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Why Ras Al Khaimah?

Ras Al Khaimah

Ras Al Khaimah Economic Zone (RAKEZ) is one of the free zones in the United Arab Emirates (UAE) that offers various benefits and incentives to businesses looking to establish a presence in the region. In this article, we will explore the differences between RAKEZ and other free zones in the UAE, emphasizing its unique features and advantages.

1. Location:

RAKEZ is strategically located in the emirate of Ras Al Khaimah, which is one of the fastest-growing cities in the UAE. Its proximity to major international airports and ports makes it an ideal location for businesses seeking access to global markets. Other free zones in the UAE, such as Dubai Multi Commodities Centre (DMCC) and Abu Dhabi Global Market (ADGM), have their own advantages based on their locations, but RAKEZ’s location offers a blend of favorable economic conditions and natural beauty.

2. Cost-effectiveness:

RAKEZ stands out due to its cost-effectiveness compared to other free zones in the UAE. It offers competitive pricing on its licenses, facilities, and services, making it an attractive option for both startups and established enterprises. RAKEZ has various cost-effective packages that cater to different types of businesses, including flexi-desk options for small businesses and large-scale production facilities for industrial activities. This affordability factor allows businesses to allocate their financial resources more efficiently and invest in growth opportunities.

3. Licensing options:

RAKEZ provides a wide range of licensing options to meet the diverse needs of businesses. It offers both free zone and non-free zone licenses, providing businesses the flexibility to operate within the free zone or onshore, depending on their business model and customer base. This flexibility enables businesses to have a physical presence within the UAE and access the local market while enjoying the benefits of a free zone, such as 100% foreign ownership and exemption from corporate and personal income taxes.

4. Flexibility in business activities:

RAKEZ offers flexibility in terms of permitted business activities. It covers over 50 sectors, including industrial, commercial, and service activities, allowing businesses from diverse industries to operate under its jurisdiction. The free zone permits a wide range of activities, including manufacturing, trading, logistics, consultancy, and e-commerce, enabling businesses to explore different avenues based on their expertise and market requirements. This flexibility makes RAKEZ suitable for businesses with varying needs and niches.

5. Facilities and infrastructure:

RAKEZ provides state-of-the-art facilities and infrastructure to support businesses’ operational requirements. It offers premium office spaces, warehouses, industrial units, and land plots for lease or rent, accommodating businesses of all sizes. The free zone boasts modern infrastructure, including transport links and connectivity, which enhances accessibility and facilitates the movement of goods and services. Additionally, RAKEZ offers a one-stop-shop business center where businesses can access all the necessary government services and streamline their administrative processes.

6. Investor-friendly policies:

RAKEZ has implemented investor-friendly policies that attract local and foreign investors alike. It offers 100% foreign ownership, eliminating the requirement for a local sponsor or partner. Furthermore, it provides protection of intellectual property rights and allows businesses to repatriate 100% of their profits without any restrictions. These policies promote a favorable business environment, resulting in increased investor confidence and the establishment of sustainable business ventures.

7. Proximity to labor markets:

RAKEZ benefits from its proximity to labor markets in neighboring countries such as Oman and the Indian subcontinent. This proximity allows businesses in RAKEZ to tap into a vast pool of skilled and cost-effective labor. Furthermore, RAKEZ offers streamlined visa processes and provides support to companies for the recruitment of talent. This accessibility to a diverse labor market gives businesses a competitive edge and facilitates their growth trajectory.

8. Business support services:

RAKEZ provides a wide range of business support services to assist companies throughout their journey. It offers assistance with company setup, licensing, visa processing, and property leasing, among others. RAKEZ’s dedicated team of professionals ensures a smooth and efficient setup process, minimizing any operational disruptions. Additionally, the free zone organizes training programs, workshops, and networking events to enhance the knowledge and skills of the business community and foster collaboration among its members.

9. Ease of doing business:

RAKEZ simplifies the process of doing business within its jurisdiction. It has a streamlined online portal that enables businesses to access and complete various processes remotely. The free zone has also digitized several services, including company registration, visa applications, and licensing renewals, reducing paperwork and unnecessary delays. This ease of doing business creates a conducive environment for entrepreneurs and enables them to focus on their core operations.

10. Access to markets and incentives:

RAKEZ provides businesses with access to regional and international markets through its strategic location and strong logistics infrastructure. It offers a range of incentives, such as customs duty exemptions, with access to global markets through the UAE’s extensive network of free trade agreements. Additionally, RAKEZ has established partnerships with various organizations and institutions to facilitate market entry and expansion for businesses operating within its jurisdiction.

