Business Setup in RAKEZ Freezone

In today’s fast-paced global economy, finding the right location to set up your business can make all the difference between success and struggle. If you’re an investor, entrepreneur, or small business owner looking to expand your horizons in the UAE, Ras Al Khaimah (RAKEZ) Freezone in the United Arab Emirates might be the perfect launchpad for your business dreams.

RAKEZ offers a unique blend of strategic location, business-friendly policies, and world-class infrastructure that can give your venture the edge it needs to thrive.

In this article, we’ll explore everything you need to know about business setup in RAKEZ Freezone, from the types of licenses available to the step-by-step process of company formation.

Overview of Ras Al Khaimah (RAKEZ) Freezone

RAKEZ is a powerhouse economic zone located in Ras Al Khaimah, one of the seven emirates of the UAE. Established in 2017, RAKEZ combined the strengths of two existing entities: RAK Free Trade Zone and RAK Investment Authority. This merger created a formidable economic zone that caters to a wide range of industries and business sizes.

RAKEZ spans an impressive area of 33 million square meters, offering ample space for businesses to grow and thrive.

Its strategic location provides easy access to major markets in the Middle East, Africa, and Asia. With its modern infrastructure, streamlined processes, and business-friendly environment, RAKEZ has quickly become a top choice for international investors and entrepreneurs looking to establish their presence in the UAE.

Why Choose RAKEZ Freezone to Start a Business in UAE?

Choosing the right freezone for your business is crucial, and RAKEZ offers a compelling package of benefits that set it apart from other freezones in the UAE:

• Strategic Location: Situated in Ras Al Khaimah, RAKEZ provides easy access to major markets in the Middle East, Africa, and Asia. Its proximity to Dubai (45 minutes drive) and other key UAE cities makes it an ideal base for regional operations.
• 100% Foreign Ownership: Unlike mainland companies, businesses in RAKEZ can be fully owned by foreign investors, giving you complete control over your venture.
• Tax Benefits: Enjoy 0% corporate and personal income tax, along with 100% repatriation of capital and profits.
• Cost-Effective: RAKEZ offers competitive licensing and setup fees, making it an affordable option for startups and SMEs.
• Diverse Business Activities: The freezone supports a wide range of business activities across various sectors, allowing for flexibility in operations.
• State-of-the-Art Infrastructure: RAKEZ provides modern facilities and advanced infrastructure to support your business needs.
• Simplified Procedures: The freezone offers streamlined processes for company registration, visa applications, and other administrative tasks.
• Support Services: RAKEZ provides various business support services, including assistance with company formation, visa processing, and more.
• Access to Labor: The freezone offers access to a skilled workforce and assistance with recruitment.
• Quality of Life: Ras Al Khaimah offers a high standard of living with lower costs compared to other emirates, making it attractive for both business owners and employees.

Types of Business Licenses in RAKEZ Freezone

RAKEZ offers a variety of business licenses to cater to different types of business activities. It’s important to understand that each license type is designed to accommodate specific business activities and sectors. This flexibility allows businesses to choose the license that best fits their operational needs and future growth plans. Let’s explore the different license types:

1. Commercial License: Ideal for trading activities, import/export, and general commerce.
2. Industrial License: Suitable for manufacturing, assembly, and processing activities.
3. Services License: For businesses offering professional services such as consulting, marketing, or IT services.
4. Media License: Tailored for companies in the media and creative industries.
5. Educational License: For educational institutions, training centers, and related activities.
6. E-Commerce License: Specifically designed for online retail and digital commerce businesses.
7. General Trading License: Allows for trading in multiple product lines without restrictions.
8. Consulting License: For businesses offering expert advice and consultancy services.
9. Freelance Permit: Enables individuals to work as independent professionals in their field of expertise.
10. Holding Company License: For companies that want to hold and manage investments in other companies.

Amenities Offered By RAKEZ

RAKEZ goes beyond just providing a business license. The freezone offers a range of amenities and facilities designed to create a conducive environment for businesses to operate efficiently and grow sustainably within the RAKEZ ecosystem.

Let’s explore some of the key amenities offered:

1. Office Spaces: From executive offices to co-working spaces, RAKEZ offers flexible office solutions to suit businesses of all sizes.
2. Warehouses: State-of-the-art warehousing facilities are available for businesses in need of storage or light industrial space.
3. Land for Development: Large plots of land are available for companies looking to build custom facilities.
4. Business Centers: Fully equipped business centers with meeting rooms and administrative support.
5. On-site Accommodation: RAKEZ offers residential options for employees, making it easier to attract and retain talent.
6. 24/7 Security: Round-the-clock security services ensure the safety of your business assets.
7. High-Speed Internet: Reliable and fast internet connectivity is provided to support modern business operations.
8. Transportation Services: Easy access to transportation networks, including proximity to airports and seaports.
9. Networking Opportunities: Regular events and platforms for businesses to connect and collaborate.
10. One-Stop-Shop Services: A centralized service center for all administrative needs, from license renewals to visa processing.

