Frequently asked questions

No, it is not. While Arabic is the formal language of Ras Al Khaimah and the UAE, English is widely used in business and across educational institutions.

Yes, you can sponsor your family members to become residents of the UAE.

Yes. International students looking to enrol in colleges and universities in RAKEZ Academic Zone can obtain a student visa through the higher education institutions they wish to enrol in.

If a student requires a student visa, they must reach out to their respective higher education institute in RAKEZ Academic Zone. The higher education institute can then apply for the student visa via the RAKEZ portal 360.

Student accommodation is available by partner providers.

VAT stands for Value Added Tax. It is an indirect tax applicable on taxable goods and services in the UAE. Detailed information about VAT is available on the UAE Federal Tax Authority (FTA) website.

A company can make payments through the following channels:

• Online, by topping up the portal accounts
• In person, at RAKEZ Business Service Centres (cashier counters)
• Bank Transfer

Yes, you can obtain an investor visa in case of single shareholder companies. However, for companies that have more than one shareholder, a partner visa can be obtained.

The maximum number of shareholders in a free zone company and a non-free zone limited liability company is 50.

No, it is not. Shareholders have the option to either apply for a RAKEZ visa or they can choose to be on a non-RAKEZ visa.

No, it cannot have an office outside the RAKEZ free zone area to conduct business activities

No, it cannot. A free zone entity may trade its products outside the free zone area and within the UAE only through an agent, representative, distributor or if its parent company holds a relevant licence to conduct such an activity in the UAE mainland.

A non-sponsored employee is a person employed by a company, but who is not sponsored by a RAKEZ company. However, this person is approved by RAKEZ to be employed by said
company.

Yes, a company can employ a non-sponsored employee, either temporarily or permanently.

RAKEZ can grant its approval to employ a non-sponsored employee if the non-sponsored employee meets one of the following conditions:

• Is a GCC National
• Resides in the UAE on a visa sponsored by a relative
• Is to be employed on a part time or temporary basis
• Works for a subsidiary or an associated company of a RAKEZ company

Depending on your business requirement, RAKEZ Academic Zone offers the following types of facilities:

• Co-working space
• Serviced offices
• Standard offices
• Executive offices
• Land for development
• Ready-to-occupy premises

More details about the facilities are available here.

Yes, it will affect the visa quota. Shared workspaces (flexi desks) are allocated one visa only and therefore, any additional visas will be cancelled.

No, it cannot. The company must have a RAKEZ licence to rent an office in any of the RAKEZ zones. This also applies to a branch of a Department of Economic Development
(DED)/other free zone companies in RAKEZ.

Subleasing is an arrangement where a company (sub-lessor) allows another company (sub-lessee) to use part of the leased premise.

Yes, it is. However, you must obtain prior written approval from RAKEZ.

RAKEZ permits subleasing of the following facilities:

• Vacant plots
• Completed buildings/structures

Following are the requirements for subleasing buildings/structures in RAKEZ:

• The building/structure must be fully constructed and ready.
• The sub-lessor must hold a valid lease and should not have any outstanding amounts owed to RAKEZ.
• The sub-lessee must possess a licence for his activities.
• The sub-lessor is jointly and severally responsible and liable for the activities of the sub-lessee.
• A sub-lessee is prohibited to assign his rights under a sublease agreement.

A sublease agreement should not contradict the lease agreement and is deemed terminated upon the termination of the lease agreement.

Following are the requirements for subleasing vacant plots in RAKEZ:

• The sub-lessor must hold a valid lease and should not have any outstanding amounts owed to RAKEZ.
• The sub-lessee is a subsidiary of the sub-lessee or the sub-lessor and sub-lessee are associated companies OR there is a contract between the sub-lessor and the
  sub-lessee to either supply raw material, produce or distribute or consume finished product.
• The sub-lessor and sub-lessee have sufficient space to carry out the licensed activities, without jeopardising their respective operations.
• The sub-lessor is jointly and severally responsible and liable for the activities of the sub-lessee.
• A sub-lessee is prohibited to assign his rights under a sublease agreement.
• A sublease agreement should not contradict the lease agreement and is deemed terminated upon the termination of the lease agreement.

No. A co-working facility is shared with other clients. In the event that a client requests a private office, he/she will have the options of a standard or executive office.

Yes. Through our Mazeed Services, we offer branding and marketing support for businesses, at an additional cost.

