Ras Al Khaimah has become a popular destination for business setup in the UAE, thanks to its investor-friendly policies and regulations. The emirate has multiple free zones, each catering to specific business activities. Obtaining a free zone license in Ras Al Khaimah requires businesses to comply with the relevant legal and regulatory frameworks, which can vary based on the free zone. However, the benefits of setting up a business in a free zone in Ras Al Khaimah include 100% foreign ownership, no corporate or personal income tax, and full repatriation of profits. Free zone licenses in the UAE, including those in Ras Al Khaima, are granted to companies based on their specific business activities. As new free zone areas are being developed, the overall number of free zones available in the region is expected to increase in the future. The Freezone licenses in Ras Al Khaima are issued based on the specific business activity of the company. The Free Zone Authority (FZA) governs the activities related to a Free Zone company, including license issuance and operation. Unlike UAE mainland companies, the commercial laws do not apply to the Freezone companies. One of the main benefits of setting up a business in a Ras Al Khaima Freezone is that foreign investors can have full ownership. Additional advantages include complete tax exemptions, 100% repatriation benefits, and no foreign exchange restrictions. When your company is approved for Freezone business, the FZA grants you a license such as a Trade License, Industrial License, Service License, or National Industrial License. These licenses can be renewed annually as long as the lease agreement is valid. Your desired free zone jurisdiction should be selected based on the type of business, as your business activity should match the preferred Freezone category. Although offshore companies share some benefits with Ras Al Khaima Freezone companies, they are not identical.
The investors and entrepreneurs can rely on 3 different business entities to form a company in any of the UAE Free zone jurisdiction. And those entities are:
Free Zone Company (FZC) – A Free Zone company is a business entity that has 2 or more shareholders.
Free Zone Establishment (FZE) – A Free Zone Establishment is a business entity that has a single shareholder.
Branch Office – the investors can also form a business entity that serves as a branch office of a parent-concern. The parent-concern can be in the UAE or an overseas company.
Select the business entity of your preference – Understand the business category of the Free Zone jurisdiction and choose your desired business or legal entity.
Select an appropriate and relevant trade name – Select an appropriate trade name for your business concern. Contact the Free Zone Authority of the concerned Free Zone jurisdiction and verify the trade name. You are not allowed to select an already listed trade name. Register the trade name via the concerned Free Zone Authority.
License application – Based on your business activity, determine the category of license that your business needs. The documentation required for license application varies with the type of license. For example, documentation required for acquiring a Professional License is different from that of an Industrial License. Apply for the relevant license.
Get sufficient office space – the number of staff and the category of business determines the area of the office space. There are multiple options like flex spaces, office space for lease, etc for startup investors.
Initial Approval – Now you are in a position to apply for the Initial Approval. Get the approvals from all the concerned departments and agencies.
Registration – After you get all relevant approvals, you may undertake the registration of your business on the official website of the concerned Free Zone Authority.
Acquire the business license – you may get the business license within a couple of weeks or a month provided the official formalities are accomplished on time.
Free zone companies are ideal for foreign investors who seek 100% foreign ownership.
Free zone regions have tax exemption benefits. They are devoid of Corporate tax, Income tax and personal tax.
Free zone jurisdictions do not have foreign exchange restrictions.
Hassle-free employee recruitment formalities
Investors can enjoy complete repatriation benefits in terms of profit and capital.
Ideal for start-up ventures, small and medium business establishments. Free zones regions are equipped with full-fledged offices and work-spaces.
Well-equipped and ample communication facilities
There are around 40 Free zone jurisdictions that are currently operating in the UAE. Around 28 Free zones operate in the Emirate of UAE alone. And yes, UAE is the most preferred Emirate for Free Zone company formation in the UAE. The major Free zone jurisdictions are listed below.
UAE South Free zone – the UAE South Free zone is located close to the Al Maktoum Airport and Jebel Ali port and hence it has both strategic and logistic importance. The UAE South is the proposed venue for the international event – UAE World Expo 2020. The Free zone serves as an aviation, SME and logistics hub.
Jebel Ali Free Zone (JAFZA) – JAFZA offers licenses for a variety of business activities like general trading, trading of machinery, equipment, electrical and electronic items, construction and building materials, jewellery, logistics, aviation, manufacturing etc.
UAE Silicon Oasis – DSO, the internationally known Free zone serves as a technology hub that caters to the requirements of telecom and the IT sector.
UAE Healthcare City – caters to the entire needs of the Healthcare sector like medical research facilities, clinical and non-clinical services, medical equipment etc.
The total cost involved in Freezone company formation will include license fee, registration fee, visa charges and other similar fees promulgated by the authority from time to time. The charges for business setup in UAE free zone that we mention here are for reference purposes only. You may contact us to know about the latest UAE freezone license cost. Each Free Zone has its policies and regulations. The validity of the business license and the stipulations will depend on the Free Zone. Normally, a Freezone license is valid for 0-3 years.
Business establishments irrespective of their legal structure and size requires a valid trade license to conduct their operations in any of the UAE Free Zones. The UAE Freezone Licenses issued include:
Professional License – For service-oriented firms and consultancies. Industrial license – For manufacturing firms, import and export companies General Trading License – the investor can make use of the General Trading license to trade a wide category of goods and commodities. Warehousing license – the investor may acquire this license to meet the various warehousing requirements like storage and distribution.
Free zone companies are allowed to conduct business transactions within the limits of Free zone and abroad. There are certain restrictions to conduct business transactions in the UAE mainland. Free zone companies that hold a commercial license should seek the service of a distributor to conduct mainland or local operations.
We can guide you throughout the entire Freezone Company Formation procedures. Creative Business Solutions is a registered business consultant based in UAE serving clients for more than a decade. Feel free to contact our team of consultants for additional support.
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