rak maritime city free zone rules 2nd edition (2017) · immigration, etisalat etc. a copy of the...
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RAK MARITIME CITY FREE ZONE RULES 2nd Edition (2017)
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TABLE OF CONTENTS
1. Introduction ............................................................................. ................................3
2. Governance .............................................................................................................7
3. General Provisions ............................................................................. .....................7
4. RMC Free Zone Licences ......................................................................... ..............8
5. RMC Free Zone Leases............................................................ ...............................9
6. Application Process............................................................................. ...................10
7. Performance of Works and Services .....................................................................10
8. Cancellation, Revocation or Non-renewal of Licences......................................... 10
9. Termination of a Lease.......................................................................................... 11
10. Insurance ....................................................................................... ........................ 12
11. Products.................................................................................................................. 12
12. Health, Safety and Environment .................................................................. ......... 12
13. Employment ………………....................................................................................13
14. Industrial Accidents ........................................................... .................................... 17
15. Accommodation …................................................ ................................................. 18
16. Access ............................................................................ .........................................19
17. Traffic Affairs .........................................................................................................19
18. Security ………. .................................................................................................... 20
19. Marine………………..................................................................................... .........20
20. Violations of Rules....................................................................... ...........................20
APPENDIX 1 APPLICATION PROCESS .................................................................................. 22
APPENDIX 2 SPONSORSHIP AGREEMENT............................................................. .............. 25
APPENDIX 3 TARIFFS.................................................................................................... ........... 28
APPENDIX 4 HEMAYA LETTER ............................................................................................ . 29
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1. Introduction 1.1 The RAK Maritime City Free Zone ("RMC Free Zone") was created by Emiri Decree No. 21 of 2009
dated 9 December 2009 (as varied) ("Emiri Decree"). The RMC Free Zone was established with the key objective of encouraging companies to benefit from various attractive incentives that the RMC Free Zone offers, such as:
(a) zero tax regime in force; (b) no limit on foreign ownership of companies; (c) no requirement for a UAE national as a local partner/shareholder; (d) freedom to employ whoever, as per the concerned authorities, with RMC Free Zone
acting as a nominal sponsor for residency purpose; and (e) fast and efficient business set up processes.
1.2 This is the revised second edition of the RMC Free Zone rules, which hereby repeals the first edition of 2013 and are hereafter referred to as the (“RMC Rules”). The second edition has been redrafted in order to update the RMC Rules to reflect the prevailing rules and procedures and provide greater clarity to readers.
1.3 In order to incorporate an entity in the RMC Free Zone, a Licensee requires, amongst other things,
a Licence issued by RMCFZ Authority appropriate for the intended business activities in the RMC Free Zone, as well as a Lease.
1.3 The purpose of the RMC Rules is to set out the basis on which companies can apply for a Licence
and to establish a framework to ensure that all companies undertaking activities in RMC Free Zone do so in a safe, secure and responsible manner, consistent with all Applicable Laws and international best practices.
1.4 These RMC Rules may be revised by the RMCFZ Authority at its discretion. Any such revisions
will be posted on the RMC Website, and the most recent version will apply at all times. Any person or entity working, operating or doing business in RMC Free Zone must check for updates to the RMC Rules. The RMC Rules are also available in electronic format on the RMC Website.
1.6 RMCFZ Authority may waive any of the RMC Rules, for one or more Licensee at its sole discretion.
Definitions In these RMC Rules the following capitalized terms shall have the meaning ascribed to them:
Audited Accounts financial statements examined and disclosed by an independent auditor;
Access Pass(es) a pass allowing access to RMC Free Zone;
Air Fare the cost of a one way airfare to an Employee’s country of nationality at the published rate of International Air Transport Association;
Applicant an individual or a company that submits an application to RMCFZ Authority in relation to its free zone services
Applicable Law means each of the following, as the same may be supplemented, amended, replaced or repealed from time to time: (i) the laws enacted or to be enacted in RAK or by the Federal legislature of the UAE; (ii) all regional and international laws to which the UAE is a signatory; (iii) any other laws, decrees and/or regulations that relate to or govern
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any of the matters referred to in the RMC Rules; (iv) all regulations, orders, codes of practice or other legislation (including delegated or subordinate legislation) made under any of the items identified in (i) – (iii) above, including the RMC Rules themselves; and (v) all building regulations, health, fire and safety regulations, and all regulations, requirements, by-laws of any municipality, local authority, national or public utility company or other authority relevant or applicable to the works, activities and/or operations to be carried on in RMC Free Zone.
Approvals means and includes all permits, licences, consents, approvals, certificates, registrations, no objection certificates or authorizations, as well as filings of notifications, reports or assessments, necessary (as the case may be) for (i) the commencement and completion of the works or services, (ii) the continued operation of the Project Facilities (or the decommissioning of the same) and (iii) as evidence towards a Licensee’s or a Licensee Party’s ongoing compliance with all Applicable Laws;
Authorised Representative
means, in relation to a Licensee or Applicant for a Licence, any person authorised to represent the Licensee or Applicant, as the case may be, before the RMCFZ Authority;
Authorised Signatory means, in relation to a Licensee or Applicant for a Licence, any person authorised to sign documents on behalf of a Licensee or Applicant, as the case may be;
Business Licence has the meaning given at paragraph 4.1;
Civil Defense Licence
means a 12 month Licence issued by The General Command of the Civil Defence;
Civil Defense NOC means a no objection certificate issued by the The General Command of the Civil Defence;
Commencement NOC - Works
means a no objection certificate issued by the RMCFZ Authority confirming that it is satisfied that all Approvals required for proposed works or services have been received;
Commencement NOC - Operations
means a no objection certificate issued by the RMCFZ Authority confirm that it is satisfied that the Project Facilities are complete and operational and that all Approvals required for operations have been received;
Common Infrastructure means shared areas within RMC Free Zone including roads, pathways and walkways; power, water, sewerage and telecommunications conducting media and other utility related facilities; administrative areas and any land occupied by any Relevant Authority; and all other associated areas and services that are from time to time notified by the RMCFZ Authority as being areas under its control, maintenance, management and administration for the benefit of all Licensees in RMC Free Zone; and any other parts of RMC Free Zone not available for lease to Licensees;
Companies Regulations means regulations issued by the RMCFZ Authority concerning the establishment and operation of entities in RMC Free Zone;
Completion Confirmation
means a written notice from a holder of a Business Licence confirming that the works or services undertaken by or on behalf of such holder
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have been completed in accordance with all Applicable Laws and the requirements of all relevant Approvals, and to which copies are attached of all completion acknowledgements or certificates from Relevant Authorities;
Employee a person permitted to work in RMC Free Zone in accordance with the RMC Rules, including a Sponsored Employee;
Employment Agreement an employment agreement in the form and substance prescribed by RMCFZ Authority stipulating the conditions of employment, to be entered into between a Business Licensee and its Employee;
Establishment Card means the card issued by the General Directorate of Residency and Foreigners Affairs-RAK Immigration. The establishment card is considered as the identity of your company. Therefore, when a company applies for services from government authorities such as Immigration, Etisalat etc. a copy of the establishment card is required;
EPDA
means the Environment Protection & Development Authority (RAK);
EPDA Licence
means a 12 month Licence issued by the EPDA;
EPDA NOC
means a no objection certificate issued by the EPDA confirming that the EPDA has no objection to the Licensee’s proposed project, subject to compliance with all Applicable Laws, including EPDA Regulations;
EPDA Regulations means all guidance, policies, rules, regulations, laws and similar issued by the EPDA or in respect of matters within the jurisdiction of the EPDA, from time to time;
Free Zone Labour Card means an employment card issued by the RMCFZ Authority to an employee of a Business Licensee;
Free Zone Rules these free zone rules, as may be amended from time to time;
Health & Safety Handbook
the Health & Safety handbook published by the RMCFZ Authority from time to time, the latest version of which will be made available on the RMC Website;
Industrial Accident
an accident that results in total or partial permanent disability of the Employee, which occurs at work or while travelling in the course of an Employee’s duties, or going to or coming from work;
Initial Approval has the meaning given at paragraph 1.4 of Appendix 1;
Initial Meeting has the meaning given at paragraph 1.1 of Appendix 1;
ISPS ISPS means the International Ship and Port Facility Security Code published by the International Maritime Organization;
ISPS Zone has the meaning given at 16.5;
Labour Law has the meaning given at 13.43;
Lease means either a lease agreement or a right of Musataha (in respect of a Plot) entered into between a Licensee and the RMCFZ Authority;
Lessee
a company leasing a Plot;
Lessor
the grantor of a Lease;
Licence means either a Business Licence or a Services Licence;
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Licensee
an entity licensed to operate within RMC Free Zone and holding a valid Licence;
Licensee Party
means any employees, agents, advisers, consultants, contractors, subcontractors, suppliers, sub-suppliers, visitors, and any other person working or acting on behalf of a Licensee;
Operations Confirmation
means a written notice from a Business Licensee confirming that all Approvals and insurances required for the startup and operation of the Project Facilities have been obtained, and to which copies of all such Approvals and insurances must be attached;
Plot means a parcel of land in RMC Free Zone granted, or offered to be granted, to a Licensee or Applicant, as the case may be, by way of a right of Musataha or, if appropriate, by way of a Lease;
Project Facilities
means all buildings, facilities and plant built by a Licensee on a Plot pursuant to the terms of a Lease and Licence;
Project Overview means a preliminary overview of the proposed project including outline design drawings, basic specifications of and plans for the Project Facilities;
RAK means the Emirate of Ras Al Khaimah;
RAK Camera Certificate
means a 12 month licence issued by the General Resources Authority in respect of regulation 18.2;
RAK Municipality
means the Department of the Municipality of the Government of the Emirate of Ras Al Khaimah;
Registration means the registration by RMCFZ Authority (pursuant to Companies Regulations) of a RMC Free Zone company or RMC Free Zone branch permitting that company or branch to undertake business activities within RMC Free Zone subject to the provisions of the RMC Rules and Registered is interpreted accordingly;
Relevant Authority means any free zone, Emirate or federal body having jurisdiction over any aspect of the operation of or activities in RMC Free Zone or a person operating in RMC Free Zone;
RMCFZ Authority RAK Maritime City Free Zone Authority or any other body authorised or designated from time to time as responsible for the administration of RMC Free Zone;
RMC Website means RMC Free Zone's website found at www.rakmaritimecity.ae;
Security Deposit
means a cash deposit in an amount determined by the RMCFZ Authority, identified in a Lease and deposited in an account designated by the RMCFZ Authority for the purpose of meeting any demands for payment levied by the RMCFZ Authority pursuant to the RMC Rules or by any other Relevant Authority;
Services Licence has the meaning given at paragraph 4.1;
Sponsorship Agreement
means an agreement in the form published by the RMCFZ Authority from time to time, the latest version of which is at Appendix 2;
Sponsored Employee(s) an employee of a Business Licence who is sponsored by RMCFZ Authority pursuant to a Sponsorship Agreement;
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2. Governance
2.1 RMC Free Zone is managed and governed by the RMCFZ Authority in accordance with the Emiri
Decree. The RMCFZ Authority is mandated to create policies and procedures appropriate to the nature of RMC Free Zone. It has the power to lay down rules and regulations for the operation and management of RMC Free Zone, review and amend such rules and regulations at its discretion and implement all laws and decisions.
