BUSINESS SETUP IN UAE FREE ZONES

RAKEZ - Ras Al Khaimah Economic Zone (ex. RAK FTZ)

RAKEZ Overview

RAKEZ stands for Ras Al Khaimah Economic Zone, which was found after consolidation of 2 Free Zones – Rak Free Zoneand RAK Investment Authority, which made the Zone really huge.

It is one of the most popular Free Zones for business setup in UAE – even people who have not heard much of UAE Free Zones, know about it and are interested in business setup in Ras Al Khaimah. It is located not far from RAK airport and has a sea port in close proximity.

Free zone offices and warehouses

Ras Al Khamiah company formation would be a good option for any business, but it’s specifically suitable for companies that need warehousing facilities.

RAKEZ is one of the few Free Zones which always has customizable warehouses and plots of industrial land for development. You can also build or rent ready-made staff and labor accommodations. They all the benefits that Jebel Ali company setup offers, but suit much smaller budgets.

Ras Al Khaimah Economic Zone Authority has offices in RAK and Abu Dhabi. You can opt for a flexi-desk or a smart office in any of these Emirates. Abu Dhabi will cost about 2,000 AED higher. 

Ras Al Khaimah economic zone activities

Ras Al Khaimah business license can be obtained for a huge variety of business activities and you can be sure that you will find what you need.

Activity list of RAKEZ is one of the largest among all the UAE free zones. Activities are divided into a few categories:

  • Commercial
  • Service
  • Industrial
  • Media
  • Educational
  • Individual / professional E-commerce

Some activities require a company manager to have a relevant educational degree, which should be proved by a certificate attested in UAe Embassy in the country of origin. Usually such activities are related to a professional service which needs certain qualifications, for example:

  • Accounting and bookkeeping
  • Architectural design and consultancy
  • Aviation consultancy
  • Communication engineering consultancy and many more.

RAKEZ has enforced substance requirements and many activities now fall under it. They will need to be registered under special conditions, such as:

Dedicated office space or a warehouse Submission of a business plan Having a company manager on the company resident visa

License costs

Ras Al Khaimah Free Trade Zone Authority often runs promotions and discount campaigns. The prices are reasonably starting from roughly 8,000 AED for a zero visa media company.

RAKEZ also has a special product for women called Women in Power with prices 40% less than usual. If you are a woman, you can pick any package and any activity and simply pay less!

Apart from that, if you want to save money in the long run you can register a 3-year package. The discount in this case will be 25%. On top of that, all resident visas under the company will be free of charge.

RAKEZ cheapest license fees:

Type of licenceCost, AED
Zero visas trading package11,440
1 visa individual professional package13,468
1 visa trading/service package15,868

Free zone company setup

Business setup in Ras Al Khaimah can be done within about a week. Your personal visit will be required, but you don’t have to go all the way to Ras Al Khaimah - you can visit a representative office of the zone in Dubai. 

RAKEZ also has international offices in India, Turkey and Germany, where your application can be filed.

Today it is home for over 13 000 companies already. Interestingly, RAKEZ offers registration of both Free Zone and non Free Zone entities in Ras Al Khaimah.

Ras Al Khaimah company register is not open to the public and kept confidential.

In case your setup has been rejected by any major force reason after you made the payment to the free zone, you will be granted a 100% refund.

Resident visas

Packages start with zero visas and go up to 4 visas in case you rent a ready-made executive office. Of course, if you rent a warehouse, for example, your company will be eligible for more visas since you’ll need to hire more staff.

RAKEZ visa costs in AED

 RAKEZ feeMedical checkupEmirates ID
Investor3950637370
Employee2400 + 2000 deposit637270

Health insurance is not mandatory for RAKEZ companies owners, but it will be required for the dependants in case you open visas for your family members. 

Renewal

Ras Al Khaimah business license renewal costs 1,000 AED less than the incorporation. Renewal can be done without personal presence of the shareholder.

RAKEZ required financial audit of the companies. You need to submit it at the end of your financial year, which would be December by default or another month of your choice.

Amendments

The company can be amended at any time. Most frequently happening amendments include the following changes:

  • Shareholders/managers
  • Company name
  • Business activity
  • Office facility

Personal presence of the shareholder or manager is required for the application for the amendments.

Business liquidation

Ras Al Khaimah free trade zone company liquidation takes about 3-4 weeks. Make sure to cancel all the visas under the company before you apply for its liquidation.

The government cost of company closure is 3,500 AED.

Opinion

Overall, we usually recommend RAKEZ to those who are looking to open an industrial, manufacturing or assembling business due to its ready-made facilities.

