RAK Investment Authority Free Zone
RAKIA has diversified its product offerings with the introduction of RAKIA Business Tower, a multi-stored commercial complex located in the Al Hamra region of RAK that houses corporate offices of clients from diverse segments. RAKIA is also developing a warehousing/light industrial complex of nine units in the free zone and ten within the non-free zone in Al Hamra. Moreover, workers’ accommodation and studio flats are currently available for leasing and renting. It is the introduction of intelligent industrial plots and warehouse solutions in RAK such as these that have made the Emirate, an investor’s delight.
RAKIA is ‘ONE STOP SHOP’ for all the investor needs, providing statutory support like issue of licenses and company formation, project approvals, investor’s visa, design approvals and construction permits, occupancy certificates etc. In addition to providing land for industrial activities, warehouses and industrial sheds, office space, labour and executive residences.
Following steps are to be followed by a client to form a company in RAKIA
- Select the type of company to be established i.e. Free Zone [Free Zone Establishment (FZE), Free Zone Company (FZ-LLC) or Branch] or Non Free Zone [Single Owner, Limited Liability Company (LLC) or Branch]
- Select the type of license depending on the type of activity e.g. Industrial, Commercial, Trading, General Trading, Service or Media.
- Select the facility required like land, plot, warehouse, LIU, office space, flexi desk, labour accommodation, commercial centre, executive residences etc.
- Fill up the application form and submit along with all necessary documents.
- Once the application form is approved submit necessary fees for license/company formation, lease (if any) and legal documents as per the registration type.
Difference Between Free Zone & Non-Free Zone in RAKIA
| Key Differentiators | Free Zone | Non-Free Zone |
| Foreign Ownership | 100% Foreign Ownership | 51% Local Partner required |
| Income & Corporate Tax | 100% Tax Free | 100% Tax Free |
| Business Horizon | Meant for export, however entities in Free Zones can sell their products within UAE through local distributor or agent licensed in UAE. For such sales normal custom duty is levied. | Free to do business within UAE |
| Capital & Profit Repatriation | 100% Allowed | 100% Allowed |
| Hiring of Expatriates | No restrictions | Local labor laws will apply |
Types of Licenses Issued by RAKIA
The type of license(s) depends on the type of activities
| License Type | Activities Covered |
| Industrial License | Manufacturing, processing, assembling, packaging etc. |
| Trading License | Import, export, distribution, warehousing, trading (maximum five activities from similar product lines or three different activities from two different product lines). |
| General Trading | All kinds of trading, import, export, warehousing and distribution of goods |
| Commercial License | Activities covering contracting, repairing, maintenance, renting, shops, restaurants etc., |
| Consulting / Services License | Any type of management, business, industrial consultancy or professional services including real estate consulting. |
| Media License | All kinds of media and communication services. |
Types of Entities Registered Under RAKIA
| Entity Type | Explanation |
| Establishment (FZ/IZ) | This can be formed only by one shareholder, either an individual (a person) or a nonindividual (a company). |
| Limited Liability Company (FZ-LLC/LLC) | This type of company can be formed by a minimum of two or more partners. The partners can be individuals (people), non-individuals (companies) or a combination of individuals and companies. |
| Foreign or Local Branch | Licenses under this category are issued to companies holding a valid license from any licensing authority either in UAE or outside UAE. |
Clients whose activities fall under different categories will be issued separate licenses for each category (e.g. a licensee who is carrying out both trading and manufacturing will be issued two licenses, one for trading and the other for manufacturing) whenever possible, a separate lease will be drawn for each activity.
Initial Capital Requirements and RAKIA Sponsorship Fees Industrial License
| Type of Entity | Industrial | Commercial / Trading | General Trading | Consulting / Services |
| Free Zone Limited Liability Company(FZ-LLC) | AED 200,000 | Not Required | Not Required | Not Required |
| Free Zone Establishment (FZE) | AED 150,000 | Not Required | Not Required | Not Required |
| Free Zone Branch | Not Required | Not Required | Not Required | Not Required |
| Non Free Zone Limited Liability Company (LLC) | AED 200,000 | AED 150,000 | AED 500,000 | AED 150,000 |
| Non Free Zone Establishment (IE) | AED 150,000 | AED 100,000 | AED 250,000 | AED 100,000 |
| Non Free Zone Branch | Not Required | Not Required | Not Required | Not Required |
Note: • For LLC companies, If more than 2 partners then + AED100,000 per new partner would be required.
• For Contracting License: The minimum capital requirement would be as per the RAK Economic Dept. guidelines.
• All rates are subject to change without notice.
