RAK Free Zone is one of the most attractive destinations for investors who wish to establish their business in the United Arab Emirates (UAE). It is located in the northern part of the country, in the emirate of Ras Al Khaimah. In this article, we will explore the benefits of setting up a company in the RAK Free Zone, including tax benefits, 100% foreign ownership, ease of setup, and its strategic location.
Table of Contents
Tax Benefits
RAK Free Zone offers several tax benefits to companies that establish their business there. Companies operating in RAK Free Zone are exempt from corporate tax, personal income tax, and value-added tax (VAT). In addition, there are no restrictions on the repatriation of profits, capital, or dividends. This makes it an attractive option for companies looking to minimize their tax liabilities.So tax benefit is one of the top benefits you can avail of with RAK company formation.
Companies that establish their business in RAK Free Zone can save a significant amount of money on taxes. For example, a company with a profit of AED 1 million in the UAE would typically pay AED 200,000 in corporate tax. However, if the same company operates in RAK Free Zone, it would pay no corporate tax, resulting in significant savings.
100% Foreign Ownership
In the UAE, foreign ownership laws require that a local partner hold percentage of a company’s shares. However, RAK Free Zone allows 100% foreign ownership, meaning that investors can fully own their company without the need for a local partner. This is a major advantage for businesses looking to establish their presence in the UAE.
Foreign ownership laws can be a major hindrance for businesses looking to establish a presence in the UAE. However, RAK Free Zone’s 100% foreign ownership policy makes it an attractive option for investors who want to maintain full control over their business.
Ease of Setup
Setting up a company in RAK Free Zone is a relatively straightforward process. The entire process can be completed in just a few days, making it one of the fastest and most efficient free zones in the UAE. The setup process involves submitting the necessary documents, paying the relevant fees, and obtaining the necessary approvals.
Compared to other free zones in the UAE, RAK Free Zone’s setup process is one of the most efficient. For example, Dubai’s Dubai Multi Commodities Centre (DMCC) can take up to six weeks to process a company setup application, while Abu Dhabi’s Abu Dhabi Global Market (ADGM) can take up to three months.
The ease of setup in the RAK Free Zone makes it an attractive option for businesses looking to establish a presence in the UAE quickly and efficiently.
Strategic Location
RAK Free Zone is strategically located in the northern part of the UAE, providing easy access to major international markets in the Middle East, Europe, and Asia. It is located just 45 minutes from Dubai, one of the busiest commercial hubs in the world.
In addition to its proximity to major markets, RAK Free Zone offers a range of logistical advantages, including access to world-class infrastructure, modern transportation systems, and state-of-the-art facilities.
Compared to other free zones in the UAE, RAK Free Zone’s strategic location provides businesses with a major competitive advantage, allowing them to easily access major markets and take advantage of the region’s growing economic opportunities.
Conclusion
RAK Free Zone offers a range of benefits to businesses looking to establish a presence in the UAE. These benefits include tax incentives, 100% foreign ownership, ease of setup, and a strategic location. With its business-friendly environment, RAK Free Zone is an attractive destination for investors looking to tap into the region’s growing economic opportunities.
