By Adil Ahmad, Business Setup Consultant at Gulf Corporate Services
Summary
Business setup in Ras Al Khaimah is one of the most affordable routes into the UAE. A no-visa free zone licence starts at about AED 6,000, a one-visa package costs roughly AED 14,000 to 18,000, and a RAK mainland company usually needs AED 15,000 to 30,000 in year one. This guide explains RAK trade license costs, authorities, licence types, visas, tax, and the exact setup steps.
Ras Al Khaimah Trade License Cost at a Glance
Here is what most of my clients actually pay in the first year. Figures are approximate and include the licence, basic facility, and government fees, but not salaries.
| Setup option | Licensing authority | Approx. first-year cost (AED) | Visas |
|---|---|---|---|
| Free zone, no visa | RAKEZ | 6,000 to 8,000 | 0 |
| Free zone, 1 visa | RAKEZ | 14,000 to 18,000 | 1 |
| Tech or Web3 company | Innovation City (formerly RAK DAO) | 6,600 to 22,550 | 0 to 4 |
| Mainland LLC with office | RAK DED | 15,000 to 30,000 | Based on office size |
| Offshore company | RAK ICC | 6,000 to 12,000 | None |
Add roughly AED 3,500 to 5,000 for each extra residence visa. You can run your own numbers with our business setup cost calculator.
Why Business Setup in RAK Makes Sense
Ras Al Khaimah is no longer a hidden option. According to a RAKEZ announcement in August 2026, its business community has grown to 50,000 companies from more than 100 countries across over 50 industries.
- Licence and office costs are often 30% to 50% lower than in Dubai
- Industrial land and warehouses are easy to find and reasonably priced
- Dubai is about 45 to 60 minutes away by road
- RAK ports and an international airport support trade and logistics
- Licences can be issued in as little as 24 hours for standard activities
Ras Al Khaimah Business Registration: Which Authority Do You Need?
The first decision in any Ras Al Khaimah company formation is the authority, because it controls cost, visas, and where you can trade.
- RAKEZ (Ras Al Khaimah Economic Zone): free zone licences for trading, services, industry, media, and education. See our RAKEZ company formation guide.
- RAK DED (Department of Economic Development): mainland licences for businesses serving UAE customers directly, with 100% foreign ownership for most activities.
- RAK ICC: offshore and holding companies with no UAE trading or visas.
- Innovation City: the rebranded RAK DAO, focused on Web3, AI, gaming, and digital assets.
If you are unsure, start with your customers: free zone for international or online clients, mainland for local UAE clients, and offshore for holding assets.
Ras Al Khaimah Free Zone License Cost (RAKEZ Packages)
RAKEZ is the most popular choice for business setup in Ras Al Khaimah free zone. Typical packages include:
| RAKEZ package | Approx. cost (AED) | What it covers |
|---|---|---|
| Business starter (no visa) | from 6,000 | Licence, co-working access, multiple activities |
| All-inclusive with 1 visa | 14,000 to 16,500 | Licence, flexi desk, visa eligibility |
| Establishment card | 1,000 to 2,000 | Needed before any visa |
| Each residence visa | 3,500 to 5,000 | Entry permit, medical, Emirates ID, stamping |
There is no minimum paid-up share capital for most RAKEZ companies. If you trade goods, you can also add a mainland branch licence from RAK DED while using the same free zone office. Learn more about the RAKEZ free zone and compare it with other options in our free zone company setup guide.
RAK Mainland License and Company Setup Cost
Choose a mainland company setup in Ras Al Khaimah if you want to sell directly to UAE customers, bid for government contracts, or open a shop or showroom.
- Trade name reservation and initial approval: approx. AED 1,500 to 2,700
- Licence fee: approx. AED 8,000 to 20,000, depending on activity
- Office lease: a physical office is required, usually from AED 10,000 a year
- Visa quota: linked to office size
Mainland renewals are usually close to the first-year licence fee, so budget for them from day one. For a detailed walkthrough, read how to get a trade license in Ras Al Khaimah, or compare with our mainland company formation service in Dubai.
Business Setup RAK Offshore and Innovation City
RAK ICC offshore suits holding companies, asset protection, and international trading. Expect approx. AED 6,000 to 12,000 in year one, with lower renewals. It cannot trade inside the UAE or sponsor visas. Compare it with other offshore company formation options.
Innovation City (formerly RAK DAO) published starting packages of AED 6,600 with no visa up to AED 22,550 for a growth package with a dedicated desk. Regulated virtual asset activities still need separate approval.
Types of Business Licenses in Ras Al Khaimah
- Commercial license: trading, import, export, and general trading
- Service or professional license: consulting, marketing, IT, and agencies
- Industrial license: manufacturing and processing in RAKEZ industrial zones
- E-commerce license: online stores and digital services
- Media license: content, production, and publishing through the RAKEZ media zone
- Freelance permit: individuals working under their own name. See our Ras Al Khaimah freelance visa guide.
Company Setup in RAK: Step-by-Step Process
- Prepare a short feasibility study and choose your business activity.
- Select the authority: RAKEZ, RAK DED, RAK ICC, or Innovation City.
