Starting a company in the UAE comes with a lot of benefits for the investors. There are several locations in UAE to start a Company. Ras Al Khaimah is a developing business hub of UAE presently. To get a Trade License in RAK the investor has to follow the below step-by-step guide.
Furthermore, there are several low-cost business setup options and business-friendly initiatives in RAK. So, getting a trade license from RAK is a favourable option for investors. The low-cost trade license in RAK is the highlight for investors. This article focuses on the trade license process and trade licenses available at RAK.
Why RAK is a Great Place to Start a Business?
RAK has a good reputation for being a business-friendly emirate. Investors choose RAK for many reasons, and a few of them are because of the following aspects:
- The business setup cost and trade license cost are lower than in the Emirates, such as Dubai.
- The location of the international Airport and Seaport makes it a perfect logistics hub.
- The Free Zones, such as RAKEZ, have Designated Zones and Dual-Licensing, enabling new business opportunities.
- Multiple business licenses available – Services, Commercial, Trading, and more
- More than 2000 plus business activities and a fast licensing process
For entrepreneurs who wish to test the waters before they dive, RAKEZ is the perfect launchpad. They can easily scale up the business as per their requirements without much hassle.
RAKEZ offers multiple office space packages, warehousing support, and freehold land to seamlessly expand your business. Should you wish to expand to the mainland, there is provision for that also through a dual license permit.
Similarly, to keep the taxes low, the companies can opt to set up in the Designated Free Zone area in RAKEZ.
What is a trade license in RAK?
A trade license is an official document that lets the investor run a business. In RAK, the trade license is either issued by RAK Economic Zone (RAKZ) or the Mainland of RAK.
Also, presently, you can apply for a permit from the Department of Economy with the RAKEZ Trade License to operate in the mainland.
Types of Trade Licenses Available in RAK
You need to choose a license type that fits the kind of business you run. Here are the main options you have:
- Commercial License
- Industrial License
- General Trading License
- Professional License
Choosing the right license makes sure you follow the rules and run your business smoothly.
How to Get a Trade License in RAK: Step-by-Step Guide
The investor can follow the step-by-step guide below to obtain a Trade License in RAK. The process of getting a trade license is straightforward. Business Consultants will guide the investor through the process of obtaining a Trade License.
An overview of the procedure is provided below:
1. Identify Your Business Activity
RAK has multiple business activities; choose from the activity list and decide on the business license type. The right business type and activity selection are important processes that determine the future of the business.
2: Choose Your Business Structure
Choosing the right business type will help you to operate in the UAE Free Zone or the Mainland the right way. Own 100% of your company and save on taxes by getting the Designated Zone License for your international trading company.
3. Choose a name for your business
The right naming of the business is also equally important as the activity type and business type. The naming must fit with the business the company does. Also, there are certain naming rules to follow to avoid rejection. The name approval must be submitted to RAKEZ or the Department of Economic Development.
4. Prepare & Submit Your Documents
Now, prepare the documentation and get the paperwork in place. It will require the following documents.
- The completed application form.
- Passport copies of shareholders and managers
- A brief business plan (if needed)
- Memorandum of Association (MOA)
- Proof of business address
Need help? AURION and other consultants can help you with this and make sure you don’t miss anything.
5. Pay the Fees
After the documents are submitted, make the trade license fee payment to the authorities. The documents will be reviewed, and the Trade License will be issued by the Free Zone or Mainland Authorities, respectively. RAK Free Zone has one of the Lowest Cost Trade Licenses in the UAE.
6. Get Your Trade License
Your trade license will be issued following the completion of a final review and payment. Most of the time, it only takes a day or two to receive the trade license.
7. Open a Business Bank Account
You can now open a corporate bank account after obtaining your trade license. RAK has a strong banking network with many banks, both local and international, to choose from.
Benefits of a Trade License in RAK
- 100% foreign ownership: Free zone licenses provide full ownership without the need for a local sponsor.
- Tax Benefits: There is no corporate or personal income tax in RAK free zones.
- Fast Setup Process: Streamlined processes make it easy to get a license quickly.
- Office Space Access: Get a Flexi Desk or Office Space as per requirements by upgrading the license.
- Access to Global Markets: RAK’s strategic location makes it easy to trade with the Middle East, Asia, and other places.
Why Partner with AURION?
Getting a Trade License in RAK involves a few steps to follow and can be a bit overwhelming, especially for new business owners. Working with a reliable business setup consultant like Aurion makes the process easy.
Our team of experts helps you every step of the way, from picking the right license to filling out paperwork and getting approvals. So, with low costs, a great location, and helpful government policies, RAK makes it easier than ever to make your business dreams a reality.
