RAKEZ Free Zone: What You Need to Know

The UAE is a hotspot for business, with a little over 40,000 new business licenses being issued each year. And, that’s not to mention all the license renewals that the government processes!

With so many businesses starting up in the area, you’re probably wondering what all the hype is about. And, you’re probably wondering which free zone you should start your business in. 

We recommend checking out the RAKEZ free zone. Let’s take a look at what you need to know about this free zone. 

What Is the RAKEZ Free Zone?

The Ras Al Khaimah Economic Zone, more commonly called the RAKEZ free zone, is an area in the middle of Ras Al Khaimah. The area is an industrial hub where tons of businesses open their doors each year. 

RAKEZ is a place where small businesses, freelancers, and multinational companies all flourish. It’s a great place for anyone wanting to start a successful company and steer clear of huge taxes. 

The zone is known as a place that offers customizable solutions to companies and their clients thanks to the numerous sectors in the area. It’s a multinational community where authorities support all types of businesses in their setup process. 

One of the main aspects of this amazing free zone is that business laws and regulations are very friendly from an entry to market standpoint. That makes it a place where it’s fast, easy, and convenient to start a company. 

What Does RAKEZ Offer Businesses?

There are four key pillars of the RAKEZ free zone that make it the ideal place for entrepreneurs to start their companies. Let’s take a look at each of these pillars and why they make this such a great business spot. 

Diversification

RAKEZ encompasses a wide range of industries and business sectors. They allow SMEs, traders, manufacturers, entrepreneurs, logistics teams, and startups to get started in the area. And, they have access to global markets. 

Customization

Another reason that RAKEZ is such a popular free zone is that the government offers tons of different packages for clients. There are many resources and options available for business owners to launch their companies in this zone. 

Cost-Effective

Starting a free zone business isn’t always the cheapest task to take on. However, in the RAKEZ free zone, you can start a business without spending huge chunks of money. The financial requirements to start RAKEZ free zone businesses are much lower than in other parts of the UAE. 

Process Efficiency 

In RAKEZ, it’s easy for you to get access to business services. It’s also easy for you to start your business operations, making it a place where companies can maximize process efficiency.

Why You Should Start a Company in RAKEZ

Now that you know a little bit about what RAKEZ has to offer businesses, let’s talk about why you should choose to settle in the RAKEZ free zone. There are four major reasons why this is one of the best free zones in the UAE. 

Growing Popularity

RAKEZ has recently gained a lot of popularity among entrepreneurs and business people. The result is that business in the area is booming and has even received several prestigious awards for its business contributions. 

Customized Warehouse Solutions

Warehousing solutions in RAKEZ are widely available and come in a large range of different sizes. They’re available to any type of business license holder, making it easy for you to get a warehouse for your products. 

Proximity to Seaports and Airports

RAKEZ has fantastic airport and seaport facilities that make it easy for business owners to import and export goods and services. The RAK International Airport and the Saqr Port are the two biggest airports and seaports in the area. 

Cost-Effective Financing 

One major barrier to entry for business owners in any part of the world is startup costs. In RAKEZ, you’ll enjoy the widespread availability of business financing options, making it easier than ever for you to start your company. 

Plus, RAKEZ itself has business grants and loans available to new companies. They’ll finance as much as 40% of your business so that you can get operations off the ground. 

The Benefits of Starting a Company in RAKEZ

There are tons of amazing benefits to starting a company in RAKEZ. Let’s check out a few of the amazing benefits of opening a business in this UAE free zone. 

For one, you’ll have 100% ownership of your company. And, you’ll receive full tax exemption for both corporate and personal income. 

Next, you’ll enjoy total profit and capital repatriation. And, you can enjoy a fast and straightforward business set-up process as well as for receiving residence and visas in the UAE. 

RAKEZ also offers businesses low-cost solutions for storage and leasing. And, the zone doesn’t charge customs duty on any goods that you are re-exporting. 

One major benefit is that the zone is located next to both world-class airports and seaports. It also provides a large number of Flexi-desk opportunities for jet setting business owners. 

Types of Business Licenses in RAKEZ

To start a company in the RAKEZ free zone, you’ll need to get a business license. There are a few different types of business licenses you can obtain. Let’s take a look at the available licenses. 

Commercial License

The first type of license is a commercial license. This allows businesses to perform trading activities. A few examples are importing, exporting, warehousing, and product storage. 

General Trading License

General trading licenses are a broad category of business licenses. These licenses allow businesses to perform a wide range of activities. 

Industrial License

This license allows you to perform industrial activities. That includes manufacturing, importing raw materials, assembling, processing, and exporting completed products. 

