10 Steps to a Successful RAK Economic Zone Company Setup

Introduction to RAK Economic Zone Company Setup

Starting a new business in a place that’s full of great advantages could really boost your chances of success. The Ras Al Khaimah (RAK) Economic Zone is like a magnet for people with big business dreams and those who are already experienced in the business world. It’s known for making things easy, saving you money, and offering lots of room to grow. This guide is made carefully to help you through all the important steps to a successful RAK Economic Zone company setup, making sure your business takes off in this important location.

Advantages of Setting Up Your Business in RAK Economic Zone

Tax Benefits

Enjoy the liberty of tax benefits, offering a financially viable landscape for businesses of any scale within the RAK Economic Zone.

Ownership Freedom

Stand out with RAK Economic Zone’s policy of 100% foreign ownership, giving you full control over your business.

Effortless Setup

Benefit from the RAK’s Economic Zone’s straightforward company registration process, ensuring a quicker launch compared to other regions.

Broad Business Spectrum

Catering to a diverse array of business activities, RAK Economic Zone delivers the flexibility to pursue your passion and respond to market demands efficiently.

Step-by-Step Guide to RAK Economic Zone Company Setup

1. In-depth Market Research

Kickstart your journey with comprehensive market analysis to pinpoint the perfect business niche matching your expertise and the current market needs—a crucial step for a successful RAK Economic Zone company setup.

2. Legal Entity Selection

Dive into RAK Economic Zone’s variety of options including Free Zone Establishment (FZE), Free Zone Company (FZC), and Branch of a Foreign Company. Weigh each option’s benefits to align with your business goals.

3. Naming and Initial Approval

Craft a unique and compliant company name, securing initial nods from the authorities by furnishing the chosen name alongside requisite documents.

4. Documentation Ready

Assemble vital documents such as passport copies, business plan, shareholder information, and MOA/AOA, ensuring completeness and precision to meet RAK Economic Zone’s stringent requirements.

5. Application and Fees

Propel forward by submitting your RAK Economic Zone business setup application with all necessary documents, attending to the fee requirements covering registration, licenses, visas, and more.

6. Office Space Finalization

Select your ideal office space in RAK Economic Zone, carefully reviewing the lease terms to ensure alignment with your business needs and goals.

7. License and Permits Acquisition

Obtain your trade license, establishment card, and visas for your team, adhering closely to all regional regulations and securing supplementary approvals if needed.

8. Banking and Capital

Open a corporate bank account, depositing the mandated share capital, thus showcasing your financial readiness and operational commitment.

9. VAT and Tax Registration

Depending on your business’s scale and activities, VAT registration and adherence to tax obligations become necessary. Stay abreast of and comply with all relevant tax laws.

10. Launch Your Business

With every piece in place, embark on your business venture in RAK Economic Zone. Craft a robust strategy, build your network, and keep informed to navigate the marketplace successfully and secure enduring success.

Exploring Business Licenses in RAK Economic Zone

Delve into a variety of business licenses available in RAK Economic Zone catering to diverse entrepreneurial aspirations:

1. Commercial License: Permits import, export, distribution, and warehousing of limited goods.

2. General Trading License: Allows import, export, distribution, and warehousing of diverse goods within legal boundaries.

3. E-Commerce License: Facilitates online trading activities, including electronic buying and selling.

4. Industrial License: Enables import of raw materials, manufacturing, and export of finished products for a specific product line.

5. Media License: Required for operations involving media-related activities.

6. Professional License: Empowers individuals to offer professional services in their field of expertise.

7. Freelancer Permit: Catered to individuals offering freelance services in specified fields.

8. Educational License: Necessary for opening educational institutions or consultancy companies in the education sector.

9. Service License: Allows businesses to conduct services or consultancies across various industries.

Each license offers unique advantages tailored to specific business scopes. Engage with RAK Free Zone officials or seasoned business formation consultants to pinpoint the license that best matches your entrepreneurial vision.

Sub-Lease in RAK Economic Zone

Sub-leasing is an agreement in which a company enables another company to use a portion of the leased premises. It is only allowed once permitted by RAK Economic Authority.

The types of sub-lease allowed by RAK Economic Zone are:

1. Sub-lease of a vacant plot

To sub-lease a vacant plot in the RAK Economic Zone, there are certain requirements you need to meet:

1. You need to have a valid lease for the land, and you can’t owe any money to the RAK economic zone authorities.

2. The person or company you’re renting the land to (the sub-lessee) has to be either a subsidiary of your own company or somehow connected to it. This could be through a contract to buy or sell goods or services.

3. Both you (the sub-lessor) and the person or company you’re renting to (the sub-lessee) need to have enough space on the land for the activities you’re licensed to do, without causing problems for each other.

4. You are responsible for what the sub-lessee does on the land.

5. The person or company you’re renting to can’t pass on their right to use the land to someone else.

6. The agreement you make with the sub-lessee can’t go against the main lease agreement you have, and it ends when your lease ends.

2. Sub-lease of completed buildings/structures

To sub-lease buildings or structures in the RAK Economic Zone, there are certain requirements you need to meet:

1. The building or structure you want to sub-lease must be fully built and ready to use.

2. You need to have a valid lease for the building or structure, and you can’t owe any money to the RAK economic zone authorities.

3. The person or company you’re sub-leasing to must have a license for the activities they plan to carry out in the building or structure.

4. You are responsible for what the sub-lessee does in the building or structure.

5. The person or company you’re sub-leasing to can’t transfer their right to use the building or structure to someone else.

6. The agreement you make with the sub-lessee can’t go against the main lease agreement you have, and it ends when your lease ends.

Conclusion

Starting a business in Ras Al Khaimah Economic Zone (RAKEZ) offers loads of benefits. Our guide has broken down the process into ten simple steps to help you set up your company smoothly.

From doing market research to finally launching your business, each step is carefully laid out to make things easy for you. RAK Economic Zone company setup gives you perks like full control over your business, and a straightforward setup process.

By following our guide, you’ll not only tackle the process effortlessly but also set your business up for long-term success.

Choosing Your Service Provider

Adam Global is a renowned business service provider in Dubai, UAE. Our team of professionals offers solutions to help you with the challenges, opportunities, and business goals. With our proven track record and personalized approach, we empower entrepreneurs to thrive in today’s competitive market. Trust Adam Global for comprehensive consulting services that drive success for your business.

Feel free to reach out to us at +971 4 341 9701