Leasing Tariffs of RAKIA Properties
| Type of property | Location of Industrial Park | Lease/ Rent Rates | Remarks |
| Land- Free Zone & Non Free Zone |
Al Ghail | Dh. 12/sqm/yr | Minimum plot size- 5000 sqm. The land is given on long term lease basis initially for 25 yrs but subsequently to be leased for similar period, the lease rent is paid annually. The first revision will be in the 6th year from the date of the lease contract @ 25% of the base annual rent. The Second revision will be in the 11th year from the date of the contract, the rent shall be reviewed and fixed as per prevailing land rentals of RAK Investment Authority at that time. However such increase shall not exceed 100% of the lease rental applicable for the 6th to 10th year of the lease. Thereafter the rent shall be fixed and reviewed as per the prevailing market condition. All utility charges like water & electricity to be paid by client. |
| Al Hamra | Dh. 20/sqm/yr | ||
| Warehouse/ Light Industrial Units |
Al Hamra | Dh. 200/sqm/yr | Rate includes service charges of Dh 15/sqm/yr. The lease term will be initially for two years, renewable after every two years with 15% increase in lease rent with 2 months notice period. All utility charges like water & electricity to be paid by client. |
| Office space | Al Hamra | Starts from Dh. 70/sqft/yr |
Rate includes service charges of Dh 15/sqft/yr. The lease term is initially for three years, renewable after every three years with 3 months notice period. |
| Desk space | Al Hamra | Dh. 5000/yr | 2 working hours per day and 1 Investor visa provided. |
| Labour Accommodations |
Al Hamra | Dh. 20,160/room/yearly | Area around 30 sqm which can accommodate 8 persons per room. The lease term is initially for three years, renewable after every three years with 3 months notice period. All utility charges like water & electricity to be paid by client+(inclusive 5% monthly maintenance charges). |
| Commercial | Al Hamra | Dh. 80/sqft/yr | Rate includes service charges of Dh 15/sqft/yr. The lease term is initially for three years, renewable after every three years with 3 months notice period. All utility charges like water & electricity to be paid by client. |
| Executive Residences | Al Hamra | Starts from Dh. 20,000/Flat/year |
The lease term will be initially for three years, renewable after every three years with 3 months notice period. All utility charges like water & electricity to be paid by client. |
Note: • Leasing rates in free or non free zones are same.
• All rates are subject to change without notice and will be paid annually.
Company Formation Charges Free Zone Companies in RAKIA
| Description | Periodicity | Industrial | Commercial/ Trading |
General Trading |
Consulting / Services / Professional |
Media |
| Registration Charges | One Time | 5000 | 5000 | 5000 | 5000 | 5000 |
| Immigration File Opening | One Time | 1000 | 1000 | 1000 | 1000 | 1000 |
| Certificate of Incorporation | One Time | 1000 | 1000 | 1000 | 1000 | 1000 |
| Service Charges | One Time | 2000 | 2000** | 2000 | 2000 | 2000 |
| RAK Chamber of Commerce & Industry Membership* | Yearly | 6000 | 5000/6000 (Optional) |
6000 (Optional) |
5000 (Optional) |
|
| RAKIA License Fee | Yearly | 10000 | 8000 | 15000 | 10000 | 10000 |
| TOTAL | 25,000 | 17,000 | 24,000 | 19,000 | 19,000 | |
| Memorandum of Association (MOA) (not applicable for branch & establishment) |
One Time | 2500 | 2500 | 2500 | 2500 | 2500 |
| Renewal Fees | ||||||
| Chamber Membership | Yearly | 5500 | 5000/5500 (Optional) |
5500 (Optional) |
5000 (Optional) |
|
| RAKIA License Fee | Yearly | 10000 | 8000 | 15000 | 10000 | 10000 |
| TOTAL | 15,500 | 8,000 | 15,000 | 10,000 | 10,000 | |
| Additional Activity | Yearly | 1000 | 1000 | 1000 | 1000 | 1000 |
* The Chamber of Commerce membership for contracting companies under commercial license would be AED 5,500
** Applicable only for FZ-LLC . For FZE there is no service charge.
Note: Basic Space is a must as per RAKIA Properties, space options are desk space, office space, warehouse, land etc. For rates please refer tariff card.
Company Formation Charges Non Free Zone Companies in RAKIA
| Description | Periodicity | Industrial | Commercial/ Trading |
General Trading |
Consulting / Services / Professional |
Media |
| Registration Charges | One Time | 5000 | 5000 | 5000 | 5000 | |
| Immigration File Opening | One Time | 1000 | 1000 | 1000 | 1000 | |
| Service Charges | One Time | 2000 | 2000 | 2000 | 2000 | |
| Trade Name | One Time | 5000 | 5000 | 5000 | 5000 | |
| Registration with Economic Department** | Yearly | As per tariff | As per tariff | As per tariff | As per tariff | |
| RAK Chamber of Commerce & Industry Membership* | Yearly | 6000 | 5000/6000 | 6000 | 5000 | |
| Municipality Charges | Yearly | 5500 | 2750 | 2750 | 2750 | |
| License Fee | Yearly | 10000 | 8000 | 15000 | 10000 | |
| TOTAL | 34,500 | 28,750/29,750 | 36,750 | 30,750 | ||
| Memorandum of Association (MOA) (not applicable for branch & establishment) |
One Time | 2500 | 2500 | 2500 | 2500 | |
| Renewal Fees | ||||||
| Registration with Economic Department | Yearly | As per tariff | As per tariff | As per tariff | As per tariff | |
| Chamber Membership | Yearly | 5500 | 5000/5500 | 5500 | 5000 | |
| Municipality Charges | Yearly | 5500 | 2750 | 2750 | 2750 | |
| License Fee | Yearly | 10000 | 8000 | 15000 | 10000 | |
| Immigration File | Yearly | 500 | 500 | 500 | 500 | |
| TOTAL | 21,500 | 16,250/16,750 | 23,750 | 18,250 | ||
* The RAK Chamber of Commerce & Industry membership for contracting companies under commercial license would be AED 5,500
** Economic Department Registration: Capital up to 4.99 million=AED 2,750, up to 9.99 million=AED 5,500, over 10 million=AED 11,000
Note: RAKIA sponsorship yearly fees in the 1st year would be Dh 25,000 and for subsequent years as per turn-over of the company.
