License- Applying for License & Lease in RAKIA
In order to operate in RAKIA free zone or non free zone, the applicant must have a valid license from RAKIA and hold a valid Lease for an operational premises.
DIFFERENCE BETWEEN FREE ZONE & NON-FREE ZONE
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Key Differentiators |
Free Zone |
Non-Free Zone |
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Foreign Ownership |
100% Foreign Ownership |
51% Local partner required |
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Income & Corporate Tax |
100% Tax Free |
100% Tax Free |
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Business Horizon |
Meant for export only. However, entities in free zones can also sell products within UAE through local distributor or agent licensed in UAE. But for such sales normal customs duty is levied |
Free to do business within UAE |
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Capital & Profit Repatriation |
100% Allowed |
100% Allowed |
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Hiring of Expatriates |
No restrictions |
UAE labor laws will apply |
The type of license(s) depends on the type of activities.
TYPES OF LICENSES ISSUED BY RAKIA
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License Type |
Activities Covered |
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Industrial License |
Manufacturing, processing, assembling, packaging etc. |
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Trading License |
Import, export, distribution, warehousing, trading (maximum 5 activities from similar product lines or 3 different activities from 2 different product lines). |
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General Trading |
All kinds of trading, import, export, warehousing and distribution of goods |
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Commercial License |
Activities covering contracting, repairing, maintenance, renting, shops, restaurants etc. |
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Consulting / Services License |
Any type of management, business, industrial consultancy or professional services including real estate consulting. |
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Media License |
All kinds of media and communication services. |
Clients whose activities fall under different categories will be issued separate Licenses for each category of activity (e.g. a licensee who is carrying out both trading and manufacturing will be issued two Licenses one for the trading activity and the other one for manufacturing. Whenever possible, a separate Lease will be drawn for each activity.
TYPES OF ENTITIES REGISTERED UNDER RAKIA
Both Free Zone & Non Free Zone Companies
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Entity Type |
Explanation |
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Establishment (FZ/IZ)
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This can be formed only by one shareholder, either an individual (a person) or a non-individual (a company). |
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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. |
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Foreign or Local Branch |
Under this category licenses are issued to companies holding a valid license from any licensing authority either in UAE or outside UAE. |
DOCUMENTS REQUIRED FOR REGISTRATION OF FREE ZONE COMPANIES
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Single Owner (Establishment) |
Two or More Partners (Limited Liability Company) |
Branch (Foreign/ Local) |
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Application Form
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Application Form |
Application Form |
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Business Plan (For industrial licenses) |
Business Plan (For industrial and trading licenses) |
Business Plan (For industrial licenses) |
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Professional & Experience Certificate (For professional /Consultancy/ Services licenses) |
Professional & Experience Certificate (For professional /Consultancy/ Services licenses) |
Passport Copy of Owner/Manager |
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Passport Copy of Owner/Manager |
Passport Copy of Owner/Manager |
Bank statement of the last 3 months(Original) |
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Certificate of incorporation *(Attested & Notarized) |
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Memorandum of Association & Articles of Association *(Attested & Notarized) |
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Board resolution to Set Up Branch *(Attested & Notarized) |
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Power of Attorney Appointing Representative *(Attested & Notarized) |
*The documents form outside UAE are required to be attested or legalized by UAE or GCC or Arab embassies in the country from which the documents originates
Additional documents may be submitted if required
DOCUMENTS REQUIRED FOR REGISTRATION OF NON-FREE ZONE COMPANY
|
Single Owner (Establishment) |
Two or More Partners (Limited Liability Company) |
Branch (Foreign/ Local) |
|
Application Form
|
Application Form |
Application Form |
|
Business Plan (For industrial licenses) |
Business Plan (For industrial licenses) |
Business Plan (For industrial licenses) |
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Professional & Experience Certificate (For professional /Consultancy/ Services licenses) |
Professional & Experience Certificate (For professional /Consultancy/ Services licenses) |
Passport Copy of Owner/Manager or Copy of the Book of Nationality (for UAE National only) |
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Passport Copy of Owner/Manager or Copy of the Book of Nationality (for UAE National only) |
Passport Copy of Owner/Manager or Copy of the Book of Nationality (for UAE National only) |
Bank statement of the last 3 months(Original) |
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Certificate of incorporation * ( (Attested & Notarized) |
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Memorandum of Association & Articles of Association *(Attested & Notarized) |
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Board resolution to Set Up Branch * (Attested & Notarized) |
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Power of Attorney Appointing Representative *(Attested & Notarized) |
* (The documents form outside UAE are required to be attested or legalized by UAE or GCC or Arab embassies in the country from which the documents originates Additional documents may be submitted if required
PROCEDURES FOR SETTING-UP COMPANY IN RAKIA FREE ZONES
STEP – 1
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SUBMIT : |
RAKIA Application Form duly filled along with:
Required Documents (refer to the table below) Payment of incorporation fees (refer to RAKIA Tariffs) Payment of rent (in advance) to RAKIA i.e., for land, warehouse, office etc., |
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PREPARE: |
RAKIA will prepare Memorandum of Association (MOA) (for FZ-LLC only) |
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SUBMIT : |
MOA after signed by partners or authorized person(s) /signatories (for FZ-LLC only) |
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SUBMIT : |
Lease Contract duly signed by the parties or authorized person(s) /signatories i.e. land, warehouse, office, Flexi Desk etc. |
STEP – 2
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SUBMIT : |
Letter from the bank confirming the opening of company’s account and deposit of the initial capital |
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COLLECT: |
License, Certificate of Incorporation (COI), Lease Contract (if applicable) from RAKIA |