2.2 The RMCFZ Authority may issue notices and develop policies to regulate, improve and
enhance the operation of RMC Free Zone including in relation to (but not limited to) the environment, planning, health and safety, corporate governance, anti-corruption, safety and security, Common Infrastructure and the management and control of those working or otherwise undertaking any activity within RMC Free Zone.
2.3 All those working, operating or doing business in RMC Free Zone acknowledge and accept
the RMCFZ Authority’s jurisdiction and right to govern RMC Free Zone on the terms set out in the RMC Rules and its right to construct, own and manage any Common Infrastructure required.
2.4 Entities violating the RMC Rules will be subject to the penalties set out in the Tariff and/or such
other fines and sanctions as may be issued by the RMCFZ Authority pursuant to its then current policies and procedures or as otherwise determined. The RMCFZ Authority may levy fines and issue sanctions against entities or persons which the RMCFZ Authority finds to be in breach of the RMC Rules or notices or who otherwise cause nuisance, disturbance or disruption to the RMCFZ Authority, its agents, Licensees, or Licensee Parties, or damage to Common Infrastructure.
3. General Provisions
3.1 The RMC Rules apply to all Licensees and Licensee Parties within RMC Free Zone, as well as any
other persons and all vehicles in RMC Free Zone, and should be read in conjunction with all other
Applicable Laws which may apply. Nothing in the RMC Rules should be regarded as conflicting
with, or overriding, any Applicable Laws. Violations of Applicable Laws may be notified to the
appropriate authorities.
3.2 Any person or entity working, operating or doing business in RMC Free Zone must hold either:
(a) a valid Registration, Lease and Business Licence, or
(b) a Services License.
3.3 The RMCFZ Authority shall only be obliged to correspond with Authorised Representatives of a Licensee or Applicant. Appointment of, and changes to, Authorised Representatives and Authorised Signatories must be made in writing to the RMCFZ Authority in accordance with paragraph 3 of Appendix 1. The RMCFZ Authority may accept and rely upon the authority of any Authorised Representative or Authorised Signatory without further enquiry.
3.4 Each Licensee will indemnify RMCFZ Authority and RMC Free Zone against all penalties, liabilities,
costs, losses or damages incurred in connection with any acts or omissions of a Licensee
Party, or any person under the control of such party, whilst working or acting on behalf of the
Licensee.
3.5 The RMCFZ Authority may levy fees from time to time in respect of services and facilities provided
Tariff means the tariff of fees published by RMC in respect of visa/employment services and the Saqr Port Tariff (or such other Tariff specific to RMC Free Zone) published on the RMC Website, as the same may be revised from time to time;
Traffic Department means the Ras Al Khaimah Police traffic department;
UAE
United Arab Emirates.
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to Licensees and Applicants. Such fees are payable in advance in accordance with the rates and charges set out in the Tariff.
3.6 Each Licensee shall be responsible for putting the necessary financing arrangements in place
to fund the construction and operation of its Project Facilities, and recognises that the RMCFZ Authority does not provide any direct or indirect financial or credit support to Licensees, whether in the form of contractual commitments, financial or performance guarantees or otherwise.
4. RMC Free Zone Licences
4.1 Licences are categorized by the nature of business activity, as follows:
Licence Category (Business): Nature of Activity
Industrial Manufacturing, processing, assembling, packaging etc.
Commercial Import, export, sell, distribute and store items specified on the license.
Trading Import, export, distribution, warehousing, trading in a commodity.
Licence Category (Services):
Bunkering supply of liquid hydrocarbons directly to a vessel as fuel for the vessel.
Operating supply of a service to more than one Business Licensee.
Ship Chandlers operating as a dealer in supplies and equipment for ships and boats.
4.2 The RMCFZ Authority issues entities with either: (a) (“Business Licence”); or (b) (“Services Licence”).
4.2 Each Licence shall state: (a) the number, issue and expiry date of the Licence; (b) the name, legal status and address of the Licensee; (c) the activities which the Licensee is licensed to conduct in RMC Free Zone; and (d) the Licensee’s Authorised Representative.
4.3 Licences issued by the RMCFZ Authority are valid only in RMC Free Zone. Licensees are strictly
forbidden from carrying out activities in RMC Free Zone other than those appearing on their Licence. A Licensee cannot operate outside the RMC Free Zone using the Licence. A client wishing to operate outside of the RMC Free Zone shall do so subject to the applicable laws of the jurisdiction in which it wishes to operate.
4.4 A Licensee may only conduct such activities as are specified in its Licence. A Business Licence
may have a maximum of eight (8) activities noted on its Licence. 4.5 A Business Licence is valid for 12 months from the date of issue and is renewable provided that
the Licensee provides: (a) a request in writing for a new Business or Services Licence in writing; (b) a passport copy of the manager noted on the Business Licence (valid for at least 6
months); (c) all insurance policies required pursuant to these rules are valid and continuing; (d) a valid Civil Defense Licence; (e) a valid EPDA Certificate; (f) a valid RAK Camera Certificate; (g) the Licensee’s most recently Audited Accounts; and (h) any other requirement imposed by RMCFZ Authority at the time of such renewal.
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4.6 A Services Licence is valid for the duration of contract of works or services which the Licensee Party has undertaken to provide to the Licensee, as the same is confirmed to the satisfaction of the RMCFZ Authority or 12 months from the date of issue (as at the discretion of the RMCFZ Authority).
4.7 Licences must be renewed no later than 30 days prior to the date of expiry of the current
Licence. Failure to do so may result in a fine as set out in the Tariff and may also lead to permanent revocation of the Licence, an application for renewal of a Licence being declined and/or revocation of Registration.
4.8 The details on a Licence may be amended by the Licensee on request and by payment of the
published fee as per the Tariff. 4.9 The activity on a Licence may be amended by the Business Licensee by adding new activities or
by removing existing licensed activities, on application to RMCFZ Authority. The decision on the application will be made by RMCFZ Authority at its sole discretion.
4.10 A Business Licensee desirous of conducting an additional activity within the scope of a different
category of a Licence may require an additional Licence from RMCFZ Authority, which shall be granted by RMCFZ Authority at its sole discretion.
5. RMC Free Zone Leases
5.1 All first applications for a Business Licence must be made in conjunction with an application for a
Lease of a Plot from which the Applicant shall operate. The holder of a Services Licence is not entitled to apply for a Lease in RMC Free Zone.
5.2 Rent and all other charges and terms and conditions related to a Lease will be specified in the
Lease.
