Company Setup in RAKEZ | Push Digits Chartered Accountants

Company Setup in RAKEZ

Home - Company Setup in RAKEZ

Company Setup in RAKEZ (Ras Al Khaimah Economic Zone)

The Ras Al Khaimah Economic Zone (RAKEZ) is one of the largest and most lucrative Free Trade Zones (FTZ) in the UAE. It is home to over 14,500 businesses from all over the world. RAKEZ’s strategic location, superb support, and acceptance of a wide variety of businesses have made it a business hotspot. The Ras Al Khaimah free zone is known for offering flexible solutions to free-zone and non-free zone businesses. This, combined with its many other benefits, makes RAKEZ a great place for setting up your company.

RAKEZ is under the administration of the RAKEZ authority, the local authoritative body that regulates the rules and laws that businesses must follow while operating in this zone. This authority’s responsibilities include ensuring that RAK free zone companies and non-free zone companies have the best economic environment to conduct business in. This authority is the driving force that makes RAKEZ one of the best free zones in Ras Al Khaimah.

Overall, RAKEZ is an ideal place for setting up your business. The RAKEZ Authority makes sure that all companies in the area have the best environment for growing and accelerating their ventures. There are a handful conditions that companies must meet, such as, Ultimate Beneficial Owners Declaration, annual audit report by RAKEZ approved auditors etc. Push Digits Chartered Accountants can provide company setup services in RAKEZ, UBO Declaration, auditing services, and all other services.

Let’s take a detailed look at how RAKEZ works and how can you establish a company in this FTZ.

Types of Zones in RAKEZ

The RAKEZ free zone is divided into 6 different zones. Each zone is designed to cater to the different kinds of businesses. Having dedicated sectors for different business requirements allows the RAK freezone to cater to a variety of businesses without having to compromise on the quality of infrastructure and provided services.

Al Ghail Industrial Zone

This sector of RAKEZ caters to large scale industrial projects. It attracts investors and businesses that are involved in large-scale manufacturing work. Interested parties can establish free-zone and non-free-zone companies in this sector.

Key Benefits

  • RAKEZ’s Al Ghail zone is known as the industrial epicenter of RAK. It is in close proximity to Sharjah, Dubai, and the rest of the northern Emirates. It is also conveniently close to various ports in Ras Al Khaimah.
  • There’s ample land (starting from plots of 5000 square meters ) available for industrial companies that are involved in processing and manufacturing activities.
  • The entire zone has an uninterrupted supply of water, power, and gas. Utilities are managed by the government and are made available at all times.
  • On-site labor and staff accommodations are available for use.
  • Companies can also build their own accommodations by leasing land.
  • Communication services and utilities are readily available.
  • Investors and employees working in RAKEZ can apply for UAE residence visas as well.
  • There’s a huge variety of business license types that companies can choose from.

Al Hamra Industrial Zone

Investors wanting to setup heavy and light industries will find the Al Hamra Industrial Zone tailor-made for them.

Key Benefits

  • Located in the Industrial epicenter of RAK.
  • It is in close proximity to Sharjah, Dubai, and the rest of the northern Emirates. It is also conveniently close to various ports in Ras Al Khaimah as well.
  • Ideal for establishing free-zone/non-free-zone large scale industrial projects.
  • There’s plenty of land space that companies can use to develop processing and manufacturing facilities.
  • This zone has an uninterrupted supply of water, power, and gas. Utilities are managed by the government and are made available at all times.
  • On-site labor and staff accommodations are available for use. Companies also have the option to build their own accommodation facilities.
  • Communication services and utilities are readily available.
  • Warehouses ranging from 150 square meters to 10,000 square meters are available in this sector.
  • Private office facilities are available as well. Companies can find small and medium sized office areas.
  • Investors and employees working in RAKEZ can apply for UAE residency visas.
  • There’s a huge variety of business license types that companies can choose from.

RAKEZ Academic Zone

Educational institutions and academic service providers can enjoy various benefits by setting up in the RAKEZ Academic Zone.

Key Benefits

  • Institutions can provide educational programs in a cost-effective manner.
  • The entire zone is dedicated for parties that are involved in providing education.
  • Institutions can avail support from professional entities for managing and improving their operations.
  • Business setup processes are really simple.
  • Institutions can lease already operative buildings or construct their own facilities. Pre-built buildings are ideal for HEP (Startup Higher Education Providers).
  • Partners, owners, managers, students, and staff can all avail visas easily. HEPs can get student visas as well.
  • There are a variety of educational licenses that institutions can apply for.

Al Hulaila Industrial Zone

This sector caters to heavy industrial manufacturing businesses. This industrial sector only allows the formation of free-zone companies.

