Ras Al Khaimah Free Zone Trade Licenses

A trade license is a legal document that gives a business permission to operate. In RAK's free zones, this license comes with many benefits, making it an attractive option for foreign investors and local entrepreneurs alike.

A trade license in Ras Al Khaimah comes with strong advantages. It allows 100% foreign ownership, although the rules may vary depending on the free zone and the region. Investors also enjoy full repatriation of profits, a strategic location close to ports and airports, and exemptions from many taxes.

The Ras Al Khaimah Economic Zone (RAKEZ) makes company setup in the UAE smooth and cost-effective for both small and large businesses. RAKEZ manages several well-known free zones, including:

• RAK Free Trade Zone (RAK FTZ)
• RAK Media Free Zone
• RAK Academic Zone

These zones are designed to support different industries, offering flexible options for investors worldwide.

Before you apply for a trade license, you need to understand the different kinds available. The type of license you get depends on your business activities. Here are the main types of licenses offered in RAK's free zones, especially through Ras Al Khaimah Economic Zone (RAKEZ).

• Commercial License

This is the most common license, meant for businesses that buy, sell, import, export, store, and distribute goods. If you plan to trade physical products, you will need a commercial license. A special type is the General Trading License that allows you to trade a wide range of goods. It is useful for companies that deal with many different products.

• • Example: A company importing electronics or selling furniture locally.

• Service License

This license is for businesses that provide services rather than sell physical products. This includes a huge range of activities, such as management consulting, marketing, accounting, IT services, and professional training.

• • Example: Management consulting firms, marketing agencies, IT support companies, accounting firms, or professional training centers.

• Industrial License

If your business is involved in manufacturing, processing, or packaging goods, you will need an Industrial Trade License. This license is for businesses that turn raw materials into finished products.

• • Example: A factory producing bottled beverages, packaging snacks, or assembling electronic devices.

• Media License

This license is for businesses that work in the media industry. This includes activities like advertising, publishing, film and music production, and event management.

• • Example: Advertising agencies, film and music production studios, publishing houses, or event management companies.

• E-commerce License

With the rise of online business, this E-commerce Trade License has become very popular. It is for companies that sell goods and services through an electronic platform, such as a website or an app. It is a great choice for online retailers and digital startups.

• • Example: Online retailers selling fashion products via a website, or mobile app-based food delivery startups.

• Educational License

This is for companies that offer educational services. Examples include training centers, tutoring services, and educational consulting.

Selecting the right license is a crucial first step, as it ensures your business activities are lawful and fully aligned with free zone regulations.

• • Example: Language training centers, tutoring services, vocational training institutes, or educational consultancies.

Ras Al Khaimah has multiple free zones, each designed to support specific industries and business activities.

• RAKEZ (Ras Al Khaimah Economic Zone) Free Zone

RAKEZ is the main free zone in Ras Al Khaimah. It is one of the biggest economic zones in the UAE. It was created to combine and oversee the different free zones in RAK. It offers a huge range of facilities and license types for almost any kind of business.

RAKEZ hosts over 30,000 companies from more than 100 countries, showing its strength and global appeal. In early 2024 it saw record growth with 13,000 new registrations, an increase of 66% from the previous year, highlighting RAK’s growing reputation as a trusted global business hub.

This free zone was a key player for many years. It is now fully merged into RAKEZ. This means that all companies that were in RAK FTZ are now part of the larger RAKEZ family. This merger has helped to make the process of setting up a business much simpler and more efficient.

• RAK Maritime City Free Zone

This free zone is specifically for businesses in the maritime industry. It has a special focus on marine and logistics activities. RAK Maritime City offers licenses for companies involved in:

• Ship management
• Maritime services
• Shipping
• Cargo handling
• Industrial production
• Warehousing

The zone has a unique setup with plots that have direct access to a deep-water port. This makes it an ideal place for companies that need to move goods by sea.

