All You Need To Know About Manufacturing Company Formation In RAKEZ

Ras Al Khaimah Economic Zone (RAKEZ) is one of the reputed business and industrial hubs in the United Arab Emirates. Established by the government of Ras Al Khaimah, it provides customizable solutions to free zone and non-free zone businesses including world class facilities, wide-ranging licenses, and visa facilitation services. RAKEZ’s main agenda is to make business formation in UAE easy and in full compliance with the rules and regulations of the country. It is home to over 14,000 companies, spanning 100 countries and 50 industries.

Steps for forming an Industrial/Manufacturing company in RAKEZ

A: Identifying the business activity

The first step in the RAKEZ Industrial/Manufacturing company setup process is to identify your business activity. A detailed list of permitted activities can be found on the RAKEZ website.

B: Preparing and submitting detailed business plan

Here is a business plan template for a manufacturing company

• Executive summary

It should describe the business in general, the problem that it solves, the target market, and financial highlights.

• Products to be manufactured/fabricated/assembled

Details of final products that would be produced as a result of the process.

• Machinery Details
• Raw Material Details
• Electricity Requirement of Machinery
• Process flow of Manufacturing/Fabrication/Assembling
• Total Space Requirement
• Total Electricity Requirement
• Total Manpower Requirement
• Total Water Requirement
• Waste Management and Pollution Control Details
• Basic Floor Plan detailing raw material storage, production area, final product storage, dispatch, and office area/administration area.
• Any special requirement such as installing a furnace, chimney, etc.
• Any special requirement for the warehouse premises.
• Details of any goods that will be stored out of the warehouse premises.
• For Technical/Production Engineering/Assembly/Fabrication, details of the personnel with qualifications need to be submitted.

C: Name and initial approval

Choose your company name. Also, check if it is available for registration.

Here’s a list of documents required for completing the application process:

• A duly filled application form
• A copy of your passport
• Process flow chart
• Machinery details

 D: Obtaining Special approval from external departments

Certain activities may be subject to approval from external authorities such as Environmental Protection Department Authority (EPDA) and Civil Defence.

EPDA approval includes UAE pass registration for the shareholder/manager of the company, submitting the online application, warehouse inspection by authority, appointing EPDA approved consultant to do a detailed study based on the activity, warehouse location and materials used for manufacturing, submitting the study report to EPDA, making payment and obtaining final approval.

Civil Defence approval includes submitting the warehouse plan to concerned authority, warehouse inspection, and  final approval.

E: Preparing & signing lease agreement and Memorandum & Articles of Association

Lease Agreement: Lease Agreement is an agreement between the authority and a licensee for a lease of a premises.

Memorandum & Article of Association: These will explain how the company will be run, governed, and owned by the members. Every company should have a memorandum & Article of association in place in a standard format containing the following information:

• Company name
• Date of incorporation
• Type of company
• Act under which the company is registered
• Names and signatures of all shareholders
• Capital of the company etc.
• Directors’ powers, responsibilities, decision making, appointment and removal, indemnity and insurance
• Shares, distribution of shares and Dividends
• Capitalization of profits
• Shareholders
• General meetings
• Voting Rights

F: Final Licensing from RAKEZ

After submitting the documents and making the payment, RAKEZ will issue your license. You will receive an official welcome email and it will contain the electronic copy of your license along with other company formation-related documents.

G: Obtaining Customs Code for import and export

Companies deciding to import or export goods in/from RAKEZ are required to register within RAKEZ Customs Department and acquire a code for clearance of goods.

Speak to our manufacturing company setup experts today to know about all cost-effective company formation packages in RAKEZ.