Key Benefits

  • Access to land for developing advanced warehouses for various kinds of industrial projects.
  • Businesses can enjoy flexible construction options in order to meet their business requirements.
  • The area is connected with multi-lane superhighways, making transportation by land more efficient.
  • The Middle East’s largest bulk handling port, Port Saqr, is easily accessible from this sector.
  • On-site labor and staff accommodations are available for use. Companies also have the option to build their own accommodation facilities.
  • Communication services and utilities are readily available.
  • Land plots and warehouse spaces of various sizes are available.
  • Small and medium sized office spaces can be found.
  • Investors and employees working in RAKEZ can apply for UAE residency visas.

Al Nakheel Business Zone

This sector provides business centers and supporting services for SMEs, entrepreneurs, startups, and freelancers.

Key Benefits

  • Dedicated business center for SMEs and startups.
  • Designed with consultancy, commercial, and service providing businesses kept in mind.
  • Access to high-speed internet.
  • Reliable security available 24/7.
  • Superb telecommunications and IT infrastructure made available.
  • Office spaces for small and medium businesses can be found. Flexi-desk services are available as well.
  • Investors and employees working in RAKEZ can apply for UAE residency visas.
  • Plenty of business licenses to choose from.

Al Hamra Business Zone

  • A dedicated business area located near commercial establishments, superb residential areas, and logistical hubs.

Key Benefits

  • Convenient access to all businesses operating in RAKEZ.
  • Reliable support from the authorities to help you register yourself. You also get access to on-going support to help accelerate your business.
  • Great offers for SMEs and startups.
  • The company setup process in this sector is very straightforward.
  • Flexi-desk and conventional office space solutions are available.
  • Employees, investors, managers, owners, and partners can apply for residency visas for the UAE.
  • Plenty of business licenses to choose from.

Types of Entities in RAKEZ

RAKEZ’s business entity options are quite similar to what many other UAE FTZs offer:

  • Free Zone Entities
  • Non-Free Zone Entities

Free zone entities aren’t subjected to any corporate tax, income tax, and customs duty on goods that are re-exported. They also have 100% ownership and enjoy profit repatriation. They can access the local market through local agents and can source their labor without restriction.

Free zone entities need to obtain a business license from the RAKEZ authority in order to begin operations in RAKFTZ.

Non-free zone entities aren’t subjected to corporate and income tax either. They don’t have to pay customs duty on sales made in the GCC and local markets. They have the option to make sales in the local market directly. Unlike free-zone entities, these entities are subject to the UAE’s labor law.

Non-free zone entities must obtain a business license from the RAKEZ authority and also from the RAK DED (Department of Economic Development in Ras Al Khaimah).

When you are about to setup a company in RAKEZ, you will have to determine what kind of legal entity is your company going to be.

Types of Business Licenses in RAKEZ

In order to conduct business in the RAK Free Trade Zone, a business has to acquire a business license as well. This license is obtained from the RAKEZ Authority.

  • Industrial License
  • National Industrial License
  • Commercial License
  • Service License
  • General Trading License
  • E-Commerce License
  • Educational License
  • Freelance Permit
  • Media License
  • Individual/Professional License

For businesses that want to operate as non-free zone entities, the following licenses are available:

  • Industrial License
  • Commercial License
  • Professional License

RAKEZ New Company Setup Services – Required Documents

The company setup process in RAKEZ involves a lot of paperwork. At a glance, all the required documents can be quite intimidating. However, once you develop a basic understanding, you’ll realize it’s a relatively straightforward process. The RAKEZ portal makes it really easy to submit all the required documents.

We’ve made the document requirement list as simple as possible. Before we get into the documents, let’s take a look at the guidelines first.

Guidelines

The RAKEZ guideline provides a basic set of rules on the basis of which a company’s trade name and registration proposal are accepted or rejected by the local authority.

  1. Non-free zone companies require a trade name reservation certificate from the RAK DED.
  2. The trade name of any company must have its respective extension term at the end (FZ LLC, FZE, Branch, etc.).
  3. When registering for a company or applying for a trade name amendment, the applicant has to give three options.
  4. Applicants can apply for Arabic or English Trade Names. However, combining English and Arabic in a single trade name is not allowed.
  5. The approved trade name shall be reserved for no more than 2 months after the issuance of its Performa Invoice.
  6. Proposed trade names that are similar to or same as trade names already existing in the RAKEZ records shall be rejected.
  7. The same trade name cannot be registered until 1 year after a company has been deregistered or has changed its name.
  8. RAKEZ authority has the right to select an appropriate trade name for any business operating in the zone.
  9. If an existing trade name is being amended, a shareholder’s resolution must be provided along with the amendment application. Otherwise, the certificate of name change cannot be issued.
  10. The RAKEZ Authority has the right to ask applicants to change or alter suggested trade names when needed.

For a more thorough look at the RAKEZ’s guidelines and terms, check out their official guide.