• RAK Media Free Zone

While RAKEZ now manages a large part of media licensing, the RAK Media Free Zone still serves as a hub for media businesses. It offers a wide range of services for professionals in film, television, radio, and other creative industries. RAKEZ has since created a dedicated Media Zone within its larger area. This provides specific support and facilities for media companies. This consolidation means most media-related setups now go through RAKEZ, making it a true one-stop shop.

Eligibility for a Ras Al Khaimah Free Zone Trade License extends to both individuals and corporate entities, making it accessible for entrepreneurs as well as established businesses.

• Individuals: A single person can start a Free Zone Establishment (FZE) or apply for a freelance permit. This is perfect for consultants, service providers, and other professionals.
• Corporate Entities: A company can set up a branch of an existing company (local or foreign) or create a new company called a Free Zone Company (FZC). The FZC structure can have multiple shareholders.

The UAE government has made it very easy for foreign investors to set up a business. You do not need a local partner or sponsor. You can have 100% foreign ownership of your company. This is a huge benefit for people from outside the UAE.

Getting your documents ready is a key part of the process. Having all the correct papers in advance will make your application go very smoothly. The exact documents you need can change based on your legal business structure and your personal situation.

For Individuals (Shareholders/Managers):

• A clear copy of your passport: Your passport must be valid for at least six months.
• A passport-sized photograph: It should be a recent color photo with a white background.
• A copy of your UAE visa (if you have one): This is needed if you already live in the UAE.
• A copy of your Emirates ID (if you have one): This is also required if you are already a resident.
• A No Objection Certificate (NOC) from your current sponsor: You will need this if you are a resident and are currently employed.

For Corporate Entities (Branch or Subsidiary):

• A clear copy of the passport and a photo of the proposed manager.
• A clear copy of the passport and a photo for each shareholder.
• A notarized and attested Memorandum of Association (MoA) or Articles of Association (AoA): These are legal documents that outline the company's rules and purpose. They must be officially stamped and approved.
• A notarized and attested Board Resolution: This is a document that shows the company's board of directors has decided to open a new branch in RAK.
• A Certificate of Incorporation or Registration of the parent company: This proves that the company is officially registered in its home country. It also needs to be notarized and attested.
• A valid business plan: This is required especially for certain activities (such as education, healthcare, and financial services) or for larger projects.
• A good standing certificate (if applicable): This shows that the company is in good standing and has no legal issues in its home country.

Please remember that all legal documents from outside the UAE must be officially translated into Arabic and legally attested by the UAE Embassy in your home country and the Ministry of Foreign Affairs in the UAE.

RAKEZ is known for being cost-effective and offers different packages to fit various budgets. As of 2024-25, starter packages for a trade license without any visas can begin from around AED 5,499. The final cost can be higher if you need:

• More visas: Each visa has its own cost for processing and medical exams.
• A bigger office space: Flexi-desks are the cheapest option. Dedicated offices, warehouses, or land for development will cost more.
• Extra business activities: If you want to include more than one activity on your license, there may be extra fees.
• Special approvals: Some business activities, like those in the food or health sector, need special approvals from government bodies. This can add to the total cost.

The best way to know the exact cost is to get a custom quote from RAKEZ. This ensures you get a package that perfectly fits your business needs and budget.

Getting your Ras Al Khaimah Free Zone Trade Licenses is a simple process. The free zone authorities have made it very efficient. Here are the steps you will follow:

Step 1: Choose Your Business Activity and Legal Structure

First, decide what your business will do. This will help you choose the right license type (e.g., Commercial, Service, Industrial). Next, you need to pick a legal structure. You can set up a new company (FZC or FZE) or a branch of an existing one.

Step 2: Reserve a Trade Name

You must choose a unique name for your company that complies with UAE regulations. RAKEZ follows the Department of Economic Development (DED) and UAE naming guidelines, which include:

• No use of religious or political terms
• Avoiding offensive or disrespectful words
• Not being identical or too similar to existing company names
• Abbreviations are only allowed if they represent the owner’s initials

Once approved, your trade name will be officially reserved for your business.

