The first step for RAK free zone company formation is to apply for it. You need to provide the name and activities of your company, along with a comprehensive application. Then, it would help if you got the trade name registered with the free zone authority. Generally, more than three thousand different activities are in a free zone. These include shipping, commodities, diamonds, gold, aviation, energy, professional services, FMCG, community services, media, technology, and financial services.
Apply for trade license:
Once the capital is in place, the next step is to apply for a license and apply for it. This process varies from free zone to free zone, as each authority has its own rules and regulations. Nevertheless, the main hurdles in setting up a free zone are the application form and the trade license. Upon receiving the application form and various documents, the free zone authorities will issue a license.
Get the license:
The next step is to get the license. This is not a complicated procedure, but it does require several steps. One of the most critical steps is to get the initial approval of the investor. Once this is received, the investor must keep the capital until the license is issued. The bank will issue a deposit letter that must be submitted to the free zone authorities. The capital deposit process is only required when a company must pay share capital. After completing the licensing process, the business must sign the Memorandum of Association and resolve the Shareholders.
Determine who will be the shareholder:
Another crucial step in setting up a free zone company is determining who will be the shareholder. Is it going to be an individual or a group of people? If so, then a company that is an independent entity must be registered. Regardless of the structure of your company, the authorities of the free zone will require that you provide proof of solvency. Therefore, you need to open a UAE bank account in the company’s name and deposit the share capital. The bank account you open will need to be updated with the capital deposited every year. The Free Zone Authority will release this capital once the company setup is complete.