Have you ever wondered how to start a business in Ras Al Khaimah (RAK), a promising economic hub in the United Arab Emirates? Well, you’re in the right place.
RAK is a stunning location along the Arabian Gulf and is quickly becoming a popular business destination for entrepreneurs and investors from around the world. RAK offers numerous opportunities for entrepreneurs and businesses looking to establish their presence in the region. One crucial step in setting up a business is obtaining a trade license in Ras Al Khaimah.
A trade license is not only a legal requirement but also a key document that grants you the authority to conduct business activities within RAK.
So, let’s explore the steps involved in obtaining a trade license in RAK and unlock the doors to your entrepreneurial journey in this dynamic city.
Why Establish a Business in Ras Al Khaimah (RAK)?
There are a number of reasons why entrepreneurs choose to establish a business in Ras Al Khaimah (RAK), including:
1. Strategic location
RAK is located at the crossroads of major trade routes, making it easy to reach markets in the Middle East, Asia, Africa, and Europe.
2. Pro-business environment
The RAK government has implemented a number of reforms to make it easier for businesses to set up and operate. For example, there are no corporate taxes or personal income taxes in RAK.
3. 100% foreign ownership
Foreign investors are allowed to own 100% of their businesses in RAK.
4. Tax Advantages
RAK provides tax benefits and incentives to businesses, including limited corporate tax and no personal income taxes in certain zones.
5. World-class infrastructure
RAK has world-class infrastructure, including modern roads, ports, and airports.
6. World-class infrastructure
RAK has world-class infrastructure, including modern roads, ports, and airports.
In addition to these general advantages, RAK also offers a number of specific benefits for businesses in certain sectors. For example, the RAK Economic Zone (RAKEZ) has a number of specialized clusters for specific industries, such as media, education, and healthcare.
Why is it Important to Obtain a Trade License in RAK?
A trade license is a legal requirement for all businesses operating in RAK. It is issued by the Ras Al Khaimah Economic Zone (RAKEZ) and allows businesses to engage in specific commercial activities. Obtaining a trade license is important for several reasons:
- It provides businesses with legal recognition and allows them to operate legally in RAK.
- It enables businesses to open a corporate bank account and apply for visas for employees.
- It gives businesses access to a range of government services and support programs.
- It provides businesses with credibility and legitimacy in the marketplace.
Step-by-Step Guide to the Trade License Application Process in RAK
To apply for a trade license in Ras Al Khaimah (RAK) for establishing a business, you can follow these steps:
Step 1: Determine Your Business Activity and License Type
Before starting the application process, you need to determine the type of trade license in Ras Al Khaimah that aligns with your business activity. RAK offers different types of licenses, including commercial, professional, and industrial.
- Commercial trade license: This license is required for businesses that engage in the sale or purchase of goods, such as retail and wholesale businesses.
- Professional trade license: This license is required for businesses that provide professional services, such as accounting, law, and engineering firms.
- Industrial trade license: This license is required for businesses that engage in the manufacturing or processing of goods.
Step 2: Choose Your Business Location
Decide whether you want to set up your business in an RAK free trade zone or in the mainland. RAK free zone licenses offer various benefits, including 100% foreign ownership, but may have restrictions on conducting business within the UAE market.
Whereas the mainland allows broader access to the local market but are subject to all applicable UAE laws and regulations.
Step 3: Gather the Required Supporting Documents
The supporting documents required for a trade license application vary depending on the type of license you are applying for. However, some common supporting documents include:
- A copy of your passport
- A copy of your visa (if applicable)
- A copy of your business plan
- A Passport
Step 4: Register Your Business
You’re required to submit the trade license application form to the Department of Economic Development (DED). The form requires you to provide information about your business, including the business activity, trade name, business location, and ownership structure. You will also need to attach copies of your passport, visa, and residency card.
In some cases, you may also require obtaining additional approvals from concerned authorities.
Step 5: License Issuance
Once all approvals are granted, and fees are paid, you will receive your trade license. You will need to collect your trade license from a RAKEZ office. This document officially permits you to operate your business in RAK.
Step 6: Visa Processing
If you plan to employ staff or require visas for partners or employees, you can initiate the visa application process at this stage. This typically involves a medical examination and background checks.
With your trade license in hand and visas processed, you can now legally commence your business operations in Ras Al Khaimah.
Remember that the specific requirements and procedures may vary based on your business activity and location within RAK.
Therefore, it’s advisable to consult with a business consultant like Shuraa Business Setup to ensure you have the most up-to-date and accurate information for your trade license application.
Cost of Obtaining a Trade License in RAK
The cost of obtaining a trade license in Ras Al Khaimah (RAK) depends on a number of factors, including the type of license you are applying for, the size of your business, and the location of your business.
However, in general, Ras Al Khaimah Economic Zone trade license cost can start from AED 12,500 to AED 28,500*
It is essential to note that the prices listed above are just estimates. The actual costs may vary depending on your specific circumstances. To know the accurate RAKEZ license cost in UAE, consult a business setup expert or visit the official website.
Ras Al Khaimah Business Setup with Shuraa
Ras Al Khaimah is a rapidly growing business hub with a number of advantages for entrepreneurs and businesses of all sizes.
If you are considering setting up a business in RAK, we encourage you to get in touch with an expert business setup advisor like Shuraa. Shuraa is a leading business setup consultant in the UAE with over 22 years of experience. We have assisted over 50,000 entrepreneurs in establishing their businesses in the UAE.
Our team of experts is ready to provide comprehensive support for every step of your journey, from company registration and licensing to office space solutions, taxation, and PRO services. To take the next step towards your business success in RAK, don’t hesitate to reach out for a free consultation.
Your business journey in RAK begins here with Shuraa Business Setup.