Ras Al Khaimah free zone (RAKEZ) has been at the forefront when it comes to offering the best solutions of business setup in the UAE for foreign investors. After the gaming license and women entrepreneurship package, the free zone has now come up with a Dual License to widen the scope of business for investors and entrepreneurs. The process of business setup in RAKEZ is likely to become more appealing with the rollout of the Dual License as it allows investors to operate in both mainland and free zone from one office.
Obtaining a Dual License from RAKEZ is an attractive prospect even though it’s essential to consider every aspect of the license before applying. This article is meant to enlighten you on the key features and benefits associated with the Dual License provided by RAKEZ to the free zone license holders. Business setup consultants in UAE can assist you in preparing the documents and meeting other related requirements. Read ahead to know further:
RAKEZ has unveiled its Dual Licence structure in January 2022, more or less like a New Year gift for companies operating within the free zone premises. The Dual License allows the companies operating within the free zone to extend their business activities into the mainland as well. RAKEZ launched the Dual License in collaboration with the Ras Al Khaimah Department of Economic Development (RAK DED). RAK DED is the competent authority that issues licenses for mainland companies in Ras Al Khaimah.
RAK DED will issue a trade license to the free zone businesses that wish to operate in the mainland. The license will recognise the companies as ‘branch of a free zone company. A branch is not an independent legal entity as its legal identity is dependent upon its parent company. Therefore, the activities of the mainland branch should match the activity of its parent entity in the free zone. Consult with business setup consultants in RAK for further information.
The rules of business setup in the UAE requires mainland companies to have a physical office. DEDs of each emirate issues a trade license, once the applicants submit the lease agreement. A physical office address is mandatory for opening a bank account in the UAE. Banks will approve the account opening request after verifying the physical office address of the company.
The stringent KYC norm came into effect after the UAE started enforcing Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT) laws. However, a free zone company in RAKEZ can start a mainland branch without renting any office space in the mainland location. They can conduct business activities on the mainland from their free zone office.
There are some restrictions on the activities permitted under a Dual License in RAKEZ free zone. Only those activities permitted by RAKEZ and RAK DED can be performed in the mainland under a Dual License. Special Activities that require approval from a ministry are not permitted in a RAKEZ Dual License. Business setup advisers in RAK can provide more details on the permitted activities on a Dual License.
By obtaining a RAKEZ Dual License, companies operating in the free zone can have wider access to the mainland market. As per the laws of business setup in the UAE, companies operating in a free zone are allowed to conduct business activities within the free zone premises only. However, a Dual License helps business owners to overcome this major restriction on business activity. Here is a list of benefits a Dual License presents to business owners in RAKEZ:
A Dual License allows RAKEZ free zone companies to attract a wider customer base in the mainland. And this opportunity comes without the need for opening an office on the mainland. Companies can still operate from their free zone office situated within RAKEZ.
RAKEZ companies can start their operations in the mainland without starting an office space. Normally, opening an office space involves costs such as rent, furniture and cost for amenities and utilities. A Dual License provides access to the mainland without paying any of such costs.
Business owners in RAKEZ don’t need to bother about additional daily operational costs for the mainland operations. A Dual License helps business owners to cut costs on overall accounting, administrative, and operating expenses on the mainland operations.
The Dual License offered by RAKEZ free zone enables business owners to extend their operations into the mainland without opening a new office. The Dual Licensing option has transformed the landscape of business setup in the UAE by allowing foreign investors to enjoy the benefit of accessing the mainland market without any overhead cost. However, business owners need to understand the permitted activities and other requirements associated with the Dual License for which they can seek the advice of business setup consultants in RAK such as Jitendra Business Consultants (JBC). JBC is one of the leading providers of business setup services in RAK, UAE with over 20 years of experience. Our company formation specialists can help business owners obtain a Dual License without any hassle.
Office # 3006,30th Floor, Al Attar Tower Near DIFC, Sheikh Zayed Road Dubai, United Arab Emirates P.O. BOX 43630.
Mobile: +971 50 644 3537
Tel No: +971 4 343 8022
Fax No: +971 4 343 8033
Sharjah Media City, Sharjah, United Arab Emirates
Mobile: +971 50 644 3537