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SUBMIT : |
Copy of RAKIA license, proof of the payment for opening of company’s file with Immigration Department, passport copy of company’s owner/partner(s)/manager to RAKIA Visa Section for opening of your company’s file with Immigration Department |
STEP – 3
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COLLECT : |
Your Company’s Immigration File No, Chamber Membership Certificate (if applicable) from RAKIA |
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SUBMIT : |
Processing your company visas
Note: The term "company" also includes "establishment" and "branch" |
DOCUMENTS REQUIRED FOR REGISTRATION OF FREE ZONE COMPANIES
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Documents |
Free Zone Limited Liability Company (FZ-LLC) |
Free Zone Establishment (FZE) |
Free Zone Branch(FZB) |
Requirement |
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formed by individuals |
formed by company |
formed by individual |
formed by company |
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Certified true copy of the License |
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All Foreign Companies should submit these documents after getting them notarized & attested from UAE Consulate in their home country |
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Certified true copy of the MOA |
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Attested Power of Attorney (in the name of the authorized person supported by his/her valid passport copy) |
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Original Board Resolution |
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Bank Reference Letter or last month’s Bank Statement |
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Submit Original |
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Copy of a valid passport |
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Submit Copy Only |
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Business Plan (applicable to industrial and trading licenses) |
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Submit Copy Only |
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Professional & Experience Certificate (applicable to professional licenses) |
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Submit Copy Only |
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Note: Addl. documents may be requested at the discretion of RAK Investment Authority |
PROCEDURES FOR SETTING-UP COMPANIES IN NON-FREE ZONE
STEP – 1
|
SUBMIT : |
RAKIA Application Form duly filled along with:
Required Documents (refer to the table below) Payment of incorporation fees (refer to RAKIA Tariffs) Payment of rent (in advance) to RAKIA i.e., land, warehouse, office etc.,
|
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TRADE NAME REGISTRATION : |
RAKIA will check availability of the proposed trade name of the company, branch, establishment and register the same with Economic Department. |
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PREPARATION OF : |
Memorandum of Association (MOA) (only for LLC) and Lease Contract (for the facilities rented i.e., land, ware house, office space etc) |
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SUBMIT : |
Lease Contract duly signed by the authorized person(s) (if applicable) |
STEP – 2
For Individual Establishment (IE) or Local Branch (LB)
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COLLECT : |
RAKIA letter addressed to bank for opening of IE’s account for depositing initial capital (only applicable for Individual Establishment and not for Local Branch) |
STEP – 3
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SUBMIT : |
Letter from the bank confirming opening of IE’s account and deposit of initial capital |
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COLLECT : |
License, other documents and Lease Contract (if any) from RAKIA |
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SUBMIT : |
Copy of RAKIA license, proof of the payment for Opening of IE or LB’s file with immigration Department & passport copy of IE or LB’s owner/partner(s)/manager to RAKIA Visa Section for opening of IE or LB’s file with Immigration Department |
STEP – 4
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COLLECT : |
IE or LB’s Immigration File No, License issued by Economic Department, Chamber Membership Certificate (if applicable) from RAKIA |
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START : |
Processing your IE or LB’s visas |
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STEP – 2
For Limited Liability Company (LLC)
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SIGN : |
MOA (for LLC only) to be signed by all shareholders in front of Notary Public in RAK Economic Department, in case of absence of any shareholder; a person authorized by power of attorney shall to sign on his/her behalf |
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SUBMIT : |
One original copy of the MOA to RAKIA |
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COLLECT : |
RAKIA letter addressed to bank for opening of company’s account for depositing initial capital |
STEP – 3
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SUBMIT : |
Letter from the bank confirming opening of company’s account & deposit of initial capital |
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COLLECT : |
License, other documents & Lease Contract (if any) from RAKIA |
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SUBMIT : |
Copy of RAKIA license, proof of the payment for opening of company’s file with Immigration Department, passport copy of company’s owner/ partner(s)/manager to RAKIA Visa Section for opening of company’s file with Immigration Department |
STEP – 4
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COLLECT : |
Company’s Immigration File No, License Issued by Economic Department, Chamber Membership Certificate (if applicable) from RAKIA |
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START : |
Processing your company visas |
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DOCUMENTS REQUIRED FOR REGISTRATION OF NON-FREE ZONECOMPANY
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Documents |
Limited Liability Company (LLC) |
Individual Establishment (IE)* |
Local Branch (LB) |
Requirements |
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(with individual as shareholder) |
(with a company as shareholder) |
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Certified true copy of the License |
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All Foreign Companies should submit these documents after getting them notarized & attested from UAE Consulate in their home country |
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Certified true copy of the MOA |
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Attested Power of Attorney (in the name the authorized person supported by his/her valid passport copy) |
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Original Board Resolution |
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Bank Reference Letter or last month’s Bank Statement |
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Submit Original |
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Copy of a valid passport or Copy of the Book of Nationality (for UAE National only) |
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Submit Copy Only |
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Business Plan (applicable to industrial and trading licenses) |
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Submit Copy Only |
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Professional & Experience Certificate (applicable to professional licenses) |
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Submit Copy Only |