RAK Free Zone
Ras Al Khaimah (RAK) is one of the seven emirates that comprise the United Arab Emirates (UAE). Strategically it located on the tip of the Arabian Gulf, Ras Al Khaimah shares borders with Oman, Sharjah, Dubai and Fujairah.
The total land area of the RAK is 2478 sq.kms and has an overall population of 250,000. The past few years has seen RAK grow rapidly on the back of economic development and diversification of its industries.
Ras Al Khaimah has earned its reputation as a pre-eminent commercial centre with an innovative, dynamic and entrepreneurial business culture.
Strategically located at the crossroads of trade and commerce between East and West, it is ideally positioned to service and access markets that span the Middle East, Africa, the Indian Subcontinent and the CIS countries.
The establishment of RAK Investment Authority (RAKIA) has helped drive the enormous economic growth in the emirate, which has seen GDP increase by more than 50% during the past four years.
Rakia has managed to attract more than 1600 companies to the emirate and amassed more than USD 2 bn in industrial investments.
Rakia is at the forefront of the Ras al Khaimah Government’s initiatives to diversify the economy, and is responsible for promoting the development of the Industrial zone and the Free Zone in Al Hamra, and the Industrial Park in Al Ghail.
Ras al Khaimah Investment Authority acts as one stop shop for all investor needs. Their services include offering business licenses (Free and Non-free zones), visas, industrial plots, warehouses, labour accommodation, commercial space, building permits etc.
RAK Investment Authority has been given the mandate to establish, run and operate a free zone in the emirate for foreign investors who wish to have full ownership and to avail of the tax and the duty concessions.
Rak free zone is a world-class business hub and a vehicle for industrial growth and development. The Rak free zone, with its cutting-edge technology and keen customer focus, offers on-demand and custom-built support services to investors in a cost-effective and flexible environment.
Established in the year 2000, it has more than 5000 companies from 106 countries around the globe. Rak free zone offers a string of benefits to the investors, viz
- 100% foreign ownership of the enterprise
- 100% export and import tax exemption
- 100% repatriation of capital and profits
- transparent laws and regulations
In Rak free zone, the type of license(s) depends on the type of activities. License types are:
- General Trading License
- Commercial / Trading License
- Consulting / Services License
- Industrial License
- Media License
The costs of a Rak free zone for different types of license are as follows:
General Trading License - AED 26500 but not including Office space or Warehouse space. Renewal fee is AED 15,000.
Consulting License is AED 21500 but not including office space. Renewal fee is AED 10000.
Media License is AED 24500 but not including office space. Renewal fee is AED 10000.
Commercial / Trading License is AED 19500 but not including Office or Warehouse space. Renewal fee is AED 8000.
Industrial license is AED 26500 but not including warehouse space. Renewal fee is AED 15000. Number of visas will be as per business requirement.
For Industrial License, the initial capital required for a business set-up is AED 200000 for a Free Zone LLC and AED 150000 for a Free Zone Establishment. For LLC companies, if more than 2 a partner, then AED 100000 per new partner is required.
At present, the annual lease rent for land is AED 12/- per sq.mtr. Per year in Al Ghail Industrial Park.
The minimum area available is 5,000 sq.mtr.
Please note that you are allowed to build labor / staff accommodation on your plot.
Also, they have built their own power plant for their clients in Al Ghail Industrial Park. Land is available in both Free Zone and Non Free Zone.
Please note that they have separate warehouses for Free Zone as well as Non Free Zone. The minimum size of warehouses is 312 sq.mtr. The annual lease rent for warehouse is AED 200/- per sq.mtr. Per year including service charge.
The office space rent at the RAKIA Amenity Centre Office Space is AED 70 per sq.ft. Per year.
Flexi desk at RAKIA (Sharing – 2 hrs x 5 days / week) option is at AED 5000/year.
Documents required are passport copies of partners and bank reference letters of partners.
Our fee for completing the Rak free zone process is AED 5500.
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