Apart from that, if you want to have a physical office and don’t require a location near Dubai, RAKEZ would be a perfect choice as well.

If you are residing in Abu Dhabi and want to have an office facility with a reasonable price there, RAKEZ is also a free zone of your choice.

If you want to check other options, have a look at SHAMS company formation as a possible alternative.

BENEFITS OF RAKEZ COMPANY

  • High chances to get 1 resident visa package for "high risk nationalities" (Bangladesh, Lebanon, Egypt and others)
  • Reasonable price of executive offices with location in RAK and flexi-desks in Abu Dhabi
  • No E-channel Deposit for packages with flexi facility
  • Large variety of business activities
  • Readily available warehouses of any sizes
  • Own sea port within RAKEZ Free Zone
  • RAKEZ company can hold real estate property in Dubai

START YOUR BUSINESS IN RAKEZ TODAY

COMMERCIAL AND SERVICE LICENSE COSTS IN RAKEZ FREE ZONE

UP TO 4 VISAS COMPANY - TRADING

LICENSE TYPE VISAS INCLUDED TOTAL COST
Trading license - Flexi Desk no visa AED 17,840 $4,900 download breakdown
Trading license - Flexi Desk 1 visa AED 30,530 $8,400 download breakdown
Trading license - Flexi Desk 2 visas AED 38,671 $10,600 download breakdown
Trading license - Flexi Desk 3 visas AED 47,566 $13,050 download breakdown
Trading license - Flexi Desk 4 visas AED 53,627 $14,700 download breakdown

UP TO 4 VISAS COMPANY - SERVICE

LICENSE TYPE VISAS INCLUDED TOTAL COST
Service license - Flexi Desk no visa AED 17,840 $4,900 download breakdown
Service license - Flexi Desk 1 visa AED 30,530 $8,400 download breakdown
Service license - Flexi Desk 2 visas AED 38,671 $10,600 download breakdown
Service license - Flexi Desk 3 visas AED 47,566 $13,050 download breakdown
Service license - Flexi Desk 4 visas AED 53,627 $14,700 download breakdown

GENERAL TRADING LICENSE COSTS IN RAKEZ FREE ZONE

UP TO 4 VISAS COMPANY

LICENSE TYPE VISAS INCLUDED TOTAL COST
General Trading - Flexi Desk no visa AED 32,148 $8,850 download breakdown
General Trading - Flexi Desk 1 visa AED 40,410 $11,100 download breakdown
General Trading - Flexi Desk 2 visas AED 46,897 $12,850 download breakdown
General Trading - Flexi Desk 3 visas AED 52,533 $14,400 download breakdown
General Trading - Flexi Desk 4 visas AED 58,594 $16,100 download breakdown

E-COMMERCE LICENSE COSTS IN RAKEZ FREE ZONE

UP TO 4 VISAS COMPANY

LICENSE TYPE VISAS INCLUDED TOTAL COST
E-commerce - Flexi Desk no visa AED 21,840 $6,000 download breakdown
E-commerce - Flexi Desk 1 visa AED 34,530 $9,500 download breakdown
E-commerce - Flexi Desk 2 visas AED 42,772 $14,450 download breakdown
E-commerce - Flexi Desk 3 visas AED 51,566 $14,150 download breakdown
E-commerce + Flexi desk 4 visas AED 57,627 $15,800 download breakdown

WOMEN IN POWER COMMERCIAL AND SERVICE LICENSE COSTS

1 YEAR LICENCE

LICENSE TYPE VISAS INCLUDED TOTAL COST
License Women in power - Service. Trading no visa AED 14,980 $4,150 download breakdown
License Women in power - Service. Trading 1 visa AED 26,563 $7,300 download breakdown
License Women in power - Service. Trading 2 visas AED 34,184 $9,400 download breakdown
License Women in power - Service. Trading 3 visas AED 41,895 $11,500 download breakdown
License Women in power - Service. Trading 4 visas AED 47,957 $13,150 download breakdown

3 YEARS Licence with 40% discount and free investor visa options

LICENSE TYPE VISAS INCLUDED TOTAL COST
License Women in power - Service. Trading 1 visa AED 45,172 $12,400 download breakdown
License Women in power - Service. Trading 2 visas AED 55,914 $15,350 download breakdown
License Women in power - Service. Trading 3 visas AED 66,925 $18,350 download breakdown
License Women in power - Service. Trading 4 visas AED 72,987 $20,000 download breakdown

DOCUMENTS FOR RAS AL KHAIMAH ECONOMIC ZONE SETUP

DOCUMENTS

PROCEDURE

INDIVIDUAL SHAREHOLDER

  • - Passport
  • - Latest utility bill as address proof
  • - Passport size photo
  • - NOC from sponsor for UAE visa holders
  • 1 week- Security approval
  • 1 time- Visit RAKEZ for document signing
  • 3 days- Company establishing
  • 1 week- Establishment card
  • 1 week- Entry permit
  • 1 day- Medical Check-Up and Emirates ID
  • 3 days- Visa stamping

Top 10 questions about RAK Economic Zone company

  • If l register a company in a free zone outside of Dubai, can l live and have a bank account in Dubai?

