Ras Al Khaimah Economic Zone (RAKEZ) is the continuation of a story that began in 2000 with establishment of Ras Al Khaimah Free Trade Zone (RAK FTZ) and Ras Al Khaimah Economic Authority (RAKIA) in 2005.
Why RAKEZ was Formed?
RAKEZ was introduced as a central authority to oversee and consolidate specialized clients for both of its counterparts, RAK FTZ and RAKIA. In 2017, the RAKFTZ and RAKIA were merged as one entity RAKEZ to streamline its licensing procedures and improve its administrative efficiency.
In an interview, Sheikh Ahmed Al Qasimi, the chairman of the RAKFTZ Authority said,
“Bringing together RAK FTZ and RAKIA under the umbrella of RAKEZ is the first step towards taking our customer experience to the next level. It underlines our commitment to provide exceptional service delivery, simplified processes, and cost-effective solutions.”
From its inception till today, the 18-year journey has transformed the Emirate of RAK into a global investment giant with a GDP of approximately $10 billion.
Recent Efforts of RAKEZ Authority to Facilitate Investors
Blessed with a strategic location that is spread over 33 million m2 of diverse economic landscape, RAKEZ is a full-fledged, customizable, and cost-effective destination of choice for entrepreneurs, SMEs and Large Enterprises from all around the world. Under the umbrella of RAKEZ, the zone houses over 13,000 companies represented by around 100 countries in over 50 independent sectors.
- In its bid to facilitate emerging entrepreneurs with affordable business set up solutions, RAKEZ announced a 10% reduction in its licensing and registration costs in 2017 along with a flexible 12-month installment plan for investors. Due to its remarkable success and international recognition, RAKEZ was awarded fDi Global Free Zones of the Year Awards in 2017.
- This year RAKEZ teamed up with Sehteq, a newly introduced online health portal, to provide its clients and their families cost-effective annual health insurance plans in just AED 550.
- To further encourage foreign investors, RAKEZ authorities have expanded their service parameters by offering administrative support through local offices in RAK, Dubai, Abu Dhabi to international outposts established in India, Turkey, and Germany.
Cost Advantage of RAKEZ Company Setup
RAKEZ Enjoys a unique and strategic cost advantage over many similar zones in Middle East and the World.
- 0% personal and corporate tax with 100% foreign ownership
- Free zone and non-free zone entity formation
- A wide-range of business and industrial facilities with value-added services
- Connectivity to major logistical hubs and multilane super highways
- Accessibility via an international spread of regional offices
- Accessibility to markets across the Middle East and North Africa (MENA) region, Europe, as well as South and Central Asia
- Access to logistical hubs including Saqr Port, MENA’s largest bulk container port
- In close proximity to RAK and Dubai International Airports
- Affordable Flexi-desk facilities, workspace provisions, storage and warehouse structures with flexible payment plans.
- Affordable warehouses and preinstalled as well as customizable office space provisions
- Specialized zones for trading, manufacturing, storage, assembly, and transport
- Tiered packages for insurance, security, peripheral and utility services
- Abundance of affordable labor with onsite accommodation benefit
- Dedicated customer portal for information and complaints
Cost Involved in Company Registration in RAKEZ
The cost of RAKEZ company set up is based on the activity, licensing type and a few other elements. The following are the main costs involved during the incorporation process.
- Initial free zone fees for business registration
- Annual license fees
- Package for office space and its associated costs
- PO Box yearly fee
- Establishment card
Minimum Cost for RAKEZ Company Formation
RAKEZ offers a great investment proposition in lower costs through a range of license types from commercial, services, general trading, ecommerce and individual licenses.
To start a commercial business set up, the minimum package is AED 14,800. In investor is allowed to either conduct 5 activities from the same category with additional similar activity cost of AED 1,000, or 2 different activities from different categories with additional non-similar activity cost of AED 3,000. The investor is allowed to conduct a maximum of 3 different activities.
To get a services license, the minimum package starts from AED 18,300. This license allows 2 different activities with additional activity cost of AED 1,000. To conduct special activity, the investor will require approval and additional cost of AED 6,500 to AED 10,000 depending of the type of activity chosen.
General Trading License
For general trading license the minimum package starts from AED 21,800 which goes up depending on the type of office and the number of visas. The investor can get up to 4 visas with executive office.
Ecommerce Licenses are among the most popular form of registration in RAKEZ. They start from AED 19,800 and go up to AED 42,000. For Ecommerce license, the investor is allowed a maximum of 2 different activities.
Minimum package for Individual/Professional license is AED 16,800.
How IBG Can Help?
IBG Consulting is UAE’s one-stop shop for all kinds of business set up services. We provide dedicated consultants to help you successfully register and license your company in RAKEZ with the best facilities and corporate structure for continuous business growth. We also specialize in providing support for opening personal or corporate bank accounts, preparing documentation, obtaining visas, license renewal, insurance, office space provisions. Call our consultants now or visit our website ibgme.ae to find out more about Ras Al Khaimah Economic Zone.