Ras Al Khaimah is a much sought after free trade zone in the UAE due to its low set-up and maintenance costs. Ras Al Khaimah Free Trade Zone (RAK FTZ) is located about 45-50 minutes’ drive from Dubai, making it a very attractive destination for expat investors. The customized support services and various tax incentives add to the appeal of company formation in RAK.
Benefits of company investment in RAK
The various cost effective features of RAK FTZ include considerably low rents, low business license costs and even the extremely low cost of living.
The other added benefits are:
- Complete tax exemption
- Full ownership for foreign investors
- Complete capital and profit repatriation
- Clear and easy legal framework
- Just 95 km from Dubai
- Easy access to sea and all airports in the UAE
- Excellent communication facilities
- Uninterrupted power supply
- Quick and easy procedures for application
Business licenses in the Ras Al Khaimah Free Zone
Selection of a proper business license is the first step for opening a company in the Ras Al Khaimah Free Zone. Generally, there are four types of licenses issued for companies in RAK FTZ.
- General trading license
- Industrial license
- Commercial license
- Consultancy or Services license
The business licences are issued for a period of one year which can be renewed on a yearly basis. For renewal of license, audit reports have to be submitted.
The required documents for company formation in RAK
The procedures for company registration in Ras Al Khaimah Free Zone are quite simple. The necessary step to be taken before registration is to prepare all necessary documents for registration. The required documents are:
- Application form
- Certificate of incorporation
- A summary of the business objectives
- A reference letter from the bank where the investor has account
- Passport copies of the shareholder
Some companies may require additional documents according to their trade specifications.
The four legal entitiesavailable for company formation are:
- Free Zone Establishment (FZE): This allows a new business venture with a sole owner.
- Free Zone Company (FZC): This allows a new business entity to be owned by 2-5 shareholders.
- Branch office of a Local Company: This is applicable to a domestic company in UAE with a parent company operating for more than one year.
- Branch of a Foreign Company: This allows the branch of a foreign company to be operated in RAK FTZ where the parent company is functioning for more than one year.
With business opportunities aplenty for expat investors, Ras Al Khaima is full of promises. If you have any doubts regarding company formation in Ras Al Khaima, a company formation agency in UAE can guide you through the necessary procedures and help you set up a company in RAK free zone.