A business plan is a strategic document that outlines the future vision and objectives of the business. It typically includes:

• Description of the business activity(s)
• Scope of the activity(s)
• The market segment
• Supply chain (if applicable)
• Management structure (recruitment plan/workforce)
• Brief financial forecast/budget

Yes, RAKEZ Academic Zone requires applicants to submit their business plan in a specific format. This business plan, while non-exhaustive, must allow RAKEZ Academic Zone’s
advisors to review the proposed activities to ensure that the investor receives the most relevant education licence for their business.

Yes, all activities require submitting a business plan.

Yes, it is mandatory to lease a facility to open a company.

Yes, there are a number of activities that are regulated by third-party authorities. These activities require a No Objection Certificate (NOC) from the authorities to be added to a RAKEZ licence.

The general rule is that any activity from a different licence type will require a separate licence.

No, they cannot. They require separate licences. All commercial activities will be grouped under one commercial licence and all service activities will be grouped under one service licence.

Trade licences issued by RAKEZ are valid for one (1) year from the date of issue.

However, Free Zone Commercial, Service, General Trading, Individual/Professional and E-commerce licences can be issued and renewed for three (3) years at discounted rates,
subject to the applicable terms and conditions.

Moreover, after the first year of being licensed with RAKEZ, a business may opt, but is not required, to obtain a three-year business licence, as mentioned above.

Yes, a client can apply for two separate free zone licences under one company name if the activities carried out by the company are unrelated in nature. However, if the activities conducted are similar in nature, they can be listed under one licence, subject to approval from RAKEZ.

Yes, a company can add an activity after the licence has been issued.

If a company wishes to add an activity from the same licence type, eg adding a commercial activity to its existing commercial licence, the company must apply for ‘Change of Activity’.

If a company wishes to add an activity from a different licence type, eg adding a service activity to a commercial licence, it will have to apply for a new licence to be able to carry out that activity.

No, it cannot. A branch is permitted to only carry out all or some of the activities that its parent company is currently holding.

A freelancer is a sole practitioner who operates as an independent contractor and offers their professional services to multiple clients.

Yes, you can. The freelancer permit issued by RAKEZ identifies the freelancer as a sole practitioner and enables them to conduct business in their birth name, as opposed to a brand name.

RAKEZ issues the following types of free zone trade licences:

• Industrial: Manufacturing, importing, packaging and exporting products
• Commercial: Trading in services and goods
• Educational: Setting up a branch of an academic institution, opening a training institute, education consultancy, research and development agency or freelance
• E-commerce: Trading in goods and services over the internet
• Professional: One owner with one activity in a specific specialty or expertise
• General Trading: Trading in multiple goods
• Media: Operating media-related business activities
• Service: Conducting services or consultancies across any industry

RAKEZ issues the following types of non-free zone licences:

• Industrial: Manufacturing, importing, packaging and exporting products
• Commercial: Trading in services and goods
• Professional: For individuals who provide professional services

When a company is associated with another company, and where 51% or more of both companies’ shares are held by the same shareholder, such an entity is called an Associated Company.

No, co-working space and business centre licensees are not required to submit an Operation Fitness Certificate (OFC).

Yes, it is mandatory to obtain an Operation Fitness Certificate (OFC) before occupying any pre-built warehouse or a customised facility built on a plot of land.

A good standing document confirms that the parent company is a legally registered entity and is authorised to conduct business.
The company may submit any of the following documents as evidence of good standing:

• Certificate of Good Standing from the bank
• Online registry extract showing the web address
• Notarised recent Certificate of Incumbency from the regulating authority of the parent company
• Notarised and legalised letter from any law firm
• Notarised letter from any chartered auditing firm

Yes, it is necessary for a company manager to be resident of the UAE.

A business owner of GCC nationality, or a business partner, of any nationality, in a commercial company, is not required to be a resident of the UAE.

However, an owner of a professional sole establishment is required to conduct their business in person, thereby requiring them to reside in the UAE.

No, a company’s manager must be a natural person only.

Yes, they can, provided they obtain a No Objection Certificate (NOC) from their current sponsor in advance.

No, a company cannot have more than one manager.

Yes, it is permissible for one person to be a shareholder, director, company secretary and manager in a business.

Company officers include the manager, director(s), secretary(s) and legal representative(s).

Yes, a client can amend the template, provided that the amendments are in compliance with the applicable RAKEZ Companies Regulations and Laws. All amendments will be subject to review and approval.

No, there is no capital requirement to set up a branch of a company in RAKEZ Academic Zone.

The minimum share capital required to form an FZ-LLC in RAKEZ is AED 10,000, with each share valued at AED 1,000. However, different activities have different minimum share capital requirement, some of which are listed below:

A share capital refers to the portion of a company’s equity that is obtained or will be obtained by a shareholder for cash or an equivalent item of capital value. It is also known as subscribed capital or subscribed share capital.

