The cost of establishing a company in the Ras Al Khaimah Free Zone

Some entrepreneurs want to know the cost of establishing a company in the Ras Al Khaimah Free Zone because this free zone in Ras Al Khaimah is known to be one of the free zones that is characterized by the flexibility of procedures for establishing companies in it, in addition to the fact that you do not need a local partner, as the laws enable you to own 100%. % as a foreign owner if you want to establish your company in the free zone in Ras Al Khaimah. It also provides high flexibility in procedures so that you can practice your business activity as quickly as possible to benefit from the growth opportunities and economic prosperity that Ras Al Khaimah enjoys in the local market in the United Arab Emirates. The cost of establishing a company in the Ras Al Khaimah Free Zone varies depending on the type of company, its activity, and the size of the capital required for establishment, and the cost can range from several thousand to tens of thousands of UAE dirhams. The cost of establishing a company in Ras Al Khaimah Free Zone usually includes company registration fees, business establishment and licensing fees, license issuance fees, and other government fees related to establishment. There may also be costs for documents necessary for establishment, such as legal documents, contracts, and agreements. It should be noted that the responsible authorities in the Ras Al Khaimah Free Zone can be contacted to obtain more specific details about the cost of establishing the company and the required procedures, and local business consultants can be consulted to obtain assistance in this regard.

Procedures required to establish a company in the free zone

The procedures required to establish a company in Dubai vary according to the type of company, size of capital, commercial activity, and other factors. Among the common procedures that must be completed to establish a company are:

1. Choose the type of company : Determine the type of company you want to establish, whether it is a limited liability company, a joint stock company, or another type according to your business activity.
2. Choosing a free zone : Choose the free zone suitable for your business. Each free zone offers different benefits depending on the type of activity.
3. Determine the commercial activity : Determine the commercial activity that your company will undertake, as each type of activity requires a special license.
4. Prepare the required documents : Prepare the required documents, which may include a passport, a personal photo, proof of residence, a description of the company’s activity, and partner agreements if necessary.
5. Submitting an application for incorporation : Submit an application to establish the company to the chosen free zone authority. You can submit the application electronically or through the service offices.
6. Obtaining a license : After reviewing the application and documents, the Free Zone Authority will issue the necessary license to operate the company.
7. Opening a bank account : Open a bank account in the company’s name to facilitate financial transactions.
8. Office Rental : Rent an office in the free zone, which may be necessary to meet licensing requirements.
9. Completing government procedures : You may need additional procedures such as registration with government departments or insurance.

It is necessary to contact the responsible authorities in the Ras Al Khaimah Free Zone and inquire about the specific procedures, required documents, fees, and expected time period for establishment. Local business advisors can be consulted to obtain more information and assistance in this regard.

Types of companies in Ras Al Khaimah Free Zone

Here is a table showing the types of companies in the Ras Al Khaimah Free Zone :

These types provide flexibility for investors to choose based on their trading and investment needs.

Fees required to establish the company

To set up a company in Dubai , there are several fees that need to be taken into consideration. These fees include:

1. Registration fees: These are the fees related to registering the company in the commercial registry and obtaining the necessary license.
2. License fees: Related to issuing the commercial license necessary to practice commercial activity in Dubai.
3. Visa fees: If a company needs to bring in employees from abroad, it will need to pay work visa fees.
4. Office fees: This includes the costs of renting the office or commercial space that the company will use.
5. Service fees: Includes the costs of basic services such as electricity, water, and communications.
6. Membership Fees: Sometimes, businesses are required to join local chambers of commerce and pay a membership fee.

These fees may vary based on the type of business activity, company size, and specific location within Dubai. It is always best to consult a company that specializes in incorporation to get an accurate and detailed estimate of all expected costs.

Taxes required to establish a company in Ras Al Khaimah

Establishing a company in the Ras Al Khaimah Free Zone is characterized by an encouraging tax environment for investors. Generally, the taxes required to establish and operate a company in Ras Al Khaimah include the following:

• Corporate Tax: The Emirate of Ras Al Khaimah does not impose a tax on corporate income in most cases, making it an attractive destination for investors.
• Value Added Tax (VAT): The UAE VAT rate is 5%. It is imposed on most goods and services. Businesses must register for VAT if their annual revenue exceeds a certain threshold.
• Customs duties: Customs duties are imposed on imported goods, and the percentage varies according to the type of goods.
• Municipal fees: There may be municipal fees related to commercial property rent and other services provided by the municipality.
• Other taxes: The Emirate of Ras Al Khaimah does not impose taxes on personal profits or capital gains, which enhances the attractiveness of investing in the emirate.

The tax environment in Ras Al Khaimah is designed to encourage investment and provide significant support to businesses. Therefore, it is always important to check the latest developments and tax regulations through the competent authorities or Itqan Company consultants to ensure full compliance with all tax requirements.

