Trading Company SetupToys and Games Trading

As part of the company registration process with this business activity, no additional approvals are required.
If the company plans to lease a warehouse or land, additional approval will be required from the RAK Municipality Public Health Department.

NOC or No Objection Certificate is an important document that is provided as confirmation that the regulatory authority (regulator) has no objection to licensing or registering a new company in Dubai.

The minimum share capital requirement for RAKEZ companies with this business activity is AED 10,000, its contribution is optional.

The RAKEZ company registration provides various benefits and opportunities for entrepreneurs:

• Access to local and global markets. Companies registered in the free zone can conduct business within the free zone and beyond the UAE. This helps to expand business, create and strengthen partnerships and enables interaction with clients and partners worldwide.
• Strategic location. The free zone is situated in Ras Al Khaimah, close to an international airport, seaports, and key transportation hubs. This prime location ensures easy access to major markets in the Middle East, Africa, Asia, and Europe, making it a vital center for international trade, logistics, and exports.
• Remote company registration. The free zone enables entrepreneurs to establish their business remotely, without the need for physical presence in the UAE, providing convenient access to the registration process from anywhere in the world.
• Full profit control. The free zone enables foreign entrepreneurs to retain 100% ownership of their company, granting full control over profits and unrestricted capital repatriation outside the UAE. This fosters an optimal environment for strategic financial planning and efficient business management, free from limitations on economic activities.
• Wide range of business activities. The free zone offers an extensive list of business activities, enabling entrepreneurs to develop projects in various industries, including trade, logistics, manufacturing, education, IT, and professional services.
• Tax and customs benefits. Designated zones offer benefits on the import, export, and re-export of goods both within their own territory and between other designated zones. These zones exempt goods from VAT, provided the criteria set by the Federal Tax Authority (FTA) are met, allowing companies to minimize their tax burden.
• Infrastructure. The free zone provides a comprehensive range of infrastructure solutions, including modern office spaces, industrial zones, warehouses, and land plots for customized developments. All facilities are tailored to meet business needs and equipped with the technical requirements for successful operations and growth.

• Various rental property options are available in RAKEZ, provided as part of packages or acquired separately upon preliminary request and subject to availability:

Office solutions:

1. 1. Coworking (AED 0/year). A workspace in a coworking with unlimited access during business hours. Included in all Biz Savers and All Inclusive registration packages. Coworking affords up to 4 visa quotas and provides two hours of meeting room usage and 50 printing pages per month.
   2. Dedicated Desk (AED 34,000/year). A dedicated desk in a shared office with access during business hours. Included in the Serviced Office registration package. The Dedicated Desk affords 4 visas. A refundable deposit of AED 650 will be charged.
   3. Dedicated Office (AED 38,000/year). A private office ranging from 5 to 16 sq.m. with unlimited access. Included in the Standard Office and SME SO registration packages. The Dedicated Office affords 6 visa quotas. A refundable deposit of AED 633 will be charged.
   4. Dedicated Office (AED 48,000/year). A private office ranging from 16 to 24 sq.m. with unlimited access. Included in the Executive Office registration package. This Dedicated Office affords 8 visa quotas. A refundable deposit of AED 900 will be charged.

Business Facilities:

1. 1. Warehouses (from AED 200 per sq.m./year). Premises ranging from 15 sq.m., specialized for logistics or storage. Warehouses can be empty or fully equipped with professional machinery, including tools for sorting, storing, or refrigerating goods.
   2. Land plots (from AED 15 per sq.m./year). Plots ranging from 5,000 sq.m. in the Technology and Industrial Parks, with existing buildings and labor accommodations, and the option to build additional facilities. A security deposit of 10% is required.
   3. Staff Accommodation. Residential rooms for comfortable living of company employees.

