By Adil Ahmad, Business Setup Consultant at Gulf Corporate Services · Last updated
Summary
Business setup in Ras Al Khaimah free zone usually means RAKEZ, the authority formed in 2017 from RAK FTZ and RAKIA. RAKEZ licences start from about AED 6,000 a year without a visa, and roughly AED 12,000 to 15,000 with one visa and a flexi desk. This guide covers RAK free zone licence types, packages, visa costs, freelance permits, the setup process, tax rules and renewal fees.
What Is RAK Free Zone? RAKEZ, RAK FTZ and RAKIA Explained
When people search “RAK free zone” or “RAK FTZ”, they usually mean the Ras Al Khaimah Economic Zone (RAKEZ). RAKEZ was created in 2017 to bring the RAK Free Trade Zone (RAK FTZ) and RAK Investment Authority (RAKIA) under one brand, as Gulf Business reported at launch. Old RAK FTZ licences now sit under RAKEZ.
Ras Al Khaimah also has other authorities, so it helps to know which one fits:
- RAKEZ: free zone and non-free zone licences for trading, services, industrial, freelance and education
- RAK DED: mainland licences for businesses serving the local market
- RAK ICC: offshore companies for holding and international trade
- RAK Maritime City: port and marine businesses
- RAK DAO: virtual asset and digital businesses
RAKEZ itself is spread across business and industrial zones:
| RAKEZ zone | Best for |
|---|---|
| Al Nakheel Business Zone | Freelancers, consultants, SMEs |
| Al Hamra Business Zone | Trading and service companies |
| Al Ghail Industrial Zone | Large-scale manufacturing |
| Al Hamra Industrial Zone | Light industry and logistics |
| Al Hulaila Industrial Zone | Heavy industry |
| RAKEZ Academic Zone | Schools, training and education providers |
Why Choose RAK Free Zone for Your Business
Ras Al Khaimah has become one of the most cost-effective places to start a company in the UAE, and the RAKEZ offer reflects that. In my experience, clients pick RAKEZ for five reasons:
- Lower licence and desk costs than most Dubai free zones
- 100% foreign ownership with full repatriation of profits
- Large industrial land and warehouses close to Saqr Port and RAK Airport
- About 45 to 60 minutes’ drive from Dubai, so staff can live in either emirate
- A growing local economy, with tourism and resort projects such as Al Marjan Island attracting new investment
For a solo founder or small trading team, the savings over three years are often meaningful, especially when visas are added.
RAK Free Zone License Types
RAKEZ offers these main licence types:
- Commercial (trading) licence: import, export, distribution and general trading
- Service or consultancy licence: professional, IT, marketing and advisory services
- Industrial licence: manufacturing, processing, assembly and packaging
- Freelance permit: for individuals working in their own name
- Educational licence: for training centres and academic providers
- E-commerce activities: online trading under a commercial licence (compare with our e-commerce license guide)
RAKEZ also offers a Dual Licence, which lets one company operate in both free zone and non-free zone areas. This matters if you want to serve UAE mainland customers without a second company. You can match your activity on our free zone business activities page.
RAK Free Zone License Cost and Packages
These are approximate market estimates based on published package prices in 2026. Official fees change, so confirm the final quote with RAKEZ or your consultant.
| Package | Visas | Approximate annual cost (AED) |
|---|---|---|
| Starter licence, no visa | 0 | 6,000 to 9,500 |
| Licence with flexi desk and 1 visa | 1 | 12,000 to 15,000 |
| Flexi desk package with 2 visas | 2 | 18,000 to 22,000 |
| Executive desk or small office | 3 to 4 | 25,000 to 30,000 |
| Industrial unit or warehouse | Varies | 25,000 to 60,000+ |
| Freelance permit | 1 | From 6,100 plus visa costs |
The RAK free zone license cost depends on four things: activity group, number of shareholders, facility type and visa quota. Trading activities usually cost more than services, and a customs code adds to the bill. For a full breakdown of UAE options, see our free zone company setup guide.
RAK Free Zone Visa Cost and Visa Quota
Your visa quota depends on your facility. A flexi desk usually allows 1 to 3 visas, while an office or warehouse allows more.
Typical visa costs in RAKEZ:
- Visa allocation per person: about AED 3,500 to 5,000 all in, including entry permit, medical, Emirates ID and stamping
- Investor or partner visa: often AED 7,000 to 10,000 depending on duration
- Establishment card: required before any visa, usually included in packages
- Dependent visas: possible once the main visa holder meets the salary rules
A UAE residence visa through your RAKEZ company lets you open a personal bank account, sponsor family and live anywhere in the UAE. Our UAE residence visa team handles the steps, and long-term investors may also qualify for the UAE Golden Visa.
RAK Free Zone Flexi Desk, Office and Warehouse Costs
| Facility | Approximate annual cost (AED) | Typical visa quota |
|---|---|---|
| Flexi desk | 3,500 to 6,000 (often bundled) | 1 to 3 |
| Dedicated desk or executive desk | 8,000 to 15,000 | 2 to 4 |
| Private office | 15,000 to 40,000 | 3 to 6+ |
| Warehouse | From about 25,000 for small units to 180,000+ for 500 sqm and above | Based on size |
| Industrial land | Priced per square metre | Based on project |
The RAK free zone flexi desk cost is the cheapest way to get visa eligibility. Most new clients start here and move to an office once the team grows.