Advantages of establishing a company in the free zone in Ras Al Khaimah

Establishing a company in the Ras Al Khaimah Free Zone comes with several advantages that make it an attractive option for investors. Here are the most prominent advantages:

1. Tax exemptions : Companies in the free zones in Ras Al Khaimah enjoy complete exemption from corporate and individual income tax, which reduces operational costs.
2. Full foreign ownership : You can own the company 100% without the need for a local partner, which gives you full control of the business.
3. Exemption from customs duties : Companies benefit from complete exemption from customs duties on imported and exported goods, which enhances competitiveness.
4. Flexible and fast incorporation procedures : Ras Al Khaimah free zones provide simplified and fast incorporation procedures, which helps to start businesses efficiently.
5. Stimulating business environment : The free zones in Ras Al Khaimah provide a developed business environment that includes modern infrastructure and advanced logistics services, which supports the growth of companies.
6. Low costs : Compared to some other free zones in the UAE, the costs of setting up a company in Ras Al Khaimah may be lower, providing you with additional budget to invest in growth.
7. Integrated support services : Ras Al Khaimah free zones provide integrated support services that include assistance in obtaining licenses, office rental, and employment procedures.
8. Easy access to markets : Ras Al Khaimah’s strategic location provides easy access to GCC and global markets, facilitating international expansion and growth.

Thanks to these advantages, the free zones in Ras Al Khaimah are considered an excellent choice for companies looking for a suitable business environment and distinct financial and geographical advantages.

Commercial licenses in Ras Al Khaimah

In Ras Al Khaimah, there are different types of business licenses that can be obtained based on the type of business activity and the field in which the company operates. Here are the most prominent types of commercial licenses in Ras Al Khaimah:

1. General commercial license : includes general commercial activities that do not require specific licenses. This license is suitable for companies that engage in buying and selling goods and merchandise.
2. Industrial license : intended for companies operating in the industrial sector, including manufacturing and production. This license requires approvals related to industrial facilities and equipment.
3. Service license : applies to companies that provide various services such as consulting, education, legal services, or any other services not related to the direct sale and purchase of goods.
4. Tourism license : Granted to companies that provide tourism services, such as travel agencies, hotels, and event organizing companies. This license includes activities related to tourism and entertainment.
5. Electronic commercial license : for companies that work in electronic commerce and provide services over the Internet. This license requires following regulations and laws related to e-commerce.
6. Dual licensing : allows companies to operate in more than one activity under the same license. It requires providing precise details of the various activities that the company will undertake.

Steps to obtain a commercial license in Ras Al Khaimah

1. Choosing a business activity : Determine the activity you want to practice and search for the appropriate license for it.
2. Submitting an application : Submit an application for a license to the Ras Al Khaimah Economic Development Department (RAK DED) or the responsible authority in the free zone if you follow the free zone system.
3. Complete the documents : Submit the required documents such as passport, lease contract, activity description, and personal photos.
4. Review and evaluation of the application : The application and submitted documents will be reviewed by the competent authority, which may request additional information if necessary.
5. Obtaining a license : After the application is approved, you will receive the business license that allows you to conduct business activity.
6. License renewal : The license must be renewed periodically in accordance with local laws and regulations.

By following these steps, you can obtain the appropriate commercial license to conduct your business in Ras Al Khaimah with ease and effectiveness.

Documents required to establish a company in the free zone

To establish a company in the Ras Al Khaimah Free Zone , you will need to submit a set of basic papers and documents. Requirements may vary slightly depending on the type of company and the specific free zone, but in general, the required paperwork includes:

1. Passport : A copy of the passport for all partners and managers. The passport must be valid.
2. Personal photos : Recent personal photos of partners and managers.
3. Company Memorandum of Association : Memorandum of association or partners’ agreement detailing the distribution of shares, roles, and responsibilities.
4. Certificate of good conduct : A certificate of good conduct from the local or municipal authorities for partners and managers.
5. Business plan : A detailed description of the company’s activity and the business plan that includes goals and strategies.
6. Office Lease Agreement : A lease contract for an office in the free zone, showing the company address and the type of office.
7. Financial Report : If appropriate, you may be asked to provide a financial report or proof of the financial ability to establish the company.
8. Approval of competent authorities : If the business activity requires special approvals or permits, you may need to submit these approvals.
9. Additional Documentation : There may be additional documentation required depending on the type of business and the type of company, such as special licenses or permits.

Be sure to check with the governing body of the specific free zone in Ras Al Khaimah for an accurate and up-to-date list of required documents, as requirements can vary based on the type of company and its activity.

In conclusion, the cost of setting up a company in the Ras Al Khaimah Free Zone is an attractive option for many investors due to the advantages it offers, including tax exemptions, full foreign ownership, and simple procedures. Although costs may vary based on the type of activity and company size, investing in Ras Al Khaimah offers unique opportunities for growth and expansion thanks to the encouraging business environment and advanced infrastructure. By understanding the cost details and available benefits, investors can make informed decisions that contribute to achieving business success and benefit from the great opportunities that the Ras Al Khaimah Free Zone offers.