Business Setup in RAKEZ (Ras Al Khaimah Economic Zone)

RAKEZ Business Setup Complete Details Step By Step

Ras Al Khaimah Economic Zone is one of the leading business hubs in the United Arab Emirates (UAE), offering a wide range of services and benefits for entrepreneurs and companies looking to set up and operate in the region.

It is a cost-effective and efficient platform that provides flexible business solutions, making it an attractive option for local and international businesses.

In this article, we will cover the essential aspects of Setting Up a Business in RAKEZ, including the benefits, the steps involved, and the key factors to consider when choosing this economic zone for your business.

What is RAKEZ?

RAKEZ is a free zone in Ras Al Khaimah, one of the emirates of the UAE. It offers a wide array of services for businesses of all sizes, from start-ups to large multinational companies.

RAKEZ offers both free zone and non-free zone company formation options, providing flexibility and a wide range of benefits tailored to the specific needs of different industries.

The free zone offers tax exemptions, 100% foreign ownership, easy access to the UAE and international markets, and modern infrastructure.

It’s home to many industries, including trading, manufacturing, services, and logistics. This makes RAKEZ a popular choice for investors looking to expand their businesses in the UAE.

Benefits of Setting Up a Business in RAKEZ

There are several key benefits to Set up Business in RAKEZ, including:

1. 100% Foreign Ownership: One of the primary advantages of Setting up a Business in RAKEZ is the ability for foreign investors to fully own their companies without the need for a local sponsor, as is required in many other parts of the UAE.
2. Tax Exemptions: RAKEZ offers tax incentives such as exemptions from personal income tax, corporate tax, and import/export duties for most businesses. This tax-friendly environment can significantly reduce operational costs.
3. Full Repatriation of Profits and Capital: RAKEZ allows businesses to repatriate 100% of their profits and capital, ensuring that foreign investors can easily transfer funds in and out of the region without restrictions.
4. Modern Infrastructure: RAKEZ provides access to world-class infrastructure, including state-of-the-art office spaces, warehouses, and business centers, making it easier for companies to set up and grow.
5. Strategic Location: RAKEZ is strategically located, offering easy access to global markets through the UAE’s well-connected airports and seaports. The proximity to key markets in the Middle East, Europe, and Asia gives businesses a competitive edge.
6. Affordable Setup Costs: RAKEZ is known for its cost-effective business setup options. It offers competitive rates for company registration, office space leasing, and other essential services.
7. Visa Facilities: RAKEZ offers various visa packages for employees, allowing businesses to bring in talent from all over the world. Investors and business owners can also benefit from residence visa options.
8. Networking Opportunities: Being part of the RAKEZ community opens doors to numerous networking opportunities. The zone is home to a wide range of industries, which fosters collaboration, innovation, and business growth.
9. Legal Framework: RAKEZ operates under a transparent and simple legal framework. This makes it easier for businesses to understand their obligations and ensure compliance with regulations.

Types of Business Licenses in RAKEZ

RAKEZ offers different types of licenses to cater to a variety of business activities. These include:

1. Commercial License: For businesses involved in trading, import/export, and distribution of goods.
2. Service License: For businesses offering services such as consulting, marketing, and IT services.
3. Industrial License: For companies involved in manufacturing or industrial production.
4. E-commerce License: For businesses that conduct their operations primarily online, such as online retail stores.
5. Professional License: For independent professionals offering services like legal consulting, accounting, or engineering.

Each license type has specific requirements and costs associated with it, so it’s essential to determine which license fits your business model before moving forward with the setup.

Steps to Set Up a Business in RAKEZ

Setting up a Business in RAKEZ involves several straightforward steps. Below is a simple guide to help you understand the process:

1. Determine the Type of Business: The first step is to decide what type of business you want to set up. Determine whether you need a commercial, service, industrial, or professional license based on the nature of your business.
2. Choose a Business Name: Choose a business name that complies with RAKEZ naming conventions. The name should not include offensive or inappropriate words, and it must be available for registration.
3. Prepare the Required Documents: The documents required for business setup typically include:
   • A copy of your passport
   • Passport-sized photographs
   • A business plan (if required)
   • Proof of address
   • Completed application forms
   • Lease agreement (for office/warehouse space)

Additional documents may be required depending on the type of business.

