RAK Investment Authority Free Zone
Ras Al Khaimah (RAK) is a popular commercial destination in the UAE owing to its booming economy as well as the streamlined business registration processes. The Ras Al Khaimah Investment Authority or RAKIA free zone is a department under the government that aims to create an attractive business environment in the region.
It caters to businesses operating both locally and in free zones. RAKIA offers a wide range of solutions to industrial and commercial investors who can benefit a lot from its strategic location, ease of doing business, as well as cost-efficient setup and operations.
This blog explores the ins and outs of RAKIA in detail. Here you will get all the key information regarding the Ras Al Khaimah free trade zone to help you understand whether this place is right for your business or not so keep on reading till the end.
- What is the RAK Investment Authority Free Zone?
- RAKIA’s Mission
- RAKIA Free Industrial Zone – Georgia
- Ras Al Khaimah - An Attractive Investment Destination
- Why Start a Business in the RAKIA Free Zone?
- Types of Businesses or Entities Allowed by the RAKIA Free Zone
- Cost & Processing Time
What is the RAK Investment Authority Free Zone?
The RAK Investment Authority is a licensing and promotional organization that aims to facilitate and govern investments in the Ras Al Khaimah region of the UAE. The main purpose of this entity is to drive economic growth and development in the region.
This organization was launched in 2005 by an official decree issued by the region’s ruler at the time i.e., Sheikh Saqr Bin Muhammad Al Qasimi. The main intent behind this decree was to create an unparalleled business arena that offers the best and the most competitive free zone as well as non-free zone facilities.
RAKIA consists of two industrial parks spanning an area of 300 million square feet. The area contains more than 500 SMEs as well as manufacturers who enjoy its facilities like tax exemption, highly concessional land leases, and total repatriation of both capital as well as profits.
RAKIA has the vision to become a leading authority in making investments in the RAKIA-free zone. With that in mind, it has partnered with both local and international companies to create a sustainable and growing economy.
In April 2017 the RAKIA free zone was merged into Ras Al Khaimah Economic Zone or RAKEZ.
RAKIA’s Mission
RAKIA has a mission to both develop and administer industrial parks in the districts of Al Hamra and Al Ghail. The projects include both free zones as well as industrial zones.
In this region, the free trade zones were seen as real estate initiatives that mainly dealt with distribution of the permits. However, RAKIA went one step ahead by not only providing facilities but also giving invaluable investment consulting services along with ownership involvement in the selected projects.
This particular action has created a trusting environment for the investors by giving them a strong network of opportunities.
As a direct consequence of it, RAKIA was able to attract more than $2.5 billion USD in industrial investment in a span of just 3 to 4 years. This investment has fueled a rapid economic surge in Ras Al Khaimah positioning it among the fastest growing emirates in the UAE.
RAKIA Free Industrial Zone – Georgia
After the huge success of its industrial parks in the UAE, RAKIA plans to establish a Free Industrial Zone in Eastern Europe more specifically in Georgia through a subsidiary firm.
This is the first free zone in the Caucasus at an ideal location that connects it to Europe, Caucasus/ Eastern European Markets, as well as Central Asia. This free zone will be built near the largest seaport in the Black Sea Region namely the Poti Sea Port which is the subsidiary of RAKIA. This location is expected to offer a significant cost reduction for the movements of products in the supply chain at a global scale.
Ras Al Khaimah - An Attractive Investment Destination
The emirate of Ras Al Khaimah is located in the Northern UAE at a drive of less than an hour from Dubai.
The Emirates of Ras Al Khaimah is the most attractive destination for investors and the credit goes to its ideal geographic location which is at the crossroads of the East-West Trade. Other factors like the excellent infrastructure and the strong government support for the private sector investors also make it an ideal spot.
Ras Al Khaimah is a growth-driven emirate owing to the countless investment opportunities that it offers in areas like manufacturing, real estate, construction, tourism, and countless other commercial activities. Furthermore, its access to the markets of the Middle East, the CIS Republics, and the Indian Subcontinent further enhances its strategic importance.
Why Start a Business in the RAKIA Free Zone?
Here are a few reasons why you need to start a business in the RAKIA free zone
- RAKIA free zone offers a straightforward company formation process. The efficient business setup process combined with the excellent infrastructure and the complete support from regulatory bodies make it an ideal place to invest.
- You can also benefit from over 140 DTAAs or the double taxation avoidance agreements that were signed by the UAE’s Ministry of Finance. This allows you to avoid getting taxed both by home and foreign countries during international trade.
- The region offers numerous business opportunities in areas like healthcare, manufacturing, trading, construction, etc.
- Foreign investors can get full autonomy as well as ownership of the businesses in the RAKIA free zone.
Types of Businesses or Entities Allowed by the RAKIA Free Zone
Following are the main types of companies or entities that the RAKIA Free Zone allows
- Free Zone Establishment (FZE)
This business structure involves a single entity or member who can either be a person or an entire corporate body.
- Free Zone Company
This type of structure accommodates multiple shareholders. It can include a minimum of 2 and a maximum of 5 shareholders to become eligible.
- Limited Liability Company
This is a type of business where a member of the company cannot be held personally liable for the company’s debts or other liabilities. It can include services like accountants, cafes, bars, builders, handymen, etc.
- Non-Free Zone Branch
These are businesses located in the non-fee zones.
Cost & Processing Time
Based on the type of entity, the registration costs start from AED 17,000 and the complete processing can take from 7 to 10 business days.
Conclusion
Ras Al Khaimah is the top destination for investors as well as tourists alike. It boasts a strategically important location which generates a wealth of investment opportunities.
This can ensure long-term financial stability for the investors from across the globe.
The slew of benefits offered to investors and entrepreneurs make Ras Al Khaimah a place where you can set up a business with ease and expect to receive the highest ROI in very little time.
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FAQs
How long does it take to get a business license in the RAKIA free zone?
5 to 7 working days are the normal time it takes to get a license for your business in the RAKIA free zone.
How much do you need to pay to get a business license in the RAKIA free zone?
The cost varies based on the structure, size, or chosen activity of the business. You can get a typical business license for AED 3,650 per year.
Is it mandatory to have a director who is a resident of a GCC when establishing a company in the RAKIA free zone?
No, You do not need any director of a GCC for this purpose.
How many free zones are in Ras Al Khaimah?
These include a business park, an industrial park, a technology park, and an academic zone.
How much does a visa for Ras Al Khaimah free zone cost?
You can get a one-year residence visa in the RAKIA free zone for about AED 1,000.
What are some businesses that you can do in the Ras Al Khaimah free zone?
You can start manufacturing, import, export, robotics, pharmaceuticals, or food-related businesses in this area.
Is RAK cheaper than Dubai?
The cost of living in this region is significantly lower than Dubai. This is because of its 25.5% lower consumer prices as well as 45.5% lower rental prices.
What is the average good salary in the RAKIA free zone?
12K AED per month is the average starting salary that is considered good in the region.
Is Ras Al Khaimah a good destination for work?
RAK offers countless job opportunities with lucrative salaries which makes it an ideal place to work.
Is RAK a good place to invest?
It is a good place to invest for its ideal location, strong growth potential, and supportive business climate.
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