Other Free Zones

FeatureRAKEZOther UAE Free Zones
Cost-EffectivenessHighly competitive setup and operational costsGenerally higher, especially in Dubai/Abu Dhabi
Business Activity FlexibilityPermits 4,000+ activitiesSome are restricted or industry-specific
Specialized ZonesSix types including academic, media, etc.Varies by location
Tax Advantages0% corporate tax (with conditions)Not all zones qualify
Ownership100% foreign ownershipStandard in most zones
Setup ProcessFast (5–10 days), minimal paperworkSometimes bureaucratic
InfrastructureModern, scalableVaries
Location & ConnectivityAccess to MEA, Asia, EuropeSome less strategic

Frequently Asked Questions

Payment and Financial Questions

Payment is typically required after the initial approval of the chosen company name and completion of KYC before proceeding with the company formation. The standard process involves three stages: application submission, approval, and completion of payment. RAKEZ will not collect the fees if the preliminary application is rejected or incomplete.

RAKEZ accepts payments through multiple channels including online portal top-ups, bank transfers, cash payments at RAKEZ Business Service Centres, and cheque payments. For international clients, card payments or bank transfers are the most commonly used method. Payments are made directly to RAKEZ and not to any third party.

The minimum capital requirement is AED 10,000 for most business activities, with AED 15,000 required for industrial activities. However, there's no mandatory minimum capital deposit required upfront for company formation. Complete setup packages start from AED 12,000 annually, including business license, flexi-desk workspace, and UAE residence visa.

Total costs vary based on business type and visa requirements: no-visa packages start from AED 7,050, single visa packages from AED 12,000. Additional costs include government fees, visa processing for additional employees and optional services like office space upgrades.

Role of InvestGlobal and Service Providers

InvestGlobal guides clients through the entire formation process. It handles document preparation, coordinate with government agencies, facilitate registration procedures until the completion of licensing and VISA issuance. Their role includes advising on business structure selection, license type determination, and providing support for the setup completion.

The consultation and initial paperwork can be handled remotely through registered agents. For the completion of medical tests for the issuance of residency, one has to visit UAE.

We support license renewals and visa assistance.

RAKEZ Disadvantages and Limitations

Some international clients perceive RAKEZ as less prestigious compared to Dubai-based free zones. However, Ras Al Khaimah is witnessing highest growth among the emirates. RAKEZ is one of the best jurisdictions if one knows how to navigate.

It is said that banks often show reluctance to open accounts for RAKEZ companies, especially those with flexi-desk setups. However, in our experience there were no such difficulties. One needs to make sure that the documentation requirements are followed properly.

The northern UAE emirate may be less convenient for clients preferring proximity to Dubai's major airports and business centers. However, once you are a UAE resident, you can freely travel to all emirates and conduct business with clients.

Office Setup and Employment

Your company formation package includes the lease for the seats matching the number of VISA’s that you have opted for. RAKEZ offers flexible office solutions ranging from flexi-desks, dedicated workstations and executive offices. The zone provides ready-to-move facilities including coworking spaces, warehouses, and customizable premises. Standard lease terms are renewable annually with 24-hour security and business center services included.

Employee visa processing involves multiple steps: obtaining entry permits (3 business days, AED 3,800), medical fitness tests, Emirates ID applications, and biometric registration. The total processing time is approximately 10 business days.

RAKEZ allows employment of non-sponsored employees under specific conditions: if they are GCC nationals, UAE residents on family visas, employed part-time/temporarily, or work for subsidiary companies. Approval from RAKEZ is required for such arrangements.

Timeline and Documentation

The complete setup process typically takes 10 business days for license issuance, and visa processing adds another 8 business days.

Essential documents include passport copies of shareholders and directors, proof of address, comprehensive business plan, and No Objection Certificate for UAE residents. Corporate shareholders need additional documentation including trade licenses, memorandums of association, and shareholders' resolutions. Professional certificates may be required for specific business activities.

RAKEZ offers remote company setup options through its Global Product, allowing formation without physical presence in UAE.

Business Operations and Compliance

RAKEZ authorizes over 4,000 business activities across 50+ sectors including manufacturing, trading, services, e-commerce, media, and consultancy. The zone offers specialized facilities for different industries through its six dedicated zones: industrial, academic, media, aviation, business park, and Al Hamra business zones.

Free zone companies cannot directly conduct business on UAE mainland and must operate through authorized agents or distributors. All business activities must be conducted within the designated free zone area. Companies must maintain compliance with RAKEZ regulations and undergo mandatory annual auditing.

RAKEZ companies enjoy 0% corporate tax on qualifying income, 0% personal income tax, and VAT exemptions in designated zones. The zone's designated status under UAE VAT laws provides additional benefits for logistics, distribution, and manufacturing activities. Companies benefit from 100% profit and capital repatriation rights.

RAKEZ's dual license allows businesses to operate in both free zone and mainland areas using one office location. This structure combines a free zone license with a 'Branch of a Free Zone Company' license from RAK DED, enabling 100% foreign ownership while allowing bidding for government contracts and mainland distribution.

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