    Yes, you can have a company registered outside Dubai, but reside in Dubai or any other Emirate. You do not have to live in the same Emirate where your visa belongs to. You can also have a bank account in a Dubai branch of any UAE bank of your choice.

  • Can I open a bank account remotely?

    No, you have to visit UAE personally. It is a requirement of a UAE Central bank which all local banks have to follow. Personal visit is required to make sure that the client is known by the bank.

  • Do banks give debit and credit cards or loans?

    Normally you can get a debit card for your newly opened company if there is only one shareholder. You can also have a credit card, but it will be given against a fixed deposit. As for the loan, it is possible to get it, but you need to show company operations and profits to the bank. Upon checking your company's turnovers and profits, a bank may approve a loan. We recommend applying for it at least after one year of company's operations.

  • Can a free zone company hold its offices outside the free zone?

    Officially an office of a free zone company has to be located only within the free zone where this company was registered. If you need an office in Dubai, you have an option to rent a space in a Business center and use it either a few times per month or daily, depending on the package that you choose. However, the free zone minimum required space (flexi desk) cannot be cancelled.

  • Why do I need a flexi desk or office?

    A flexi desk is an obligatory requirement for any company eligible for resident visas. UAE government obliges to have it because it's the minimum physical office space, that a company who has any individual under its visa must have. Apart from that, flexi desk is helpful for bank account opening. The compliance department of the banks needs to see that a company has some kind of office or at least a small physical seat, where it can be working from.

  • Do we have to pay VAT if our company is registered in the Free Zone?

    VAT obligations of the company depend not only on the place of its registration, but on the place where its business takes place. To start with, VAT comes into picture once your taxable turnover reaches 375 000 AED. Taxable turnover means the turnover which was done in the UAE. If your company is registered in a Free Zone, but the trading takes place abroad (for example you sell goods from India to Africa), that turnover is not considered taxable, because the transactions are taking place out of UAE. It means that you do not have to pay VAT. But if you have a free zone company and import goods to UAE, you have to add 5% VAT to your Invoices and pay VAT. If your company is registered in a designated free and sells the goods to another designated free zone or within the same zone, VAT does not appear.

  • Should I pay any other TAX?

    UAE is free from income tax and corporate tax. It has only imported tax 5% for the goods that you bring into the country and VAT 5% for the trading or service transactions that happened in UAE.

  • Why will a free zone company suit me better than an offshore or a mainland entity?

    Everything depends on your business model and requirements, but a free zone setup is the most suitable for the majority of the business needs. Free Zone company has 100% foreign ownership unlike mainland where you need a local partner or agent, it can be eligible for resident visas, allows doing business both in and out of UAE, more favorable by the banks in comparison to offshore companies, can have a flexi desk space instead of an executive office like in mainland companies. Free Zone is a good way to start a business for reasonable fees and without unwanted obligations.

  • Can you guarantee opening of a bank account?

    We do our best when we setup your company in such a way that would make account opening easier for you. Knowing your background and your business model, we can give you our estimation about the chances of successful account opening. The approval of the account fully depends on the bank. Each case goes to a few departments of the bank where it has to be approved before the account gets opened. If the bank has any questions or needs clarifications, it will contact you directly with the inquiries. The more clear picture about your business you give to the bank, the higher your chances of account opening are. Being a consultancy company, we cannot guarantee opening of a bank account, because it depends on the factors which do not depend on us. However, we do our best to prepare you and your company for smooth and fast account opening.

  • Should I renew my company? When? How much does it cost?

    Yes, the company should be renewed annually. The cost of the renewal is usually less than the setup cost. It depends on your company package. You can get the price by downloading the Estimate from this page. Renewal does not require personal presence of the owner and can be done by your agent. After company renewal, the new license has to be shown to the bank in order to extend the bank account. It is always included into our renewal service.

GET FREE ADVISE

  • SEND US
    your contact details

  • WE CONTACT YOU WITHIN 3 HOURS
    to arrange a consultation – personal or remote (by Skype or phone)

  • 30 mins
    FREE CONSULTATION

  • BEST SOLUTION
    in your hands

HOW CAN WE CONTACT YOU?

Whatsapp