Established in 2000, Ras Al Khaimah Free Trade Zone (RAK FTZ) is a world-class business and industrial hub, offering many cost-competitive packages with attractive incentives. Currently, the free zone is home to over 15,000 businesses from over 50 industry sectors. It aims to continue easing processes for entrepreneurs and attain service excellence. Thus, it is known for its cost-effective and tailor-made packages.
In the future, RAK Industrial Strategy 2030 aims to boost RAK’s GDP through its initiative 'Make, Manage, Move.' This way, entrepreneurs and other supply chain players would benefit even more from RAK FTZ’s packages. Also, RAK FTZ’s collaboration with its strategic partners will continue to ease the business setup process for Indian entrepreneurs.
No wonder RAK FTZ is a promising space for business establishments. This blog explores the procedure and costs associated with Starting a Business in the RAK Free Zone.
Benefits of Starting a Business in the RAK Free Zone
RAK FTZ is incredibly welcoming to a diversity of businesses, thanks to its minimal bureaucracy and simple setup process. Besides, several other benefits of Ras Al Khaimah free zone company setup are as follows:
1. Minimal Bureaucracy and Simple Setup Process
RAK FTZ is known for its minimal bureaucracy, making the company formation process quick and efficient. Entrepreneurs can easily navigate the requirements through the RAK Portal 360, significantly reducing paperwork processing time.
2. Cost Savings on Operating and Living Expenses
The cost of operating and living in RAK FTZ is up to 50% lower than in other UAE regions, providing a financially advantageous environment for new businesses.
3. Special Packages for Female Entrepreneurs
RAK FTZ offers exclusive business packages designed for female entrepreneurs, making it easier to launch and grow woman-led businesses.
4. Tailored Packages for Indian Entrepreneurs
Indian entrepreneurs can benefit from customized packages that cater to their specific business setup needs, including business activities, licenses, and facility types.
5. Access to Banking and Financing Solutions
Through strategic partnerships with banks, Indian entrepreneurs can quickly open business bank accounts and access innovative financing solutions with personalized services.
6. Dual License Structure
With RAK FTZ’s dual license structure, businesses can operate in both the free zone and the mainland with a single office, enhancing flexibility and market reach.
7. Convenient Logistics and Accessibility
RAK FTZ is strategically located near Saqr Port and Rak International Port, ensuring convenient logistics and accessibility to most emirates.
8. On-Site Staff and Customizable Facilities
Businesses can develop on-site staff accommodations, alongside customizable offices, state-of-the-art warehouses, and industrial land plots for larger projects.
9. Advanced Infrastructure
RAK FTZ boasts an extensive highway network, cutting-edge digital infrastructure, and world-class utilities, facilitating smooth business operations.
10. Dedicated Free Zone Parks
Ras Al Khaimah features separate free zone parks dedicated to various sectors, including office clients, heavy manufacturing, trading, light manufacturing, and educational institutions.
11. 100% Business Ownership
RAK FTZ allows for 100% business ownership, complete repatriation of profits and capital, and benefits from a tax-free environment, making it an attractive option for entrepreneurs.
Documents Required to Start a Business in the RAK Free Zone
Before you start a Business in the RAK Free Zone process, arrange the relevant correct and valid documents. Following are some of the required documents:
- Copies of passports and visas
- Two passport-size photographs
- Entry visa and stamp pages
Shuraa Business Setup professionals can assist you with the complete list of required documents to be presented to the concerned authorities.
How to Start a Business in the RAKEZ Free Zone?
After you have gathered the required documents, you can begin the process for business setup in Ras Al Khaimah. The steps below will help you understand better:
1. Decide on the Business Activity
The RAK free zone allows a wide range of business operations. These activities include commercial, educational, e-commerce, media and so on. So, choose a feasible business activity that you’re confident in.
Shuraa Business Setup can help you with the entire list of business activities allowed in RAK FTZ. Then, Shuraa can also check whether your business requires you to submit a business plan. (Not every business is mandated to submit a business plan in RAK FTZ.)
2. Register Your Trade Name
Your company’s name is its first impression. So, decide on an appropriate name for your business. Thereafter, register the name with the concerned authorities. The UAE government has certain norms for naming companies. Shuraa Business Setup can help you with the entire registration process, including company naming rules and Ras Al Khaimah company registration fees.
3. Decide Your Company Structure
Choosing the proper company structure for your business is a key decision. A proper structure makes the company run more efficiently. So, choose a company structure from Sole proprietorship, Limited Liability Company (LLC) of a foreign company, or branch office of a foreign company.
4. Apply for the Business Licence
Apply for the appropriate license based on your business. RAK FTZ provides many license options, including dual license structures. Shuraa Business Setup can help you select the relevant license from the complete list and thereafter apply for it. Moreover, there are certain restrictions on the number of activities that can be carried out under one license in RAK FTZ. Also, you need to apply for your visas, along with some third-party NOCs (if required). Shuraa experts can better help you get appropriate licenses, approvals, and visas.
5. Get Your Business Licence
Once you've completed all of the requirements, you'll be able to get your business license. There is a slew of other requirements to be completed before you can launch your business. Shuraa experts are better proficient to help you with them, including establishment cards, entry permits, medical tests, and related rules based on your business activities.
6. Rent an Office
The final step is finding a place to set up your company in RAK. After you’ve found the office space/virtual office, the Monitoring and Consumer Protection Administration in the DED will visit the spot and give final approval.
7. Choose a Facility
It is mandatory to lease a facility to start a business in RAK FTZ. So, after applying for the license, choose a suitable facility. RAK FTZ offers a vast type of facilities, such as coworking spaces and serviced, standard, and executive offices. You may consider factors like amenities, size, and budget.
Also, based on your business activity, you can lease warehouses and land for development. If required, you can provide your male staff with convenient accommodations in the industrial zone itself.
Cost of Starting a Business in RAKEZ Free Zone
Starting a business in the RAKEZ Free Zone costs between AED 12,900 and AED 28,000 per year. This range depends on your business type, required licenses, and various fees.
Additional costs may apply if you need workforce accommodation, making it challenging to provide a specific total. For a detailed breakdown, consider factors like business activity, office space, and staffing needs when planning your budget.
Shuraa Business Setup experts can help you with the total cost and ensure you spend wisely.
Ras al Khaimah Business opportunities
RAK offers Top business opportunities in major industries.- Real Estate: With a booming property market, RAK offers lucrative investments in residential, and commercial.
- Tourism: The emirate's stunning landscapes and cultural heritage attract visitors, making tourism a profitable sector for businesses in hospitality and entertainment.
- Construction Materials: RAK is a hub for construction materials, providing opportunities for manufacturers and suppliers to meet growing local demand.
- Financial and Insurance Services: The financial sector in RAK is expanding, offering opportunities in banking, investment, and insurance services for both local and international clients.
- E-commerce: As online shopping grows, RAK presents a vibrant landscape for e-commerce businesses to thrive.
Start Your Business in the RAK Free Zone With Shuraa
Shuraa will make the process for business setup in Ras Al Khaimah as simple as possible. Furthermore, if your business has specific needs, we can build custom-made business setup packages for you. Reach out to us to kickstart your business in Ras Al Khaimah.
