Setting up a company in Ras Al Khaimah (RAK) Free Trade Zone offers numerous benefits, including 100% foreign ownership, tax exemptions, and a streamlined registration process. With the RAK Free Zone Company Setup Cost, clients can benefit from a range of services, including company registration, trade license issuance, and visa processing. In this article, we’ll explore the average setup costs for a company in RAK Free Zone.
Initial Setup Costs
The cost of setting up a company in RAK Free Zone depends on several factors, including the type of business activity, the size of the business, and the specific free zone chosen within RAK. Here’s a breakdown of the typical costs you can expect:
1. License Fees
- Trade License: This is one of the primary costs and varies depending on the business activity. For example:
- Commercial Trading License: AED 5,750 to AED 7,750 per year
- Consultancy/Service License: AED 7,500 to AED 12,500 per year
- General Trading License: AED 25,000 to AED 30,000 per year
2. Registration Fees
- Registration Fee: Approximately AED 2,000 to AED 3,000 (one-time fee)
- Incorporation Fee: AED 1,000 to AED 3,000 (one-time fee)
3. Office Space
- Flexi Desk: AED 7,000 to AED 10,000 per year
- Physical Office: AED 15,000 to AED 25,000 per year
4. Visa Fees
- Employee Visa: AED 2,500 to AED 3,500 per visa (excluding medical and Emirates ID)
5. Miscellaneous Costs
- Bank Account Opening: AED 1,000 to AED 3,000 (one-time fee)
- PO Box: AED 1,000 to AED 1,500 per year
- Legal Fees: Variable, depending on the legal services required
Total Estimated Cost
Based on the above breakdown, the total setup costs for a company in RAK Free Zone can range from approximately AED 20,000 to AED 50,000 in the first year. This estimate includes the trade license, registration fees, office space, visa fees, and other miscellaneous expenses.
How Does RAK Free Zone Company Setup Cost Compare to Others?
Setting up a business in the Ras Al Khaimah (RAK) Free Trade Zone is an attractive option for entrepreneurs looking to establish a presence in the UAE. These packages include various benefits such as affordable licensing fees, flexible office space options, and access to state-of-the-art infrastructure. Here’s a detailed comparison of RAK Free Zone company setup costs and how they stack up against others.
RAK Free Zone Company Setup Costs
The cost of setting up a company in RAK Free Zone can vary depending on several factors, including the type of license, office space requirements, and additional services needed. Here’s an overview:
- License Fees: RAK Free Zone offers several types of licenses, including commercial, consultancy, and industrial licenses. License fees generally start from AED 7,500 and can go up depending on the type of business activity.
- Office Space: One of the key advantages of RAK Free Zone is its cost-effective office space options. Prices for office space start from AED 8,500 per year, making it an affordable choice for startups and SMEs.
- Additional Costs: There are other costs associated with company setup, such as visa fees, name reservation fees, and a mandatory flexi-desk fee.
Comparison with Other Free Zones
To provide a clearer picture, let’s compare the setup costs of RAK Free Zone with other prominent free zones in the UAE, such as Dubai and Abu Dhabi:
- Dubai Free Zones: Free zones in Dubai, such as Dubai Multi Commodities Centre (DMCC) and Dubai South, generally have higher setup costs compared to RAK. For instance, DMCC’s company setup costs can range significantly, with initial investments typically higher due to the prestigious business environment and location.
- Abu Dhabi Free Zones: Free zones in Abu Dhabi, like Abu Dhabi Global Market (ADGM) and Khalifa Industrial Zone Abu Dhabi (KIZAD), offer competitive rates but may have higher initial setup costs compared to RAK. ADGM, for example, is known for its financial and regulatory environment, attracting businesses with specific needs.
Why Choose RAK Free Zone?
- Cost-Effectiveness: RAK Free Zone is highly cost-effective, especially for startups and small businesses looking to minimize initial investment.
- Business Environment: RAK Free Zone provides a supportive and business-friendly environment with simplified procedures and efficient services.
- Strategic Location: RAK’s proximity to major markets in the Middle East, Africa, Europe, and Asia makes it an ideal location for businesses looking to expand globally.
Rak Free Zone Company Setup Cost: What You Need to Know?
Setting up a company in Ras Al Khaimah (RAK) Free Trade Zone offers numerous advantages, including strategic location, tax benefits, and streamlined business processes. This detailed product description offers a thorough breakdown of the various costs involved, ensuring that potential investors have a clear understanding of the financial requirements before embarking on their business venture. Here’s a detailed guide on what you need to know about the RAK Free Zone company setup costs:
Initial Setup Costs
- Registration Fees: The first step in setting up a company in RAK Free Zone is paying the registration fees. These fees vary depending on the type of company (Free Zone Establishment, Free Zone Company, or Branch Office) and the business activities you intend to undertake.
- License Fees: Every business in the RAK Free Zone requires a trade license. The cost of the license depends on the type of business activity and the number of activities the company will undertake.
- Office Space: Renting an office space is mandatory for establishing a company in RAK Free Zone. The cost of office space varies based on the size and location within the Free Zone.
- Visa Fees: The cost of visas for employees and investors must be factored into the setup costs. The number of visas required will influence the total cost.
Ongoing Costs
- Annual Renewal Fees: Each year, companies must renew their trade license and lease agreements. The renewal fees are payable annually and are based on the company’s size and activities.
- Miscellaneous Fees: Additional costs may include fees for company name reservation, shareholder fees, and other administrative charges.
Optional Costs
- Additional Services: RAK Free Zone offers optional services such as business consulting, legal advice, and insurance. These services incur additional costs but can streamline the setup process.
Benefits of Setting Up in RAK Free Zone
- Tax Benefits: Companies registered in RAK Free Zone enjoy 0% corporate and personal income tax.
- Strategic Location: RAK Free Zone offers proximity to major markets in the Middle East, Africa, and South Asia.
- No Currency Restrictions: There are no currency exchange controls, allowing easy repatriation of profits and capital.
Creative Business Solution – RAK Free Zone Company Setup Cost is a comprehensive package designed to assist entrepreneurs in establishing their business in the Ras Al Khaimah Free Trade Zone. This all-inclusive solution covers all the necessary costs and requirements for setting up a company, ensuring a hassle-free and efficient process. With this package, entrepreneurs can benefit from a range of services, including company registration, trade license issuance, office space provision, and visa processing.
RAK Free Zone Company Setup Cost:-
Whether it’s a free zone establishment, free zone company, or branch of an existing company, this package caters to different business models and industries. With the RAK Free Zone Company Setup Cost, clients can benefit from a range of services, including company registration, trade license issuance, and visa processing. The package also covers the cost of office space, allowing businesses to have a physical presence in the free zone and access to state-of-the-art facilities and infrastructure.
