With a land area of roughly 33 million square meters and connections to the expanding markets of the Middle East, North Africa, and Europe, as well as South and Central Asia, RAKEZ is currently one of the largest economic zones in the area.
RAKEZ offers a wide range of advantages, regardless of whether you are a beginning or a seasoned businessperson. Private offices, underutilized facilities that can be customized to your needs, shared workstations in business centers, and unrestricted land space is all options.
A multinational community of over 14,500 companies in the economic zone is thriving in more than 50 different industries, including freelancers, startups, SMEs, and industrialists.
In the Ras Al Khaimah Economic Zone, forming a business is simple and affordable. After deciding on a business activity, entrepreneurs need only select a company name.
If you’re looking to set up a business in the United Arab Emirates, Ras Al Khaimah Economic Zone – RAKEZ should be your go-to destination. With its world-class facilities and extensive range of services, RAKEZ has everything you need to get your business up and running smoothly.
In this article, we’ll take you through the basics of setting up a company in RAKEZ, from licensing requirements to business registration procedures. So read on for all the information you need to make your dream of starting a business in the UAE a reality!
What Is RAKEZ Free Zone?
RAKEZ as we mentioned earlier is the abbreviation for the RAS AL KHAIMAH ECONOMIC ZONE. It is one of the 40+ economic zones within the UAE and remains one of the fastest growing since its inception in 2017.
Located in five strategic locations, the Ras Al Khaimah economic zone can be categorized into industrial, business, and academic zones. The five zones include
- Al-Hulaila Industrial Zone
- RAKEZ Business Zone
- AL Hamra Industrial Zone
- RAKEZ Academic Zone
- Al-Ghail Industrial Zone
Ras Al Khaimah’s technologically enhanced industrial zone is located in the heart of the emirate offering easy access to convention centers, ports, highways, hotels, hospitals, and other amenities. The strategic location of the zone offers businesses to connect with 3 continents namely, South Asia, Europe, and Africa.
As a gateway for international trade, the economic zone promises businesses a cost-effective investment facilitated by cutting-edge technology, superior service quality, and favorable regulations. The trade zone’s mission establishes that it aims to
“Develop fit-for-purpose infrastructure and smart customer-centric business solutions enabling a comprehensive commercial, trade, and manufacturing hub that helps our customers grow and attract diversified investments.”
What Are the Benefits of Starting a Business In RAKEZ Free Zone?
As a business opportunity, there are several reasons Ras Al Khaimah’s economic zone has quickly grown into an investor favorite. One of these is the low business setup cost in RAKEZ.
Let’s take a quick look at the 10 benefits that the RAK economic zone promises.
- Free zone and non-free zone entity formations
- 100% foreign ownership
- A quick business setup process
- Diversified business facilities & infrastructure
- Permission to build on-site labor accommodations
- Centralized government services
- A self-service client portal
- Access to major logistical hubs
- Easy access to MENA, Europe, and African continents
- Assistance through multiple regional offices
Best Businesses to Start in RAKEZ Free Zone
The RAK economic zone offers a vast infrastructure that enables several business sectors and encourages investment from different industries. From IT providers to heavy industrial manufacturing corporations, the business zone is built for customization facilitated by leading-edge tech amenities.
A new business investor can choose from a selection of trading licenses in RAKEZ including those for:
- Commercial trade of goods & services
- Educational services
- E-Commerce
- General Trading
- Individual or Personal
- Industrial
- Media & Entertainment
- Professional
- Service
- Freelancer Permit
How to Setup Business in RAKEZ Free Zone?
Setting up a new business in RAK’s economic zone is a stepwise process, and follows these stages:
Step 01 – Choose the business name and activities to conduct
Setting up a business in Dubai is fairly easy and the same is the case with the RAK economic zone. The process begins by selecting a business name and the activities you will conduct within that entity. UAE authorities offer a detailed pre-approved list of activities that allow you to determine what type of license you will need., e.g. an industrial license or a commercial license.
A business name must also be chosen under relevant guidelines provided by the authorities. The company name is crucial since it requires to be registered before a license is issued.
Step 02 – List the needs of your business
It is advisable to identify the various needs of your business including visa eligibility and quotas, working facilities, warehouses, etc. The RAKEZ authority offers businesses stand-alone trade licenses, in addition to license packages that include several added benefits that appeal to business needs.
