What is It with RAK That You Should Choose It?
The United Arab Emirates (UAE) is formed with seven Emirates and one of them is Ras Al Khaimah (RAK). It is only around 45 minutes away from Dubai. It is a growing region, being an investment destination as well.
Its location is strategic as it is along the crossroads of trade and commerce between East and West. Traders can take advantage of this as markets that belong in the Middle East, Africa, the Indian Subcontinent, and the Confederation of Independent States and Europe are all accessible from this Emirate.
It has four pillars on where it has established its economy, which are Industries, Trade and Commerce, Tourism, and Real Estate.
Benefits of RAKEZ Free Zone Company Setup
Like any other place, RAK has a free zone that gives investors and businessmen big benefits to ensure that their companies’ requirements are met and their budget can fit as well.
The following below is a list of benefits that can be found in RAK:
- 100% foreign ownership
- No currency restriction
- Exemption from import and re-export duties
- Local bank account for organizations to conduct business transactions
- General trading
Business Setup in RAK
Like any other place in the UAE, a businessman needs to have a valid trade license in order to operate in the country regardless if it is in the non-free zone or in a free zone area.
Mainlands VS Free Zones
Although mainlands have their own benefits, free zones have always been perceived as more beneficial to businessmen who are after trade not only in the UAE but around the world. Another reason is also the fact that companies in the mainlands need to be formed with a local sponsor with whom you will need to share 51% of the company’s shares.
Two Entities in RAK Free Zone
In a free zone, a free zone establishment (FZE) can be formed which is a limited liability company with one shareholder. There is also a free zone company (FZC) that is also a limited liability company with two to five shareholders. These two entities enjoy the same benefits that a free zone offers.
Documents Required for Trade License
Below is the list of documents that are generally needed in order for a company to apply for a trade license:
- Complete license application form
- Copy of an applicant’s passport and naturalization identification
- Copy of a manager’s passport of the manager in charge of a company to be established
- License owner or manager’s educational degrees and past professional experience if the business activity requires
- Third-party or government approvals depending on the business activity
When Should You Expect to Receive Your License?
When you have business setup consultants in Dubai helping you with your planned venture, you can expect to only provide the documents and wait because they would handle the matter for you. In general, it takes at least two weeks or more because of the processing.