Your Complete Roadmap to Business Success in RAK Free Zone

The Ras Al Khaimah Free Zone (RAKEZ) has emerged as one of the UAE’s most competitive and business-friendly jurisdictions. With its strategic location, cost-effective licensing options, and streamlined processes, RAKEZ offers entrepreneurs and companies an ideal environment to establish and grow their businesses in the region.

This comprehensive guide walks you through everything you need to know about setting up your business in the Ras Al Khaimah Free Zone.

Why Choose Ras Al Khaimah Free Zone?

RAKEZ delivers exceptional value for businesses looking to establish a presence in the UAE with advantages including:

• Cost-Effective Setup: RAKEZ is renowned for its competitive pricing structure, offering significantly lower costs for company establishment and ongoing operations compared to many other free zones in the UAE. This affordability makes it an attractive option for startups, SMEs, and even larger enterprises looking to optimize their expenses. Packages can be tailored to different needs, including options with varying visa allocations.
• Strategic Location: Situated at a vital crossroads, RAKEZ provides excellent connectivity to major global markets. Its proximity to international airports (including Ras Al Khaimah International Airport) and seaports (like Saqr Port) facilitates efficient access to international logistics networks, streamlining supply chains and reducing transportation costs for businesses engaged in import and export. The location offers a gateway to the Middle East, North Africa, Europe, and Asia.
• 100% Foreign Ownership: Similar to Fujairah, RAKEZ allows for complete foreign ownership of companies established within the free zone. This eliminates the requirement for a local partner or sponsor, granting international investors full control over their business, decision-making processes, and profit repatriation.
• Zero Tax Benefits: RAKEZ offers a highly attractive tax environment. While the UAE has introduced a corporate tax, RAKEZ companies that qualify as “Qualifying Free Zone Persons” and earn “Qualifying Income” can benefit from a 0% corporate tax rate. Additionally, there is generally no personal income tax, maximizing the profitability and potential for reinvestment for businesses and their employees.
• Diverse Facility Options: RAKEZ caters to a wide spectrum of business needs by providing diverse infrastructure and facility options. These range from cost-effective flexi-desks and shared workstations for startups and freelancers to dedicated and executive offices for larger teams. Furthermore, RAKEZ offers warehousing facilities with customizable units, as well as land available for development, accommodating industrial and manufacturing activities. Virtual office solutions are also available for businesses seeking a presence without a physical office space.

Whether you’re a startup founder, SME owner, or international corporation, RAKEZ provides tailored solutions for your business growth.

Step-by-Step Setup Process in RAKEZ

Setting up your business in RAKEZ follows these straightforward steps:

1. Select Your Business Activity: The first crucial step involves clearly defining the specific business activities your company will undertake. RAKEZ offers a comprehensive list of over 100 permitted activities, spanning various sectors. Carefully selecting the activities that accurately reflect your business operations is essential for the licensing process and future growth.
2. Choose Your Company Type: Next, you need to determine the most appropriate legal structure for your business. RAKEZ offers several options, including Free Zone Company (FZC) with multiple shareholders, Free Zone Establishment (FZE) with a single shareholder, Branch of a foreign or local company, and others. Your choice should align with your long-term business objectives, ownership structure, and liability considerations.
3. Select Your Facility: RAKEZ provides a diverse range of physical and virtual facilities to cater to different business needs and budgets. Options include prestigious executive offices, standard office spaces for teams of various sizes, customizable warehouses for storage and logistics, land plots for development of bespoke industrial or commercial projects, flexible and cost-effective workstations, and virtual office solutions for a professional presence without a dedicated physical space.
4. Submit Application & Documentation: Once the above decisions are made, you’ll need to complete the official application forms and prepare the necessary supporting documents. These typically include passport copies of shareholders and directors, a detailed business plan outlining your activities and projections, and other relevant corporate documents. Submitting these through RAKEZ’s platform initiates the preliminary approval process.
5. Receive Initial Approval: Upon successful review of your application and documents, RAKEZ will issue an initial approval. This is typically a swift process, often completed within 1-2 working days. The initial approval is usually valid for a specific period (e.g., 90 days), providing you with the time to finalize the registration process.
6. Make Payment & Finalize Registration: To proceed with the final registration, you will need to make the required payments, which include fees for the business license, chosen facility, and the registration process itself. Subsequently, you will be required to sign the legal incorporation documents, formalizing the establishment of your company within RAKEZ.
7. Receive Company License & Documents: The final step involves receiving your official trade license and other essential incorporation documents from RAKEZ. Once these are in hand, your company is legally established and ready to commence its business operations immediately within the Ras Al Khaimah Free Zone. RAKEZ’s digital platform aims to make this entire process as efficient and paperless as possible.