1. Apply for the Business License: Submit the application for your desired Business License to RAKEZ. The application will include all required documents. Once the application is processed and approved, you will be issued a business license.
2. Lease Office/Workspace: RAKEZ offers a variety of office spaces and warehouses depending on your business needs. Choose the one that suits your requirements and budget.
3. Obtain Employee Visas: If you plan to hire employees, RAKEZ will assist in issuing employment visas for your staff. The number of visas you can apply for will depend on the size and nature of your business.
4. Open a Bank Account: Once your business license is approved, you can open a corporate bank account in the UAE. This is necessary for managing your business’s financial transactions.
5. Start Operations: After completing the formalities and securing all necessary approvals, you can begin operating your business in RAKEZ.

Key Considerations

While RAKEZ offers numerous benefits, there are a few key considerations to keep in mind before setting up your business:

1. Business Activity Restrictions: Some business activities may not be allowed in RAKEZ, depending on the license type. Be sure to verify the type of business activity before applying for a license.
2. Office and Workspace Requirements: Even though RAKEZ offers flexible options for office space, you must ensure that your chosen office or warehouse meets the necessary requirements based on your business size and operations.
3. Compliance with Regulations: RAKEZ is known for its transparent legal framework, but it’s important to stay up to date with any changes in regulations that may affect your business.
4. Renewal of Licenses: Business Licenses in RAKEZ are typically valid for one year and need to be renewed annually. Be sure to renew your business license on time to avoid penalties or disruptions to your operations.
5. Visa and Immigration Rules: While RAKEZ makes it easy to obtain visas for employees, make sure you understand the latest immigration rules for hiring staff from abroad.

Benefits of Business Setup in RAKEZ

Ras Al Khaimah Economic Zone (RAKEZ) offers numerous benefits that make it an attractive destination for entrepreneurs and businesses looking to establish themselves in the UAE.

Whether you’re setting up a small start-up or a large multinational, RAKEZ offers a range of advantages to help your business succeed. Here are some of the key benefits of setting up a business in RAKEZ:

1. 100% Foreign Ownership

RAKEZ allows 100% foreign ownership of businesses, meaning foreign investors do not need a local sponsor or partner to set up their company. This is a significant advantage for international entrepreneurs who want full control of their business operations.

2. Tax Exemptions

RAKEZ offers attractive tax benefits for businesses. Companies registered in the zone enjoy exemptions from:

• Corporate tax
• Personal income tax
• Import/export duties

This tax-friendly environment can significantly reduce operational costs, making it a cost-effective choice for businesses.

3. Repatriation of Profits and Capital

RAKEZ allows businesses to repatriate 100% of their profits and capital. This means investors can transfer their earnings and investment back to their home country without restrictions, providing greater flexibility and ease in financial operations.

4. Strategic Location

RAKEZ is located in Ras Al Khaimah, a strategic area that offers easy access to both local and international markets. The UAE’s world-class infrastructure, including its ports and airports, facilitates seamless trade and logistics, providing businesses with direct access to markets in the Middle East, Europe, Asia, and Africa.

5. Cost-Effective Setup and Operating Costs

RAKEZ is known for its affordable business setup options. The cost of establishing a business in RAKEZ is competitive when compared to other economic zones in the UAE. The free zone provides flexible packages that cater to different business types and sizes, making it an appealing option for both start-ups and established companies.

6. Modern Infrastructure

RAKEZ provides businesses with access to high-quality infrastructure, including:

• Office spaces
• Warehouses
• Business centers

The zone is designed to support the needs of different industries, from manufacturing and trading to professional services, ensuring that businesses have the resources they need to operate smoothly.

7. Visa Facilities

RAKEZ offers a variety of visa options for business owners, investors, and employees. Business owners can obtain residency visas, and businesses can hire international talent through employee visas. This makes it easier to recruit skilled professionals and manage a diverse workforce.

8. Simple and Transparent Legal Framework

RAKEZ operates under a simple and transparent legal framework, making it easy for businesses to understand the rules and regulations. The process for business registration and compliance is straightforward, ensuring businesses can quickly get started without unnecessary bureaucracy.

9. Support for Business Growth

RAKEZ provides a range of business support services, including:

• Assistance with the licensing process
• Help with choosing the right business structure
• Networking opportunities with other businesses

The support from RAKEZ helps businesses navigate the startup phase and ensures they have the tools and resources they need for growth and success.

