Conditions for establishing a company in Ras Al Khaimah Free Zone, Free Zones play an important role in stimulating business activity and attracting investments. The Gulf region, in particular the Ras Al Khaimah Free Zone, is one of the premier destinations offering an ideal environment for company formation and business development. Establishing a company in this free zone requires adherence to a number of conditions that reflect local regulations and laws, and ensures business continuity and compliance with professional and legal standards.
The incorporation of companies in the Ras Al Khaimah is done in accordance with specific laws and procedures, as companies have great freedom to choose the type of company and business activities they wish to practice. For example, a limited liability company, a joint stock company, or a sole proprietorship can be established, as well as activities such as manufacturing, logistics, import and export, and financial and technical services.
Itqan is a key partner in this process, providing specialized consulting services that include assisting in the preparation of the required documents, advising on the best steps to achieve business success, and facilitating the transition and integration into the local and international market. In this article, we will explore the main conditions for establishing companies in the Ras Al Khaimah Free Zone, as well as the role and importance of Etqan in facilitating this process and achieving practical success. Read on to find out more about this exciting and useful topic.
Conditions for establishing a company in Ras Al Khaimah Free Zone
Establishing a company in the RAK Free Zone requires adherence to several conditions and procedures aimed at ensuring proper operation and compliance with local laws and regulations. Here are some key conditions to consider when setting up a company in the free zone:
- Type of company: The appropriate type of company must be selected, whether it is a limited liability company, a joint stock company, or an individual company. It depends on several factors such as ownership and liability structure and local legislation.
- Industrial license: The establishment of the company requires obtaining an industrial license from the competent authorities, and this license varies based on the company\\\’s activity, whether it is manufacturing, distribution, or other services.
- Capital: The Ras Al Khaimah Free Zone shall specify a minimum capital required for the incorporation of the Company, and evidence of the availability of such capital shall be provided.
- Contracts and legal documents: The establishment of the company requires the preparation of contracts and legal documents relating to shareholders, directors, the structure of the company and details of business operations.
- Visas and Work Permits: Necessary visas and work permits must be obtained for foreign shareholders and employees, in accordance with local policies and laws.
These are some of the prerequisites, and details of the terms and procedures may vary depending on the type of company, business, and local laws. It is always advisable to consult with Etqan to ensure full compliance with all local and international conditions and regulations.
The difference between establishing a company in Dubai and establishing a company in the free zone
| Item | Incorporation of a company in Dubai | Establishment of a company in Ras Al Khaimah Free Zone |
|---|---|---|
| Company Location | In the city of ……….. | In Ras Al Khaimah Free Zone |
| Laws and regulations | Subject to federal and local laws in Dubai | Depends on the laws and regulations of the free zone |
| Required Capital | Varies by company type and business activity | Varies by company type and business activity |
| Partnerships and Agencies | Partnerships and local and international agencies can be arranged | Partnerships and local and international agencies can be arranged |
| Licenses and Permits | Local licenses and permits must be obtained from the Department of Commerce and Industry | Licenses and permits must be obtained from the competent authorities of the free zone |
| Financial Guarantees and Guarantees | The required guarantees and guarantees can be provided as the case may be | The required guarantees and guarantees can be provided as the case may be |
| Taxes and exemptions | Subject to local and international taxes and can benefit from available exemptions | Subject to local and international taxes and can benefit from available exemptions |
| ADMINISTRATIVE PROCEDURE | Includes the necessary administrative and financial procedures for the company in Dubai | Includes the necessary administrative and financial procedures for the company in the Ras Al Khaimah Free Zone |
| Infrastructure and public services | Rely on Dubai\\\’s public infrastructure and services | Depends on public infrastructure and services in the free zone |
| Investment and economic development opportunities | Provides opportunities for investment and economic development in Dubai | Provides opportunities for investment and economic development in the RAK Free Zone |
| Stability and security | Has a high level of stability and security in Dubai | High level of stability and security in RAK Free Zone |
Steps to establish a company in the free zone
Establishing a company in the free zone is a strategic investment step of great importance for investors and businessmen. The free zone has attractive features that make it an ideal environment for business growth and expansion of investments. These include customs freedom, no taxation, well-developed infrastructure, and simple procedures for setting up businesses.
- Research and study: Study the market, legal and regulatory requirements for establishing the company in the free zone.
- Choosing the legal structure: Decide on the appropriate type of company, such as a limited liability company (LLC) or a public joint stock company (PJSC).
- Selecting the name and registration: Choose an appropriate name for the company and make sure it is available, then register the company with the competent authorities in the free zone.
- Preparation of documents: Prepare the necessary company documents, such as the memorandum of association, the company\\\’s articles of association, and assign administrative responsibilities.
- Obtaining licenses and permits: You may need to obtain local licenses and permits from the competent authorities, such as trade and industry licensing and building permits if the company is engaged in construction.
