RAK Free Zone Company Formation
The Cost Of RAK Free Zone Company:
- RAK FZC:
Legal fee from 2900 USD
RAK Free Zone Company Formation
Free zone investors enjoy particular incentives and privileges to these areas such as:
- No restrains over the capital nationality
- Low start-up costs in comparison the mainland
- Freedom to initiate any legal form for the activity
- The investor has the freedom to determine prices of his services/products and the profit margin he desires
- The investor enjoys exemption of Capital Assets, production supplies and imports and exports from customs, sales or any type of taxes or fees.
Free zones are geographically distinguished areas, different from just offshore. They possess particular laws and regulations that vary from those applied within the state that they are situated in.
The formation of the Free zone has resulted in quadruple growth in the number of companies during the last few years. RAK free zone with its package of unbeatable advantages is widely recognised as the entrepreneurs’ haven today.
RAK Company is an appropriate vehicle for sole proprietors, business partnerships and international business, investment and tax planning.
RAK Free Zone Company (FZE)
Main Characteristics and the basic rules of Company registration in RAK Emirates
RAK Free Zone Company – Type of Companies and Main Characteristics:
Option for Establishing business entiyies at RAK FTZ
- New Establishment
- Free Zone Establishment – FZE (The number of owner for FZE is one)
- Free Zone Company – FZC (The number of owner for FZC is from 2 to 5)
- Foreign Branch (the mother company should be not less than 1 year old)
- Local Branch
Activities: It is allowed for either 7 similar activities or two different activities.
RAK Free Zone Company – Type of Licences in RAK:
Type of licence depends on type of activity your business participates:
- Trading License
- Professional Services License
In order to process your license, we need the following documents:-
- Application for License
- Passports copy of each Individual (shareholders and Managers).
- Project Summary (Template to be provided)
- Bank Statement – Minimum capital AED 100,000 (For New Establishment, Personal Bank Statement is required and for Branch, the Company Bank Statement of the last 3 months is required).
- Application for Registering a Free Zone Company “FZC”
- Trade Name Form
- No Objection Letter from the sponsor to set up business at the RAK Free Trade Zone (Only for UAE residents).
- Academic qualifications and professional experience in the particular field (in case of Consulting & Services License).
In the case of the foreign branch, need to submit the following:
- Registration Certificate – attested by the UAE Embassy
- Letter from the Board Director declaring their interest to set up branch at the RAK Free Zone – attested by UAE Embassy.
- Good Standing Letter – attested by UAE Embassy.
- Power Of Attorney Appointing a representative – attested by the UAE Embassy
- Company Legal Documents – attested by the UAE Embassy.
*In case of Local Branch – All original documents are required and should be attested by UAE Court.
And Mother Company should be not less than 1 year old.
- Publicly Accessible Records (relating to company officers): No names are disclosed
- Disclosure of Beneficial Ownership to Authorities: No names are disclosed
- Location of Meetings of Directors and Shareholders: Anywhere
Books and Records requirements for RAK Free Zone Company
- Requirements to File Accounts: None
- Audit Requirements: None
- Requirement to File Annual Return: None
Taxation & Fees in RAK Free Zone
- Any corporate tax: 0%
- Any Personal Income tax: No personal income tax
- Taxation: 0
- Double Taxation Treaty Access: None
- Are there imports or re-exports duties: Total exemption from all import and export duties.
- Annual Renewal Fees: Has to be paid on the anniversary of the company and every twelve (12) months thereafter
- Facility’s description – Shared desk including one workstations and one chair with a full set up of network and phone device. This facility is used on hourly basis per week and the maximum is 5 hours a week.
- Client will get a dedicated phone number, shared fax number and dedicated e-mail ID.
- Client is eligible for one visa which should be either for Owner, Partner or Manager.
- To be eligible for “Investor / Partner status” and to apply for Family visa the partner should have AED 75,000 worth of Share in the capital of the company.
- Total numbers of visas are linked to the nature of the activity and facility.
Bank account for the Company
- Business bank account: Bank account can be opened in any banks in the UAE
- Standard currency: Dirham (AED).
- Exchange Control: No Taxation Treaties with other countries; No requirement for exchange of information with other Tax Authorities.
- Any Currency restrictions: No currency restrictions.
Three simple steps to register your company in RAK:
- We will help you to select a company type, licence type, size of office (land).
- We will complete all necessary documents and submit them the register.
- You will receive your license and product(s).
The approximate duration for registering company is 5 to 8 days from the date of submitting the full set of applications and settling the required payment.
- Capital: Abu Dhabi
- Political System: Democracy
- Government: Monarchy
- Governing corporate legislation: Offshore Regulations 2006
- Type of Law: Civil
- Currency: Dirham (AED)
- Exchange Control: None
- Language of Legislation and Corporate Documents: English/Arabic
- Time zone: GMT+4
This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.