10. Wide Range of Business Activities

RAKEZ offers a diverse range of business licenses for different industries, including:

• Commercial licenses (for trading and distribution)
• Service licenses (for consultancy and professional services)
• Industrial licenses (for manufacturing and production)
• E-commerce licenses (for online businesses)
• Freelance permits (for independent professionals)

This variety of license options allows businesses in a wide range of sectors to set up operations in RAKEZ, making it a versatile choice for entrepreneurs.

11. Flexible Business Models

RAKEZ offers businesses the flexibility to choose between different types of setups. Whether you are looking to establish a sole proprietorship, a partnership, or a branch of an international company, RAKEZ can accommodate various business models.

12. No Currency Restrictions

RAKEZ allows businesses to operate in any currency. There are no restrictions on the type of currency that can be used in transactions, giving businesses more freedom in their international operations and financial dealings.

13. Efficient Company Setup Process

The process of Setting Up a Business in RAKEZ is quick and efficient, with clear steps and minimal paperwork. Once the required documents are submitted, companies can often get their licenses within a few days. This makes it an attractive option for entrepreneurs looking for a fast and hassle-free business setup.

14. Excellent Networking Opportunities

RAKEZ is home to a diverse community of businesses from various industries. The zone encourages networking and collaboration, creating opportunities for businesses to form partnerships, share knowledge, and expand their market reach.

15. Access to International Markets

RAKEZ’s strategic location provides businesses with direct access to international markets. The proximity to global trade routes, airports, and seaports makes it easy for businesses to export and import goods, reaching customers in the UAE, the GCC, and beyond.

16. Access to Business Support Services

RAKEZ provides a wide range of business support services, including:

• Licensing
• Office space leasing
• Visa issuance
• Bank account assistance
• IT and logistical support

These services help streamline the process of establishing and running a business, ensuring that entrepreneurs can focus on growth rather than administrative tasks.

17. Support for SMEs and Startups

RAKEZ is particularly supportive of small and medium-sized enterprises (SMEs) and startups. With its affordable pricing structure, flexible business models, and supportive ecosystem, it’s an ideal platform for entrepreneurs looking to start and grow their businesses in the UAE.

Business Activities for Setup in RAKEZ

Ras Al Khaimah Economic Zone (RAKEZ) provides a diverse range of business activities that can be pursued by entrepreneurs and companies.

Whether you are starting a small business or expanding a large enterprise, RAKEZ offers licenses for various sectors to cater to the needs of different industries.

Below is an overview of the types of business activities that can be Setup in RAKEZ.

1. Commercial Activities

Commercial Businesses in RAKEZ are typically involved in the trading, import, export, and distribution of goods. This category is one of the most popular, and it covers a wide range of activities including:

• Trading: Import and export of products, including electronics, apparel, food, and machinery.
• Distribution: Companies that distribute products to retailers, wholesalers, or end customers.
• Retailing: Operating retail stores or showrooms selling consumer goods.

RAKEZ offers licenses for businesses to operate in both physical retail outlets and online platforms. The flexibility in licensing allows companies to engage in business activities across multiple markets.

2. Service Activities

Service-based businesses focus on providing services to other businesses or consumers rather than selling products. Service licenses in RAKEZ are available for a wide range of industries, such as:

• Consulting: Businesses offering professional consulting services in various fields like management, IT, marketing, human resources, finance, and legal services.
• Technology Services: IT solutions, software development, and tech support services.
• Marketing and Advertising: Companies providing branding, design, digital marketing, and public relations services.
• Healthcare Services: Medical consultancy, wellness services, and medical equipment supply.
• Education and Training: Educational consultancy, coaching, e-learning, and corporate training services.

These types of businesses are ideal for professionals who wish to offer their expertise in fields like law, accounting, education, or digital solutions.

3. Industrial Activities

RAKEZ is well-suited for manufacturing and industrial companies. The industrial licenses cover activities related to the production, processing, and assembly of goods. Some examples of industrial activities include:

• Manufacturing: Production of goods such as furniture, textiles, chemicals, and electronic products.
• Assembly and Packaging: Companies engaged in assembling parts into finished products or packaging goods for distribution.
• Construction and Engineering: Involved in the construction of buildings, infrastructure, and engineering services for industrial projects.
• Automotive and Machinery: Businesses involved in manufacturing vehicles, parts, and machinery.

RAKEZ provides industrial units, warehouses, and storage spaces for businesses in the manufacturing sector, giving them the facilities to operate efficiently.