5.3 Business Licensees are not permitted to share or sub-lease their premises without the prior written approval of the RMCFZ Authority. The RMCFZ Authority reserves the right to reject any application for a sub-lease and to charge a fee annually for each approved sub-lease.
5.4 The RMCFZ Authority may, or any Relevant Authority may, without notice inspect the premises of Business Licensees from time to time to assess compliance with Applicable Laws and these RMC Rules. Business Licensees shall provide all necessary facilities for entry, inspection, examination and testing to authorised representatives of the RMCFZ Authority or any Relevant Authority, in pursuit of such representatives' duties under these rules. Licensees hindering such representatives may be liable to fines.
5.5 A Business Licensee who has a Plot may sub-Lease the Plot to another Business Licensee, subject to the written approval of RMCFZ Authority, issued by RMCFZ Authority at its sole discretion. In considering a request to sub-Lease, RMCFZ Authority will require that all of the following are satisfied:
(a) the sub-Lessor is in possession of a valid Lease for the Premises that is to be sub-
Leased; (b) the Premises to be sub-Leased has an operational and complete building; (c) the sub-Lessee is either: (i) a subsidiary of the sub-Lessor, whereby the sub-Lessor holds shares
in the sub-Lessee; or (ii) an associated company of the sub-Lessor, associated by way of
common shareholding, whereby one or more shareholders hold shares in both the sub-Lessee and the sub-Lessor;
(d) the sub-Lessee shall possess a Licence for its activities and shall be carrying on its business in conformity with the rules and regulations of the Free Zone including these Free Zone Rules;
(e) the Premises Leased by the sub-Lessor are sufficient and appropriate for the activities of the sub-Lessee, without jeopardizing or in any way creating any hazards for its own
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operations; and (f) the sub-Lessor undertakes to be fully responsible for the activities of the sub- Lessee
as far as the terms and conditions of the Lease agreement and the Sponsorship Agreement are concerned.
5.6 Where RMCFZ Authority approves a sub-Lease in writing, the Lessor shall be jointly and severally
liable and responsible, along with the sub-Lessee, for an act or omission of the sub-Lessee, which act or omission is contrary to law or the rules, regulations and practices of RMCFZ Authority, or which result in loss, damage, harm, liability or nuisance to a Business Licensee or to RMCFZ Authority.
5.7 If RMCFZ Authority approves a sub-Lease, the sub-Lessor shall be required to pay an annual fee,
as per the Tariff. 5.8 The sub-Lease agreement shall not contradict or override the Lease agreement entered into
between RMCFZ Authority and the Lessee. The sub-Lease agreement shall be approved by RMCFZ Authority.
6. Application Process
To apply for: (a) a Business Licence and Lease; or (b) a Services Licence the Applicant must follow the procedures set out in Appendix 1.
7. Performance of Works and Services
7.1 No works may be commenced or services rendered until all applicable Approvals have been
obtained from all Relevant Authorities for such works or services, copies provided to the RMCFZ Authority by the Licensee and the Licensee has received a Commencement NOC– Works issued by the RMCFZ Authority.
7.2 All works and services must be commenced, rendered, conducted and completed in accordance
with Applicable Laws, all relevant Approvals, and the terms of the Lease, and must be performed to the standards and specifications required by any Relevant Authority or, in the absence of such standards, to international standards and practices for similar works or services as applicable.
7.3 The Business Licensee's Plot must be fenced in to the standards required by the RMCFZ
Authority within two months of the grant of a Licence. All signage must be approved by the RMCFZ Authority prior to installation.
7.4 The Project Facilities constructed by (or on behalf of) Business Licensees may not deviate
materially from those in respect of which all relevant Approvals have been obtained.
7.5 Licensees must liaise with all Relevant Authorities to obtain confirmation that all works have been completed, or services rendered, in accordance with all relevant Approvals. Following completion of works or services, the Business Licensee must submit a Completion Confirmation to the RMCFZ Authority. The RMCFZ Authority may, if it deems necessary, conduct an inspection of the Project Facilities to determine that they are complete and operational. Upon review of the Completion Confirmation and, if applicable, completion of any inspection, the RMCFZ Authority will acknowledge acceptance of the Completion Confirmation.
7.6 Following receipt of the acknowledgement referred to in paragraph 7.5, the Business
Licensee must submit to the RMCFZ Authority promptly an Operations Confirmation. The RMCFZ Authority may require a Business Licensee to submit copies of the following documents prior to issuance of Commencement NOC – Operations: (i) a health and safety manual covering the Licensee and Licensee Parties; (ii) a site security plan for the Licensee's Plot; and (iii) any other documentation the RMC Authority may deem necessary. Following review of the Operations Confirmation and any further documentation required by the RMCFZ Authority, the RMCFZ
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Authority will issue a Commencement NOC – Operations to the Business Licensee. No operations may be commenced prior to receipt of Commencement NOC – Operations.
8. Cancellation, Revocation or Non-renewal of Licences
8.1 The RMCFZ Authority may cancel, revoke or not renew a Licence immediately upon written notice
to a Licensee immediately upon written notice if a Licensee:
(a) is found to have provided to the RMCFZ Authority materially inaccurate or misleading
information regarding its business or operations;
(b) no longer has the Approvals required to undertake works, or services, or its operations (whether revoked, cancelled or not renewed), or at any time ceases to be eligible to renew its Licence;
(c) has acted or is acting in breach of, or in a manner which is contrary to, the terms
of its Licence, its Lease Agreement, or any Applicable Laws;
(d) has behaved or is behaving in a manner which shows a disregard for the RMCFZ Authority or any Applicable Laws, including a failure to pay any fees, rent, fines, service or other charges set out in the Tariff when due and payable;
(e) is not operating or otherwise carrying on its business in any material respect; or (f) is acting or has acted in a manner which the RMCFZ Authority believes is materially
detrimental or prejudicial to the reputation and interests of the RMCFZ Authority, RMC Free Zone, any other Licensee, the general public or RAK.
8.2 If a Licence is cancelled, revoked or not renewed, all outstanding matters relating to that Licence
(including but not limited to outstanding dues) must be settled by the Licensee. No refunds of Licence fees or any items paid according to the Tariff will be made in respect of cancellations, revocations or non-renewals of Licences.
9. Termination of a Lease
9.1 On expiry or termination of a Lease whether by the passage of time, termination or any other
reason:
(a) all outstanding matters relating to that Lease (including but not limited to outstanding dues) must be settled by the Licensee regardless of whether the termination process was initiated by the Licensee or the RMCFZ Authority;
(b) the Business Licensee's right, title and interest in the Plot and any Project Facilities constructed on the Plot shall terminate automatically and cease to have effect, whereupon all rights of possession to any part of the Plot shall revert to the RMCFZ Authority and the Business Licensee shall surrender to the RMCFZ Authority possession of the Plot together with the Project Facilities constructed on the Plot without payment of any cost or compensation by the RMCFZ Authority;
(c) the Project Facilities at the Plot shall, at the sole discretion of the RMCFZ Authority, either (a) devolve on and vest solely and absolutely in the RMCFZ Authority; or (b) be removed from the Plot by, and at the sole risk, cost and expense of, the Business Licensee and the Plot reinstated and remediated to its former condition, without payment of any cost or compensation by the RMCFZ Authority; and
(d) any waste material must be properly and safely disposed of in accordance with the requirements of all Relevant Authorities, and at the cost, expense and risk of the Business Licensee.
9.2 The RMCFZ Authority shall be entitled to utilise cash from a Security Deposit in respect of such
costs and expenses as may be incurred by the RMCFZ Authority in returning the Plot to its condition prior to the grant of the Lease to the Business Licensee.
9.3 If, during the term of a Lease, the RMCFZ Authority believes that the Business Licensee may
not have the financial capability to meet the potential costs of remediation of the Plot at the end of the Lease term, the RMCFZ Authority may require the Business Licensee to provide financial security to the RMCFZ Authority in an agreed form and sufficient to meet the anticipated remediation costs.
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9.4 If a Licensee abandons any materials or products on the Plot, then the RMCFZ Authority
may issue a notice to the Licensee’s recorded address of the RMCFZ Authority's intention to treat such goods as abandoned. If the abandoned goods have not been removed by a date specified by the RMCFZ Authority, it will act to remove them without further reference to the Licensee. Any costs incurred by the RMCFZ Authority in doing so will be for the account of the Licensee. The RMCFZ Authority may, at its discretion, auction the abandoned goods to expedite clearance of the facility and/or to recover any outstanding dues, and shall not be required to account to the Licensee for any proceeds.
10. Insurance
10.1 Business Licensees are required to maintain the policies of insurance required in accordance
with the terms of their Lease and good international practice for similar facilities and businesses.
10.2 Neither the RMCFZ Authority, its affiliates, business units or any of their employees, officers or agents will be liable for any loss of or damage to any property in or from any land which is the subject of a Lease, any buildings or structures on such land or any vehicles, due to any reason, including without limitation, theft or natural calamity.
