How to register a business in RAKEZ?

Ras Al Khaimah Economic Zone (RAKEZ) is one of the most attractive and cost-effective free zones in the United Arab Emirates (UAE) for businesses looking to establish their presence in the Middle East. RAKEZ offers a wide range of licenses and services, favorable business regulations, and attractive incentives. In this guide, we will provide a step-by-step process on how to register a business in RAKEZ.

Step 1: Determine your business activity and license type

The first step in registering a business in RAKEZ is to determine the type of business activity you want to engage in and the appropriate license type. RAKEZ offers various license types such as trading, service, industrial, and educational licenses. The license type will depend on the nature of your business. You can find a comprehensive list of business activities and license types on the RAKEZ website.

Step 2: Choose a legal entity

After determining your business activity and license type, you need to decide on the legal entity for your business. RAKEZ offers two options: Free Zone Company (FZC) and Free Zone Establishment (FZE).

FZC: A Free Zone Company allows for multiple shareholders, either individuals or corporations. The minimum share capital required for an FZC is AED 150,000, and the maximum number of shareholders is 5.

FZE: A Free Zone Establishment allows for a single shareholder, either an individual or a corporation. The minimum share capital required for an FZE is AED 150,000.

Step 3: Decide on the legal structure

Once you have chosen the legal entity, you need to decide on the legal structure of your business. RAKEZ allows two legal structures: Limited Liability Company (LLC) and Branch Office.

LLC: An LLC is a separate legal entity, treated as a resident company for tax purposes. It requires a minimum of 2 shareholders and can have a maximum of 50 shareholders. The liability of shareholders is limited to their capital contribution.

Branch Office: A branch office is an extension of a company already established outside the UAE. It is 100% owned by the parent company and has the same legal identity. The parent company bears financial and legal liabilities for the branch.

Step 4: Choose a trade name and get it approved

Choosing a trade name is an important step in the registration process. The trade name should reflect the nature of your business and comply with RAKEZ naming conventions. You can check the availability of your chosen trade name on the RAKEZ website. Once you have found an available name, you need to submit it for approval.

Step 5: Prepare the required documents

To register a business in RAKEZ, you need to prepare the necessary documents. The required documents may vary depending on the legal entity and license type. Generally, the following documents are required:

  • Application form: You need to complete the online application form provided by RAKEZ.
  • Passport copies: Copies of passport(s) of the shareholders, directors, and authorized signatories.
  • UAE entry stamp: A copy of the entry stamp of each shareholder, director, and authorized signatory.
  • No Objection Certificate (NOC): A NOC from the current sponsor is required for individuals canceling their residency in the UAE.
  • Memorandum of Association (MOA): The MOA is a legal document that outlines the details of the company’s structure, objectives, and shareholders.
  • Board resolution: A resolution issued by the parent company authorizing the establishment of a branch office.
  • Power of Attorney (POA): A POA authorizing a legal representative to act on behalf of the company during the registration process.

Step 6: Submit the application and payment

Once you have prepared all the required documents, you need to submit the application to RAKEZ along with the applicable fees. The fees will depend on the license type, legal entity, and additional services you require.

Step 7: Obtain the initial approval

After submitting the application, RAKEZ will review the documents and issue an initial approval. This approval allows you to proceed with the next steps of the registration process.

Step 8: Sign the lease agreement

Before the final registration, you need to sign a lease agreement with RAKEZ. The lease agreement specifies the terms and conditions of leasing the office space or a warehouse within RAKEZ. The lease agreement is an essential requirement for finalizing the registration process.

Step 9: Obtain the final license and registration

Once you have signed the lease agreement, you need to pay the required fees and submit the signed lease agreement to RAKEZ. Upon receiving the payment and the lease agreement, RAKEZ will issue the final trade license, along with the establishment card. The establishment card is the residency visa for the shareholders, directors, and employees of the company.

Step 10: Open a bank account

To operate your business in RAKEZ, you need to open a bank account in the UAE. You can choose any local or international bank operating in the UAE. The bank will require the trade license, establishment card, and other supporting documents to open the account.

Conclusion:

Registering a business in RAKEZ involves several steps, including determining your business activity and license type, choosing a legal entity and structure, choosing a trade name, preparing the required documents, submitting the application and payment, obtaining the necessary approvals, signing a lease agreement, obtaining the final license and registration, and opening a bank account. It is essential to follow the registration process carefully and seek professional advice if needed to ensure a smooth and successful registration in RAKEZ.

BizDaddy is a reliable company that can help you with all the steps involved in registering a business in RAKEZ. They have a team of experienced professionals who can assist you with everything from choosing the right business entity to opening a bank account.