A license package provides considerable benefits for businesses including developing their facilities on vacant land, sharing co-working spaces, visa quotas, and many other facilities. Packaged license offers are considered to be more beneficial since they combine several complementary features of operating in the economic zone.
Step 03 – Submit the official application
You can begin your application process once the business name is agreed upon, activities are identified, and your license package requirements have been determined. In free economic zones, applications are made directly to the managing authority of the zone, in this case, RAKEZ.
A general application requires the following prerequisites for submission:
- Colour passport copies of all shareholders, directors, and managers
- Copies of visas/entry stamps of all shareholders, directors, and managers
- A NOC or No Objection Certificate
- Your business plan
Step 04 – Await approval and collect your license
Once the application is submitted, it goes through a screening process, and upon approval, you can collect your documentation. Once the licensing issuance process is complete you are provided a trade license, registration pack, and bank letter.
Step 05 – Apply for relevant visas
Economic zone license packages come with visa eligibility and the process can begin as soon as the license is issued. UAE visas require an application, a medical test, and biometric data verification.
Step 06 – Open a bank account in the UAE
The last step to set up your business in RAKEZ is by opening a UAE-based corporate bank account. A bank letter is usually provided by the economic zone authority to facilitate banking services for your business.
Document Requirements for Company Formation in RAKEZ Free Zone
Whether a shareholder is an individual or a corporate entity determines the paperwork needed to establish a business in RAKEZ (Ras Al Khaimah Economic Zone). These are the prerequisites:
- Color copy of a passport
- A copy of your Emirates ID in color
- CV or resume
- Plan your business
- The current sponsor’s NOC
Business Setup Cost in RAKEZ Free Zone
According to the official RAKEZ website, the cost of setting up a business in the economic zone can differ by the location, size of the business, visa quotas, and facilities needed by a company. According to the RAKEZ official website, you can start a business with only AED 11,200. The zone’s SME Packages now include a FREE RESIDENCE VISA, several special advantages, a choice of workspaces, and up to 40% off.
Business Activities Allowed in RAKEZ Free Zone
Depending on the license type, Ras Al Khaimah economic zones offer a diversified list of eligible business activities that you can invest in. For instance, the Freelance Permit provides opportunities ranging from investment analyst to career counselor with 100 business activities within this license category.
The full list of business activities allowed in the RAK business zone can be viewed by category here. There are over 500 business activities that business investors, SMEs, and corporations can choose from.
Alternatives UAE Free Zone for Starting a Business in UAE
- DMCC Free Zone
- DAFZA Free Zone
- IFZA Free Zone
- JAFZA Free Zone
- DPC Free Zone
- DSP Free Zone
- DAZ Free Zone
- DKP Free Zone
- DIC Free Zone
- DSOA Free Zone
- Masdar Free Zone
How Airzone can help you setup Business in RAKEZ Free Zone?
At Airzone we offer critical knowledge and guides to help you understand how to set up a sustainable business in Dubai. We can also have an extensive network of partner company formation service providers who can help you step foot in the Ras Al Khaimah economic zone.
Airzone can connect you with the right business formation service providers based on your company’s needs. Our partner network of consultants can facilitate your application process and help you acquire a trade license in no time.
FAQs About RAKEZ Business Setup
Do I Need to Have a Local Sponsor to Start My Business in RAKEZ?
Business investors do not need a local partner to form a Free Zone Company in RAKEZ. Foreign entrepreneurs and organizations can hold 100% ownership of their businesses.
How Many Days Would It Take To Get My Licence for My Business in RAKEZ?
With RAK’s unified services strategy, you can launch your business in just three simple steps and obtain your business license in a matter of days.
Can I Transfer My Company From RAKEZ to Another Free Zone in the UAE?
No, transferring your company from one free zone to another in the UAE is not currently possible. The existing license must be canceled to move to a new free zone, and a new one must be acquired from the other economic area. Another way to locate within another emirate’s free zone is by establishing a branch of your existing business.
Conclusion
The UAE has massively grown into an economic hub while being the active gateway into three different continents. Ras Al Khaimah’s technological marvel of an economic zone is a brilliant opportunity for small, medium-sized, and even larger organizations to establish a global presence from a single spot.
There are several benefits to setting up a business in Rakez, including 100% foreign ownership and exemption from corporate taxes.
If you’re looking to set up a business in an environment that is conducive to growth and success, RAKEZ should be at the top of your list. If you wish to set up a company in a free zone, we suggest checking out the different business formation guides we’ve covered regarding several free zones in the UAE.