Professional License

Professional licenses are for businesses with a single owner. These licenses allow the owner to perform one type of business activity in which the owner has specialized experience. 

Consultancy License

Service businesses can take out consultancy licenses. These allow them to provide management, legal, accounting, and other types of consulting services to customers. 

Media License

If you want to perform media-related services, you’ll need a media license. This includes photography and music industry careers. 

E-Commerce License

Anyone wanting to trade goods and services digitally will need an e-commerce license. This lets you legally perform these actions in an electronic network within the RAKEZ free zone. 

Education License

If you’ll be running an educational business or educational support service, get an education license. Universities or language institutions are examples of businesses that need this license.  

How to Start a Company in RAKEZ

If you want to start a company in this free zone, make sure that you have a good grasp of the setup process. That includes having an understanding of what documents you’ll need to launch your new company. Let’s take a look at the process for starting a RAKEZ free zone company. 

Step One: Choose Your Business Activity

The first step to starting a company in RAKEZ is to select which business activity you want to engage in. There are tons of different options for what type of activities you can conduct, including: 

• Professional
• Service
• Educational
• Industrial
• Commercial

Step Two: Select a Business Name

Next, you’ll need to select a name for your business. The business name cannot include religious references or offensive content. You’ll want to verify that your chosen business name is still available before starting your paperwork. 

Step Three: Apply for Your Business License

Once you have a business name, you’ll need to secure your business license. To do so, submit your passport, a colour photo, your business plan, and a completed business license application. Then, send your documents to the RAKEZ managing authority. 

Step Four: Get Your Visa

You can’t operate a UAE business without having a visa. And, anyone you’ll be working with will also need a visa. With the business license in hand, it’s time for you and your other managers to apply for visas. 

Step Five: Open a Bank Account

Finally, you and your business partner (if you have one) will need to open a bank account. You can do so by presenting your visa, Emirates ID, and business documents.

The Required Documents for Starting a RAKEZ Business

If you want to begin the RAKEZ free zone business formation process, you’ll need to have a few documents on hand. These documents are important for getting your business license so that you can start operations. 

To start your business, remember that the exact documents required may vary depending on the type of business and the business activity you’ll be conducting. Sometimes, documents may also require third-party approvals. 

In general, however, you’ll need to make sure you get a few key pieces of documentation, including: 

• The application form to start either a Free Zone Limited Liability Company or to start a Free Zone Entity
• Copies of the manager and shareholders’ passports
• Copies of the manager and shareholders’ UAE immigration stamp
• A No Objection Certificate from the business sponsor

The License Renewal Process in RAKEZ

If you’ve already received your business license and now need to renew it, there’s a separate process that you’ll need to go through. The good news, however, is that you don’t need to be in the UAE to do so! 

All you have to do is submit your documents and make your license renewal payment. And, your renewal fee usually costs quite a bit less than the business license itself does. 

To renew your license, you’ll need to first get an invoice for your license renewal. With that invoice, you’ll be able to make the payment for renewing your business license. 

Then, it’s time to get your lease agreement written up. Sign your lease agreement and submit a copy to the governing body of RAKEZ. You’ll also need to submit your renewal documents including your application. 

After the government approves your lease agreements, you’ll be able to collect your documents and your renewed business license.  

Why You Should Use Virtuzone to Start Your Business

When you partner with Virtuzone to set up your business in the Ras Al Khaimah Economic Zone, you’ll be able to skip several tedious procedures that can slow down the process and delay starting your company. Plus, you’ll get expert guidance and support through the entire process. 

Years of Experience

Virtuzone has been helping businesses launch their operations not only in the RAKEZ free zone but all around the UAE for years. Our team’s decades of experience in the space enable us to provide business owners with expert recommendations and assistance that they won’t find anywhere else. 

Broad Range of Services

Our team offers tons of different services, as well. You can make use of services such as:

• Visa assistance
• Business setup
• Business dissolution
• Corporate services

These are only a few of the many services we offer to new and established UAE businesses, no matter what free zone they’re in. With our support, you can launch a successful company in RAKEZ. 

Fantastic Reviews

Customers who have worked with us in the past have nothing but positive things to say. If you read through our reviews, you’ll see that our reputation proceeds us for being an expert in helping people through the RAKEZ business formation process. 

Start Your Rakez Free Zone Business Today

Now that you know a little bit more about the RAKEZ free zone, you’ll have no problem starting your own company. By using this guide, you can navigate the complicated waters of creating your own business in the area. 

Do you need help getting started? Reach out to the team at Virtuzone and we’ll help you get started setting up a business in RAKEZ!