Ras Al Khaimah provides a growing business environment and has an easy process for securing a trade license. Anyone involved in business, whether a tycoon or a budding entrepreneur, requires an RAK trade license. This license is required for businesses to operate legally in the Emirates.
Let’s understand the details of the trade license in Ras Al Khaimah - types of licenses, application process and documentation.
Types of Business Licenses in Ras Al Khaimah
RAK offers entrepreneurs various business licenses. Read about the license options available for your business setup in Ras Al Khaimah.
NOTE - A maximum of ten activities can come under one license.
- Media License
- Trading License
- Industrial License
- Commercial License
- General Trading License
- Consulting/ Service License
Documents Required for a Trade License in RAK
The applicant needs to submit the following documents to the RAK Department of Economic Development to get a trade license. Check the list below -
- Application form
- Passport Copies
- Tenancy Contract
- Proof of Ownership
- Family Book Copies
- No Objection Certificate
- Certificate of Trade Name
- Permissions from Government Authorities
- Lease Contract Verified by the Notary Public
- Copies of National ID (applicable only to UAE nationals)
How to Apply for an RAK Trade License?
The steps to apply for the RAK trade license that the applicant needs to obey are as follows -
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Pick a Business Activity
The first step to securing a trade license is to pick a business activity. RAK has various licenses for different business activities. Pick among the commercial, industrial, and professional licenses.
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Identify a Trade Name
Identify a trade name that fits your business operations. The name must follow the RAK naming regulations. The applicant must get the name approved by the authorities.
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Select Business Structure
RAK provides entrepreneurs with various business structures. Select a structure that suits your business best. The types of business structures in RAK are -
- Limited Liability Company (LLC) (Popular choice)
- Sole Proprietorship
- Partnership, etc.
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Submit the Documents
File the documents and submit them to the authorities to obtain the trade license application. Submit the above to the Department of Economic Development in RAK. The documents can be submitted either in person or online.
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Pay the Required Amount
To process the trade application, the applicant will have to pay the authorities a certain amount as fees for processing and issuing the license.
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Acquire Approvals from the Authority
Once the authorities review the application, the issuance process will start. This process can take anywhere from a few days to a few weeks. Once completed, the DED will issue your trade license, allowing you to conduct business in RAK.
Ras Al Khaimah License Renewal
A Ras Al Khaimah trade license is valid for one year from the day of issuance. Follow the steps below for a RAK license renewal -
- The Ejari must confirm that the applicant has a lease valid for a minimum of one month.
- Submit the documents and apply for the Ras Al Khaimah license renewal at the Department of Economic Development. The documents are -
- BR/1 Form
- Copy of Tenancy contact
- Copy of Ejari Registration
- Copy of Present Trade License
- Copy of Passport of all shareholders
- The last step is to pay the necessary fees to the DED to secure the renewed trade license.
End Note
The RAK trade license is an essential part of opening your company in the emirate. The process is easy and can yet seem time-consuming. Take the help of business professionals from Commitbiz to assist you in this process.
What types of trade licenses are available in Ras Al Khaimah, and how do I choose the right one for my business?
Ras Al Khaimah offers various types of trade licenses, including commercial, industrial, and professional licenses. The type of license you need depends on the nature of your business activities. Commercial licenses are for trading activities, industrial licenses are for manufacturing or industrial activities, and professional licenses are for service-oriented businesses.
Who needs to obtain a trade license in Ras Al Khaimah?
Any individual or entity wishing to engage in commercial activities, including trading, manufacturing, services, or any other business operation, within Ras Al Khaimah must obtain a trade license. This requirement applies to both local and foreign businesses operating in the emirate.
What are the benefits of obtaining a trade license in RAK?
RAK offers several advantages for businesses, including:
- 100% foreign ownership: Allows full control and repatriation of profits for foreign investors.
- Competitive tax regime: Low corporate tax rates and various exemptions.
- Ease of doing business: Streamlined processes and efficient government services.
- Strategic location: Provides access to growing regional markets.