10.3 All Licensees must hold valid insurance policies (such as contractor all risks policies) as well
as third party insurance policies on terms acceptable to the RMCFZ Authority, and provide a copy of such policy to the RMCFZ Authority upon request. In particular, all Licensees must hold and maintain:
(a) valid third party liability (or public liability) insurance in respect of their business
operations. The value of the insurance cover required for third party liability is AED AED 1,000,000 or such other amount as specified and/or agreed by RMCFZ Authority;
(b) valid workmen’s compensation insurance policies to cover for injury and disability compensation and all related medical expenses in accordance with the provisions of the Labour Law; and
(c) medical cover for all Employees. The Licensee must be able to demonstrate that the medical cover to be provided is adequate for both outpatient and hospital treatment.
When assessing the acceptability and adequacy of insurance coverage, the RMCFZ Authority will
refer to international insurance standards and practices for the insurance of similar businesses and risks in comparable business sectors and for similar facilities, and activities. Any changes to insurance policies must be notified to RMCFZ Authority within 10 days of the change.
10.4 The RMCFZ Authority may, at its discretion, arrange property all-risks insurance and third party
liability insurance in respect of all property owned by the RMCFZ Authority including the Common Infrastructure.
11. Products
11.1 No retail trading is permitted in RMC Free Zone, and the manufacture and marketing of
contraband items is strictly forbidden. The following goods are forbidden from entering into RMC Free Zone: (a) radioactive materials; (b) arms, ammunition and explosives, unless authorised by the competent authorities; (c) goods infringing the laws of protecting commercial and industrial property; (d) illicit drugs or similar substances; (e) goods originating in a country boycotted economically by the UAE; and (f) goods prohibited from entering the RMC Free Zone and/or the UAE.
11.2 A Licence only applies within RMC Free Zone. Licensees are not entitled to sell their products
in the UAE except in accordance with Applicable Laws. However, potential customers may visit a Business Licensee’s premises in RMC Free Zone to view products.
11.3 All movement of products into or out of RMC Free Zone, whether on a permanent or
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temporary basis, must be in accordance with Applicable Laws including applicable regulations from time to time issued by the Ras Al Khaimah Customs Department. If a Business Licensee does not appoint a customs agent it shall about a “Representative Card” from the Customs in order to represent the Business Licensee before the Customs.
12. Health, Safety and Environment
12.1 All Licensees must ensure that they are aware of, and fully comply at all times with, all
Applicable Laws relating to health, safety and environmental matters that are relevant to them, their activities and/or operations, and all activities and/or operations of Licensee Parties in RMC Free Zone. In addition, each Licensee will be expected to prepare and adhere to health, safety and environmental policies that accord with best international practices for their particular industry or activity in which the Licensee is engaged.
12.2 Licensees shall be responsible for the removal from RMC Free Zone of all light (i.e. non
industrial) waste and all sewerage waste, as well as the treatment, removal and disposal of all industrial waste, in each case in accordance with all Applicable Laws and the requirements. The RMCFZ Authority may require Licensees to prepare waste management plans that outline how waste will be managed during the construction and operational phases of the Project Facilities.
12.3 As and when, RMCFZ Authority publishes the Health & Safety Handbook all Licensees shall
comply with it.
13. Employment
13.1 The RMCFZ Authority will perform the role of sponsor in relation to holders of Business Licences in accordance with the terms of the Sponsorship Agreement entered into between the RMCFZ Authority and each such holder. RMCFZ Authority will have absolute discretion as to the number of Sponsored Employees a Business Licence holder may have.
13.2 In accordance with the Sponsorship Agreement, the party shall provide a guarantee or any other
security approved by RMCFZ Authority, to RMCFZ Authority in respect of each Sponsored Employee. A single guarantee to cover the anticipated total number of Sponsored Employees may be lodged with RMCFZ Authority. A bank guarantee shall be in a format approved by RMCFZ Authority. If a bank guarantee is provided it must be issued from a bank operating in the UAE and the amount must be in Arab Emirates Dirhams.
13.3 The requirement for a guarantee is applicable for all Sponsored Employees regardless of their
age or position. The guarantee shall be equal to a minimum of 2,500 Arab Emirates Dirhams per Sponsored Employee. The guarantee may be required to be increased in value at the sole discretion of the RMCFZ Authority. In the event of withdrawal of the bank guarantee or refund of the cash guarantee held with RMCFZ Authority for the Sponsored Employee at any point in time, the party shall settle any outstanding amounts owed to RMCFZ Authority and its affiliated entities.
13.4 A Business Licensee wishing to employ staff, other than a national of a GCC Country (i.e. non
GCC nationals), who is to be a Sponsored Employee, is required to apply for an Establishment Card in the first instance.
13.5 A Sponsored Employee is only allowed to work in RMC Free Zone. RMCFZ Authority will not
continue to sponsor such employee when a Sponsored Employee employment comes to an end. 13.6 A Business Licensee shall execute an Employment Agreement with every Employee that it
employs. 13.7 Working hours for Employees will be a maximum of 8 hours per day, plus a 1 hour meal break, 6
days per week, and a total of 48 hours worked per week, unless a lesser maximum is prescribed in the Employment Agreement.
13.8 During the Holy Month of Ramadan, the working hours shall be reduced from 8 hours per day to
6 hours per day, and this will apply to all Employees of a Business Licensee, regardless of the Employee’s religion. Hours worked in addition to the hours agreed in the Employment Agreement shall be deemed overtime and paid accordingly.
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13.9 Overtime shall be paid at the rate of 125% of the basic hourly rate, and overtime worked on Public
Holidays, on a Friday or between the hours of 9:00 pm and 4:00 am, shall be paid at the rate of 150% of the basic hourly rate.
13.10 Public holidays for Employees of a Business Licensee will be in line with the public holidays
announced by the UAE Government for employees of the private sector as and when declared. 13.11 A Business Licensee may employ a person who is not a Sponsored Employee, either temporarily
or permanently, provided that certain conditions are fulfilled. Such employment is permitted for the following persons:
(a) a GCC national; (b) a person employed on a temporary basis for a parent company registered in the
UAE; and (c) a person employed on a temporary basis, where the Employee is sponsored by a
company which is part of the same group company as the Business Licensee.
A Business Licensee wishing to employ anyone in the above categories must seek prior written approval of the RMCFZ Authority.
13.12 A Business Licensee recruiting Sponsored Employees will be responsible to bear the following
costs: (a) processing the entry permit; (b) Air Fare; (c) processing the residence permit; (d) the health card issued by the relevant health authority; and (e) renewal of residence permit and health card including the cost of a medical fitness
certificate. 13.13 A Business Licensee shall not charge the Sponsored Employee or deduct from the Sponsored Employee’s salary the costs listed in Rule 13.12 above. 13.14 A Business Licensee and a Sponsored Employee may negotiate the terms and conditions of
employment, provided the agreement is not contrary to these Free Zone Rules and is in accordance with the Federal Labour Law No. 8 of 1980.
13.15 A Business Licensee shall pay to a Sponsored Employee the minimum monthly basic salary
payable, which must be in accordance with the job title, as acceptable to the RMCFZ Authority. 13.16 A Sponsored Employee shall sign the Employment Agreement which shall offer the minimum
acceptable conditions of employment. Employees who are exempt from entering into an Employment Agreement are required to sign an undertaking to the effect that they shall not make a claim against RMCFZ Authority in relation to employment matters or against RMCFZ Authority as a sponsor. The effective date of the contract shall be coincident with the date of entry on the employment visa, or with the transfer date on the immigration records, whichever earlier.
13.17 A Business Licensee shall submit the employment visa, passport and Employment Agreement for
all new Employees, within 72 hours of arrival, to RMCFZ Authority. 13.18 A passport of an Employee shall be returned to the Business Licensee after a residence permit is
attached thereon and after receiving a letter of undertaking from the Business Licensee. It is the responsibility of the Business Licensee to hand over the passport to each Sponsored Employee. RMCFZ Authority accepts no responsibility whatsoever for any passports (or any other original documents) lost or stolen whilst under its control. RMCFZ Authority may inspect a Business Licensee to ascertain that the passport is in the Employee’s custody. An Employee shall present its passport to RMCFZ Authority on request.
13.19 An Employment Agreement may be terminated as follows:
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(a) by agreement between the Business Licensee and Employee and with the approval of RMCFZ Authority;
(b) during the probationary period (without notice); (c) by the Employee or Business Licensee with notice having immediate effect provided
all the requirements of the Federal Labour Law No. 8 of 1980, regarding the organisation of labour relations, as amended, have been satisfied; or
(d) on expiry of the service period prescribed in the contract by either party, provided that a notice not to renew is given by either party.
13.20 An Employment Agreement shall be deemed automatically terminated in either of the following
cases: (a) if the Employee dies during service; or (b) illness of, or injury to, the Employee resulting in a total incapacity to work (which is
subject to the provision of a medical report by an authority acceptable to RMCFZ Authority).
