Have you ever thought about what you can do to start your own company with a business in Ras Al Khaimah (RAK), a promising economic hubpromisingly located in the United Arab Emirates? Then you’re in the right spot.
RAK is a fantastic area in the Arabian Gulf and is quickly becoming a top business destination for investors and entrepreneurs from across the globe. RAK has many opportunities for entrepreneurs and companies looking to establish a footprint there. The first step to setting up your business is getting the necessary trade licenses for Ras al Khaimah.
A trade license isn’t only a legal requirement. It is also an important document that gives you the right to conduct business within RAK.
So, let’s look at the steps to obtain the trade license for RAK and open the door to a successful business in this vibrant city.
Why Establish a Business in Ras Al Khaimah (RAK)?
There are a variety of motives for entrepreneurs to choose to set up their business within Ras Al Khaimah (RAK), for example:
Strategic location
RAK is situated near the intersection of major trade routes, making it simple to get into markets across Asia, Africa, the Middle East, Asia, Africa and Europe.
Pro-business environment
RAK government has implemented several reforms. RAK government has implemented several reforms that make it easier for companies to establish and run. For instance, there are no personal or corporate earnings taxes within RAK.
100% foreign ownership
Foreign investors can have 100% ownership of their business in RAK.
Tax Advantages
RAK offers tax benefits and incentives for businesses, which include a limited corporation tax and no tax on personal income for residents in some areas.
World-class infrastructure
RAK is home to world-class infrastructure, with modern highways, ports and airports.
World-class infrastructure
RAK boasts world-class infrastructure, which includes modern ports, roads and airports.
In addition to these general benefits, RAK offers various advantages to companies in specific sectors. For instance, RAK’s RAK Economic Zone (RAKEZ) includes various clusters catering to specific sectors, like education, media and healthcare.
Why is it Important to Obtain a Trade License in RAK?
Trade licenses are an essential legal requirement for all companies that operate within RAK. The license is granted by Ras Al Khaimah Economic Zone (RAKEZ) and permits businesses to conduct specific commercial business. A trade license is essential because of several reasons:
- It grants businesses legal recognition, allowing companies to operate legally within RAK.
- It allows businesses to establish a corporate bank account and then apply the visa requirements for their employees.
- It provides businesses with access to various government support and services.
- It helps businesses establish credibility in the market.
Step-by-Step Guide to the Trade License Application Process in RAK
To apply for a license to trade for a trade license in Ras Al Khaimah (RAK) to establish an enterprise, comply with these procedures:
Step 1: Determine Your Business Activity and License Type
Before beginning to apply for a license, you’ll need to decide on the type of license for trade in Ras Al Khaimah that aligns with your business’s needs. RAK provides a variety of licenses, such as professional, commercial and industrial.
- Commercial trade license: The license is necessary for all businesses involved in purchasing or selling goods, for example, wholesale and retail businesses.
- Professional trade license: The license is required by businesses that provide professional services like law, accounting, or engineering firms.
- An industrial trade license is required by businesses producing or processing products.
Step 2: Choose Your Business Location
Decide if you want to establish your company in the RAK FREE trade zone or the primary market. RAK Free zone licenses provide numerous benefits, including 100 per cent foreign ownership, but might have limitations on doing business in that UAE market.
The mainland permits greater access to local markets but is subject to the laws and regulations in force. UAE laws and rules.
Step 3: Gather the Required Supporting Documents
The required documents for an application for a trade license differ according to the type of license that you are applying for. Some of the most commonly used documents that are required are:
- A photocopy of your passport
- A duplicate of your VisaVisa (if appropriate)
- Copy of the business plan you have created
- A Passport
Step 4: Register Your Business
You must complete the trade license application request form with Department of Economic Development Department of Economic Development (DED). The application form requires you to submit information regarding your business, including the nature of your business, the trade name, address and ownership structure. It is also necessary to provide the passport, visa copies, and residency card.
In some instances, you might also need additional approvals from relevant authorities.
Step 5: License Issuance
You will be issued an official trade licence when all approvals are granted, and the fees are paid. You must collect your license to trade from the RAKEZ office. This document formally allows the operation of your business within RAK.
Step 6: Visa Processing
If you intend to employ employees and require visas for your partners and employees, you can start the visa application process now. The process typically involves the medical exam along with background screening.
With your trade permit in possession and your Visa processed, you are now legally allowed to start your business with the city of Ras Al Khaimah.
Be aware that the rules and procedures can differ according to your business and the RAK location.
It is therefore recommended to speak with a business consultant such as Effective Desk Business Setup to ensure you have the most current and complete information needed for your application for a trade license.
Cost of Obtaining a Trade License in RAK
The cost to obtain the trade license for Ras Al Khaimah (RAK) is contingent on several variables, including the kind of license you’re applying for, how big your company is, and the area of your business.
In general, Ras Al Khaimah Economic Zone commercial license costs could start at as low as AED 12,000 and up to AED 28,000.*
It is crucial to remember that the above prices are estimates only. The actual cost could vary according to your particular circumstances. To find out the exact RAKEZ costs for licenses in the UAE, consult an expert on business setup or go to their official site.
The Business Setting-up in Ras Al Khaimah
Ras Al Khaimah is a rapidly expanding business hub with many advantages for businesses and entrepreneurs of any size.
If you’re considering setting up your business in RAK, We encourage you to contact an experienced business setup consultant such as Effective Desk. Effective Desk is a renowned business setup expert throughout the UAE with more than two years of experience. We have helped more than 5000 entrepreneurs to establish their businesses within the UAE.
Our team of experts is available to offer complete support throughout the process, from registration of your company or licensing through office spaces to taxes and PRO-related services. To move on to a successful business in RAK, Don’t be afraid to contact us for a no-cost consultation.