RAK Free Zone, located in Ras Al Khaimah, one of the seven emirates of the United Arab Emirates (UAE), is renowned for its business-friendly environment and attractive incentives for entrepreneurs and investors. Setting up a company in RAK Free Zone has numerous benefits and advantages that make it a popular choice for business set-up in the region. This article explores the benefits of the RAK free zone company setup and provides an overview of the company set-up procedure.
Benefits of RAK free zone company setup
100% foreign ownership:
RAK Free Zone allows 100% foreign ownership, meaning entrepreneurs can fully control their businesses without needing a local sponsor or partner. This offers greater flexibility and autonomy in decision-making and allows entrepreneurs to retain a larger share of their profits.
One of the most significant advantages of setting up a company in the RAK Free Zone is the tax benefits it offers. Companies in RAK Free Zone enjoy a 0% corporate tax rate, 0% personal income tax, and 0% import and export duties. This favorable tax environment significantly reduces the financial burden on businesses and enhances their competitiveness.
Easy company set-up:
RAK Free Zone has streamlined the company set-up process, making it quick and hassle-free. The registration and licensing procedures are efficient, allowing entrepreneurs to establish their businesses promptly. The free zone also provides dedicated support services to guide entrepreneurs through the set-up process and ensure a smooth transition.
Wide range of business activities:
RAK Free Zone allows businesses to engage in various activities, including trading, manufacturing, consulting, and services. Entrepreneurs can choose the activity that aligns with their expertise and business objectives. This diversity of business activities promotes economic growth and encourages regional entrepreneurship.
Procedure for RAK free zone company setup:
Determine business activity: Decide on the business activity you wish to undertake in RAK Free Zone. This will determine the type of license you need to apply for.
Choose company type: Select the appropriate legal entity type for your company, such as a Free Zone Establishment (FZE) or a Free Zone Company (FZC). Consider factors such as the number of shareholders and the liability structure.
Name reservation: Choose a unique name for your company and submit it for reservation. The name should comply with the guidelines provided by RAK Free Zone and should not infringe on any existing trademarks.