The UAE imposes a variety of taxes and fees that regulate the financial activities of both legal entities and individuals. Below are the main ones:

1. Value Added Tax (VAT):
   • Since January 1, 2018, the UAE has implemented a VAT rate of 5%, which applies to most goods and services and is charged to companies operating within the country, except for those registered in designated zones.
   • A Designated Zone is a territory within a free zone that is treated as outside the UAE for tax purposes, allowing goods to be exempt from taxation, provided certain criteria are met. The main taxation rules in Designated Zones are:
     • Designated Zones are listed in the Cabinet Decision to Federal Decree-Law No. (8) of 2017 on Value Added Tax (VAT).
     • Goods tranferred between or within Designated Zones are not subject to VAT.
     • The export and import of goods between a Designated Zone and a foreign company are also VAT-exempt.
   • For local companies and those registered in Non-Designated Zones (free zones not included in the Designated Zones list), the standard tax rules set forth in the Federal Decree-Law on VAT apply.
     • Companies with an annual turnover exceeding AED 375,000 are required to register with the Federal Tax Authority (FTA) as VAT taxpayers.
     • Companies with a turnover between AED 187,500 and AED 375,000 may register on a voluntary basis.
     • Companies can offset VAT paid on purchases of goods and services (input VAT) against the VAT they collect on sales (output VAT), shifting the tax burden to the final consumer.
     • Some goods and services may be exempt from VAT or taxed at a 0% rate, such as international transportation, educational, and medical services.
2. Corporate Tax:
   • As of June 1, 2023, the UAE has introduced a corporate tax at a rate of 9%, levied on the taxable net profit of companies with income exceeding AED 375,000.
   • A 0% rate is applied to taxable income not exceeding AED 375,000.
   • Charitable, non-profit organizations and medical institutions are fully exempt from corporate tax.
3. Excise Tax:
   • Since October 1, 2017, the UAE has introduced an excise tax aimed at reducing the consumption of harmful products and funding healthcare initiatives.
   • The tax applies to alcohol, tobacco products, and beverages containing added sugar, including energy and carbonated beverages.
   • Excise tax rates vary by product category:
     • 50% on carbonated drinks (excluding mineral water)
     • 100% on tobacco products
     • 100% on energy drinks
     • 100% on electronic smoking devices and related liquids
     • 50% on products containing added sugar or sweeteners.
   • Companies dealing with excise goods must register with the Federal Tax Authority (FTA), submit monthly declarations, and maintain records. Excise tax is paid upon the import, production, or release of goods for consumption in the UAE.
4. Customs Duties:
   • Custom duties in the UAE are applied to most imported goods at a standard rate of 5% of the cost, insurance, and freight (CIF). Some product categories, such as pharmaceuticals and food items, may be exempt from duties or subject to reduced rates.
   • Goods imported into the UAE's free zones are generally not subject to customs duties as long as they remain within these zones. However, once such goods are moved to the UAE mainland, standard duties apply.
5. Personal Income Tax:
   • In the UAE, personal income is not subject to taxation.
   • UAE citizens and residents are exempt from paying taxes on their personal income, including salaries, interest, dividends, inheritances, gifts, luxury goods, and capital gains.
6. Other Local Taxes and Fees:
   • Individual emirates may impose specific local taxes and fees in line with their economic and social needs.
   • These taxes and fees are aimed at supporting public services and implementing infrastructure projects.

RAKEZ offers the following main types of UAE resident visas for foreign investors and company employees:

• Golden Visa:
  • Issued to top executives with a monthly salary of more than AED 30,000, as well as to investors with investments of at least AED 2,000,000 in a company or property.
  • Allows managing a business, living, and working in the UAE.
  • Grants the right to sponsor family visas.
  • Valid for ten years.
• Investor Visa:
  • Issued to foreign investors and entrepreneurs who invest in or acquire companies.
  • Allows for business management, living, and working in the UAE.
  • Grants the right to sponsor family visas.
  • Valid for two years but can be canceled if the investor is absent from the UAE for more than six months.
• Employment Visa:
  • Issued by the company for its foreign employees.
  • Permits residency and employment in the UAE.
  • Depending on the job position, education and specialization may need to be verified.
  • Valid for two years but can be canceled if the employee is absent from the UAE for more than six months.
  • Can be renewed alongside the employment contract.
• Dependent Visa (for family members and domestic staff):
  • Issued to the sponsor's family members and accompanying domestic staff (nannies, housekeepers, caregivers, etc.).
  • Permits residency in the UAE.
  • Valid for two years.
• Student Visa:
  • Issued to foreign students enrolled in universities and colleges registered with the freezone.
  • Allows for living and studying in the UAE.
  • Valid for the duration of the study period.
• Freelance Visa:
  • Issued to independent professionals working in fields such as media and education.
  • Allows for living and working in the UAE without being tied to a specific employer.
  • Grants the right to sponsor family visas.
  • Valid for two years but can be canceled if the freelancer is absent from the UAE for more than six months.