Ras Al Khaimah (RAK) is one of the best emerging free zones in 2024. Moreover, due to the ease of transshipment, the business setup in Ras Al Khaimah is gaining ground among entrepreneurs because it’s an ideal destination located in the northern part of the UAE, bordering Musandam, Oman.
In addition to it, as the location is near Port Saqr, which is conveniently close to Northern markets such as Iran, Pakistan, and China, if you’re looking toward a business setup in Ras Al Khaimah, then keep reading; let me lift the curtain from the essential steps that you need to follow.
Why Need to Consider a Business Setup in RAK?
In 2024, Ras Al Khaimah is considered as an ideal option for setting up business for all kinds of businesses because it’s much cheaper than Dubai. Although there are numerous Free Zones in the UAE, most entrepreneurs prefer business setup in RAK due to the following reasons:
- RAK offers a strategic location for company setup.
- There are no issues with entry.
- The process for this is pretty smooth and easy.
- Rental rates are cheaper compared to other zones.
- Hassle-free administrative support.
- There are Liberal government policies.
- There is easy access to low-cost warehousing.
- If you plan to set up a company in Ras Al Khaimah, you’ll enjoy 100% ownership and won’t need to pay any personal or company tax.
- In the RAK Free Zone, there are various options, from flexi-desks to multi-floor offices and industrial warehouses, at very competitive rates. Additionally, there are bright chances of winning government-sponsored investor rewards. In a nutshell, it’s a great option without any restrictions on foreign exchange, quotas, or trade barriers.
Documents Required for Company Formation in RAK
You can’t start a company in Ras Al Khaimah because company formation in Ras Al Khaimah, like the other zones, requires providing some essential documents to the authority. As an expatriate, you must provide the following documents for company formation in RAK:
- An application form to obtain a Trade License.
- A passport copy with the owner’s name or manager’s name and a bank statement indicating sufficient funds to meet the requirements.
- A brief description of the business project you’re going to start, including the quick steps you plan to take to make it successful.
- A company resolution for FZC (Free Zone Company).
Steps For Registering A Business In Ras Al Khaimah
Setting up a business in this zone offers lucrative benefits because it is a cost-effective solution with a friendly environment, making it an attractive option for all kinds of businesses. Here are the following below mentioned steps that you need to follow for a company set up in RAK:
- Choose the business activity: Determine the type of activities your business will involve, whether it’s commercial, industrial, or professional. If you are going to start an experienced company, be aware that it comes under business services like accounting, consulting, and administrative work.
- Select a suitable jurisdiction: RAK has three leading zones: Free Zone, Offshore, and Mainland. You can choose the one that best fits your needs according to your business nature.
- Submit your business name: Once you’ve finalized the jurisdiction, submit your innovative business name to the Department of Economic Development for approval.
- Fulfill legal requirements: After your organization’s name is approved by the Department of Economic Development, fulfill all legal requirements and submit the necessary documents to the authority to obtain your business license.
- Rent an office: In the final step, rent an office to operate your business.
As the whole process involves legal procedures, it’s always recommended to get assistance from the experienced business advisers at Alriyady Dubai. This will ensure a quicker, smoother process and a successful business Setup in Ras Al Khaimah (RAK).
Major Types of Business Setup in Ras Al Khaimah
After discussing the need, let’s move towards the main types of business setups in RAK. As an expatriate, you have three choices for establishing a company or any business in Ras Al Khaimah. However, the rules and regulations vary for each:
- Mainland Company: A local patron is needed for this zone.
- Ras Al Khaimah Offshore: This setup is designed to fulfill the needs of the growing offshore market, and there are more than 1900 International Business Companies (IBCs) currently registered in this zone.
- Ras Al Khaimah Free Zone: This is an ideal place if you’re looking to start a business in a heavy manufacturing industry. Many owners prefer this zone because it offers facilities at 25% lower rates than any other UAE Emirate. Consequently, most businesses choose this option.
Types of Business Licenses in Ras Al Khaimah
Basically, a business trade license in RAK is a valid document issued by the Department of Economic Development that permits a company or individual to start a business in the jurisdiction of RAK. This document includes all necessary details, such as permitted business activities, the legal status of the company, and the registered address.
Obtaining a valid business trade license is mandatory for all types of businesses to start operations in the mainland, offshore, and free zone areas. The following are the licenses required during the Business Setup in Ras Al Khaimah (RAK):
Industrial License: Usually comes within the AED 12,000 to AED 25,000 per year cost and is needed for businesses involved in manufacturing, processing, assembling, packaging, and other similar activities.
Trading License: Needed for businesses related to import, export, or warehousing, it starts from AED 10,000 to AED 20,000 per year.
General Trading License: As the name indicates, it is acceptable for all kinds of trading activities and is an ideal license for multiple businesses engaging in different activities. A general trading license in Ras Al Khaimah combines industrial and trading permits. The cost for this license starts from AED 20,000 to AED 35,000 per year.
Commercial License: The per-year cost for this license is from AED 5,000 to AED 15,000 and is required for businesses such as maintenance, shops, and restaurants.
Service License: Needed for businesses offering services related to Real Estate, Digital Marketing, accounting, or any other Advisory Services. The minimum starting cost is from AED 10,000 to AED 25,000 per year as per the business type.
Media License: For the Media License, the annual fee starts from AED 25,000 to AED 50,000, which is required for businesses operating in media activities such as printing, publishing, or advertisement.
Final Thought
Setting up a business or company in RAK is an excellent start with a low investment and numerous benefits that are not available in other zones. Additionally, Alriyady is a one-stop solution for business setup in Ras Al Khaimah.
Their experienced experts are here to guide you through everything from fulfilling the paperwork and legal formalities to obtaining a business license and providing advanced advice for successful business operations.
Moreover, before starting your business procedure, you can book a free appointment with Alriyady professionals to discuss your entire plan. After this consultation, you can proceed with professional guidance for a smooth and hassle-free process.
