone company can have 2 to 5 shareholders.
3. Limited Liability Company (LLC)
In this type of business, the members of the company cannot be held personally liable for the company’s debts or liabilities.
4. Non-Free Zone Branch
Types of Licenses for Company Setup in RAKIA
- Industrial License
- Commercial License
- Trading License
- General Trading License
- Service/Consulting License
- Media License
How to Set Up a Business in RAKIA?
Before you begin, first decide on the type of business activity you want to conduct in RAKIA. Based on the same, you are required to get a license. The process to set up business in RAK free zone is not complicated and includes just a few steps. They are as follows:
1. Select Your License
Depending upon your business, you can have multiple licenses. As said earlier, to do so you need to decide the activity of your business. For example, if you want to start a manufacturing business, apply for a general trading license.
2. Select Your Legal Form
As mentioned above; there are 4 types of legal business entities in RAKIA. Each has its pros and cons, decide which one you are more inclined towards, and go with it.
3. Choose Your Place of Business
A condition of business registration is that you lease adequate premises for your business from RAK Investment Authority. The space you lease must be suitable for your business activities and scale of production. Like industrial activities, manufacturing businesses must have a warehouse, take permission from authorities before manufacturing the product, etc.
4. Get Your Trade Name Approved
To get your trade name approved, you have to first see whether the name you want is registered in the portal; if the name matches any of the businesses already operating in RAKIA then you have to choose another name. It is better to give a list of names to the RAKIA legal department, and they can finalize your trade name.
5. Complete the Application and Submit the Supporting Documents
To complete the application form, you have to submit the supporting documents. If the officials do not find any loophole in the documents, they are approved within a week.
6. Pay the Fee
There are fees for registering the trade name, getting the application form for the license and before submitting the documents. RAKIA will issue an invoice providing the details of the fees, and you’d have to pay the same at the RAKIA department counter.
7. Collect Your License
Once the formalities are completed, the authorities will issue the license allowing you to begin your business legally. You can further start with the immigration and labor card process too.
Documents Required to Set Up a Business in RAKIA
- Application form
- Business plan
- Your academic or professional qualifications
- Certificate of registration
- Notarized Memorandum of Association (MOA)
- Board resolution
- Power of attorney
- Passport copies of shareholders
- Passport copy of manager
Note that for companies based abroad, all the documents must be notarized by the Federal Ministry of Foreign Affairs and the UAE Embassy in the country of origin. For UAE nationals starting a company, notarization can be done at any authorized notary public where the respective documents were issued.
The estimated setup cost in Ras Al Khaimah free trade zone is not more than AED 38,000, which includes all the fees and registration costs. Also, the licenses and associated leases are renewable annually, the fee being around 35% lower than that charged at the time of registration.
Facilities for Business Setup in RAKIA
1. Industrial Land
RAK Investment Authority free zone provides land on long-term lease for industrial ventures in its 2 industrial parks in Al Hamra and Al Ghail in Ras Al Khaimah, the major advantages being international airport and sea-port located within an hour’s drive, and proximity to national highways for easy connectivity with other emirates and neighboring GCC countries.
For the benefit of companies engaged in trading, warehousing, assembling, packaging, and light manufacturing activities, RAK Investment Authority free zone offers warehouses in its free zone and non-free zone. It includes security, drainage and fire alarm system, car parking, and staff residency within industrial parks.
Offices in RAKIA are of the following types:
- Executive Offices: Executive offices are ideal for businesses with firm long-term plans for the region. Branch offices, manufacturing units and services entities with considerable staff strength can benefit from the finest office spaces at competitive rates. Offices in RAKIA are of various sizes (medium or large), depending on the needs of the client.
- Standard Offices: Standard offices are best suited for small businesses looking to start a venture in the region with a minimum capital investment.
- Cubical Offices: Cubical offices are unfurnished partitioned office spaces suitable for small companies, providing a more exclusive work environment.
- Flexi-Desk: RAKIA offers shared work stations for the benefit of start-ups or companies looking to test the market.
The facilities and advantages provided by RAKIA are enough for you to set up a business in this free zone. The authority enables investors to enjoy a simplified journey of success. So, if you are thinking of starting a business in RAKIA, we at Commitbiz not only offer the answer to your question of ‘how to start a business in RAKIA?’, but to also make it happen. Our staff will study your requirements and cater to your company formation needs. Even more, we provide services that can assist you in having your business grow further. Contact us today, even it’s just for a friendly advice.