13.21 An Employee shall be entitled to a period of notice before termination of service as laid down in
the Employment Agreement or the Federal Labour Law No. 8 of 1980, regarding the organisation of labour relations, as amended. The Employee shall be entitled to full pay during the prescribed notice period, and shall render services contracted for during the notice period, unless the Business Licensee requires otherwise.
13.22 An Employee’s service may be terminated without notice for the following reasons: (a) if the Employee is ill disciplined, or fails adequately to perform the duties as defined in
the Employment Agreement (one written warning shall be issued to the Employee prior to termination and a copy of such notice shall be filed with RMCFZ Authority);
(b) if the Employee is sentenced by a competent court of a civil misdemeanor or criminal act;
(c) if the Employee is found drunk or under the influence of an illicit drug at work; (d) if the Employee is absent from work without valid reason for more than seven
consecutive days in one year or twenty non-consecutive days in one year; (e) if the Employee, while at work, assaults the Business Licensee, a responsible
manager, another Employee, or a visitor; (f) if an action or negligence by the Employee results in substantial loss to the Business
Licensee (provided that the Business Licensee notifies RMCFZ Authority within 48 hours of discovering the loss);
(g) if the Employee fails to comply with health and safety regulations (provided that such regulations are prominently displayed in writing and in the case of illiterate Employees, that they have been explained orally);
(h) if the Employee falsifies identity details; (i) if the Employee reveals confidential information of the Business Licensee; and (j) if the Employee works for another employer, be it during the annual leave or sick leave. 13.23 An Employee may cease work without notice if: (a) the Business Licensee fails to fulfill the terms of the Employment Agreement; and (b) the Business Licensee, or its representative, assaults the Employee. 13.24 Termination under Rule 13.22 and ceasing work under Rule 13.23 is subject to approval by
RMCFZ Authority, which approval shall be sought before the Employment Agreement is cancelled.
13.25 Dismissal for a reason other than the reasons in Rules 13.19, 13.20 and 13.22 shall be deemed
to be an “arbitrary dismissal”. In such cases the Employee shall be entitled to compensation in addition to severance payments due.
13.26 The amount of compensation payable under Rule 13.25 above: (a) shall be assessed by RMCFZ Authority;
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(b) shall not exceed three times the total monthly wage and allowances as specified in the Employment Agreement; and
(c) RMCFZ Authority shall address the dispute and seek to determine the case. 13.27 Where a change occurs in the form or legal status of a Business Licensee, the Employment
Agreement that was valid at the time of the change shall remain in force between the Employee and the Business Licensee after its change of legal status and the Employee’s service shall be deemed to be continuous.
13.28 An Employee whose service exceeds one year shall be entitled to a gratuity payment on
termination of service at the rate of 21 calendar days pay of the last month’s basic salary (or more if the Employment Agreement so specifies) for each year of service for the first 5 years and 30 calendar days of the last month’s basic salary to each additional year, provided that the maximum payment does not exceed two years basic salary. After the first year payment will be pro-rata for the period served.
13.29 The gratuity shall be calculated at the basic pay rate as defined in the Employment Agreement. 13.30 Entitlement to gratuity (end of service benefits) shall be forfeited if the Employee: (a) is dismissed in accordance with one of the reasons in Rule 13.22; or (b) resigns before completing one year’s service. 13.31 In case of death during service, the gratuity due will be payable as part of the Employee’s rights. 13.32 On termination of service, (at the expiry of the Employment Agreement or if the Employment
Agreement is terminated by the Business Licensee prior to its expiry), a Business Licensee shall provide Air Fare to the international airport nearest to the Employee’s home. However, Air Fare will not be provided in the case of dismissal under Rule 13.22 or where the Employee terminates the employment.
13.33 Where an Employee’s annual contract is automatically renewed in accordance with the
Employment Agreement the Employee is entitled to Air Fare either in the event of submitting a resignation or on dismissal, whenever this occurs. Note: In the case of the Employee having already availed the Air Fare entitlement for the completed contract period, the Employee is not entitled to additional Air Fare for the same period.
13.34 The Employee, on termination of service may request, and the Business Licensee shall provide,
free of charge a “Service Certificate” to show: (a) period of service; (b) work performed while employed; (c) final rate of pay and bonus, if any; and (d) a character reference. 13.35 RMCFZ Authority is to be notified of any disciplinary action taken against a Sponsored Employee
within 10 days of the action being taken. The following information is to be provided to RMCFZ Authority:
(a) name and identification number of the Sponsored Employee; (b) date of the alleged offence committed by the Sponsored Employee; (c) nature of the alleged offence committed by the Sponsored Employee; (d) disciplinary action taken by the Business Licensee; and (e) manager’s (as per the Business Licence) signature on such notification. 13.36 Where a Business Licensee wishes to dismiss an Employee for performance, conduct or
disciplinary matters, the Business Licensee must carry out the following steps in order to invoke sanctions:
(a) the Employee must be notified of the charge, within 30 days of the matter arising; (b) the Employee must be provided with an opportunity to state the Employee’s position;
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(c) the stated position must be investigated; (d) all the above should be recorded in the Employee’s personal file; and (e) the Employee should be notified in writing of the applicable penalty, the reason for the
same and the action taken against the Employee in case of repetition or continuity of the issue. The penalty may not be imposed after the lapse of 60 days from the date of the disciplinary finding.
13.37 On termination of employment, the Business Licensee is required to submit a statement (End of
Service Entitlement) in the prescribed form (copies available from RMCFZ Authority), of the final dues, giving sufficient details to determine how the final dues have been calculated in addition to proof of the Employee’s receipt of the total final dues. This statement shall be signed by the Employee and by an authorised signatory of the Business Licensee. A copy signed statement shall be given to the Employee and a further copy is to be presented to RMCFZ Authority.
13.38 At the same time the Business Licensee shall either lodge with RMCFZ Authority a sum in cash
equal to the total of the final dues, or lodge a receipt evidencing that the Employee has received the final dues. RMCFZ Authority reserves the right to calculate terminal benefits itself and to require the Business Licensee to provide cash and Air Fare for distribution to departing Employees. In such cases RMCFZ Authority’s signature shall be deemed to replace the Business Licensee’s authorised signatory.
13.39 In cases when the Employment Agreement with a Sponsored Employee is terminated,
RMCFZ Authority shall cancel the Sponsored Employee’s residence permit. 13.40 The Business Licensee shall ensure that the Employee’s residence permit, access pass and Free
Zone Labour Card and any other official documents are cancelled within 30 days of the Employee’s final day of employment.
13.41 In the first instance, RMCFZ Authority shall attempt to amicably resolve a Labour dispute arising
between a Business Licensee and an Employee. The cost of such will be borne by the Business Licensee. Where a resolution is not reached either party may transfer the matter to the Ras Al Khaimah Courts.
13.42 An Employee unexplainably absent for a period more than seven continuous calendar days shall
be deemed to be an absconding Employee. In such event: (a) the Business Licensee shall within seven days of an Employee being deemed to be
absconding notify RMCFZ Authority in writing of the same; and (b) RMCFZ Authority shall upon receiving a written request from the Business Licensee
inform General Directorate of Residency and Foreign Affairs- RAK Immigration. The cost of such plus related costs will be chargeable to the Business Licensee as per the Tariff.
13.43 Notwithstanding the above, Business Licensees will be responsible for discharging all of their
duties in relation to their employees in accordance with Federal Law No. 8 of 1980 (as amended) (the "Labour Law"). The Labour Law will apply to all persons employed in RMC Free Zone in addition to the RMC Rules.
13.44 The RMCFZ Authority shall be entitled to charge a fee in relation the administrative costs
involved in receiving, processing and issuing confirmations, letters or other communications (such as no objection certificates) on behalf of an employees or otherwise.
14. Industrial Accidents 14.1 An Employee who is the victim of an Industrial Accident will be eligible for financial compensation
in accordance with the prevailing laws. 14.2 A Licensee shall be responsible for payment for medical treatment, including hospitalisation costs
required by an Employee involved in an Industrial Accident.
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14.3 Where an injury prevents an Employee from carrying on work, the Licensee shall pay such Employee a cash allowance equal to the full pay throughout the period of treatment or for a period of six months, whichever is shorter. Where the treatment lasts for more than six months, the allowance shall be reduced by one-half for a further period of six months or until the Employee fully recovers, is declared disabled, or dies.
14.4 An Employee shall not be entitled to compensation (be it medical treatment or payment of basic
salary) in accordance with the RMC Rules if enquiries by the competent authority establish that the Employee caused the accident through:
(a) willful neglect; (b) intentional violation of environment, health and/or safety regulations; (c) being under the influence of illicit drugs or alcohol; (d) deliberate misconduct; (e) self harm; or (f) unreasonably refusing medical treatment/check-up as prescribed by a medical board
set up to assess the ability to return to work/disability. 14.5 In case of death resulting from an Industrial Accident, compensation will be payable by the
Licensee to the Employee’s next-of-kin together with any other monies due. 14.6 If an Employee is wholly, or partially disabled, compensation will be payable by the Licensee in
accordance with prevailing laws in this regard and the Federal Labour Law No. 8 of 1980, regarding the organisation of labour relations, as amended, which provides further details and classifications in this regard. Classification of the degree of disability shall be made by a competent medical authority appointed by the appropriate authority.
