What is a RAK Free Zone License?

A RAK Free Zone License is a business license issued by the Ras Al Khaimah Economic Zone (RAK Free Zone) that allows entrepreneurs and companies to operate within the RAK Free Zone's jurisdiction. It facilitates various business activities, such as trading, manufacturing, services, and consultancy, and offers benefits like 100% foreign ownership and tax exemptions.

What are the main benefits of having a RAK Free Zone License?

Some of the key benefits of having a RAK Free Zone License include 100% foreign ownership, full repatriation of profits and capital, exemption from import and export duties, a low corporate tax rate of 9% (for annual profits above AED 375,000), no currency restrictions, and a streamlined company setup process.

What types of business licenses does RAKEZ offer?

RAKEZ offers several types of business licenses, including Commercial License, Educational License, E-commerce License, General Trading License, Individual/Professional License, Industrial License, Media License, Professional License, Service License, and Freelancer Permit.

What documents are required to obtain a RAK Free Zone Trade License?

The main documents required for a RAK Free Zone Trade License are a trade license application form, copies of passport and visa, a no-objection letter (if applicable), a tenancy contract or lease agreement, a comprehensive business plan, and a Memorandum of Association (for Limited Liability Company structures).

How can I obtain a RAK Free Zone License?

To obtain a RAK Free Zone License, you need to prepare the required documents, choose a preferred package (Basic or All-Inclusive), complete the online application form, select the relevant business activities, make the necessary payments, and then you will receive your license instantly upon approval.

What factors affect the cost of a RAK Free Zone License?

The cost of a RAK Free Zone License is influenced by factors such as the type of company formation, package selected, specific business activity, company size, office space requirements, and visa needs. Generally, free zone companies are more affordable than international companies.

How long is a RAK Free Zone License valid, and how can it be renewed?

A RAK Free Zone Trade License is valid for one year from the date of issuance. To renew it, you need to apply for renewal before the expiration date, pay the renewal fee, and once approved, the renewed license will be mailed to you within a few working days.

Can a RAK Free Zone License holder perform multiple business activities?

Yes, RAK offers a dual license that allows you to combine commercial and professional licenses, enabling you to perform various business activities under a single license.

What is the corporate tax rate for businesses operating with a RAK Free Zone License?

While RAK Free Zone previously offered complete tax exemptions, recent changes have introduced a 9% corporate tax rate for companies with an annual profit turnover exceeding AED 375,000. This rate remains one of the lowest globally, making the RAK Free Zone an attractive option for businesses.

Does the RAK Free Zone License allow access to global markets?

Yes, one of the advantages of having a RAK Free Zone License is the strategic location of the free zone, which provides businesses with excellent access to global markets. This allows companies to expand their customer base, explore new opportunities, and increase their profitability.

RAK freezone License: Benefits, Types, & How to Obtain?

RAK freezone License is mandatory for setting up a company in Ras Al Khaimah Economic Zone. You should choose the business activity and type of company structure before applying for a business license. RAKEZ issues various types of business licenses, including commercial, professional, industrial, and educational licenses. Each license type allows you to perform specific business activities and sell goods or services. To obtain a RAKEZ freezone trade license, prepare the required documents, choose a preferred package, select the business activity, fill out an application, and submit it on the RAKEZ online portal with payment. This article covers everything you need to know about the RAK freezone license, including its benefits, types, activities, and the process to obtain it.

Obtain your RAK freezone license & set up a company in Ras Al Khaimah with Filings.ae experts!!

What is the RAK freezone License?

The RAK freezone License is a business license issued by the Ras Al Khaimah Economic Zone (RAK freezone) that allows entrepreneurs and companies to operate within the RAK freezone's jurisdiction. This license facilitates a range of business activities, from trading and manufacturing to services and consultancy. It offers several benefits, including 100% foreign ownership, full repatriation of profits and capital, and exemption from import and export duties. The RAK freezone License is designed to attract international investors by providing a competitive and business-friendly environment in one of the UAE's thriving freezones.

