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How Can I Start a Business in RAK Free Zone UAE?

How Can I Start a Business in RAK Free Zone UAE?

Ras Al Khaimah (RAK) is a free trade zone located in the United Arab Emirates (UAE) and is known for its business-friendly environment. RAK Free Zone provides various benefits and incentives to entrepreneurs who want to start their business in the region. We will discuss the steps involved in starting a business in RAK Free Zone.

Research and Feasibility Study: The first step is to conduct thorough research about the industry you want to enter, the market conditions, and the competition. A feasibility study will help you determine the potential for success and profitability of your business idea.

Choose the Business Activity: RAK Free Zone allows investors to set up different types of businesses such as trading, manufacturing, services, and consultancy. You need to choose the business activity you want to undertake and make sure it is allowed in the free zone.

Choose the Legal Entity: RAK Free Zone offers various legal structures to investors such as a free zone establishment (FZE), free zone company (FZC), and branch of a foreign company. You need to select the most suitable legal entity based on your business requirements.

Choose the Trade Name: Once you have decided on the legal entity, you need to select a trade name for your business. The trade name must be unique and not similar to any existing trade names registered in the UAE.

Obtain Initial Approval: You need to submit an application for initial approval to RAK Free Zone Authority. The application should include details about your business activity, legal entity, and trade name. You also need to submit a business plan, passport copies of shareholders, and other required documents.

Choose Office Space: RAK Free Zone provides various options for office space such as flexi desks, executive offices, and warehouses. You need to choose the office space that best suits your business requirements.

Obtain Licenses and Permits: Once you have chosen the office space, you need to apply for licenses and permits from the relevant authorities. The type of licenses and permits required depend on the business activity and legal entity.

Open a Bank Account: You need to open a bank account for your business in RAK Free Zone. You can choose from various banks operating in the free zone and provide the required documents to open the account.

Register for VAT: Value Added Tax (VAT) is a consumption tax that is charged on goods and services in the UAE. Businesses with an annual turnover of more than AED 375,000 are required to register for VAT.

Hire Employees: If you plan to hire employees for your business, you need to obtain employment visas for them. You need to apply for the visas through RAK Free Zone Authority and provide the required documents.

Comply with Regulations: You need to comply with the regulations and laws governing businesses in the UAE. This includes filing tax returns, maintaining proper accounting records, and complying with labor laws.

Benefits of Starting a Business in RAK Free Zone:

100% foreign ownership

No corporate or personal income tax

No customs duties

Easy business setup process

Access to global markets

World-class infrastructure and facilities

Attractive incentives and benefits for investors


Starting a business in RAK Free Zone is a straightforward process that offers numerous benefits to entrepreneurs. By following the steps outlined above and complying with the regulations, you can set up a successful business in the region. With its strategic location and business-friendly environment, RAK Free Zone provides an excellent opportunity for entrepreneurs to tap into the growing markets of the Middle East and beyond.


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