15. Accommodation 15.1 A Business Licensee housing more than the permissible number of persons advised for each
class of room (as prescribed by Civil Defense) in the accommodation complex for Employees or such other persons as permitted by RMCFZ Authority in the Free Zone (“Accommodation”), may be liable to fines and/or termination of the Business License.
15.2 A Business Licensee shall accommodate only Employees or such other persons as permitted by
RMCFZ Authority in the Accommodation complex of the RMC Free Zone. No other person is entitled to stay in the Accommodation. RMCFZ Authority may impose a penalty on the person at whose Accommodation such unauthorised person is found.
15.3 Accommodation sub-leased to a third party without RMCFZ Authority permission will result in fines
on the Business Licensee and eviction of the occupant. 15.4 Cooking in the rooms of the Accommodation (other than the senior blocks, where kitchens are
provided), is prohibited on the grounds of health and safety. RMCFZ Authority may (but is under no obligation to do so) carry out regular inspections to ensure that no food is cooked in the Accommodation.
15.5 A Business Licensee wishing to accommodate its Employees in accommodation complexes or
houses outside the RMC Free Zone should inform RMCFZ Authority in writing. In addition, the following information should be submitted to RMCFZ Authority:
(a) detailed address and location of the premises which is to be used for accommodation; (b) a layout plan of the premises showing the number of rooms with sizes in square
meters, the number of ablution facilities with sizes, the size of corridors and the size of open yards;
(c) general condition of the building with details of major structural damages; (d) the condition of sanitation and hygiene in the building; (e) the number of people who will be occupying each room; (f) arrangement for eating or gathering; (g) details of amendments or renovations the Business Licensee wishes to incorporate
into the building; and
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(h) copy of the tenancy contract. The criteria for the minimum standard for accommodation is at the sole discretion of RMCFZ
Authority. RMCFZ Authority may (but is not obliged to do so) carry out regular inspections in order to ensure that these standards are maintained.
16. Access
16.1 All Business License holders will be entitled to apply for an Access Pass on behalf of their
Employees. 16.2 All Services Licensees will be entitled to apply for Access Passes on behalf of their Employees
specifically limited whether by reference to time, location, duration or otherwise, that are required to the extent necessary to perform the works or services for which they have been engaged by the holder of a Business Licence.
16.3 Access Passes may be obtained by applying to the RMCFZ Authority using the relevant forms
found on the RAKMC Website and paying the applicable fee as specified in the Tariff. All Licensees must ensure that all Access Passes are returned to the RMCFZ Authority immediately upon cessation of employment for any reason or expiry of the relevant pass, as the case may be. Failure to do so may result in the imposition of fines.
16.4 If an Access Pass is lost or stolen the Licensee must immediately notify the RMCFZ Authority.
Replacement of Access Passes will be issued subject to the payment of the applicable fee as specified in the Tariff. Failure by a Licensee to notify the RMCFZ Authority of a lost or stolen access pass will attract a fine as set out in the Tariff.
16.5 RMC Free Zone contains within its boundaries a demarcated ISPS governed area which covers
the waterfront areas of RMC Free Zone (the "ISPS Zone"). The ISPS Zone is fenced and has separate access requirements to the rest of RMC Free Zone. All Employees of Business Licensees operating from Plots within the ISPS Zone will be granted access to the ISPS Zone subject to satisfaction of all applicable legal and regulatory requirements to which the ISPS Zone (and access to it) are subject.
16.6 All employees of a Business Licensee will be issued with a Free Zone Labour Card after applying
to the RMCFZ Authority using the relevant forms found on the RAKMC Website and paying the appropriate fee. All Licensees must ensure that all Free Zone Labour Cards returned to the RMCFZ Authority immediately upon cessation of employment for any reason or expiry of the relevant pass, as the case may be. Failure to do so may result in the imposition of fines. If a Free Zone Labour Card is lost or stolen the Licensee must immediately notify the RMCFZ Authority. Replacement of Free Zone Labour Cards will be issued subject to the payment of the applicable fee as specified in the Tariff. Failure by a Licensee to notify the RMCFZ Authority of a lost or stolen Free Zone Labour Card or access pass will attract a fine as set out in the Tariff.
17. Traffic Affairs
17.1 The roads within RMC Free Zone are treated as public highways for federal licensing and
registration purposes. The RMCFZ Authority may request a Licensee to produce evidence that all drivers, operators and vehicles are properly licensed and registered with the Traffic Department or other Relevant Authority. All vehicles must be roadworthy and in compliance with all Applicable Laws pertaining to vehicle safety.
17.2 Driver violations may be reported to the Ras Al Khaimah Police and may be subject to penalties
imposed by the Traffic Department and/or pursuant to the Tariff.
17.3 All vehicles must adhere to the RMCFZ Authority’s and other relevant regulations concerning parking in RMC Free Zone. Vehicles may only be parked at authorised locations which may be subject to charges. Any vehicle found to be parking in breach of regulations or in an unauthorised location anywhere within RMC Free Zone may be reported to the Relevant Authorities and may be liable for a fine as set out in the Tariff.
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17.4 Movement of goods within RMC Free Zone shall be by a Licensee’s own transport, or by a transportation company registered in the UAE.
18. Security 18.1 The RMCFZ Authority shall be entitled to introduce rules and regulations, or impose conditions or
restrictions, relating to matters concerning security, fire safety and emergency protection measures, and to monitor the application in RMC Free Zone of Applicable Laws relating to the same. The costs of compliance with any such rules and regulations will be for the account of the Licensees.
18.2 All Business License holders will be issued with a letter substantially in the form at Appendix 4.
All Business License holders are obliged to abide by the terms of the letter. 18.3 All Licensees must ensure that they are aware of, and fully comply at all times with, all Applicable
Laws relating to Security that are relevant to them, their activities and/or operations, and all activities and/or operations of Licensee Parties in RMC Free Zone. In addition, each Licensee will be expected to prepare and adhere to Security policies that accord with best international practices for their particular industry or activity in which the Licensee is engaged.
19. Marine
The waters within RMC Free Zone are governed by the Ras Al Khaimah (RAK) Ports Act No.9
of 2008 (as amended from time to time) and all subordinate legislation thereto. 20. Violations of Rules
20.1 Any Licensee found to be in violation of any provision of the RMC Rules shall be guilty of an
offence which, if not remedied within the time frame required by, and to the satisfaction of, the RMCFZ Authority, shall render the Licensee liable to fines and sanctions in accordance with the RMC Rules. The sanctions prescribed for violations of these RMC Rules are the minimum sanctions. RMCFZ Authority reserves the right to impose additional sanctions that it may deem fit (including repossession of the Plot), and reserves its right to refer any violation to a Court of law.
20.2 Any Licensee committing violations deemed by the RMCFZ Authority as "serious" will be
automatically subject to a fine as specified in the Tariff and/or suspension or revocation of the Licence and Registration. Where an offence is not explicitly covered in the Tariff then the RMCFZ Authority may levy an appropriate fine or penalty that is commensurate with the severity of the offence and the level of loss, damage and/or inconvenience caused by the offence. The payment of any fine or penalty shall be in addition to and not in substitution of any civil and/or criminal penalties that may apply.
20.3 All fines, charges or other financial penalties imposed upon a Licensee or any other party in
accordance with the RMC Rules, if unpaid, may be set off from any money owed by the RMCFZ Authority to the Licensee, added to the Licence renewal fees or recovered from the Licensee as a debt.
20.4 Without prejudice to the above, the RMCFZ Authority may deduct any amounts owing to it from
a Licensee's Security Deposit and, in either case, the RMCFZ Authority may require the Licensee to make good the amount deducted from the Security Deposit.
20.5 The RMCFZ Authority reserves the right to suspend access passes issued to Licensees who
fail, after warning, to remedy violations of the RMC Rules.
20.6 Ignorance of any provision of the RMC Rules, a Licence, a Lease or any of the Applicable
Laws will not excuse or mitigate any lack of compliance with the relevant provisions.
20.7 The RMCFZ Authority reserves the right to disconnect electricity supply to premises in the event that any accounts payable to the RMCFZ Authority are not paid within the prescribed period. A re-connection charge may be payable before the supply is restored.