Documentation Requirements for RAKEZ Setup

To establish your company in RAKEZ, you’ll typically need to prepare:

• For Individual Shareholders/Directors:
  • Passport copies (valid for at least 6 months).
  • Recent passport-sized photographs.
  • CV or resume.
  • Proof of address (utility bill or bank statement).
• For Corporate Shareholders:
  • Certificate of Incorporation.
  • Memorandum and Articles of Association.
  • Board resolution approving the RAKEZ setup.
  • Certificate of Good Standing.
• Business Documentation:
  • Business plan.
  • Description of activities.
  • Company name suggestions (minimum 3 options).

All documents in foreign languages must be legally translated into Arabic.

Visa Eligibility and Process

RAKEZ license holders can sponsor residence visas for:

• Business owners/investors
• Employees
• Family members and domestic staff

The visa allocation depends on your facility size and type:

• Virtual Office: Up to 3 visas
• Shared Workstation: Up to 3 visas
• Standard Office: Based on office size (typically 1 visa per 9 sqm)
• Warehouse/Land: Based on size and business activity

The visa process involves:

1. Entry permit application
2. Status change (if inside UAE)
3. Medical fitness test
4. Emirates ID registration
5. Residence visa stamping

Our team provides comprehensive visa assistance, ensuring a smooth process for you and your team.

Banking Options for RAKEZ Companies

RAKEZ businesses have access to a robust banking ecosystem, including:

• Local UAE Banks: Emirates NBD, ADCB, RAK Bank, etc.
• International Banks: HSBC, Standard Chartered, Citibank, etc.

Account opening typically requires:

• Trade license and company documents
• Passport copies of shareholders/signatories
• Bank forms and KYC documentation
• Initial deposit (varies by bank)

Our banking assistance service helps facilitate introductions to suitable banking partners based on your business profile and requirements.

Post-Setup Compliance and Management

After establishing your RAKEZ company, you’ll need to maintain compliance with:

1. Annual License Renewal: Maintaining a valid trade license is crucial for continued operation in RAKEZ. The renewal process typically requires applying approximately 30 days before the license expiry date. It’s also important to update any company documents if there have been changes in ownership, management, or business activities. Timely payment of the annual renewal fees is necessary to ensure uninterrupted business operations.
2. Visa Renewals: If your company sponsors employees or their dependents for UAE residency visas, managing their timely renewal is a key compliance requirement. This process involves various steps, including application submission, completion of mandatory medical tests for visa holders, and ensuring appropriate health insurance coverage is in place as per UAE regulations. Efficient visa renewal processes are vital for maintaining your workforce and their legal status.
3. Facility Lease Renewal: For businesses utilizing physical facilities within RAKEZ, such as offices or warehouses, the lease agreement will have a specific term and require periodic renewal. It’s important to review the lease terms well in advance of the expiry date and initiate the renewal process. This may also be an opportune time to explore options for upgrading to larger or different types of facilities if your business needs have evolved.
4. Corporate Amendments: As your business evolves, you may need to make changes to its structure or operational details. This could include alterations to the shareholder composition, changes in the board of directors, modifications to the registered business activities, or updates to the company’s legal name. Any such amendments require formal processing with RAKEZ to ensure all official documentation is accurate and up-to-date.

Our ongoing support ensures your business remains fully compliant, allowing you to focus on growth rather than administrative requirements.

Industries Thriving in RAKEZ

Businesses in these sectors particularly benefit from RAKEZ’s infrastructure and incentives:

• Manufacturing & Industrial Production
• Trading & Distribution
• Logistics & Supply Chain
• E-Commerce & Digital Services
• Media & Creative Industries
• Educational Services
• Professional Services & Consulting
• Technology & Innovation

The zone’s specialized facilities and business-friendly regulations create an ideal environment for these industries to flourish.

Why Choose 1Tapbiz?

• Simplified Process: 1tapbiz aims to demystify the often complex UAE business setup process. They offer clear, step-by-step guidance, reducing the administrative burden on entrepreneurs. This simplification saves valuable time and resources.
• Expert Guidance: Navigating UAE regulations can be challenging. 1tapbiz provides access to experienced consultants with in-depth knowledge of local laws and procedures. This expertise ensures compliance and minimizes the risk of costly errors.
• Tailored Solutions: Recognizing that every business is unique, 1tapbiz offers customized solutions tailored to specific needs. Whether it’s choosing the right business structure, securing licenses, or handling visa applications, they provide personalized support.
• Cost-Effectiveness: 1tapbiz aims to provide transparent and competitive pricing, helping entrepreneurs manage their startup costs effectively. By streamlining processes and leveraging their expertise, they help avoid unnecessary expenses.
• Comprehensive Services: From initial business registration to visa processing and ongoing support, 1tapbiz offers many services. This comprehensive approach eliminates the need to engage multiple service providers, simplifying the overall process.

Contact Us Today to explore how Ras Al Khaimah Free Zone can be the perfect home for your business, or to begin your company formation process with our expert guidance.