Please note that these steps are general and their details may vary depending on the type of company and the local laws of the free zone in which you wish to incorporate the company. It is always advisable to consult with Etqan to ensure full compliance with laws and procedures.
Documents required for the incorporation of the company
Company incorporation in Ras Al Khaimah Free Zone requires the submission of a set of required documents. These documents vary slightly depending on the type of company and business activities you intend to do, but here is a general list of basic documents you usually need:
- Copy of Passport: Each shareholder, partner or director of the company needs to provide a copy of a valid passport.
- Portraits: Recent portraits of shareholders, directors and anyone associated with the company must be provided.
- Memorandum of Association: Includes information about the company such as the name of the company, the type of company, the address of the headquarters, the planned business activities, and the details of the shareholders and shares.
- Business Activity Report: The company needs to submit a report outlining the activities of the company and the sector in which it operates.
- Work Permit: A work permit must be obtained for the company from the concerned authorities in the free zone.
Please note that these documents may vary based on the type of company and local laws in Ras Al Khaimah Free Zone. Therefore, it is always preferable to communicate with Etqan to establish the company through the concerned authorities before starting the process.
Financial guarantees for establishing a company in the free zone
Establishing a company in Ras Al Khaimah Free Zone comes with a range of financial guarantees that help provide financial stability and protection for investors. Here are some key financial guarantees:
- Tax exemption Income tax exemption: Investors in the free zone enjoy full exemption from personal income tax, which contributes to increasing personal financial returns. Exemption from corporate tax: Companies located in the free zone are exempt from corporate tax, which helps to achieve higher profits. Customs exemption: There are no customs duties on imported and exported goods, which reduces import and export costs.
- Low Fees Policy Low registration fees: The costs of registering a company in the free zone are often low compared to other places. Low rental costs: The free zone provides industrial offices and spaces with low rental costs, which reduces operational costs.
- Investment Protection Full Foreign Ownership: Foreign investors can fully own the company without the need for a local partner, which protects their financial rights. Freedom to transfer profits: The entire profits and proceeds can be transferred abroad without restrictions, providing great financial flexibility. Legal security: There are laws and regulations that protect the rights of investors and provide a stable and safe investment environment.
- Business Support Integrated Service Centers: The Free Zone provides integrated service centers that provide technical and advisory support to companies in all financial, legal and operational fields. Visa facilitation: Providing visa facilitation to investors and employees, facilitating recruitment procedures and maintaining important human resources for the company.
These financial guarantees make setting up a company in the RAK Free Zone an ideal choice for investors looking for an encouraging and stable investment environment that supports the growth and prosperity of the business.
Helping us to establish your company in the free zone
Itqan offers a range of services to help establish your business in the Ras Al Khaimah Free Zone. Here are some of the services that Etqan may offer:
- Company incorporation consultancy: Itqan provides customized consultancy to help you understand the legal and regulatory requirements for establishing companies in the free zone, including choosing the appropriate legal structure and preparing the necessary documents.
- Assistance with administrative procedures: Itqan facilitates the administrative procedures required to establish the company, such as submitting the necessary applications and licenses from government and administrative agencies.
- Arranging partnerships and agencies: Itqan provides the services of arranging partnerships and agencies required to work with government agencies and financial and commercial institutions in the region.
- Site and Property Selection Assistance: Itqan provides assistance in choosing the right location for your company and dealing with free zone properties, including real estate contracts and agreements.
- Guidance on financial guarantees: Itqan provides guidance and assistance in arranging the financial guarantees required for the establishment of the company, such as bank guarantees and other guarantees.
In short, Itqan offers a comprehensive range of services to help you establish your company in the RAK Free Zone, making it easier for you to launch and succeed in the local and international market.
Your company in Ras Al Khaimah
At the conclusion of this article, the importance of the necessary conditions and procedures for establishing a company in Ras Al Khaimah Free Zone is highlighted, as well as the role of Etqan in facilitating this process and ensuring the success of the new company. Itqan is a key partner in the journey of establishing companies in the Free Zone, offering a wide range of customized services that include legal, administrative and financial advice. With its extensive and specialized experience in the field, Itqan contributes to providing the necessary advice and guidance to help choose the appropriate legal structure for the company, prepare the necessary documents such as contracts and agreements, and directives on financial guarantees and insurance.
Itqan also contributes to facilitating administrative and financial operations, and dealing with the competent government agencies to obtain the necessary licenses and permits, in order to ensure full compliance with local laws and legislation. Furthermore, it provides accounting and auditing services to ensure that financial operations are carried out accurately and effectively. In this way, it can be said that Itqan plays a vital and effective role in establishing companies in the Ras Al Khaimah Free Zone, which enhances confidence and stability in the business environment, and contributes to attracting more investments and developing the local economy.
