RAKEZ — Ras Al Khaimah Economic Zone

RAKEZ offers a cost-effective and efficient platform for business setup, featuring competitive licensing packages, streamlined registration processes, and quick approvals. Entrepreneurs benefit from 100% foreign ownership, zero personal taxes, and full profit repatriation. The zone's strategic location, diverse business activities, and access to world-class facilities make it an ideal choice for startups and established companies alike.

Basically no, as a personal visit to the UAE is required as per the regulations of the UAE Central Bank. Local banks require this visit to verify the client's identity. However, some banks allow remote account opening through their digital bank applications or website.

In most cases, you can obtain a debit card for your newly opened company, especially if there is only one shareholder. However, a credit card is usually issued against a fixed deposit. As for loans, banks may consider your eligibility based on your company's operations and profits. It is recommended to apply for a loan after at least one year of company operations.

Officially, the office of a free zone company should be located within the free zone where it is registered. However, if you need an office in Dubai, you have the option to rent space in a Business Center and use it on a flexible basis. It is important to note that the minimum required space (flexi desk) in the free zone cannot be canceled.

A flexi desk is a mandatory requirement for any company eligible for resident visas. It serves as the minimum physical office space that a company with individuals under its visa must have. Additionally, a flexi desk can facilitate bank account opening as banks require evidence of a company having some form of office or physical presence.

VAT obligations depend not only on the place of registration but also on where the business activities take place. VAT becomes applicable when the taxable turnover reaches AED 375,000. If a free zone company's trading activities take place abroad, the turnover is not considered taxable as long as the goods or services are supplied outside the UAE. However, if the goods or services are supplied to customers within the UAE, the 5% VAT will be applicable.

The UAE is free from personal income tax. However, there is a 5% import tax on goods brought into the country and a 5% VAT on trading or service transactions that occur within the UAE.On June 1, 2023, the UAE introduced 9% corporate tax, however, the UAE freezone companies that meet certain requirements as outlined by the Federal Tax Authority will be able to benefit from tax reliefs and possibly file the 0% corporate tax.

The suitability of a free zone company versus an offshore or mainland entity depends on your business model and requirements. However, a free zone setup offers advantages such as 100% foreign ownership, eligibility for resident visas, the ability to conduct business both within and outside the UAE, and greater favorability with banks compared to offshore companies. Additionally, free zones often offer a flexi desk option instead of executive offices, making it a cost-effective way to start a business without unnecessary obligations.

While we strive to make the account opening process as smooth as possible, we cannot guarantee the approval as it ultimately depends on the bank. Each case goes through several bank departments for approval, and the bank may contact you directly for clarifications. Providing a clear picture of your business to the bank increases the chances of successful account opening. We do our best to prepare you and your company for a smooth and fast account opening process.

Your company should be renewed annually, and the cost is typically lower than the initial setup cost. The renewal fees depend on your company package, and you can obtain the price by downloading the Estimate from our website. Company renewal does not require the personal presence of the owner and can be done by your agent. After renewal, the new license must be presented to the bank to extend the bank account, which is included in our renewal service.

You have multiple options for fee payment. You can make payments via bank transfer, cash, or online using a card.

When applying for accounts with top-tier banks, your business needs to present a comprehensive profile. This starts with a clear and legitimate business plan that outlines your operations and objectives, including your digital presence (website) and documented links to existing business activities outside the UAE if applicable. The bank will expect to see a transparent company ownership structure along with complete documentation and proper licenses. While minimum deposit requirements vary by institution, banks generally favour clients who maintain substantial deposits or have investment relationships with them. Physical presence requirements can range from flexi desk facilities to formal office tenancy contracts for an actual office space, this depends on the bank's policies. Banks will also review the banking history of the shareholders from UAE or international banks, along with examining your expected transaction patterns and business activities. We strive to leverage our established relationships and experience with various banks to maximize the likelihood of successful account openings for our clients.

The UAE has a robust banking sector with both prestigious local and international institutions. Among the major local banks, you'll find Emirates NBD, Abu Dhabi Commercial Bank, and First Abu Dhabi Bank. International banking giants such as HSBC, Citibank, and Standard Chartered Bank also maintain a strong presence in the UAE. Each bank has its own specific eligibility criteria and services which it provides. We strive to leverage our established relationships and experience with various banks to maximize the likelihood of successful account openings for our clients.

Yes, we have extensive experience working with major banks in the UAE, including both local and international institutions like Citibank, HSBC, and Standard Chartered Bank. Our team has developed strong working relationships with these banks over the years, giving us valuable insights into their requirements and processes. This experience allows us to better guide our clients through the account opening procedures and help prepare the necessary documentation according to each bank's specific requirements.

While banking services might appear similar across free zones, it's important to understand that banks often have preferences for certain free zones they consider more prestigious or are more familiar with. This familiarity and reputation can positively influence your banking applications. Beyond banking considerations, your choice of free zone should take into account your industry-specific requirements, location advantages, business activity permissions, and visa allocation quotas. The infrastructure, facilities, and future scalability options also play crucial roles in this decision. Additionally, market perception and prestige can impact your business relationships and growth opportunities. Therefore, while cost is an important factor, selecting a free zone should be based on a comprehensive evaluation of all these elements to ensure it aligns with your long-term business strategy.