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APPENDIX 1
Application Process
1. INITIAL MEETING
1.1 Prior to applying for a Business Licence or a Lease, an Applicant should contact the RMCFZ Authority to arrange an initial meeting at which representatives of the Applicant will be required to provide information about its proposed project within RMC Free Zone (an "Initial Meeting") in sufficient detail to allow the RMCFZ Authority to form a reasonably accurate overview of the proposed project. Such information shall include:
(i) a statement of the intended activities to be conducted within RMC Free Zone; (ii) requirements for land area and location; (iii) key information about proposed facilities and infrastructure; and (iv) feasibility study and a business plan for a period of no less than 3 years from the date
on which operations commence.
1.2 The RMCFZ Authority will then contact the Applicant confirming whether the RMCFZ Authority: (i) it is prepared to proceed with the application process in respect of the activities
discussed at the Initial Meeting; (ii) requires further information in relation to the proposed project or operations; or (iii) is unable to proceed further with the application.
1.3 The RMCFZ Authority may, in its absolute discretion and following careful analysis of the
proposed investment, project or development, permit an Applicant to submit an application for a Business Licence and a Lease without first having to obtain Initial approval.
1.4 If the RMCFZ Authority is satisfied with the information received at the Initial Meeting or
pursuant to paragraph 1.2 above, it will issue an initial approval to proceed (the "Initial Approval") which will include a plan showing the Plots potentially available for the Applicant's proposed project and invite the Applicant to attend a site selection meeting at RMC Free Zone at which the RMCFZ Authority and the Applicant will discuss Plot selection.
1.5 Within 14 days of the site-selection meeting, the Applicant must confirm to the RMCFZ
Authority its preferred choice of Plot and the RMCFZ Authority will, within 30 days of receipt of such confirmation, allocate such Plot to the Applicant on a provisional basis, it being clear that any such allocation shall not give rise to any legal or other rights in, or interests over, such Plot in favour of the Applicant.
2. LEASE
2.1 To apply for a Lease, the Applicant must have a Plot provisionally assigned to it and submit to
the RMCFZ Authority a copy of: (i) an EPDA NOC; (ii) Civil Defence NOC; and (iii) such other documentation or information requested by the RMCFZ Authority.
2.2 The RMC Authority may consider an application for a Lease concurrently with its
consideration of an application for a Licence and the Lease will be granted concurrently with the Licence subject to agreement between the RMCFZ Authority and the Applicant in relation to the precise terms of the Lease.
3. BUSINESS LICENCE
3.1 To apply for a Business Licence, the Applicant must: (i) have a valid Registration (or
simultaneously applying for Registration pursuant to the Companies Regulations); (ii) be simultaneously applying for a Lease; and (iii) submit the following to the RMCFZ Authority:
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(a) an application for a Business Licence in the prescribed form; (b) full details of the Applicant's intended activities including plans and technical data
for buildings, plant and machinery to be utilised for such activities; (c) full details of the Applicant's proposed insurance arrangements; and (d) certified copies of photo pages of passports of all Authorised Representatives and
certified copies of photo pages of passports and sample signatures of all Authorised Signatories.
3.2 The RMCFZ Authority will consider an application for a Business Licence on receipt of all
documents referred to above. The RMCFZ Authority may request further information from the Applicant at any time and may require representatives of the Applicant to attend meetings to discuss the proposed activities and facilities. The issuance of a Business Licence shall be conditional upon prior Registration and the grant of a Lease although, in the case of first Licence applications, the RMCFZ Authority shall consider applications for Registration, a Lease and a Licence to be mutually conditional.
3.3 The RMCFZ Authority will not issue a Business Licence until it is satisfied that all fees and
charges in respect of the application process (including expenses incurred by the RMCFZ Authority in reviewing and evaluating such applications) have been met by the proposed Licensee. The RMCFZ Authority may, by notice in writing at any time, place conditions or restrictions on a Business Licence that are necessary or desirable to protect the interests of RMC Free Zone, other Licensees, the general public or the RMCFZ Authority.
4. SERVICES LICENCE
4.1 To apply for a Services Licence, the Applicant must be validly registered elsewhere in the UAE
to undertake the works, or to provide the services, it proposes to provide to the Business Licence holder in RMC Free Zone, and submit the following to the RMCFZ Authority:
(a) an application for a Services Licence in the prescribed form, together with a copy
of the relevant Business Licence; (b) full details of the Applicant's intended activities in RMC Free Zone; (c) full details of the Applicant's proposed insurance arrangements in respect of its
proposed project and operations; (d) certified copies of the photo pages of the passports of all Authorised
Representatives and certified copies of the photo pages of the passports and sample signatures of all Authorised Signatories; and
(e) such other documentation as the RMCFZ Authority may reasonably request in light of the identity of the Applicant, the services or works the Applicant proposes to provide, and the nature of the Applicant’s presence in the UAE.
4.2 The RMCFZ Authority will consider an application for a Services Licence on receipt of all
documents referred to above. The RMCFZ Authority may request further information from the Applicant at any time and may require representatives of the Applicant to attend meetings to discuss the proposed activities and facilities.
4.3 The RMCFZ Authority will not issue a Services Licence until it is satisfied that all fees and
charges in respect of the application process (including expenses incurred by the RMCFZ Authority in reviewing and evaluating such applications) have been met by the proposed Licensee. The RMCFZ Authority may, by notice in writing at any time, place conditions or restrictions on a Services Licence that are necessary or desirable to protect the interests of RMC Free Zone, other Licensees, the general public or the RMCFZ Authority.
4.4 A holder of a Services Licence must immediately notify the RMCFZ Authority of any changes
which might impact upon the accuracy of a Services Licence (including, but not limited to, changes to contact details, shareholders, manager, the Authorised Signatories or Authorised Representatives, or business activity). A written notice specifying the changes must be submitted to the RMCFZ Authority together with the appropriate fee as specified in the Tariff and a request to the RMCFZ Authority to issue an updated Services Licence. A Licensee may not undertake any activities covered by a change of activity application unless and until the RMCFZ Authority has approved the amendment and issued a new Licence.
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APPENDIX 2
Sponsorship Agreement
This Sponsorship Agreement (the “Agreement”) is made with effect as of .
By and between,
RAK Maritime City (“Sponsor”);
[Insert details of Business Licence holder] (the “Employer”).
(1) Employer wishes to obtain work permits and residency visas (“Visas”) for the purpose of employing the individuals listed under Schedule A of this Agreement (“Employees”) in the RAK Maritime City Free Zone (“Free Zone”).
(2) Sponsor shall, subject to the terms and conditions of this Agreement, and Employer’s
compliance herewith, arrange and facilitate under its own sponsorship Visas for the Employees to work for Employer in RMC Free Zone (the “Services”).
(3) Employer shall comply with all Applicable Laws including the Immigration Law and any
applicable law and regulation of each Employee’s country of origin.
(4) Terms capitalised but not defined herein shall have the meaning given to them in the RMC
Rules.
DEFINITIONS
“Guarantee” means a refundable, irrevocable, unconditional and absolute bank guarantee issued by a bank licensed and operating in the UAE in favour of the Sponsor, or the provision of a refundable cash deposit by the Employer to Sponsor.
“Immigration Law” means the UAE Immigration Law, being Federal Law No. 6 of 1973, as amended from time to time.
“RMC Rules” means the rules of the RAK Maritime City in force from time to time.
1. SPONSOR’S COVENANTS
Sponsor shall sponsor the persons listed as Employees under Schedule A provided by Employer.
Schedule A shall be updated from time to time by the Employer, subject to compliance with the
Immigration Law and any other Applicable Laws.
2. EMPLOYER’S COVENANTS
2.1 Employer shall pay all fees required by Sponsor in connection with the Services as soon as
possible upon receipt of an invoice, without any withholding or delay on account of any claim,
counterclaim, set-off or otherwise.
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2.2 Employer shall ensure the suitability for employment of each Employee, and hereby certifies to Sponsor that Employer has verified the relevant degrees and credentials of each Employee to be as represented in the application for the Employee’s visa.
2.3 Employer shall ensure that each Employee qualifies to be a resident in the UAE according to the
Immigration Law and Applicable Laws.
2.4 Employer shall not permit or require an Employee, during the period of sponsorship hereunder, to work on a permanent basis for any party other than Employer, without prior written permission from Sponsor.
2.5 Employer shall not permanently employ at its Free Zone facility any employee not sponsored by
Sponsor unless such employee is a citizen of the UAE.
2.6 Employer shall act as principal in regard to the payment of all emoluments to any Employee sponsored herein and said Employees shall remain on the payroll of Employer at all times.
2.7 Employer shall provide Employees with at least the minimum conditions of employment as
prescribed under Applicable Law, and shall provide the Employee with a valid written employment contract signed by Employer and Employee (the “Employment Contract”) a copy of which shall be provided to the Sponsor on request.
2.8 Employer shall comply with Applicable Laws. Employer shall require all Employees to comply
with the Applicable Laws including but not limited to any offence under UAE Criminal Code No. 3 of 1987. In the event that an Employee has committed an offence involving moral turpitude or a crime of which Employer becomes aware, Employer shall promptly notify Sponsor and take corrective action as it deems appropriate.