Yes, the liability of a free zone establishment owner is limited.

A Limited Liability Company is treated as an entity separate from its shareholders. Therefore, the liabilities of the company do not extend to its shareholders. Each shareholder is only liable to the extent of shares they own in the company.

The main difference between the two are:

A Non-Free Zone Single Person LLC is a company that can be owned by one natural person or one corporate person.

No, it is not. The legal liability of a non-free zone individual establishment is unlimited. Since the owner is the person responsible for all of its financial obligations towards third parties, the financial liability is linked with the owner wholly.

No, it cannot. A non-free zone individual establishment must be owned by one natural person only.

Yes, a foreign national entrepreneur can set up a non-free zone individual establishment to carry out professional activities, provided that a UAE National (Emirati) is appointed as a local service agent.

Yes, a free zone company can open branches on the mainland, provided an Emirati (UAE National) local service agent is appointed who must hold no less than 51% of the free zone company’s share capital.

The main difference is that a representative office is not permitted to operate any commercial business or to conduct any commercial activity by itself. A representative office tends to act as an administrative and marketing centre for the foreign parent company’s head office for promoting the company’s products, services or business, or for facilitating trading contracts between the company and its clients.

A branch company does not have its own Memorandum of Association. A branch is a legal part and an extension of its parent company, and does not have a legal identity distinct from its parent company.

No, it cannot. The name of a branch must be the same as its parent company’s and must carry out all or some of its activities.

A local sponsor whose shareholding is no less than 51% of the company’s share capital in a non-free zone limited liability company (LLC) is financially liable to the extent of his share in the company’s capital.

A local service agent has no liability for the legal and financial obligations of a company.

A Local Service Agent (LSA) is required when a non-UAE national entrepreneur wants to set up a

• Non-free zone individual establishment to carry out professional activities
• Non-free zone foreign branch of a company

A Local Service Agent (LSA) is a natural person holding UAE nationality, or a corporate person established in the UAE that is wholly owned by UAE Nationals. An LSA has no responsibility for the legal and financial obligations of the company and has no say in the company’s business activities. An LSA’s duties refer solely to helping in obtaining entry and residence visas and the annually incurring renewal of licences. A Service Agent Agreement between the company and the LSA is made to govern the legal relations between both parties. An LSA receives an annual fee and the service agent agreement may be terminated at any point of time in accordance with the contract terms. An LSA has no right to penalties, fines and compensation payments at any time.

Yes, GCC Nationals are treated as UAE Nationals when concerning the exercise of economic and professional activities and therefore, do not need a local sponsor. But, if the company has non-GCC nationals as partners, a UAE national local sponsor is required, whose shareholding shall not be less than 51% of the company’s capital.

No, a UAE National sponsor is required for obtaining a non-free zone licence to carry out commercial and industrial activities. The local sponsor’s shareholding shall not be less than 51% of the company’s capital.

Yes, it is possible for a non-UAE National to obtain a non-free zone Professional Licence without a local sponsor, provided that a UAE national is appointed as a local service agent.

The authorised signatory on behalf of the parent company needs to sign the resolution for setting up a branch or subsidiary company. The power to sign on behalf of the parent company needs to be mentioned in the parent company’s legal documents or through an attested Power of Attorney document by the UAE Embassy or Consulate in the parent company’s country of origin.

No, you do not need a local partner to form a free zone company. One of the many advantages of setting up a free zone company in RAKEZ is that it offers 100% foreign ownership.

RAKEZ offers the below non-free zone company types are:

• An Individual Establishment
• A Single Person Limited Liability Company
• A Limited Liability Company (LLC)
• A Branch of a UAE-based company (including companies registered in other free zones)
• A Branch of a foreign company

At RAKEZ, you can form the below types of free zone companies:

• Free Zone Limited Liability Company (FZ-LLC)
• Branch of a UAE-based company (including companies registered in other free zones)
• Branch of a foreign company

RAKEZ offers two types of entity formation:

Free Zone Entity:
A Limited Liability Company (LLC) or a Branch incorporated in the RAKEZ free zone area. A Free Zone Entity has to obtain a licence from RAKEZ.

Non-Free Zone Entity:
A Limited or Unlimited Liability Company, or a Branch incorporated in the RAKEZ non-free zone area. In addition to a licence from RAKEZ, a Non-Free Zone Entity has to obtain a licence from RAK Department of Economic Development (RAK DED).

To register your company in the E-Channel Immigration System, visit any of our offices and make the necessary payment. We will then complete the registration process of your company in the system.

