What are the expense for Ras Al Khaimah Free Zone company setup?

Setting up a company in the Ras Al Khaimah (RAK) Free Zone is an attractive option for many entrepreneurs and businesses due to its strategic location, business-friendly environment, and numerous benefits such as tax exemptions and 100% foreign ownership. However, understanding the typical expenses involved is crucial for effective financial planning. Here’s a breakdown of the main costs you can expect when setting up a company in RAK Free Zone.

1. Business License Fees

The cost of obtaining a business license is one of the primary expenses. The fees vary depending on the type of license you choose, which includes:

• Commercial License: For trading activities, costs typically range from AED 10,000 to AED 15,000.
• Service License: For service-oriented businesses, the fee is usually between AED 10,000 and AED 12,000.
• Industrial License: For manufacturing activities, the fee can range from AED 15,000 to AED 20,000.

2. Registration and Incorporation Fees

When you register your company, you’ll incur registration and incorporation fees. These fees cover the administrative costs of setting up your business and can range from AED 3,500 to AED 5,000.

3. Office Space and Facility Costs

RAK Free Zone offers various office solutions to suit different business needs, including:

• Shared Workspaces: Starting from AED 10,000 per year.
• Executive Offices: Typically ranging from AED 15,000 to AED 25,000 per year.
• Warehouses and Industrial Units: Costs vary significantly based on size and location but can start from AED 50,000 per year.

4. Visa Fees

You will also need to budget for visa costs for yourself and your employees. The visa costs typically include:

• Investor/Partner Visa: Around AED 3,500 to AED 5,000.
• Employment Visa: Approximately AED 2,500 to AED 4,000 per employee.

5. Medical Insurance

Medical insurance is mandatory for all employees and visa holders. The cost varies depending on the coverage but usually starts from AED 1,500 per person annually.

6. Bank Account Opening

Opening a corporate bank account is essential for business operations. While the actual bank account opening might be free, maintaining the minimum balance as required by banks can be considered a cost. Minimum balance requirements vary from AED 50,000 to AED 150,000 depending on the bank.

7. Professional Services

Engaging professional services for legal, accounting, and consultancy can add to your setup costs. Fees for these services vary widely but can be expected to range from AED 5,000 to AED 20,000 annually depending on the level of support required.

8. Miscellaneous Expenses

There are also other minor costs to consider, such as:

• Document Attestation and Notarization: Approximately AED 500 to AED 1,000.
• Utility Deposits and Fees: Depending on your facility, utility deposits and monthly fees can add up.

How can I estimate the total cost of setting up a company in Ras Al Khaimah Free Zone?

Setting up a company in the (Ras Al Khaimah) RAK Free Zone setuo cost offers numerous advantages, such as strategic location, business-friendly policies, and tax benefits. However, understanding the total cost involved is crucial for planning and budgeting. This guide breaks down the various expenses you need to consider to estimate the total cost of setting up a company in RAK Free Zone.

1. Licensing Fees

One of the primary expenses is the licensing fee, which varies depending on the type of license you need for your business. The main types of licenses include:

• Commercial License: For trading and commercial activities.
• General Trading License: For companies dealing in multiple products.
• Service License: For service-oriented businesses.
• Industrial License: For manufacturing and industrial activities.

The cost of these licenses can range from AED 5,000 to AED 25,000 annually, depending on the business activity and license type.

2. Registration and Setup Fees

The initial registration and setup fees are mandatory for establishing your company. These fees include:

• Name Approval Fee: Costs around AED 500 to AED 1,000.
• Initial Approval Fee: Approximately AED 2,000 to AED 3,000.
• Memorandum of Association (MOA) Fee: Around AED 1,500 to AED 2,000.
• Notarization Fees: Depending on the complexity, it can be AED 500 to AED 1,500.

These fees can total between AED 4,500 and AED 7,500.

3. Office Space Rental

RAK Free Zone offers various office solutions to suit different business needs, such as flexi-desk, serviced offices, and warehouses. The cost varies based on the type and size of the space:

• Flexi-Desk: AED 5,000 to AED 7,000 per year.
• Serviced Offices: AED 15,000 to AED 30,000 per year.
• Warehouses: AED 30,000 to AED 50,000 per year, depending on the size and location.

4. Visa Costs

Visa costs are an essential part of the total setup cost, particularly if you plan to bring employees. The fees include:

• Investor Visa: Around AED 3,000 to AED 5,000.
• Employment Visa: AED 3,000 to AED 4,000 per employee.
• Dependent Visa: AED 2,000 to AED 3,000 per dependent.

Visa costs can significantly add up, especially if you plan to hire multiple employees.

5. Banking and Financial Costs

Opening a corporate bank account is a crucial step, and some banks require a minimum deposit. Additionally, you may incur costs for banking services:

• Bank Account Opening Fee: Ranges from AED 500 to AED 2,000.
• Minimum Deposit Requirement: Varies between AED 10,000 to AED 100,000, depending on the bank.

6. Professional and Legal Fees

Hiring professionals to assist with the setup process can ensure everything is done correctly and efficiently:

• Legal Fees: For drafting legal documents and contracts, which can range from AED 2,000 to AED 5,000.
• Consultant Fees: For business setup consultancy services, which can range from AED 5,000 to AED 15,000.

7. Marketing and Miscellaneous Expenses

Initial marketing and other miscellaneous expenses should also be factored into your budget:

• Marketing Costs: For initial promotions and branding, which can range from AED 5,000 to AED 20,000.
• Miscellaneous Costs: Additional expenses such as travel, communication, and office supplies, which can add up to AED 5,000 to AED 10,000.

Creative Business Solutions package offers entrepreneurs the opportunity to establish their company in the thriving business hub of Ras Al Khaimah Free Zone at a competitive cost. With this package, clients can benefit from a streamlined company setup process that includes all necessary documentation, licensing, and registration services to ensure a hassle-free experience. 

Ras Al Khaimah Free Zone Company Setup Cost:–

Whether you are a startup looking to expand into new markets or an established company seeking to optimize your operations, the free zone’s setup cost provides a cost-effective solution to help you achieve your business goals in the dynamic market of Ras Al Khaimah. The Ras Al Khaimah Free Zone Company Setup Cost includes a comprehensive package tailored to meet the needs of businesses looking to establish a presence in this thriving economic hub.