Document Checklist

For Individuals

All shareholders are considered as individuals.

Document Free-Zone LLC Non-Free Zone IE/LLC
Application for Registration and Licensing
Application for Chamber of Commerce Membership
Application for Registration with Department of Economic Development
Entry Stamp/Visa copy of general manager, director, and shareholder (if applicable)
Original NOC for general manager (if UAE resident)
Emirates ID and Family Book of local service agent or UAE shareholder (whichever is applicable)
Business plan for relevant activity
Coloured passport copy of director, shareholder, general manager (if applicable)

For Corporates

All shareholders are considered as corporates or a combination of corporates and individuals.

Document Free-Zone FZ LLC UAE Non-Free Zone FZ LLC Foreign Non-Free Zone IE/LLC UAE Non-Free Zone IE/LLC Foreign
Application for Registration and Licensing
Application for Chamber of Commerce Membership
Application for Registration with Department of Economic Development
Coloured passport copy of director, shareholder, general manager (if applicable)
Entry Stamp/Visa copy of general manager, director, and shareholder (if applicable)
Original NOC for general manager (if UAE resident)
Board Resolution resolving establishment of a company in RAKEZ and selection of a general manager
Emirates ID and Family Book of local service agent or UAE shareholder (whichever is applicable)


Business plan for relevant activity


Valid copy of trade license


Articles of Association and Memorandum


Commercial Register


Certificate of Registration


Extract from corporate register/Certificate of Good Standing (whichever is applicable)


Certificate of Incumbency


For Branches

Document Free-Zone FZ LLC UAE Non-Free Zone FZ LLC Foreign Non-Free Zone IE/LLC UAE Non-Free Zone IE/LLC Foreign
Application for Registration and Licencing of a branch entity (“Branch”)


Application for Chamber of Commerce Membership


Application for Registration with Department of Economic Development


Coloured passport copy of director, shareholder, general manager (if applicable)


Entry Stamp/Visa copy of general manager, director, and shareholder (if applicable)


Original NOC for general manager (if UAE resident)


Board Resolution resolving establishment of a company in RAKEZ and appointment of a general manager


Emirates ID and Family Book of local service agent or UAE shareholder (whichever is applicable)


Business plan for relevant activity


Valid copy of trade license


Articles of Association and Memorandum


Commercial Register


Certificate of Registration


Extract from corporate register/Certificate of Good Standing (whichever is applicable)


For Getting Legal Consultancy License

Requirements

The following documents must be submitted before fee payment. This applies regardless of the kind of service:

  1. Filled in form of “Legal Consultancies Application
  2. An attested law degree for the appointed manager must be provided to the UAE’s Embassy.
  3. An attested document providing confirmation of appointed manager’s professional experience of at least 5 years must be provided to the UAE’s Embassy.
  4. Fill the DNFBP’s (Designated Non-Financial Businesses and Professions) pledge form.

If a branch for a local company is being established, the 2nd and 3rd requirements are not required if the manager being appointed is the parent company’s same manager. If not, then all requirements will be applicable.

The company must lease office space from the RAKEZ Authority.

Also, it should be noted that the manager being appointed must have RAKEZ Authority Sponsorship. You can apply for this through the RAKEZ’s Client Relations Department.

Resources

Legal Consultancy License Checklist

List of Business Activities

Free Zone

Non-Free Zone

Notes

The lists provided above cover basic business activities approved by the RAKEZ Authority. You can contact the authority through email or phone if you are unable to find the activity you’re looking for on the list. Alternatively, Push Digits Chartered Accountants is available at your service to setup your company in RAKEZ.

It should be noted that the RAKEZ Authority has the right to ask for additional documentation where it may deem necessary. Also, certain activities have fees that are higher than the standard. You can contact the RAKEZ Authority for clarification.

Templates for Supportive Licensing

UBO Declaration Form

You can download the Template for the UBO Declaration Form from here.

DETAILED GUIDE: Ultimate Beneficial Owner

Why RAKEZ For Business Setup in UAE?

Now that we’ve developed a better understanding of RAKEZ and its internal processes, let’s summarize all the benefits it has to offer.

RAKEZ is an organized, strategically located business hub. The location, amazing infrastructure and supporting services, and business-friendly policies make it a place where businesses of all kinds can grow at an amazing pace. Both, free zone and non-free zone entities get to enjoy tax exemptions and relief on customs duty. This is ideal for startups and SMEs since their costs go down.

The dedicated business zones within RAKEZ provide various kinds of industries with infrastructure and services that greatly help their operation. There are also business parks with office spaces and technology parks complimenting them. The dedicated academic zone is a superb place for finding and training educated labor.

Businesses that setup in RAKEZ gain access to the international market very easily. There are loads of ports nearby and companies from over a hundred companies are established in RAKEZ.

Get a quote now!