Understanding the variables that determine RAK free zone license cost

08 Apr 2023
read
Business

Ras Al Khaimah (RAK) is one of the fastest-growing emirates in the UAE and is home to a thriving business ecosystem. The RAK free zones are one of the most popular business hubs in the emirate, providing entrepreneurs with an attractive destination for company setup. The RAK free zone licence cost is a key consideration for business owners who want to establish a presence in this dynamic business environment. In this blog, we'll explore the top factors that affect RAK free zone licence cost and how entrepreneurs can minimise expenses.

Type of company formation
The type of company formation is the most significant factor that affects the RAK free zone company setup cost. The RAK free zones offer several business setup options, including free zone company, branch company, and international company. The cost of setting up each of these companies varies significantly, with free zone company being the most affordable, while international company being the most expensive.

Free zone company setup costs start at AED 5,499, while branch company setup costs go higher and international company setup costs multiply. Additionally, companies can choose from various business activities that have different costs. Therefore, it's crucial to research the available options and select the most suitable company formation type.

Business activities
The RAK free zones allow entrepreneurs to conduct various business activities, including consulting, trading, e-commerce, and manufacturing. The cost of a license will depend on the type of activity you want to engage in. Some activities require more resources than others, such as manufacturing, which will require more infrastructure and resources, making it more expensive to set up.

Additionally, some business activities require approval from certain regulatory authorities, which can increase the cost of licensing. It's essential to research the regulatory requirements of the activity you wish to engage in and factor in the associated costs.

Company size
The size of the company also affects the RAK free zone license cost. Larger companies typically require more resources, such as office space, investor, employee and dependent visas, and equipment, which can increase the licensing cost. Smaller companies, on the other hand, may have lower licensing costs since they require fewer resources.

Office space
One of the significant expenses when setting up a business in the RAK free zones is office space. The cost of renting office space will depend on the size, location, and type of space you require. RAK free zones offer a variety of office space options, including serviced offices, coworking spaces, and executive offices. Serviced offices are the most expensive option since they provide a fully furnished office with all the amenities included. Coworking spaces and executive offices are more affordable options that provide entrepreneurs with a workspace and basic amenities.

Visas
Another factor that affects the RAK free zone licence cost is the number of visas required. RAK free zones allow companies to apply for visa in UAE for their employees and dependents. The cost of a visa will depend on the type of visa and the number of visas required. The price also differs based on the visit duration. For instance, single-entry visa and multiple-entry visa. Companies with more employees or dependents will require more visas, which can increase the licensing cost.

Legal and professional fees
Finally, legal and professional fees also affect the RAK free zone company setup cost. Engaging the services of a lawyer, accountant, or consultant can ensure a smooth and successful setup. However, these services come at additional cost.

Free consultation with company setup experts
The business setup consultants at Ras Al Khaimah Economic Zone (RAKEZ) will help you understand all about free zone company setup and guide you every step of the way. Do not hesitate to contact them for a free consultation:
Phone: +971 7 204 1111
Email: info@rakez.com

Understanding the variables that determine RAK free zone license cost

Categories

Related Posts