Benefits of RAK freezone License

Below, we have given the key benefits of having a RAK freezone license and setting up a company in RAK:

RAK Dual License: RAK offers a dual license where you can combine commercial and professional licenses, allowing you to perform various business activities under one license.
100% Foreign Ownership: One of the most attractive features of the RAK freezone is the ability for foreign investors to have complete ownership of their businesses. This means no local partner or sponsor is required, providing full control over operations and decision-making.
Tax Exemptions: While the RAK freezone previously enjoyed complete tax exemptions, including corporate tax, personal income tax, and import/export duties, there have been recent changes. Companies with an annual profit turnover exceeding AED 375,000 are now subject to a 9% corporate tax. However, this remains one of the lowest corporate tax rates globally, making the RAK freezone an attractive option for businesses seeking to minimise their tax burden.
No Currency Restrictions: Investors operating in the RAK freezone can freely repatriate their profits and capital without currency restrictions. This flexibility allows for efficient financial management and easy transfer of funds.
Easy Company Setup: The RAK freezone offers a streamlined and efficient company setup process, with minimal paperwork and a relatively short registration time. This makes it easier for businesses to establish operations quickly and focus on their core activities.
Access to Global Markets: The RAK freezone's strategic location provides businesses excellent access to global markets. This allows companies to expand their customer base, explore new opportunities, and increase their profitability.

Types of RAKEZ freezone Business Licenses

Below, we have listed out business licenses issued by RAKEZ, with a description of each,

Commercial License: This license is suitable for businesses involved in importing, exporting, and trading goods and services.
Educational License: This license is for businesses providing educational services or consultancy in the education sector.
E-commerce License: This license is specifically for businesses engaged in online trading and e-commerce activities.
General Trading License: This license allows businesses to trade various goods and products.
Individual/Professional License: This license is for individuals providing professional services in a particular field.
Industrial License: This license is for businesses involved in manufacturing, industrial processes, and international trade.
Media License: This license is for businesses engaged in media production, distribution, or related activities.
Professional License: This license is for individuals offering professional services such as consulting, accounting, or legal advice.
Service License: This license is for businesses providing a wide range of services or consultancies for the growth of service-oriented businesses.
Freelancer Permit: This permit is specifically for individuals working as freelancers in the media, education, information technology, or analysis fields.

RAK freezone License Business Activities

The following RAKEZ-issued document presents the business activities, including their code, group, description, and relative license type.

Documents Required for RAK freezone Trade License

Find the documents required to get an RAK freezone Trade License below.

Trade License Application Form
Copies of Passport and Visa
No-Objection Letter (if applicable)
Tenancy Contract or Lease Agreement
Comprehensive Business Plan
Memorandum of Association (MoA) (for Limited Liability Company (LLC) structures)

How to Obtain an RAK freezone License?

Below, we have given the step-by-step process to get a RAKEZ freezone trade license,

Step 1 - Prepare Required Documents: Ensure you have a valid passport or Emirates ID. If you are a foreign investor, you may also need to provide additional documents, such as a visa or residence permit. The specific requirements may vary depending on your nationality and the type of business you intend to establish.
Step 2 - Choose a Package: RAKEZ offers two main package options tailored to different business needs: the Basic Package, which provides essential services for setting up your business, and the All-Inclusive Package, which offers a comprehensive range of services, including office space, visa assistance, and more. The choice between these packages depends on your specific business requirements and budget.
Step 3 - Complete Online Application: Visit the RAKEZ online portal and fill out the application form. Provide accurate information about your business, including its name, activities, ownership details, and any relevant licenses or certifications.
Step 4 - Select Business Activities: Choose the specific business activities you intend to engage in from the list provided by RAKEZ.
Step 5 - Make Payment: Pay the required fees online, which will vary depending on the selected package and additional services.
Step 6 - Receive License: Upon successful submission and payment, you will receive your RAKEZ freezone trade license instantly. This allows you to operate your business legally within the UAE.

Cost of RAK freezone License

The RAK freezone license cost is influenced by several factors, including the type of company formation, package, business activity, company size, office space requirements, and visa needs. freezone companies are generally more affordable than international companies, and the specific business activity can impact costs due to regulatory requirements. Larger companies may face higher office space, equipment, and visa expenses, while smaller companies can benefit from lower costs.

Validity & Renewal of RAKEZ freezone License

The RAK freezone Trade License is valid for "one year" from the date of issuance. To avoid penalties, renewing the license before its expiration is important. RAKEZ imposes a renewal fee, which varies depending on the type of business entity. Once the renewal application is processed and approved, the renewed license will be mailed to you. The entire renewal process in RAKEZ is typically completed within a few working days.

Conclusion

The RAK freezone License is valuable for businesses seeking to establish operations in the UAE. It offers numerous benefits, including 100% foreign ownership, tax exemptions, and easy company setup. To obtain an RAK freezone License, entrepreneurs must choose the appropriate license type, prepare the required documents, and follow the online application process. By understanding the benefits, types, and processes, businesses can leverage the opportunities presented by the RAK freezone to achieve their growth objectives.

Filings.ae helps you to obtain a RAK freezone trade license and start a company with end-end expert assistance!!