ABOUT RAS AL KHAIMAH FREE TRADE ZONE
Ras Al Khaimah Free Trade Zone (RAK FTZ) was launched in 2000. Currently, RAK FTZ is home to more than 8000 businesses originating from more than 100 countries across the world. RAK Free Zone companies engage in more than 50 kinds of industries. Investors are attracted to Ras Al Khaimah Free Trade Zone due to the low cost of living and low business expenses and costs, which allows them to enjoy more profits. RAK FTZ is also located in close proximity to Dubai.
LEGAL ENTITIES
There are four kinds of legal entities a company a RAK FTZ company can register as, which include:
New Entities
a. Free Zone Company (FZC) – A new business entity that is owned by 2 to 5 shareholders.
b. Free Zone Establishment (FZE) – A new business entity that is owned by one owner.
Branches
a. Local Company Branch- refers to a branch of a UAE-based company. The UAE-based company (parent company) should be in business operation more than one year.
b. Foreign Company- refers to a branch of a non-UAE-based company. The non-UAE-based company (parent company) should be in business operation more than one year.
LICENCES
Every business operating in RAK FTZ must hold a business license. RAK FTZ grants four different kinds of business licenses that are issued according to companies’ business activities.
a. Commercial License – that allows companies to engage in exports, imports, distribution and warehousing of goods and products. Company owners can choose amongst particular or general trading licenses.
b. Services / Consultancy License – that allows companies to offer services or consultations across all industries.
c. Industrial License – that allows companies to manufacture, package, process and export already finished goods and products as well as to imports raw materials.
d. Educational License – that allows companies to set up any king of training or learning institution or any educational-linked consultancy.
Different licenses are issued for people whose trading activities fall into different categories. For example, a trader intending to offer consultancy services and commercial services is issued with two licenses, each for the respective activity.
SIGNIFICANT INFORMATION
- Individuals who want to apply for a Consultancy License are required to submit all their academic qualifications and proof of the professional experience they have acquired in regards to the sector they are interested in providing their services within RAK Free Trade Zone.
- A business license is valid for one year. After a year has passed, the business must either renew its license or deregister. Business need to either renew or deregister in order to avoid excess fines and penalties.
- Those applying for a license renewal are obligated to present audit reports with their application. Registered UAE audit companies must be assigned to prepare the audit report of a business.
- Business licenses can be modified if requested by the holder of the license. The holder of the license must also pay the relevant fees and fulfill the standard approval process.
- Ras Al Khaimah FTZ frequently inspects and examines a business’ facilities and evaluates its activity level.
- It is forbidden to sublease facilities.
- Licenses are obligatory to make sure businesses comply completely with the UAE custom regulations.
