Commencing a business can be a thrilling endeavor, yet it is not without its obstacles. To streamline the process, establishing your company in a free zone can prove to be beneficial. RAKEZ Free Zone, situated in the UAE, presents itself as a viable option, offering a multitude of advantages and incentives for aspiring entrepreneurs. This article aims to delve into the advantages of setting up a company in RAKEZ Free Zone, the registration procedure, necessary documentation, the perks of incorporating in this free zone, and the specific prerequisites that must be met.
Why Setup A Company in RAKEZ Free Zone
Some of the compiling reasons to set up a company in RAKEZ Free Zone are listed below:
- 100% foreign ownership: You have complete control over your business, unlike many other countries that require local sponsorship.
- Tax-free environment: Enjoy zero corporate and personal income taxes, as well as zero customs duty on imports and exports, leading to cost savings and increased profitability.
- Hassle-free Business Setup: Streamlined procedures, minimal paperwork, and efficient services make it easy and fast to establish your company.
How to Register a Company in RAKEZ Free Zone
The following steps to register your company in RAKEZ Free Zone are listed below:
- Choose a business activity: The first step is to determine the nature of your business activity. RAKEZ Free Zone allows a wide range of activities, from trading and manufacturing to services and consultancy. Select the activity that best aligns with your business goals.
- Select a legal entity: Next, you need to decide on the legal structure of your company. RAKEZ Free Zone offers options such as Free Zone Establishment (FZE), Free Zone Company (FZC), and Branch of a Foreign Company.
- Choose a trade name: Your company’s trade name is crucial, as it represents your brand. Make sure the name is unique and aligns with the guidelines set by RAKEZ Free Zone. You can check the availability of your chosen name through their online portal.
- Submit the application: Once you have finalized your business activity, legal entity, and trade name, you can proceed to submit your application. Prepare all the necessary documents, such as passport copies, business plan, and proof of address, and submit them online or in person.
- Obtain the license: After the submission of your application, RAKEZ Free Zone will review it and, upon approval, issue a license. This license allows you to conduct your business activities within the free zone.
- Lease office space: Depending on your business requirements, you may need to lease office space within RAKEZ Free Zone. Determine the size and type of office you need and choose from the available options.
- Complete the registration: Finally, complete the registration process by signing the necessary documents and paying the applicable fees. Once this is done, you can start operating your company in RAKEZ Free Zone.
Documents Required to Start a Company in RAKEZ Free Zone
When registering a company in RAKEZ Free Zone, you will need to prepare and submit several documents. Here is a list of the essential documents:
- Passport copies: Provide clear copies of the passports of all shareholders, directors, and managers involved in the company.
- Proof of address: Submit documents that prove your residential address, such as recent utility bills or bank statements.
- Business plan: Prepare a comprehensive business plan that outlines your company’s objectives, strategies, and financial projections.
- No objection certificate: If you are an existing UAE resident, you will need to obtain a no objection certificate from your current sponsor.
- Memorandum of Association: This document states the company’s name, objectives, shareholder details, and capital.
- Specimen signature: Provide specimen signatures of all shareholders, directors, and managers.
Benefits to Incorporate a Company in RAKEZ Free Zone
Incorporating a company in RAKEZ Free Zone comes with a host of benefits that can give your business a competitive edge. Some of the key benefits include:
- 100% foreign ownership: As mentioned earlier, RAKEZ Free Zone allows 100% foreign ownership, giving you full control over your company’s operations and decision-making. This eliminates the need for local sponsors who may have a say in your business.
- Tax incentives: RAKEZ Free Zone offers a tax-free environment, meaning you can enjoy zero corporate and personal income taxes. This can significantly reduce your operating expenses and increase your profitability.
- Strategic location: The UAE is strategically located, making it an ideal hub for businesses looking to expand their reach in the Middle East, Africa, and Asia. RAKEZ Free Zone’s proximity to major airports and seaports ensures easy accessibility and efficient logistics.
- Modern infrastructure: RAKEZ Free Zone boasts state-of-the-art infrastructure and world-class facilities. From office spaces and warehouses to advanced telecommunications and IT infrastructure, you can expect a conducive environment for your business to thrive.
- Business-friendly regulations: The UAE government has implemented business-friendly regulations to attract foreign investors. RAKEZ Free Zone follows these regulations, ensuring a smooth and transparent business setup process.
Requirements For Setting up a Company in RAKEZ Free Zone
While setting up a company in RAKEZ Free Zone offers numerous benefits, it is essential to meet certain requirements. Here are some of the key requirements:
- Share capital: Depending on the legal entity you choose, there may be a minimum share capital requirement. For example, a Free Zone Establishment (FZE) requires a minimum share capital of AED 150,000, while a Free Zone Company (FZC) requires AED 1,000,000.
- Physical presence: RAKEZ Free Zone requires companies to have a physical presence within the free zone. This can be in the form of office space, warehouse, or land, depending on your business activities.
- Visa eligibility: To operate a company in RAKEZ Free Zone, you and your employees may need to obtain UAE residence visas. The number of visas you can apply for will depend on the size of your office space.
- Renewal and compliance: Once your company is registered, you must ensure timely renewal of your license and compliance with all relevant regulations. Failure to do so may result in penalties or even cancellation of your license.
Types of Licenses in RAKEZ Free Zone
The different types of license are applicable in RAKEZ Free Zone are mentioned below:
- Commercial License: A commercial license allows businesses to engage in commercial activities, such as trading goods or providing services. With a commercial license, businesses can operate in industries such as retail, wholesale, consulting, and more.
- Service License: A service license is suitable for businesses that provide professional services, such as consultancy, IT services, marketing, and legal services. This license allows businesses to offer their expertise and cater to the needs of clients within and outside the UAE.
- E-commerce License: With the rise of online businesses, RAKEZ offers an e-commerce license for businesses involved in online retail, dropshipping, and other digital commerce activities. This license enables entrepreneurs to tap into the growing e-commerce market and reach customers worldwide.
- Media License: For businesses operating in the media and entertainment industry, RAKEZ offers a media license. This license covers activities such as film production, broadcasting, publishing, advertising, and event management.
- Educational License: RAKEZ recognizes the importance of education and offers an educational license for institutions providing educational services. This license allows businesses to establish schools, training centers, language institutes, and more.
Visa Options in RAKEZ Free Zone
RAKEZ provides visa options for businesses and individuals looking to work and reside in the UAE. The number of visas included in each license package varies, providing flexibility for businesses based on their needs.
1. Freelance Permit
For freelancers and solo entrepreneurs, RAKEZ offers a freelance permit. This permit allows individuals to work independently and provides them with the necessary documentation to operate legally in the UAE.
2. Company Visas
Depending on the type of license and the number of visas required, RAKEZ offers different packages for businesses. From no visas to up to six visas, businesses can choose the package that best suits their staffing needs.
Conclusion
Setting up your company in RAKEZ Free Zone offers major benefits like full ownership, tax-free environment, and modern infrastructure. It’s simple: complete the registration, gather documents, meet requirements, and start your entrepreneurial journey in RAKEZ today. Don’t miss out on this chance for success! Consult with OnDemand International for a smooth incorporation process.
