RAS AL KHAIMAH

Ras Al Khaimah Economic Zone (RAKEZ)

Based in the heart of Ras Al Khaimah and guided by the vision of His Highness Sheikh Saud bin Saqr Al Qasimi, United Arab Emirates Supreme Council Member and Ruler of Ras Al Khaimah, Ras Al Khaimah Economic Zone (RAKEZ) was established to oversee and consolidate the specialised zones and clients of both Ras Al Khaimah Free Trade Zone (RAK FTZ) and RAK Investment Authority (RAKIA).

RAKEZ is the continuation of the story that started with the foundation of RAK Free Trade Zone in 2000 and the establishment of RAK Investment Authority in 2005.It is the preferred business destination of more than 13,000 multinational companies from over 100 countries representing above 50 sectors.

RAKEZ is committed to offer a cost-effective and world-class economic zone with customizable packages and services as well as state-of- the-art facilities.

AN IDEAL PLACE FOR BUSINESS & QUALITY LIVING

Ras Al Khaimah, commonly known as RAK, lies at the northernmost part of the United Arab Emirates (UAE). Over the years, the emirate has become one of the leading destinations for business setup in the UAE. The combination of Ras Al Khaimah’s business-friendly environment and cost competitiveness has helped thousands of investors gain a higher return on investment.

But Ras Al Khaimah is not all about business. It is also a great place for you and your family to live! Residents get access to high-quality yet affordable housing, shopping malls, premier educational institutions and advanced medical facilities. Also, living in the emirate is like being on an everyday vacation – you get to enjoy a relaxed seaside ambiance, year-round sunny weather, majestic mountains as well as a rich local culture and a welcoming atmosphere.

Business advantages in RAKEZ:

  • Fast and simple registration procedure.
  • 100% foreign ownership.
  • Provides 100% income and corporate tax exemption.
  • Yields 100% capital and profit repatriation.
  • Fast procedure to issue UAE residencies and visas.
  • Less restriction on labor.
  • Avail state-of- art infrastructure.
  • No currency restrictions.
  • Nil customs duty.
  • Excellent airport and seaport availability.
  • Transparent laws and regulations.
  • Furnished offices and warehouses.
  • Provides variety of real estate facilities to meet out individual start up needs.

Company formation in RAKEZ:

  • Branch of a Local Company.
  • Branch of a Foreign Company.
  • Free Zone Company (FZC) – entity with 2 to 5 shareholders
  • Free Zone Establishment (FZE) – entity with one shareholder.

RAKEZ Business Licenses Types:

  1. General Trading License: Permits the companies to store, distribute and import all goods as per the rules and regulations of RAKEZ
  2. Commercial Trade License: Allows products trading specified in the license subject to the RAKEZ regulations
  3. Service License: Enables the registered entity to carry out specific services like business consultants, lawyers, and accounting firms.
  4. Industrial License: Permits the raw materials import, carries out the specific products manufacture, assembling, exporting, and packaging the finished goods to any country.

Value Added Tax (VAT):

Value Added Tax (VAT) has been introduced across the UAE on 1 January 2018 at a standard rate of 5%.

Who should register for VAT?

A business whether situated in designated zone or non-designated zone or outside free zone should register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000 within preceding 12 months or it is anticipated  that the total value of taxable supplies exceed AED 375,000 in the next thirty 30 days. Upon registration, a tax registration number (TRN) would be issued to business by the Federal Tax Authority.

What is a designated zone?

A Designated zone is a specified fenced geographical area having security measures and customs controls in place to monitor entry and exit of individuals and the movement of goods to and from the area. Following free zones are declared as designated zones.

a. Free Trade Zone of Khalifa Port
b. Abu Dhabi Airport Free Zone
c. Khalifa Industrial Zone
d. Jebel Ali Free Zone (North-South)
e. Dubai Cars and Automative Zone (DUCAMZ)
f. Dubai Textile City
g. Free Zone Area in Al Quoz
h. Free Zone Area in Al Qusais
i. Dubai Aviation City
j. Dubai Airport Free Zone
k. Hamriyah Free Zone
l. Sharjah Airport International Free Zone
m. Ajman Free Zone
n. Umm Al Quwain Free Trade Zone in Ahmed Bin Rashid Port
o. Umm Al Quwain Free Trade Zone on Sheikh Mohammed Bin Zayed Road
p. RAK Free Trade Zone
q. RAK Maritime City Free Zone
r. RAK Airport Free Zone
s. Fujairah Free Zone
t. FOIZ (Fujairah Oil Industry Zone)

What is a non-designated zone?

Any free zone which is not declared as designated zone is a non-designated zone. In other words a non – designated zone is any geographical area within UAE which does not have any security measures and custom controls in place to monitor entry and exit of goods and individuals. Eg. DMCC, Dubai Media city, DIFC and Dubai Internet city.

What transactions are subject to VAT within Designated zones?

a) Goods transferred between designated zones shall not be subject to VAT. However goods supplied by an entity in the designated zone to entities outside the designated zone are subject to 5% VAT.
b) Services provided by an entity to other entities inside the designated zone or outside the designated
zone are subject to 5% VAT.
c) Professional fees for services are subject to VAT @ 5%.

What government/free zone fees (License/Visa/rent) are subject to VAT?

In case of designated zones the trade license fees, visa fees, lease rentals will not be subject to VAT. And in case of non-designated zones the trade license fees and visa fees are not subject to vat however rent is subject to 5% VAT.

If you need additional assistance or have any questions, please contact the following:
Email: legal@jitendragroup.ae
Tel: +971 4 343 8022