The Ras Al Khaimah Economic Zone (RAKEZ) is among the top free zones within the United Arab Emirates territory. It is a business haven that pulls customers from all countries. RAKEZ provides several types of business Licenses, business premises, and other productive services. These features make it appealing to both new and existing firms. The RAKEZ is also appealing because of its location via the international market. In addition, the costs of setting up a business in the area are much lower while the processes are much easier, thus making it a good place for young businesses.
Breakdown of License Costs in RAKEZ
RAK Free zone license cost varies according to the category of the license required. Such licenses include: Trading, Industrial, Service and freelancer licences, which are provided by RAKEZ. Each type of license comes with its own respective applications and payment fees. For instance, for a trading licence, business will be able to import, export and trade in goods, which goes for about $5000 going up on a yearly basis. Similar to the above industrial operations are done under an industrial license, which can cost about $7500 per annum. Same applies for the service licenses, which are used by firms which offer any kind of professional services. The freelancer’s license is not as expensive as the above licenses because they are meant for individual freelancers and the costs can be around $2000 and above.
Additional Costs to Consider
Besides the license fees, starting a company in RAKEZ involves additional expenses like visa fees, office space rental and registration fees. Such planning is necessary since outside permits may in some cases have to be obtained. All of these expenses should be considered in advance so that no surprises arise out of the blue. In addition to that, businesses also have to think about the expenses for renewing these licenses each year as they usually carry the same expenses as the initial registration fees. By knowing all of the above expenses, businesses will be in a position to even advance more in budgeting their income.
Comparison with Other UAE Free Zones
RAKEZ is one out of many free zones in the UAE , each claiming its exclusive benefits and rates. Compared to most other free zones like Dubai Multi Commodities Centre (DMCC) or Jebel Ali Free Zone (JAFZA), RAKEZ typically presents a cheaper solution. For example, one can pay $7,000 for a license in DMCC which is more than RAKEZ licensing fees. In the same breath, JAFZA, which is praised for its great facilities and location as well, could pose an even costlier structure where business activities with some setup could go for more than $10,000. Ajman Free Zone is the other common free zone that still maintains a business friendly environment in terms of pricing but may not enjoy some of the additional perks that RAKEZ offers, like less costly visa charges and cheaper office package.
Benefits of Choosing RAKEZ
When compared with other free zones in UAE, RAKEZ has plenty of benefits. One of the advantages is the low startups and operational costs associated with this zones. Not only that, RAKEZ has various office options ranging from flexi-desks to an entire warehouse which satisfies many requirements. The free zone also provides several visa packages which can be particularly useful for companies with a wider range of staff. Further still, RAKEZ is recognized for its service to customers whereby setting up business is not too complicated. The zone keeps on making investments on digital transformation to allow its investors have less and faster procedures.
Factors Influencing License Costs in RAKEZ
There are a number of variables that will determine the cost of obtaining business registration in RAKEZ. The type of business activity is a significant factor; certain activities may involve some expenditure in getting additional approvals or permits which can push the total costs even higher. The dimension of the corporation and the number of visas needed also play a role in the overall costs. For example, a two owners’ business that requires a few visas for the business owners may attract less costs. The selection of the type of facilities will also influence the total figure in the end. It is very critical for the companies to assess the specific requirements and select the least cost options.
Tips for Cost-Effective Business Setup in RAKEZ
In an effort to decrease costs, companies must put into consideration the kinds of licenses and facilities that they are most likely to need. In the same vein, flexi-desk or shared office space options could allow some of the newly established businesses or small companies to go very light on head office expenditures. In a similar fashion, it is suggested that business setup experts be consulted on which license type is most ideal, as well as the laws that need to be complied with. Lastly, companies would do well to keep abreast of the knowledge of any incentives or discounts offered by RAKEZ since these can further lower the cost of setting up a business.
- Choose the most suitable license type to avoid unnecessary fees.
- Opt for flexible office options like shared spaces or flexi-desks.
- Leverage any available discounts or promotional offers from RAKEZ.
- Consider long-term costs, including license renewals and visa fees.
- Consult with business setup advisors for expert guidance.
Conclusion
For businesses that aim to set foot in the UAE, it is reasonably easy and cost effective to do so within the RAK Free Zone. RAKEZ however is strategic for both new and well established businesses for it has different types of licenses, office solutions and a comprehensive business environment. It is vital for businesses to understand the licensing costs that they are likely to incur in the RAKEZ free zone and compare that with other free zones in order to make an informed business decision. With proper planning on the use of RAKEZ profits, family businesses can aim and secure a lasting foothold in that region.
Also published on Medium.
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