4. E-commerce Activities

The rise of online businesses has led to the growing demand for e-commerce licenses. RAKEZ offers e-commerce licenses for businesses involved in:

• Online Retail: Selling products directly to customers via online platforms, including fashion, electronics, home goods, etc.
• E-commerce Platforms: Running platforms that enable other businesses or individuals to sell products or services online.
• Digital Products and Services: Offering downloadable goods, such as software, digital media, and content, as well as providing services like online consulting, education, or design.

E-commerce businesses benefit from RAKEZ’s flexible business structure, which allows companies to operate entirely online, reducing overhead costs associated with physical storefronts.

5. Freelance Activities

Freelancing is an increasingly popular way of working, and RAKEZ offers a freelance license for individuals who wish to operate as independent professionals in various fields. Freelance activities include:

• Creative and Design Services: Graphic design, web design, multimedia services, and content creation.
• Technology Services: Software development, app development, and IT support.
• Consultancy: Freelance consultants offering advice in business, marketing, or project management.
• Writing and Content Creation: Freelance writers, bloggers, and content creators who offer writing services to clients across industries.

A Freelance License in RAKEZ provides an excellent option for independent professionals who want to operate legally while enjoying the benefits of the free zone’s infrastructure and visa facilities.

6. Professional Services

Professional services cover a wide range of activities where individuals provide expert advice or services to businesses or consumers. This category includes:

• Legal Services: Law firms, legal advisors, notaries, and other legal professionals.
• Accounting and Auditing: Chartered accountants, auditors, and tax consultants.
• Engineering Services: Consulting engineers, technical experts, and design professionals.
• Architecture: Architectural firms, landscape designers, and urban planning services.

RAKEZ offers professional licenses for businesses that provide high-level expertise and advice, ensuring that professionals have access to an organized legal framework and business resources to operate successfully.

7. Media and Creative Activities

For those in the creative industries, RAKEZ provides licenses for media-related activities, including:

• Film and Video Production: Film production companies, animation studios, and video production businesses.
• Advertising Agencies: Firms specializing in advertising, branding, and media planning.
• Public Relations: Companies offering public relations services to businesses and organizations.
• Photography: Professional photographers offering services to events, businesses, and individuals.

RAKEZ is a great hub for businesses in the media and creative sectors, offering access to modern facilities, networking opportunities, and a creative ecosystem.

8. Logistics and Transportation

RAKEZ is home to various logistics and transportation companies that handle the movement of goods across local, regional, and international markets. Activities in this sector include:

• Shipping and Freight Forwarding: Companies involved in the transportation of goods via sea, land, or air.
• Warehousing and Distribution: Providing storage, inventory management, and order fulfillment services for businesses.
• Courier and Delivery Services: Companies that handle the transportation of goods directly to customers or businesses.

RAKEZ’s location provides easy access to major ports, highways, and airports, making it an ideal base for logistics and transportation businesses.

9. Tourism and Hospitality

RAKEZ supports businesses in the tourism and hospitality industry, offering licenses for:

• Tour Operators: Companies providing travel packages, sightseeing tours, and holiday experiences.
• Hotels and Resorts: Establishments providing lodging services to travelers.
• Event Management: Businesses offering services related to event planning and coordination.
• Catering and Restaurants: Food service businesses, from restaurants to catering companies.

With the UAE being a popular tourist destination, the tourism and hospitality sector continues to grow, and RAKEZ provides the infrastructure and support needed for businesses in this industry.

10. Environmental and Renewable Energy

The UAE is increasingly focusing on sustainability and clean energy, and RAKEZ has licenses for businesses in environmental and renewable energy sectors, including:

• Waste Management: Companies providing services in waste disposal, recycling, and environmental protection.
• Renewable Energy: Businesses involved in solar power, wind energy, and other renewable energy solutions.
• Environmental Consultancy: Firms that offer advice and services related to environmental regulations and sustainability practices.

This sector is crucial to the UAE’s long-term vision for sustainability, and RAKEZ offers an ideal environment for businesses working in renewable energy and environmental protection.

Package – Starting From AED 5,499 (3-Year License)

Ideal for entrepreneurs seeking a cost-effective entry into the UAE market, this package includes:

• One business activity
• Up to five shareholders
• Coworking space access
• Eligibility for bank account opening
• Access to business networking events
• Other essential services like VAT registration, accounting, and compliance

This package is suitable for commercial trading, e-commerce, consultancy, media, e-gaming, and education sectors.