RAKEZ Freelance Visa in Ras Al Khaimah
The RAKEZ freelance permit is one of the cheapest freelance routes in the UAE. RAKEZ states that its freelance permit starts from AED 6,100 and covers a wide range of professional activities.
With the visa added, most freelancers budget about AED 11,000 to 15,000 for year one. It suits consultants, designers, developers, trainers and marketers who invoice clients in their own name. RAKEZ also publishes a useful guide to professional licences for freelancers and consultants.
How to Set Up a Company in RAK Free Zone: Step by Step
- Choose your activity and licence type. This sets your cost and facility needs.
- Pick a facility. Flexi desk, office, warehouse or land.
- Reserve your trade name and submit the application online through RAKEZ.
- Upload documents and complete KYC for all shareholders.
- Pay fees and sign the lease for your facility.
- Receive your licence, establishment card and company documents, often within 2 to 5 working days.
- Apply for visas and open a corporate bank account.
Our corporate bank account opening service helps you avoid the usual 2 to 6 week delays.
Documents Required for RAKEZ Company Formation
- Passport copies of all shareholders and managers
- Passport-size photos
- Proof of residential address
- UAE visa or entry stamp, if in the UAE
- Business plan for some activities
- For corporate shareholders: certificate of incorporation, MOA, board resolution and good standing certificate, attested
RAKEZ vs Dubai Free Zones vs RAK Mainland
| Option | Approximate year one cost (AED) | Best for |
|---|---|---|
| RAKEZ free zone | 12,000 to 19,000 with 1 visa | Cost-focused startups, traders, industry |
| Dubai free zones such as IFZA or Meydan | 18,000 to 24,000 with 1 visa | Founders who want a Dubai address |
| RAK mainland (RAK DED) | Higher, plus Ejari office | Selling directly to UAE customers |
| RAK ICC offshore | Lower, but no visas | Holding and asset protection |
If you are weighing offshore against free zone, read our RAK ICC vs JAFZA offshore comparison and our guide to UAE free zone vs offshore company. For local market access, compare with mainland company formation in Dubai.
Corporate Tax, VAT and Audit Rules for RAKEZ Companies
RAKEZ companies are not automatically “tax free”:
- Corporate tax: 9% on taxable profit above AED 375,000. A Qualifying Free Zone Person can get 0% on qualifying income if it meets the conditions
- VAT: register once taxable supplies pass AED 375,000 a year. Only some RAKEZ industrial zones are VAT designated zones, so check your location
- Audit: RAKEZ companies must submit audited financial statements every year
Our corporate tax and accounting services teams keep you compliant from the first year.
RAK Free Zone License Renewal Fees and Late Penalties
Renewal usually costs a little less than year one because one-time registration fees fall away. For most flexi desk packages, plan around AED 8,000 to 14,000 a year, plus visa renewals. Renew before the expiry date, because late renewal adds monthly penalties and can block visa services until the licence is active again.
Common Mistakes When Setting Up in RAK Free Zone
- Choosing a zero-visa package and needing a visa a month later
- Picking a trading activity when a service licence would do
- Ignoring the annual audit requirement
- Assuming a free zone licence lets you trade freely on the mainland
- Comparing packages without checking what is included
Expert Tip from Adil Ahmad
Do not choose RAKEZ on price alone. It is excellent for cost-focused founders, traders and manufacturers, but check where your clients are. If most of them are in Dubai and need you on site, compare the full three-year cost with a Dubai free zone. Use our business setup cost calculator to compare both. Investors expanding across the Gulf can also explore business setup in Saudi Arabia.
Frequently Asked Questions
How much does a RAK free zone license cost?
Packages start at about AED 6,000 a year without a visa, and about AED 12,000 to 15,000 with one visa and a flexi desk.
Is RAK FTZ the same as RAKEZ?
Yes. RAK FTZ and RAKIA were merged into RAKEZ in 2017.
How much is a RAK free zone visa?
Expect about AED 3,500 to 5,000 per visa all in, on top of the licence package.
Can I get a freelance visa in Ras Al Khaimah?
Yes. The RAKEZ freelance permit starts from AED 6,100, and you can add a residence visa.
Can a RAKEZ company do business on the UAE mainland?
Yes, with the RAKEZ Dual Licence or by working through a mainland distributor or branch.
How long does RAKEZ company setup take?
Licences are often issued within 2 to 5 working days once documents are complete.
Does RAKEZ have an office in Dubai?
RAKEZ’s main offices are in Ras Al Khaimah. Most of the process is online, and approved consultants in Dubai can handle it for you.
Do RAKEZ companies pay corporate tax?
They fall under UAE corporate tax. A Qualifying Free Zone Person pays 0% on qualifying income, and other taxable profit above AED 375,000 is taxed at 9%.
Start Your RAK Free Zone Company with Expert Support
From choosing the right RAKEZ package to visas and banking, our team handles your business setup in Dubai and across the UAE. Speak with our business setup consultants for a tailored RAK free zone quote.
