Rakia is an authority established to process various business licenses and other related services in Ras Al Khaimah (RAK). It is also responsible for overall growth of the Zone by providing vigorous infrastructure, professional business environment and regulatory stability to enable business development and attract local and global entrepreneurs to invest in the region.
Business setup in RAK through RAKIA
In RAK business setup is divided into Non Free Zone and Free Zone which is managed by RAKIA. The difference between the two is that for mainland business setup is done by following UAE laws and free zone setup is done as per laws setup by free zone authority.
Types of Legal Entities:
A) Non Free Zone
1) Establishment (E) – It is an setup wherein there is only 1 shareholder
2) Limited Liability Company (LLC) – It is an setup wherein there are minimum 2 shareholders with a condition that 51% of shareholder should be a local sponsor and balance 49% can be distributed between expatriates.
B) Free Zone
1) Free Zone Establishment (FZE) – It is an entity with single shareholder
2) Free Zone LLC (FZLLC) – It is an entity with 2 or more partners / shareholders. They can be either Natural Person or Corporate person or combination of both.
3) Branch of Local Company (BLC) – It is a branch of a local company in UAE
4) Branch of Foreign Company (BFC) – It is a branch of a company outside UAE
Types of Licenses:
1) Services / Consultancy: These licenses are meant for those who are involved in service / consultancy activities.
2) Trading / General Trading: These licenses are meant for those involved in import, export, distribution and warehousing of goods. Based on the activities it can be either specific or general trading.
3) Industrial: These licenses are issued entrepreneurs involved in manufacturing activities.
4) Media: These licenses are issued to those who are involved media businesses.
Steps to setup a company in RAK free zone
1) Select on the Name, entity, activity and type of the property required for the proposed company
2) Decide on the number of Shareholder(s) and Director(s) and also on the Manager of the proposed company
3) Decide on the composition of Shareholder(s) with reference to Natural / Corporate or Combination of both.
4) Once the above is decided submit the following documents
a) Application containing all the above details
b) Passport copies of the Shareholder(s), partner(s) and Manager.
c) Business plan as per template provided by the Authority
d) Company fact sheet
e) Application for RAK chamber of commerce wherever applicable
f) Any other document as required by the authorities for approval of the license.
g) Application for company contact details
The authorities will assess the legality of the above documents and issues the License and the lease agreement.