Securing a Free Zone Commercial License in the UAE has never been easier, thanks to the Step-by-Step Guide provided by RAK ICC. Ras Al Khaimah International Corporate Centre (RAK ICC) has recently launched an industry-leading update, offering greater flexibility and broader opportunities for offshore businesses.
With the issuance of Free Zone Commercial Licenses, foreign companies can now benefit from the various benefits of the Ras Al Khaimah Economic Zone (RAKEZ).
If you want to take advantage of this opportunity, Recordac Accounting and Consulting Services in Dubai is here to guide you every step of the way. Begin today, and your company is on its way to success.
Understanding the Recent Update
The introduction of Emiri Decree No. (12) of 2024 was a game-changer for companies registered under RAK ICC. RAK ICC, for the first time, has been authorized to grant Free Zone Commercial Licenses.
With the implementation of this update, International Business Companies (IBCs) can not only register offshore, but they can also establish their commercial presence within RAKEZ.
This trend has emerged as a game-changer for investors and entrepreneurs seeking to capitalize on the Operational Flexibility and Tax Benefits provided by the UAE.
Why the Free Zone Commercial License Matters
- Enhanced Operational Flexibility
Previously, RAK ICC offshore companies were restricted in local activities. With the Free Zone Commercial License, these companies can now establish a presence in RAKEZ. This equates to access to world-class infrastructure, modern business suites, and office leasing opportunities that scale well to suit each business size.
- Significant Tax Benefits
The most significant benefit of the scheme is that it is very tax-efficient. A RAK ICC Free Zone Commercial License may be eligible for a zero rate of corporate income tax under the UAE Corporate Tax Law.
To take advantage of this benefit, the company must meet the requirements of a Qualifying Free Zone Person (QFZP). Although complying with these regulations is a given, the reward of operating without paying taxes is unparalleled for international investors.
Step-by-Step Guide Securing a Free Zone Commercial License via RAK ICC
- Step 1: Engage a Registered Agent
The first step to get a Free Zone Commercial License is to partner with a Registered Agent in RAK ICC. With a registered agent, you can easily license your business, have someone handle official correspondence for you, and ensure that your business is always compliant with the most up-to-date regulations.
- Step 2: Compare Your Different Business Addresses
RAKEZ provides several different address options according to your operating requirements:
- Dedicated office lease: Ideal for businesses seeking a long-term, branded address.
- Registered Agent’s Address: Provide the office address of your selected Agent or its branch set up in RAKEZ.
- Dedicated Office Lease: Ideal for businesses that require a permanent and branded presence.
- Step 3: Ensure Compliance with Tax Regulations
To qualify for the 0% corporate tax rate, companies must comply with the UAE Corporate Tax Law. This includes meeting requirements related to:
- Economic Substance: Demonstrating genuine business activity within the Free Zone.
- Transfer Pricing Rules: Ensuring fair pricing in related-party transactions.
- De Minimis Thresholds: Staying within limits for non-qualifying income.
Professional tax advice is highly recommended to ensure all conditions are met.
- Step 4: Consult Legal and Tax Experts
The new licensing option opens doors but also comes with responsibilities. By working with legal and tax advisors, you can safeguard your business against compliance risks. Expert consultation ensures that your company not only qualifies for benefits but also sustains them in the long run.
- Step 5: Secure the License and Start Operations
After fulfilling all requirements, you can apply and obtain your RAK ICC Free Zone Commercial License. With the license in hand, your business is deemed legal within RAKEZ, granting you the right to operate in one of the most dynamic and investor-friendly locations in the UAE.
Key Benefits at a Glance
- Full operational presence in RAKEZ.
- Access to a 0% corporate tax rate (subject to QFZP criteria).
- Greater credibility with international clients.
- Options for cost-effective office solutions.
A strong legal framework backed by RAK ICC.
Final Thoughts
The Step-by-Step Guide to Securing a Free Zone Commercial License via RAK With Rooftop Civilization, LLC reveals how offshore companies can maximize their opportunities in the UAE. Purchase now and start writing an all-new book of business growth.
If you are ready to take this step, partner with Recordac Accounting and Consulting Services in Dubai to make the process smooth and stress-free. Contact us today and take control of your license, forging ahead into a new era of business growth.
