Starting a business in Ras Al Khaimah can be an exciting opportunity. Nevertheless, it’s important to understand the costs involved in order to prepare a budget and avoid any surprises down the line.
In this article, we’ll break down the various expenses involved in setting up a business in the Emirate, step by step.
License fees: The first expense you’ll need to account for is the license fee. The cost of the license depends on the type of business activity you plan to start. For example, the license fee for a new / renewal of an economic license (commercial, vocational, industrial, and tourism) is based on four categories ranging from AED 400 to AED 10,000. You can find a full list of license fees on the Ras Al Khaimah government website.
Registration fees: Once you’ve decided on your business activity, you’ll need to register your business with the Ras Al Khaimah Department of Economic Development (RAK DED). The registration fee for a new business is about AED 2,100.
Visa fees: If you plan to employ staff in your business or only account for yourself, you’ll need to factor in visa fees. The cost depends on the visa category, the duration, and the number of visas required. For example, a 3-year employment visa costs AED 7,300, while a visitor visa for a 90-day stay costs AED 610.
It’s important to note that people can’t work under this tourist visa and would need the correct one.
Office rent: Renting office space is a significant expense for any business, and it’s no different in Ras Al Khaimah, albeit cheaper than in other emirates, such as Abu Dhabi or Dubai. The cost of rent depends on the location and size of the office space you require. As a guide, the average cost of office rent is around AED 100 per square foot per year, roughly costing 20 dollars.
If you’re looking for a flexible and budget-friendly solution for both short- and long-term office needs, look no further than Compass Coworking Centre in Ras Al Khaimah. Offering a variety of workspace options, from shared desks to private offices, Compass is designed to foster collaboration and creativity in a vibrant community. With 24/7 access, high-speed Wi-Fi, and on-site business support, you’ll find everything you need to thrive.
Business sponsorship fees: If you plan to set up a Limited Liability Company (LLC) in Ras Al Khaimah, you must have a local sponsor. This sponsor will own 51% of the shares in the company and will charge a sponsorship fee for their services. The sponsorship fees vary, but you should expect to pay anywhere from AED 10,000 to AED 25,000 annually.
Professional fees: You may need to hire a professional, such as an accountant or a lawyer, to assist you with setting up your business. The cost of these services can vary, but you should budget for anywhere between AED 5,000 to AED 20,000, depending on the complexity of your business requirements.
Other expenses: There may be other expenses involved in setting up your business, such as the cost of equipment or stock, marketing and advertising expenses, and utility bills.
In summary, the cost of setting up a business in Ras Al Khaimah can vary depending on the type of business activity and the services required.
These numbers provided are a rough guide and may be subject to change. But working to a topline budget can help with any future decision-making. By factoring in these expenses, you’ll be better prepared to start your business and avoid any financial surprises.
The Emirate offers a number of solutions to effectively navigate these costs and establish a low-cost business in Ras Al Khaimah. ake advantage of the business setup packages offered by Ras Al Khaimah Economic Zone (RAKEZ), like its ‘BizStarter’ package, available for AED 6,000, or the ‘All-inclusive package’, available for AED 16,500 per year and coming with a UAE residence visa plus many other perks.
It’s important to note that these figures may vary depending on various factors, such as the type of business, location, and the services required, and it’s always recommended to check with the relevant authorities or consult with a professional before making any financial decisions.
These prices could also have changed since the time this article was written.