Yes. There is a registration fee of AED 2,200. Additionally, a one-time, refundable deposit of AED 5,050 must also be paid.

Companies that have already registered in the system must renew their registration annually, the renewal fee being AED 1,200.

No. The registration of your company in the E-Channel Immigration System will be done by RAKEZ.

All companies with immigration files are mandated by the Ministry of Interior (MOI) to register in the E-Channel Immigration System, effective 1 March 2018.

As per the Immigration Authority’s mandate, any company having an immigration file is required to register on the E-Channel Immigration System’s platform to further process visa-related services.

When submitting the licence renewal request, you may pay for the immigration file renewal, any penalties incurred due to late renewal of the immigration file and for the E-Channel Immigration System registration.

For companies applying for closure, the Immigration Authority is currently granting a special approval to exempt them from registering in the system. Any changes in the requirements from the Immigration Authority will be communicated as and when received.

Registering in the system is not linked to obtaining visas. It is, however, mandatory for all companies with an immigration file to register in the system.

All services related to your company visa will be handled by your company Sponsor, ie RAKEZ. To apply for your visa, submit your visa application to RAKEZ.

The MOI will provide the credentials only to the Sponsor i.e. RAKEZ. However to facilitate you with the similar service, RAKEZ will soon be introducing the Customer Portal wherein the applications can be submitted, payment can be made, status of the application can be tracked, available products can be viewed, and clients can download the same from the Portal.

• Faster process and accuracy in visa and residency services
• Reduces the need for clients to visit RAKEZ offices or the Immigration Authority
• Submission of digitised documents (scanned and uploaded); no hard copies required
• Application confirmation received via SMS and email
• Application progress and status can be viewed on the Portal; eliminates the need to follow-up with the Authority or a PRO
• Entry Permit issued as E-Visa
• Save on delivery and/or courier charges previously incurred to present original entry permit at the airport

Launched as part of the UAE 2021 vision under the slogan ‘Smart Services with Future Vision’, the E-Channel Immigration System is a new and unified immigration system implemented across the UAE.

It allows businesses and individuals to make immigration-related applications – visas and residency and entry permits – through a single online portal, instead of visiting a typing centre or the immigration office. The system also eliminates the need for printed documents and aims to ensure that all applications are processed more efficiently, with improved integration across the emirates.

In line with the latest update from the General Directorate of Residency and Foreign Affairs, all RAKEZ companies are mandated to register in the E-Channel platform with immediate effect, through RAKEZ, to allow them to continue with current and future visa or immigration-related applications.

To register your company in the E-Channel Immigration System, visit any RAKEZ office or contact us to proceed with the payment and other necessary procedures. Once registered, you will receive an SMS confirming your company’s registration in the system.

No. It is illegal to work on any visa other than a valid employment visa in the UAE.

A UAE residency visa is required to:

• Legalise your stay in the UAE
• Open a bank account
• Get telecom connections
• Obtain UAE driver’s licence

The renewal quotation for your trade licence is sent 60 days prior to the expiration of your licence, to the email address you provided during the registration of your company. Alternatively, you can send an email to our Service Centre Team at customerservice@rakez.com to request for the same.

Please note that the quotation can be generated only 60 days (two months) before your licence expiry date.

Yes, if the current company name does not match with the new activity and the nature of business.

The following amendments require publication:

• Change of company name
• Decrease in share capital
• Change of legal form
• Company’s de-registration

Any business holding a valid licence can apply for company and licence amendments. However, for certain amendments, the licence must be valid for at least two (2) months to apply for amendments.

There are many registration and licence amendments that a company can apply for, including the following:

• Change of company name
• Change of company’s directors and manager
• Amendment to the provisions of the company’s MOA
• Share capital increase
• Share capital decrease
• Change of licensed activities

Yes, it can. A struck-off company may submit an application within two (2) years from the date of the strike-off to restore its legal status and renew its licence. This is subject to approval of RAKEZ.

No, it cannot. Once the striking off is in place, the liability of the company, director and shareholder continues, and may be enforced as if the company has not been struck off.

A company or a branch can be struck off from the register of companies if:

• The licence is revoked by RAKEZ
• It is proved that a company or branch is not carrying out business or is not in operation
• A company or branch has failed to pay any fee or penalty owed to RAKEZ within thirty (30) days from the date of being notified to make the payment
• The licence of a company or a branch is not renewed for six (6) months from its date of expiry
• A company or a branch is acting in breach of restrictions on activities or is involved in contraventions under RAKEZ’s Companies Regulations
• It is necessary to protect the good reputation of RAKEZ