Steps for Opening a Company in RAKEZ Freezone

Setting up your business in RAKEZ is a straightforward process, but it’s important to follow each step carefully to ensure a smooth setup.

However, for those who want expert assistance, Corporate Business Services (CBS) can provide valuable support in navigating these steps efficiently.

Here’s a detailed guide to help you navigate the process:

1. Choose Your Business Activity: Determine the nature of your business and select the appropriate license type from the options available in RAKEZ.
2. Select Your Company Name: Choose a unique name for your company that complies with UAE naming conventions and regulations.
3. Submit Application: Fill out the application form and submit it along with the required documents to RAKEZ authorities.
4. Get Initial Approval: Once your application is reviewed and approved, you’ll receive initial approval from RAKEZ.
5. Pay License and Registration Fees: Complete the payment for your chosen license type and registration fees.
6. Obtain a Lease Agreement: Select your preferred office space or facility within RAKEZ and sign the lease agreement.
7. Receive License and Registration: After all payments and documents are processed, you’ll receive your business license and company registration certificate.
8. Open Corporate Bank Account: With your license in hand, you can now open a corporate bank account in the UAE.
9. Apply for Visas: Begin the process of applying for residence visas for yourself and your employees.
10. Start Operations: With all legalities completed, you’re now ready to start your business operations in RAKEZ.

Requirements for Business Setup in RAKEZ Freezone

To set up your business in RAKEZ, you’ll need to fulfill certain requirements. While the specific documents may vary depending on your business type and nationality, here are the general requirements:

1. Completed Application Form: A properly filled out RAKEZ company registration form.
2. Passport Copies: Clear color copies of passports for all shareholders and directors.
3. Passport-sized Photographs: Recent photographs of shareholders and directors.
4. Business Plan: A detailed business plan outlining your company’s activities and objectives.
5. No Objection Certificate (NOC): If you’re currently employed in the UAE, you may need an NOC from your sponsor.
6. Proof of Address: Recent utility bill or other document proving your residential address.
7. Educational Certificates: Attested copies of educational qualifications (for certain professional licenses).
8. Power of Attorney: If someone is acting on your behalf during the setup process.
9. Company Documents: For corporate shareholders, additional company documents may be required.

Cost for RAKEZ Freezone Company Formation

The cost of setting up a company in RAKEZ can vary depending on several factors. While RAKEZ offers competitive rates, it’s important to have a clear understanding of the potential costs involved:

1. License Fee: This varies based on the type of license you choose (e.g., commercial, industrial, service).
2. Registration Fee: A one-time fee for registering your company in RAKEZ.
3. Office or Facility Rent: Costs for your chosen workspace, whether an office, warehouse, or land.
4. Visa Costs: Fees for obtaining residence visas for yourself and your employees.
5. Share Capital: The minimum share capital required is based on the type of company.
6. Name Reservation: A fee for reserving your chosen company name.
7. Documentation Charges: Costs for various certificates and official documents.
8. Annual Renewal Fees:  A yearly business license renewal fee
9. Additional Services: Fees for optional services like mail forwarding, meeting room rentals, etc.
10. Bank Guarantee: Some licenses may require a refundable bank guarantee.

For a more accurate estimate tailored to your specific business needs, it’s advisable to seek the assistance of a professional business setup service provider like Corporate Business Services (CBS).

How Can CBS Help?

At Corporate Business Services (CBS), we understand that navigating the legal process of setting up a business in a new country can be challenging. That’s where our expertise comes in. As a leading business setup and consultancy service in Dubai, UAE, we specialize in helping investors, entrepreneurs, and SMEs establish their presence in the UAE mainland and freezones like RAKEZ.

Our team of experienced consultants can guide you through every step of the business setup process in RAKEZ. From choosing the right license type to handling all the paperwork and legal requirements, we ensure a smooth and hassle-free experience. We can help you:

1. Determine the most suitable license type for your business
2. Assist with company name registration
3. Prepare and submit all necessary documents
4. Liaise with RAKEZ authorities on your behalf
5. Advise on the most cost-effective setup options
6. Assist with visa applications for you and your employees
7. Provide ongoing support for your business operations

Ready to take the next step in your business journey? Take advantage of our expertise and experience in UAE business setup. Book a free consultation with our expert consultants in Dubai today