In order to perform business in Ras al Khaimah free trade zone current laws have a number of compulsory requirements. The main requirement is obtaining of a business license, types of which we examine in this article.
When registering a company in onshore jurisdiction of Ras Al Khaimah, you should identify appropriate business license. Any business activity of onshore companies is in strict compliance with relevant official license. Business license is essential for onshore companies on the territory of free trade zones in the United Arab Emirates. Furthermore, offshore companies, as opposed to onshore companies, are not required to obtain license for their business.
Most of licenses issued in Ras Al Khaimah FTZ may vary depending on business and the requirements of professional experience of managing director of the company. The majority of licenses are not subject to special requirements.
Ras Al Khaimah – types of company licenses
The following types of business licenses are issued in Ras Al Khaimah Free Trade Zone:
- Commercial license - prescribes the following types of activities; export and import, warehousing and distribution services;
- Industrial license - processing and production, imports of raw materials, packaging, assembly and export of goods;
- Trading license - export and import, storage of goods without obtaining permits and distribution;
- Consultancy/Services License - different types of management, business services, logistics, marketing, manufacturing and industrial consulting, legal services.
By submitting an application for company license in the free trade zone of Ras Al Khaimah, it is important to take into account the following aspects:
- Company license is issued for a fixed term, which means that performance of business is permitted only for the period specified in the license. Thus annual renewal is required;
- Validity of the company license is one year from the date of its issue. Business license shall be renewed annually;
- Renewal of license is subject to financial statements and audited report;
- Fees and tariffs charged may vary depending on particular free trade area;
- If company owner in the UAE has been issued residence visa through another legal entity, he should submit written consent of sponsor for new company incorporation;
- If you intend to perform consulting business, you will be asked to prove your qualifications and skills in relevant area;
- Special types of business, for example, medicine is subject to certificate issued by the authorities of the Emirate.
Key strategic objectives of FTZ of Ras Al Khaimah
The main objective of this specialized zone is establishment of innovative business solutions, and development and implementation of advanced technologies for the benefit of business. The success of such approach is fully supported by existing statistics. Subject to the data of special official authority, currently the territory of Ras Al Khaimah trade zone is a business venue for representatives of 138 countries.
The number of companies choosing this place for business is constantly growing. Investment capital inflow ensures effective development of manufacturing sector and improvement of available infrastructure. Special attention shall be paid to the fact that the territory of the Emirate is a venue of new business projects and startups. Therefore, this special area provides business opportunities and lucrative prospects.
Currently, Ras Al Khaimah Free Trade Zone aspires to be the most rapidly growing free zone in the Gulf. In order to comply with the existing status new projects are commenced and business friendly conditions are created here. Many international experts agree that it is the most effective and advanced free trade zone for foreign investors.
Cost effectiveness with respect to incorporation of the company
First, it should be noted that company incorporation fee in special free zone of Ras Al Khaimah depends on a number of criteria, some of which are as follows:
- Type of performed business and relevant company business license;
- Additional infrastructure requirement (office and warehouse space, other services, etc.);
- The number of required residence visas (for managers and shareholders of a company and their family members).
If to make comparative analysis of all existing free trade zones in the United Arab Emirates is performed, Ras Al Khaimah is distinguished by reasonable prices with respect to incorporation of the company. This also applies to the cost of living in this Emirate.
We should furthermore mention current bilateral international agreements for avoidance of double taxation. When doing business in the United Arab Emirates, you may optimize tax payments under the tax laws in your local jurisdiction.
If you still have questions relating to setting up business in the Emirate of Ras Al Khaimah, please contact us and you will receive our professional advice.