Step 3: Prepare and Submit Your Documents

Ensure your documents are complete, accurate, and attested or notarized where required, especially if you have foreign shareholders. You can submit them online via the RAKEZ Portal (rakez.com/en/) or by visiting any RAKEZ service center.

Step 4: Receive Initial Approval

Once your application is reviewed, you will get an initial approval. This means that your business name and activities have been approved.

Step 5: Pay the Fees

After getting the initial approval, you will need to pay the fees for your license and any other services. You can usually pay online or at the RAKEZ office.

Step 6: Sign the Lease Agreement

Once you finalize your facility choice, whether a flexi-desk, office, warehouse, or land plot, you will sign the lease agreement with RAKEZ. This document confirms your physical address within the free zone.

Step 7: Get Your License and Other Documents

After you pay the fees and sign the lease, you will get your official trade license. You will also receive your Certificate of Incorporation and other legal papers.

Step 8: Apply for Visas (if needed)

With your license, you can now apply for residence visas for yourself, your employees, and your family members. The RAKEZ team provides full support for the visa process.

The whole process can be very fast. It can be completed in as little as 24 hours if all your documents are ready and correct.

Choosing the right license type is vital for your company’s success. It ensures you have the right setup from the start and aligns with Step 1 of the registration process, where you define your business activity and legal structure. Selecting the correct license ensures your company is compliant from day one and avoids the need for future changes or approvals.

• Based on the Nature of Business

  • Trading: If your business is about buying and selling, a Commercial License is your best choice. If you want to trade many different items, go for a General Trade License. This saves you from having to get a new license for each product type.
  • Services: If you offer consulting, marketing, or other professional services, the Service License is what you need. This license is perfect for freelancers and consultants.
  • Manufacturing: For businesses that make things, the Industrial License is essential. This license allows you to import raw materials and set up a factory or a production facility.

• Based on the Number of Visas Required

Your license package should match the number of people you need to sponsor.

• • For single entrepreneurs or freelancers: A package with a "zero-visa" option or a freelance permit is perfect. It is the most affordable choice.
  • For small teams: A package with one or two visas might be the best.
  • For larger companies: You can choose a package that allows for more visas. This is perfect for growing businesses that need to hire more people.

• Based on Office/Facility Needs

Your business location is very important. RAKEZ offers many options to fit your needs.

• • Flexi-desk: This is a shared workspace. It is the most affordable option. It is great for startups and freelancers who only need a physical address and a place to work once in a while.
  • Serviced Office: This is a private, furnished office. It comes with everything you need, like internet and reception services. This is good for small teams that need a fixed place to work.
  • Warehouses and Land Plots: If you need to store products or build a factory, you can lease a warehouse or a plot of land. RAKEZ has dedicated industrial zones for this purpose.

Setting up a business with a Free Zone Trade License in Ras Al Khaimah comes with many great benefits. These are designed to help your business grow and succeed.

• 100% Foreign Ownership: You can own your company completely. There is no need for a local Emirati sponsor. This gives you full control over your business.
• Full Repatriation of Profits: You can send all your profits and capital back to your home country. There are no limits or taxes on this.
• 0% Corporate and Personal Tax: Free zone companies historically did not pay corporate tax. Now, under new UAE federal laws from June 2023, there is a 9% corporate tax. However, free zone businesses that meet specific rules may be exempt. This means you can keep more of your earnings.
• Exemption from Customs Duties: Businesses within the free zone are exempt from import and export duties. This helps you save money when you trade goods.
• Strategic Location: Ras Al Khaimah is a major hub. It has access to seaports and an international airport. This makes it a great place for global trade.
• Simplified Legal Procedures: The process of setting up a business in RAK is very fast and easy. The authorities have streamlined all the steps. You can get your license in a short time.
• Extensive Support Services: RAKEZ provides a wide range of support services. This includes help with visa applications, banking, accounting, and more. This makes it easy for new business owners to get started.