2.9 Employer shall renew its Business Licence and any other requisite permission required by
Sponsor within thirty (30) days after the date of expiry, or any lesser period as may be required
by the applicable law or regulation.
2.10 Employer shall take all steps to ensure that any identification cards, access passes and health cards issued by the Department of Health or any other official documents issued by Sponsor for the purpose of this Agreement are returned to Sponsor within thirty (30) days from the date of resignation, termination or death of an Employee, as the case may be.
2.11 Unless an Employee obtains a new residence visa within thirty (30) days after his/her
resignation or the termination of his/her Employment Contract, Employer shall provide the Employee with an air ticket for a single trip to the country of origin of such Employee, and shall take all reasonable steps to ensure that the Employee leaves the UAE.
2.12 Employer shall provide Sponsor with an annual report, within the first thirty days of every year,
designating the status (i.e. if still under employment or not) of all Employees.
2.13 Employer shall provide Sponsor with a Guarantee of UAE Two Thousand Five Hundred Dirhams (AED 2,500.00) for each Employee. The Guarantee is a bond in respect of the performance by Employer of its obligations and liabilities under this Agreement and will only be held and applied by Sponsor accordingly.
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2.14 Employer shall provide the Sponsor with a copy of a valid insurance policy from a reputable insurer, reasonably satisfactory to Sponsor, confirming that the insurance has been put in place by the Employer with regard to:
(a) Third Party Liability insurance including personal liability cover for bodily injury, death
or damage to third parties that may arise through Employer’s operation and business (including without limitation negligent act or omission of an Employee);
(b) Workmen compensation and workplace health and safety; and (c) Medical cover.
3. TERMINATION OF SPONSORSHIP
3.1 Sponsor may terminate the sponsorship of any Employee by giving thirty (30) days written notice
to Employer in the event that any one or more of the following occur:
(i) Cancellation, revocation or non-renewal of the Business Licence or Lease;
(ii) Employer: (a) becomes insolvent, or enters into liquidation; (b) is not operating or otherwise carrying on its licensed activities/business; or (c) breaches of any material terms or conditions of this Agreement by the Employer which is not cured within seven (7) days of having been given notice by Sponsor;
(iii) Employee: (a) fails to abide by Applicable Laws (including conviction of a criminal
offence in the UAE (other than minor traffic violations); or (b) ceases to be employed by the Employer.
3.2 Employer may require the termination of the sponsorship of any Employee by giving thirty (30)
days written notice to Sponsor, subject to Employer’s compliance with its obligations herein, in the Employment Contract and under all Applicable Laws.
3.3 The expiry or termination of this Agreement for any reason shall be without prejudice to any
obligations which may have occurred upon the Parties prior to the date thereof.
4. LIABILITY AND INDEMNITY
4.1 Sponsor shall not be liable to Employer under any circumstance for any act, default or omission on the part of the Employees.
4.2 For the purpose of this Agreement only, Sponsor shall act as an agent of the Employer and the
Employment Contract shall represent a primary obligation of Employer to the Employee. Sponsor shall not be liable under any circumstance to Employer or to any third party for any act, defaults or omissions by or on behalf of any Employee sponsored herein arising out of the performance or purported performance or non-performance of his/her duty pursuant to this Agreement. Sponsor shall be deemed an intended third party beneficiary to any Employment Contract entered into by Employer and any Employee in the understanding the Sponsor shall never be deemed an obligor to an Employee.
4.3 Employer shall be responsible for any and all amounts due to the Employees whether under
the Employment Contract or any Applicable Law in relation to the residence and employment of the Employees in the UAE, and for any amount otherwise payable to Sponsor.
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4.4 Sponsor shall in no event assume liability for or be deemed liable hereunder as a result of any action of Employer, nor shall Sponsor be liable by reason of any act or omission of Employer in its performance of its Visa sponsorship functions hereunder.
4.5 Employer shall defend, indemnify and hold harmless Sponsor from and against any loss, costs,
expenses, demands or liability whether direct or indirect arising out of, or in any way connected to any act, neglect or default of Employer or Employees asserted by them or by any third party, and against all losses or damage to any tangible or intangible property (including without limitation Sponsor property) that may arise from the performance or purported performance or non-performance of this Agreement or the Employment Contract.
5. CHOICE OF LAW AND DISPUTE RESOLUTION
This Agreement shall be governed by and construed in accordance with laws of the United Arab Emirates and any dispute shall be referred to the exclusive jurisdiction of the courts of the Emirate of Ras Al Khaimah.
IN WITNESS WHEREOF, the parties have executed the Agreement as of the day and year first written above.
RAK Maritime City
“The Employer”
By : By :
Name: Name:
Title: Title:
Date: Date:
(To be signed by the Authorized Signatory)
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SCHEDULE A
(List of Employees provided by Employer)
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APPENDIX 3
Tariffs
To be provided by RMC
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Appendix 4 Hemaya System Letter
013المرجع: س م/ ص/م ا/
التاريخ:
السادة/ المستأجرين بميناء راس الخيمة المالحية
تحية طيبة
نظــام حمـــاية –المــوضوع: هـيئة الـموارد العـامـة
في إطار المجهودات لتحسين اإلجراءات األمنية في إمارة
راس الخيمة، قام سمو الشيخ سعود بن صقر القاسمي، عضو
المجلس األعلى حاكم راس الخيمة بإصدار المرسوم األميري
موارد العام براس بشأن انشاء هيئة ال 2015( لسنة 5رقم )
الخيمة والخاص بأمن المنشآت. نظام حماية يقوم بناء على
بشأن قانون األنظمة التقنية ألمن 2015( لسنة 3الالئحة رقم )
المنشآت وتقديم الخدمات التامين للمرافق العامة والخاصة في
راس الخيمة.
بناء على توجيهات اللواء/ علي عبد هللا علوان، قائد عام
راس الخيمة، ميناء راس الخيمة المالحية وكل شرطة
-المستأجرين فيها ملزمون بموجب القانون على االتي:
تركيب أنظمة تقنية امنية لحمايتها وتامين المنشآت -1
تحمل تكلفة األجهزة المطلوبة لألنظمة التقنية األمنية -2
بما في ذلك تكلفة الصيانة والتحديث.
وذلك بناء على لتلك الخدمةدفع الرسوم السنوية -3
( بشأن الرسوم والمخالفات 21)المرسوم رقم.
والغرامات
Ref: SPA/2016/SM/013
Date:
Dear/ RAK Maritime City Tenants
Dear Sir
Hemaya System –General Resources Authority
In an effort to improve Security measures across
the emirate of Ras Al Khaimah His Highness Saud
bin Saqr Al Quasimi, member of the Supreme
Council and Ruler of Ras Al Khaimah, issued Emiri
Degree no. (6) 2015 reference the establishment
of the RAK General Resources Authority (GRA),
concerning the security of establishments. The
Hemaya System is based on article no. (3) 2015
of the technical systems law and provides
services to secure public and private
establishments in Ras Al Khaimah.
Following a directive received by Brigadier
General Ali Abdullah, chief of RAK Police, RAK
MC and all of its tenants are committed under
this law to –
1. The installation of technical security
systems to protect and secure
establishments
2. Bear the costs of the devices needed for
the technical security system inclusive of
maintenance and updates.
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لمزيدا من المعلومات عن النموذج والمتطلبات التقنية لنظام
حماية يمكنكم الرجوع الي العنوان التالي
http://gra.gov.ae/en
لدعم هذا التوجيه بالكامل يجب على كل يرجى أخذ العلم بأنه
المستأجرين بميناء راس الخيمة التقيد بالمعايير المحددة في
القانون وتسليم نسخة من الرخصة الى مدير االمن بميناء راس
. الرخصة التي ] [أ الخيمة المالحي في فترة أقصاها
زاميا ستصدر بواسطة هيئة الموارد العامة سيكون مستندا إل
في حالة التقديم لكل الرخص التجارية او تجديدها في ميناء
راس الخيمة المالحية.
لمزيدا من التوضيح لما ذكر أعاله الرجاء التكرم باالتصال
مباشرة بكاتب هذه الخطاب.
وباهلل التوفيق
أوليفر سبنسر
مدير األمن
)ضابط أمن مرفق الميناء(
سلطة ميناء صقر
مجموعة موانئ راس الخيمة()عضو
3. Cover the annual fees of this service
according to the decree no. (21) 2015,
concerning violations and fines.
Further Information on the application and
technical requirements of the Hemaya system
/http://gra.gov.ae/encan be sourced online at
Please be advised that to support this directive
in full all RAK MC Tenants must meet the
standards specified in the law and submit a copy
of the licence to the RAK MC Security manger no
later than [ ]. The licence issued by the GRA
will also become a mandatory document
required when applying for all trade licence
renewals in RAK MC
For any further clarification on the above please
contact the writer direct.
Regards
Oliver Spencer
Security Manager
(Port Facility Security Officer)
Saqr Port Authority
(Member of the RAK Ports Group)