- Reserve your trade name and apply for initial approval.
- Sign the lease or choose a flexi desk package.
- Pay fees and receive your trade license (1 to 5 working days).
- Apply for the establishment card and residence visas (about 1 to 2 weeks).
- Open a corporate bank account. Many RAK companies choose a RAKBANK business account.
Our PRO services team can handle each government step for you.
Feasibility Study in Ras Al Khaimah: Plan Before You Spend
A feasibility study in Ras Al Khaimah does not need to be a 50-page report. For most founders, two pages answering these questions is enough:
- Who are your customers, and are they inside or outside the UAE?
- Do you need a warehouse, showroom, or only a desk?
- How many visas will you need in years one and two?
- Will your revenue cross AED 375,000, triggering VAT and corporate tax?
Industrial and regulated activities may need a formal study for approval. This is also where Ras Al Khaimah Investment Authority support can help larger investors.
Documents Required for Ras Al Khaimah Company Formation
- Passport copies of all shareholders and the manager
- Passport-size photos
- UAE visa or entry stamp, if applicable
- Business plan for certain activities
- For corporate shareholders: attested certificate of incorporation, board resolution, and memorandum of association
Corporate Tax and VAT for Ras Al Khaimah Companies
RAK is not tax-free anymore, so plan for:
- Corporate tax: 9% on taxable profit above AED 375,000, and 0% below it
- Free zone relief: a Qualifying Free Zone Person can pay 0% on qualifying income, subject to substance and audit conditions
- VAT: 5%, mandatory registration above AED 375,000 in taxable supplies and voluntary from AED 187,500
- Designated zones: some RAKEZ industrial zones and RAK Maritime City have special VAT treatment for goods
Check the latest guidance from the Federal Tax Authority. Our team handles VAT registration and corporate tax registration.
Benefits of Business Setup in Ras Al Khaimah
- 100% foreign ownership in free zones and for most mainland activities
- Full repatriation of profits and capital
- Lower licence, office, and warehouse costs than Dubai
- Fast, digital licensing through RAKEZ
- Eligibility for a UAE residence visa for you and your family
- Long-term options such as a golden visa in Ras Al Khaimah
RAK Company Formation Cost: Sample First-Year Budget
A one-person consulting company in RAKEZ with one visa might look like this:
| Item | Approx. cost (AED) |
|---|---|
| Licence with flexi desk and visa eligibility | 14,000 |
| Establishment card | 1,500 |
| Investor visa (permit, medical, Emirates ID) | 4,500 |
| Health insurance | 1,000 |
| Bank account and accounting setup | 2,000 |
| Total | about 23,000 |
Common Mistakes When Setting Up a Company in Ras Al Khaimah
- Choosing a free zone when most customers are on the UAE mainland
- Picking the cheapest no-visa package, then paying more to upgrade
- Ignoring corporate tax registration deadlines
- Choosing activities that need external approvals without budgeting time for them
- Comparing quotes that hide visa and establishment card fees
Expert tip from Adil Ahmad: Ask for a quote that lists licence, facility, establishment card, and each visa separately. Multi-year RAKEZ packages often save 20% or more if you are sure about your plans.
Business Setup in Ras Al Khaimah vs Dubai
| Factor | Ras Al Khaimah | Dubai |
|---|---|---|
| Starting licence cost | from about AED 6,000 | often AED 12,000 or more |
| Office and warehouse rent | Lower | Higher |
| Prestige and client access | Good | Strongest |
| Corporate tax and VAT | Same federal rules | Same federal rules |
If your clients need a Dubai address, compare the cost of a trade license in Dubai or explore business setup in Dubai. Expanding across the Gulf? See our business setup in Saudi Arabia service.
FAQs on Business Setup in Ras Al Khaimah
How much does a Ras Al Khaimah trade license cost?
A RAKEZ licence starts from about AED 6,000 with no visa. A RAK mainland licence usually costs AED 15,000 to 30,000 in year one with an office.
What is the cheapest company setup in RAK?
A RAKEZ no-visa package or an Innovation City starter package, both from about AED 6,000 to 6,600 a year.
Can I get a visa with a RAK free zone license?
Yes. Choose a package with visa eligibility and add about AED 3,500 to 5,000 per visa.
How long does company formation in Ras Al Khaimah take?
The licence can be ready in 1 to 5 working days. Visas and bank accounts usually take another 2 to 4 weeks.
Can a RAK free zone company trade in Dubai?
Not directly with UAE mainland customers. You need a mainland branch licence or a local distributor.
Is 100% foreign ownership allowed in RAK mainland?
Yes, for most commercial and industrial activities. A few strategic activities still have restrictions.
Do RAK companies pay corporate tax?
Yes. The rate is 9% on profit above AED 375,000, with possible 0% relief for qualifying free zone income.
What is RAK ICC used for?
Mainly holding companies, asset protection, and international business. It cannot trade in the UAE or issue visas.
Talk to Business Setup Consultants in Ras Al Khaimah
The right authority and package can save you thousands of dirhams each year. Our business setup consultants offer business setup services in Ras Al Khaimah from licence selection to visas and banking. Contact us for a free, itemised RAK company setup quote.
