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RAK (Ras AL Khaimah) edges out as one of the 7 Emirates in the UAE (United Arab Emirates).
The Emirate is strategically situated in the farthest north UAE region. RAK is within a close proximity to Dubai as it is only 45 minutes drive from Dubai. The Emirate is connected to other Emirates by express highways that have been built in light of global standards on highways. This Emirate sets itself apart from other emirates due to its steady growth and its centralized contributions to the magnificent UAE economy.
The main economic activities in the emirate include manufacturing, inward foreign investments, capital flows & exchanges and trade among other economic activities. The best thing about RAK is that it is affordable both to live and trade in the emirate. This is because of the fact that the cost of living and business costs are very low and thus easily affordable. This is in comparison to Dubai and consequently RAK provides higher and better profit margins for business people.
The establishment of RAK FREE TRADE ZONE authority dates back to the year 2000 and it edges out as one of the leading free trade zones in UAE. In addition to this, this free trade zone hosts not less than 7000 active companies. Due to the great reputation and recognition that the free trade zones enjoy, they have received a great preference as the best business hub to trade in across Lake the easy accessibility of the zones has had a great impact on attracting new investors and business people to trade in the zones.
Industrial: permits holders to deal in importation of raw materials, packaging, processing, manufacturing, assembling and exportation of finished products to different global markets. The license only allows its holders to trade in only 1 product line.
General trading: holders permitted to import, export, store goods in warehouses and also engage in the distribution of the goods. Holders are allowed to engage in different business activities (no limitations to trading).
Commercial: holders allowed to import, export warehousing and distribution of goods. Holders allowed to either engage in 2 different activities or in 7 similar business activities.
Consultancy / services: free to engage in different types of management, real estate, marketing, industrial consultations and logistics. Holders allowed dealing in 2 different consulting services.
Different licenses are issued for people who business people whose trading activities fall into different categories. For example, a trader intending to offer consultancy services and commercial services is issued with 2 licenses, each for the respective activity.
It is required that every company operating and trading within the RAK FTZ should be licensed with the respective business or trade license. These licenses are time- based permits that authorize the trader to do business in the zone for a specified time frame;
Free Zone Establishment: single owner/ shareholder.
Free Zone Company: 2-5 partners/shareholders.
Foreign or Local branch: RAK foreign or local branch.
NOTE 1: For local and foreign companies, it is required that the Parent company should be in existence for not less a year.
Single Manager/ director. The same positions can hold both offices/ positions at the same time.
At least one shareholder (corporate bodies/ individuals allowed).
There is a requirement that accounts should be prepared but as of now there is no provision for filing the accounts.
At least AED 100,000 per shareholder as share capital for all licenses with the exception of General Trading Licenses. For a General Trading License, the minimum share capital stands at AED 150,000.
Businesses are required to rent an office in Ras Al Khaimah under an umbrella RAK FTZ company.
The validity of licenses is only one year after which renewal is annually after the expiry date of the current license. When applying for license renewals, it is required that businesses should submit audit reports.