How to Get a RAK Free Zone License?

Ras Al Khaimah (RAK) has firmly established itself as a leading business and investment destination in the UAE. Known for its strategic location, cost-effective environment, and business-friendly policies, RAK offers a compelling alternative to the bustling hubs of Dubai and Abu Dhabi. At the core of its economic appeal are its dynamic and versatile free zones, where obtaining an RAK Free Zone License provides entrepreneurs and international companies with an ideal environment to start a business in the UAE.

At the center of this success is the Ras Al Khaimah Economic Zone (RAKEZ), which hosts thousands of companies from over 100 countries. The emirate is home to several specialized free zones, each offering unique advantages:

• RAKEZ (Ras Al Khaimah Economic Zone): This is the flagship free zone and a powerhouse for commerce and industry. RAKEZ caters to a vast range of sectors, offering customizable solutions for startups, SMEs, and large enterprises. Its strategic advantage lies in its comprehensive infrastructure and one-stop-shop services.
• RAK Maritime City (RAKMC): A specialized hub for maritime and industrial activities. It provides direct access to the sea, making it ideal for shipping, logistics, and marine engineering companies.
• RAK Media City: A dedicated zone for media and creative professionals. It offers a supportive ecosystem for businesses in publishing, broadcasting, and digital media.

These free zones are crucial to the UAE’s economic diversification strategy, attracting foreign direct investment and fostering innovation. This guide provides a clear and detailed explanation of the RAK free zone license, covering everything from the types of licenses available to the application process and associated costs.

The first step in any company formation in UAE process is to choose a license that matches the intended business activities. RAK free zone business setups offer a diverse range of license types to cater to nearly every industry.

• Commercial License: This license permits businesses to engage in the trading, import, export, and distribution of goods. The RAK free zone trade license is one of the most popular options for businesses involved in commerce.
• Industrial License: This is for companies involved in manufacturing, processing, assembling, and packaging products. RAKEZ provides extensive industrial zones with state-of-the-art facilities for these operations.
• Educational License: This license is required for opening educational institutions, training centers, or consultancy services related to education.
• Media License: Specifically for businesses in the media sector, this license covers activities like publishing, broadcasting, marketing, and communications.
• E-commerce License: With the boom in online business, this specialized license allows companies to sell goods and services online.
• General Trading License: This is a more comprehensive commercial license that allows a business to trade a wide variety of unrelated goods. The RAK free zone trade license cost for this is typically higher due to its broader scope.
• Freelance Permit: This permit is designed for individuals who wish to operate as independent professionals. It provides a legal framework for solo entrepreneurs to offer their services.

Understanding the various licenses available is essential when choosing the best fit for your business activities. Additionally, it’s important to explore the different types of companies in the UAE to decide on the right structure for your venture. By assessing company types and license options together, you can make a well-informed decision on the most suitable setup for your business.

Obtaining a license in a Ras Al Khaimah free zone offers several advantages, making it a highly appealing option for global entrepreneurs. The emirate is home to key economic zones such as RAKEZ, RAK Maritime City, and RAK Media City, each designed to support specific sectors. Among these, RAKEZ stands out for its straightforward registration process, affordable licensing options, and comprehensive access to both industrial and commercial zones, making it the preferred choice for most investors.

• 100% Foreign Ownership: Investors can retain full ownership of their companies without the need for a UAE national as a partner or sponsor.
• Tax Exemptions: RAK free zone companies enjoy 0% corporate and personal income tax, maximizing profitability. The UAE’s 9% corporate tax only applies to mainland companies and free zone entities earning income outside their free zone or from the mainland.
• Strategic Location and Connectivity: RAK’s location provides easy access to markets in the Middle East, North Africa, Europe, and Asia. It is well-connected through major seaports and international airports.
• Full Repatriation of Profits: Businesses can transfer 100% of their capital and profits back to their home country without any restrictions.
• Cost-Effective Setup: The overall RAK free zone license fees and operational costs are significantly lower compared to those in Dubai and Abu Dhabi, offering a higher return on investment.

For entrepreneurs considering setting up in the UAE, it’s important to understand the different types of companies that can be formed in the region. For example, RAK free zones provide a great option for foreign investors, but businesses might also explore other legal structures depending on their goals and needs. Understanding the various company types in UAE is crucial when deciding the most suitable setup for your venture.

The eligibility criteria for a RAK free zone license are designed to be inclusive and straightforward.

Who Can Apply

• Individuals (entrepreneurs and freelancers)
• Corporate entities (for subsidiaries or branches)
• Expatriates and foreign investors from around the world

Required Documents

Preparing the documents required to set up a business in RAK in advance is crucial for a smooth application process. The core RAK Free Zone License Requirements include:

• Passport Copy: A clear, colored copy of the passport for all shareholders and the appointed manager.
• Emirates ID (for UAE residents): A copy of the Emirates ID for shareholders and the appointed manager if they are UAE residents.
• Business Plan: A brief business plan is required for certain business activities to outline the company’s objectives and operations.
• Application Form: A completed and signed application form provided by the free zone authority.
• Shareholder Details: Information about the ownership structure and the allocation of shares.
• NOC Requirement: A No Objection Certificate (NOC) is required if the applicant already holds a UAE visa.
• Corporate Shareholders: If the shareholder is a corporate entity, a Certificate of Incorporation and Board Resolution are required.

Make sure to gather these documents in advance to ensure a smooth and efficient application process, as outlined below.

The application process for a license with RAKEZ is streamlined and efficient, with a strong focus on digital onboarding.

To apply for a RAK Free Zone license, follow these simple steps:

1. Choose Business Activity and License Type: The first step is to finalize the specific business activities and select the corresponding license type from the list of RAK free zone license activities.
2. Select a Facility: Choose the appropriate physical facility for the business. Options range from cost-effective flexi-desks and shared workstations to private offices and large warehouses.
3. Submit Documents: Compile all the required documents and submit the application to the free zone authority, either online or through a registered consultant.
4. Receive Approval and License: The authority will review the application. Once approved, an invoice for the fees is issued. After payment, the official trade license is issued, and the business is legally registered.

The typical timeline for license issuance is very fast, often taking just a few working days once all documents are in order.

The RAK free zone license fees are known for their competitiveness and flexibility. The total cost depends on the chosen package, visa quota, and facility type. The following table provides a detailed breakdown of the various costs involved.

For more details on the costs, you can read more here: RAK Free Zone License Cost Breakdown.

Maintaining a RAK free zone license requires adherence to annual compliance procedures.

• Annual Renewal Process: The RAK free zone license renewal is a mandatory annual process. It involves submitting the renewal application, paying the renewal fees, and ensuring the lease for the facility is still valid. The process is typically straightforward and can be completed online.
• Audit and Reporting Requirements: While not all small companies are required to submit an annual audit, it is a legal requirement for most businesses to maintain proper books of account. Certain company types or those with high turnover may be required to submit an audited financial statement.
• Penalties for Non-Compliance: Failure to renew the license on time can result in significant fines. Operating with an expired license is illegal and can lead to the suspension of all business activities and the blocking of employee visas.

The RAK free zone license offers a powerful and cost-effective solution for entrepreneurs and businesses looking to establish a presence in the UAE. With its diverse range of licenses, world-class infrastructure, and streamlined setup process, Ras Al Khaimah provides an ideal environment for growth and success. 

By understanding the license types, benefits, and costs involved, investors can make an informed decision and embark on a successful journey of company formation in this dynamic emirate.