UAE Free Zone Company

Ras Al Khaimah (RAK) is the fourth-largest emirate in the United Arab Emirates (UAE). It is estimated to have a total population of about 350,000. The emirate has a diverse economy, with no single sector contributing more than 30% to overall GD.

The RAK free zone company is cost-effective for businesses who need to maintain an office or warehouse in the UAE. A free trade zone or free zone is a special area of RAK where taxes, tariffs and quotas are eliminated and company requirements are made easy to attract new businesses and foreign investments. With free zone companies, it is possible to benefit from over 50 double taxation agreements of the UAE. Business owners and investors are also eligible to obtain visa/residency. Free Zone companies are tax exempted for up to 50 years.

In many instances, a company with substance and actual presence is preferred for international tax optimization. A free zone company combines the benefits of full tax exemption with the benefits of an active, local presence. For example, the authorities will issue a lease for the company’s own office or ‘shared desk’ to  attest the actual location of the company.

A simple domicile or a ‘registered office address’ will often not suffice in today’s world. With a company in the free zone, it becomes much easier when it comes to opening a business banking account in Dubai. In addition, business owners and employees of the company may obtain residence permits with a minimum period of presence in the UAE. By incorporating a company and obtaining a residence permit, you can thus enjoy complete tax benefits at both private and corporate level.

However, A free zone company in UAE must undergo VAT registration if the taxable turnover reaches Dhs 375,000. The company can also register voluntarily if its annual taxable supplies reach between Dhs 187,500 and Dhs 375,000. The standard VAT is 5%.