The United Arab Emirates (UAE) has become a global hub for entrepreneurs, startups, and investors looking to establish their businesses. Among the many free zones in the country, RAKEZ (Ras Al Khaimah Economic Zone) stands out as one of the most cost-effective, business-friendly, and versatile options for local and international investors.
If you are considering company formation in RAKEZ, this comprehensive guide will explain everything you need to know—from the benefits and license types to the formation process, costs, and long-term opportunities.
What is RAKEZ (Ras Al Khaimah Economic Zone)?
RAKEZ (Ras Al Khaimah Economic Zone) is one of the largest and most diverse free zones in the UAE, strategically located in Ras Al Khaimah, just 45 minutes from Dubai. Established in 2017 through the consolidation of RAK Free Trade Zone (RAK FTZ) and RAK Investment Authority (RAKIA), RAKEZ was created to streamline business services and provide investors with world-class facilities.
With over 15,000 companies from 100+ countries, RAKEZ serves a wide range of industries, including:
- Manufacturing
- Trading and logistics
- Consulting and professional services
- E-commerce and IT
- Education and training centers
- Media and creative industries
This diversity makes RAKEZ one of the most versatile business hubs in the Middle East.
Why Choose RAKEZ for Company Formation?
When entrepreneurs explore business setup in the UAE, they often compare different free zones. RAKEZ stands out due to its unique blend of affordability, flexibility, and infrastructure.
Key Advantages of RAKEZ Company Formation
- Affordable Business Setup Packages – RAKEZ is known for offering some of the lowest free zone license costs in the UAE.
- Strategic Location – Proximity to major seaports, airports, and highways ensures easy access to global markets.
- Wide Range of Licenses – Options for industrial, trading, service, and freelance licenses.
- 100% Foreign Ownership – No need for a local sponsor, giving entrepreneurs complete control.
- Tax-Free Environment – No personal or corporate income tax, plus exemption from import/export duties.
- Visa Services – Easy access to RAKEZ residence visas for business owners and employees.
- World-Class Infrastructure – Warehouses, offices, industrial land, and flexi-desks tailored to business needs.
- Ease of Doing Business – Simplified registration process with quick turnaround times.
Types of RAKEZ Licenses
Choosing the right RAKEZ license is the first step in company formation. RAKEZ offers multiple options to suit different industries and business models.
Commercial License
- For trading and general trading activities.
- Allows import, export, and re-export of goods.
Service License
- For consulting, professional, and service-based businesses.
- Ideal for IT companies, marketing firms, and educational centers.
Industrial License
- For manufacturing, production, and industrial operations.
- Access to warehouses, industrial land, and labor support.
Educational License
- For training institutes, universities, and education consultancies.
Media License
- For media agencies, production houses, and freelancers in creative industries.
E-Commerce License
- For online businesses and digital platforms.
- One of the most popular RAKEZ licenses in recent years.
Legal Structures for RAKEZ Company Formation
Investors can choose from different legal entity types depending on their business goals.
Free Zone Establishment (FZE)
- A single shareholder (individual or corporate).
- Ideal for small businesses and startups.
Free Zone Company (FZC)
- Two to 50 shareholders.
- Suitable for larger businesses.
Branch of a Foreign Company
- Foreign companies can set up a branch in RAKEZ to expand operations in the UAE.
Branch of a UAE Company
- Allows existing UAE companies to expand into RAKEZ.
Step-by-Step Process of RAKEZ Company Formation
Setting up a company in RAKEZ is designed to be simple and efficient.
Step 1: Choose Business Activity and License Type
Identify your business activity and select the appropriate RAKEZ license.
Step 2: Decide on Legal Structure
Choose whether you want an FZE, FZC, or branch office.
Step 3: Select Office or Facility Option
RAKEZ offers options from flexi-desks and offices to warehouses and industrial land.
Step 4: Apply for Initial Approval
Submit your business plan and required documents for initial approval.
Step 5: Submit Documents
Common documents include passport copies, application form, and proof of address.
Step 6: Pay Fees and Receive License
Once fees are paid, RAKEZ issues your license, usually within days.
Step 7: Apply for RAKEZ Visa
You can apply for visas for yourself, employees, and family members.
RAKEZ Office and Facility Options
One of RAKEZ’s strengths is its flexible facilities for businesses of all sizes.
Flexi-Desks and Shared Offices
Affordable and ideal for startups or freelancers.
Standard Offices
Fully equipped office spaces for SMEs.
Warehouses
Customizable warehouses for logistics and storage companies.
Industrial Land
For large-scale manufacturing and industrial operations.
Educational and Media Zones
Specialized facilities tailored to training and media businesses.
RAKEZ Visa Services
RAKEZ provides simplified visa processing for investors and employees.
- Investor Visa – For company owners.
- Employment Visa – For staff and workers.
- Dependent Visa – For family members.
Visas are typically valid for 2–3 years and can be renewed.
Costs of RAKEZ Company Formation
The cost of RAKEZ business setup depends on the license type, office space, and number of visas.
- License Packages: Starting from around $4,000.
- Flexi-Desk Packages: Budget-friendly options for startups.
- Industrial Facilities: Higher costs due to larger space and labor requirements.
Compared to other UAE free zones, RAKEZ is one of the most affordable options.
Benefits of RAKEZ for International Investors
- Proximity to Dubai and Abu Dhabi markets.
- No currency restrictions.
- Repatriation of profits and capital.
- Access to regional and global markets.
- Support for startups and SMEs through cost-effective packages.
Challenges and Solutions for RAKEZ Investors
Like any business hub, RAKEZ has some challenges:
Challenge 1: Choosing the Right License
Solution: Work with business consultants to select the correct license.
Challenge 2: Banking Difficulties
Solution: RAKEZ-approved banking partners make opening accounts easier.
Challenge 3: Regulatory Compliance
Solution: Professional legal support ensures compliance with UAE laws.
Conclusion
RAKEZ (Ras Al Khaimah Economic Zone) has become one of the most attractive destinations for entrepreneurs, startups, and international businesses. With its affordable packages, flexible facilities, and strategic location, it provides everything needed to build and grow a successful company in the UAE.
For business owners seeking the best opportunities in the region, Freezone Company Formation in Dubai and particularly RAKEZ is a smart investment for the future.
FAQs
What is the difference between RAKEZ and other UAE free zones?
RAKEZ offers some of the most affordable packages and a wide range of facilities compared to other free zones.
How long does it take to set up a company in RAKEZ?
Most companies can be registered within a few days once documents are complete.
Can foreigners own 100% of their company in RAKEZ?
Yes, RAKEZ allows full foreign ownership without the need for a local sponsor.
What types of businesses can be set up in RAKEZ?
From trading and manufacturing to IT, e-commerce, media, and education, RAKEZ supports a wide variety of industries.
Does RAKEZ offer visa services?
Yes, investors can apply for residence visas for themselves, employees, and dependents.
What is the minimum cost of RAKEZ company formation?
Packages start at around $4,000, making it one of the most affordable free zones in the UAE.
Is banking easy in RAKEZ?
Yes, RAKEZ has tie-ups with several UAE banks to simplify account opening.
Can I upgrade my RAKEZ license in the future?
Yes, RAKEZ allows license upgrades and facility expansions as your business grows.
Do I need to be physically present in the UAE to register?
In most cases, initial steps can be completed remotely, but presence may be required for final documentation and visa stamping.
Why is RAKEZ popular among startups?
Because it offers low-cost setup packages, flexi-desk options, and simplified licensing, making it ideal for entrepreneurs.
