Setting up a business in a free zone in the UAE offers unparalleled advantages for entrepreneurs and investors. These designated economic areas boast their business regulations, providing businesses with opportunities for growth and expansion while enjoying special tax and foreign ownership laws.
A free zone company in the UAE, like those facilitated by Ras Al Khaimah Economic Zone (RAKEZ), is an entity that operates within designated economic zones and benefits from tax exemptions, full foreign ownership and simplified business regulations. These zones are established to promote foreign investment, boost economic activity and encourage innovation.
1. Determine the type of legal entity: Choose between a Free Zone Limited Liability Company (FZ LLC) or a Free Zone Company (FZ Co.) or opt for a Free Zone Establishment (FZE). Each legal entity has its requirements and advantages, so it is essential to choose the one that best suits your business needs. 2. Choose a trade name: Ensure the chosen trade name complies with regulations and is not already registered. It is advisable to check with the respective free zone authority or the Department of Economic Development (DED) about permitted trade names and restrictions. 3. Apply for a business licence: Depending on your business activity, apply for the appropriate licence. The type of licence required will vary based on factors such as the nature of your business, the industry you operate in and the services you provide. 4. Choose an office space: Select an office space based on the size of your company and the type of business activity. Free zones offer various office space options, including flexi desks, flexi offices and executive offices, catering to the needs of businesses of all sizes. 5. Get pre-approvals, register your business and obtain your licence: Submit necessary documents and pay registration and licence fees to obtain approvals and licences. The process typically involves obtaining initial approval, registering your business, and obtaining the necessary licences and permits from the free zone authority.
Acquiring a visa in the UAE for a free zone business involves initiating the company set-up process within the designated free trade zone, meeting specific criteria and complying with regulations set by entities like (RAKEZ). Business owners can apply for visas for themselves and their employees to legally reside and work in the UAE.
Setting up a business in a UAE free zone, such as the Ras Al Khaimah Economic Zone (RAKEZ), comes with a multitude of benefits, including:
Free capital transfer: Businesses operating within the free zones of RAKEZ in the UAE, benefit from the freedom to transfer capital without encountering restrictions or impediments. 100% ownership of fixed assets: Companies operating within the RAKEZ free zones enjoy the privilege of complete ownership rights over their fixed assets, contributing to greater autonomy and control over their operations.
Up to 100% foreign ownership: Foreign investors are granted the opportunity to possess full ownership in these designated zones, fostering an environment conducive to international investment and collaboration. Up to 100% of profit return: RAKEZ allows for the repatriation of up to 100% of profits, providing an attractive incentive for businesses to operate within these regions and stimulate economic growth. Strong banking system: Supported by robust government backing, the UAE boasts a resilient banking system, instilling confidence among investors and facilitating smooth financial transactions. No transfer restrictions: Businesses encounter no restrictions on the transfer of funds within the free zones, enabling seamless financial transactions and enhancing operational efficiency. Fully-convertible currency: Full convertibility of the currency allows for effortless exchange and facilitates international trade and investment activities, further enhancing the appeal of RAKEZ and other free zones in the UAE. Low inflation rate: With a low inflation rate, companies operating within the RAK Economic Zone benefit from stable economic conditions, minimising cost fluctuations and promoting financial stability. Low custom tariffs: The imposition of low custom tariffs, ranging up to 5% for almost all goods, contributes to a favourable business environment within free zones like RAKEZ, reducing import costs and enhancing competitiveness within the global market. Establishing a presence in a free trade zone in the UAE, particularly in RAKEZ, offers unparalleled advantages for businesses seeking to expand into the region or establish a foothold in the Middle East market.
A trade licence is mandatory for all businesses operating in the UAE. The Department of Economic Development (DED) is mainly responsible for issuing trade licences and regulating the business activities here. The trade licence serves as an official authorisation allowing businesses to conduct commercial operations lawfully in the UAE. To obtain a UAE free zone trade licence through Ras Al Khaimah Economic Zone (RAKEZ), follow these steps: 1. Ensure all necessary documents are prepared; this includes a valid passport, if applicable, a visa or an Emirates ID. 2. Choose from the available package options. RAKEZ offers two main packages: a basic one and an all-inclusive option. 3. Once the preferred package is selected, proceed to complete the online application. 4. Provide all required details accurately and select preferred business activities from the list provided. 5. After completing the application, make the payment online as per the selected package and any additional fees that may apply. 6. Upon successful submission and payment, expect to receive the business licence instantly, enabling legal operations of the business in the UAE.
RAKEZ provides two packages for company trade licences: a basic package and an all-inclusive package. The cost of a RAKEZ trade licence depends on the chosen package.
In free zones, the validity of a trade licence depends on the specific free zone authority and can range from 1 to 2 years. In conclusion, setting up a business in a free zone in the UAE provides entrepreneurs and investors with numerous advantages and opportunities for growth. By understanding the process and requirements for obtaining a UAE free zone trade licence, businesses can establish a strong presence in the region and thrive in the dynamic business environment of the UAE.
Don't forget to share this article!