All-Inclusive Business Setup Package – Starting From AED 16,500/year

Designed for those seeking a comprehensive solution, this package offers:

• One business activity
• UAE residence visa
• Third-party visa processing
• Immigration file/e-channel
• Emirates ID and medical
• Pre-approval for business activities
• Business license
• Shared workstation

This package is ideal for startups and small enterprises looking for a seamless setup experience.

Starting From Instant License – Starting From AED 16,500

For those needing a quick setup, the Instant License allows you to obtain a business license within minutes. It includes:

• One business activity
• One shareholder
• Coworking space access
• Residence visa

This option is perfect for entrepreneurs who are ready to start immediately.

Manufacturing License – Starting From Approx. AED 18,000

For businesses involved in manufacturing, the setup cost includes:

• Industrial license
• Company registration
• Administration and immigration charges
• Warehouse leasing (separate cost)

This package is suitable for businesses in sectors like textiles, construction materials, and electronics.

Freelance Visa Package – Starting From AED 16,500/year

Tailored for freelancers, this package includes:

• Freelance visa
• Business license
• Shared workstation
• Eligibility to sponsor family members
• This option is ideal for independent professionals in fields like IT, media, and consultancy.

This option is ideal for independent professionals in fields like IT, media, and consultancy.

Note: Costs may vary based on specific business activities, office space requirements, and additional services. It’s advisable to consult with RAKEZ directly to get a tailored quote.

Business Setup in Rakez

Free Zones in Rakez

Ras Al Khaimah Economic Zone (RAKEZ) comprises six specialized zones, each tailored to specific business needs:

• Al Ghail Industrial Zone – Designed for large-scale industrial manufacturing enterprises.
• Al Hamra Industrial Zone – Suited for light industries and heavy industrial projects.
• Al Hulaila Industrial Zone – Focused on heavy manufacturing industries.
• RAKEZ Academic Zone – Home to qualified international educational institutions and service providers.
• Al Nakheel Business Zone – A modern zone for SMEs and freelancers, comprising first-class business centers.
• Al Hamra Business Zone – Located between the city center and neighboring emirates, ideal for various business activities.

These zones offer a range of facilities and services to support businesses across different sectors.

FAQs

Question 1: What is RAKEZ (Ras Al Khaimah Economic Zone)?

Answer: RAKEZ is a leading Free Zone and economic zone in the UAE that offers cost-effective business setup solutions for entrepreneurs, startups, SMEs, and industrialists with access to global markets.

Question 2: Why should I choose RAKEZ for my business setup?

Answer: RAKEZ offers competitive pricing, 100% foreign ownership, flexible business packages, and access to industrial, commercial, and service licenses, making it a preferred choice for investors looking for affordability and flexibility.

Question 3: What types of licenses are available in RAKEZ?

Answer:

• Commercial License
• Service License
• Industrial License
• Freelancer Permit
• Media License
• Educational License

Question 4: Can I own 100% of my company in RAKEZ?

Answer: Yes, RAKEZ allows 100% foreign ownership of companies, with no need for a local UAE partner.

Question 5: How long does it take to set up a business in RAKEZ?

Answer: Business setup in RAKEZ is fast and efficient — it can take as little as 1 to 3 working days after submitting all required documents.

Question 6: What is the minimum capital requirement for starting a company in RAKEZ?

Answer: RAKEZ does not impose a mandatory minimum capital requirement for most license types, making it ideal for startups and SMEs.

Question 7: Can I apply for UAE residence visas through RAKEZ?

Answer: Yes, RAKEZ companies are eligible to apply for UAE residence visas for shareholders, employees, and dependents, subject to visa package limits.

Question 8: Is physical office space mandatory in RAKEZ?

Answer: RAKEZ offers flexible office solutions, including shared workspaces, Flexi-desks, executive offices, and warehouses. For some license types, a Flexi-desk is sufficient.

Question 9: Can RAKEZ companies open corporate bank accounts in the UAE?

Answer: Yes, companies registered under RAKEZ can open UAE business bank accounts, and RAKEZ provides banking support through partnerships with local and international banks.

Question 10: What are the benefits of RAKEZ compared to other UAE Free Zones?

Answer:

• Affordable setup packages
• Wide range of business activities
• Industrial zone access
• Easy visa and license processing
• Strategic location near RAK Airport and seaports