By Adil Ahmad, Business Setup Consultant at Gulf Corporate Services
Summary
To get a trade license in Ras Al Khaimah, choose between a RAK mainland license from the Department of Economic Development and a free zone license from RAKEZ, select your activity, reserve a trade name, submit documents and pay the fees. RAKEZ packages start from about AED 5,500 to 6,000 with no visa. Mainland licenses usually cost AED 10,000 to 25,000, and most licenses are issued within a week.
Why Choose Ras Al Khaimah for Your Trade License?
From the companies I help set up, Ras Al Khaimah is usually chosen for one reason: value. You get a full UAE trade license at a fraction of the cost of Dubai, with:
- Lower setup and renewal costs than most Dubai and Abu Dhabi options
- 100% foreign ownership in free zones and for most mainland activities
- Fast licensing, often within a few working days
- Flexi desk and shared office options that keep overheads low
- Strong industrial and logistics base, with ports, warehouses and land for factories
- Easy access to Dubai, Sharjah and the northern emirates
If you are comparing emirates, see our guides to the Dubai trade license cost and the Fujairah trade license cost.
RAK Mainland vs RAK Free Zone License
| Factor | RAK mainland (Department of Economic Development) | RAKEZ free zone |
|---|---|---|
| Ownership | 100% for most activities | 100% |
| Market access | Whole UAE, including government contracts | International and free zone, with dual license options for the UAE market |
| Office | Physical office in RAK | Flexi desk, office, warehouse or land |
| Starting cost | About AED 10,000 to 25,000 | From about AED 5,499 |
| Visas | Based on office size | Based on package |
| Best for | Local trading, services and contracting | Startups, consultants, e-commerce, trading and industry |
Most of our clients choose a RAKEZ free zone license because it is cheaper and flexible. Choose the mainland if you need a shop, local government work or unrestricted UAE trading. RAKEZ also offers a dual license that lets eligible free zone companies trade on the RAK mainland, and the RAK government explains how to open a mainland branch for a free zone company.
Types of Trade Licenses in Ras Al Khaimah
- Commercial license: for trading goods, import, export and retail.
- General trading license: for trading many unrelated product categories. Compare with a general trading license in Dubai.
- Professional or service license: for consultants, IT, marketing and other services.
- Industrial license: for manufacturing, assembly and processing, usually in RAKEZ industrial zones.
- E-commerce license: for online stores and digital trading. Our guide to an e-commerce license explains the activity options.
- Media license: for content creation, production and advertising in RAKEZ.
- Freelance permit: for individuals. See our guide to the Ras Al Khaimah freelance visa.
- Digital assets and Web3: handled through RAK DAO. Read our guide on setting up in RAK DAO.
RAK International Corporate Centre (RAK ICC) is a corporate registry for offshore and holding companies. It does not issue a trade license for doing business in the UAE.
Popular Business Activities With a RAK Trade License
From recent setups, these activities work especially well in Ras Al Khaimah:
- General trading and import-export, using nearby ports and lower warehouse rents
- Light manufacturing and packaging in RAKEZ industrial zones
- E-commerce stores that need a low-cost license and fulfilment space
- Consultancy, IT and digital marketing run from a flexi desk
- Media and content production under a RAKEZ media license
- Education and training in RAKEZ academic zones
If your activity is regulated, such as food, health or education, ask about external approvals before you pay for the license.
Ras Al Khaimah Trade License Cost
These are approximate figures from published fee guides and recent client setups. Confirm current fees before budgeting.
| License option | Approximate first-year cost (AED) |
|---|---|
| RAKEZ license, no visa | From about 5,499 to 6,010 |
| RAKEZ license with 1 visa | About 12,000 |
| RAKEZ license with 2 visas | About 18,000 |
| RAKEZ license with 3 visas | About 22,000 |
| RAK mainland license (base) | About 10,000 to 25,000 |
| Professional or service license | About 6,250 to 15,000 |
| General trading or industrial license | About 12,000 to 30,000 |
Other costs to plan for:
- Trade name and initial approval: about AED 1,000 to 2,500
- Flexi desk or shared office: about AED 3,000 to 10,000 a year
- Private office: about AED 10,000 to 25,000 a year
- Warehouse or industrial unit: from about AED 20,000 a year
- Visa per person (medical, Emirates ID, stamping): about AED 3,500 to 6,500
- Health insurance per employee: about AED 1,500 to 3,000
A lean RAKEZ setup with one visa usually costs about AED 12,000 to 15,000 in year one, making it one of the cheapest trade licenses in the UAE. For a full zone-by-zone comparison, read our guide to business setup in Ras Al Khaimah.
Sample budget: consultant with one visa in RAKEZ
- RAKEZ service license with flexi desk and one visa: about AED 12,000
- Medical, Emirates ID and health insurance: about AED 1,500
- Bank account support and PRO help: about AED 1,500
- Total year one: roughly AED 15,000
Want an exact quote for your RAK license? Our business setup consultants will compare RAKEZ and mainland packages for your activity.
Step-by-Step: How to Get a Trade License in Ras Al Khaimah
- Choose your business activity. Your activity decides the license type, cost and any external approvals.
- Choose mainland or free zone. Decide based on where your customers are and whether you need an office or warehouse.
- Select your legal structure: FZ-LLC or branch in RAKEZ, or LLC, sole establishment or branch on the mainland.
- Reserve a trade name that follows UAE naming rules.
- Apply for initial approval online or through a service centre.
- Arrange your workspace: flexi desk, office, warehouse or land.
- Submit documents and sign the MOA or license agreement.
- Pay the fees and receive your trade license, usually within three to seven working days.
- Apply for your establishment card and visas, then open a business bank account.
Our PRO services team can handle visas, medicals and Emirates ID after licensing.
Documents Required
For individual shareholders
- Passport copy and passport-size photo
- UAE visa or entry stamp copy, if in the UAE
- Emirates ID, if resident
- Proof of residential address
- Short business plan for some activities
For corporate shareholders
- Certificate of incorporation and trade license
- Memorandum and Articles of Association
- Board resolution approving the RAK company
- Power of attorney for the authorised signatory
- Attested and translated corporate documents
Ras Al Khaimah Business Registration on the Mainland
Mainland companies are licensed by the RAK Department of Economic Development. Services such as new company registration, trade name changes and adding or removing activities are listed on the Ras Al Khaimah government portal under Doing Business in RAK. Mainland setups usually need a physical office lease in the emirate, and some activities need approvals from the municipality, civil defence or sector regulators before the license is issued.
RAKEZ Company Formation at a Glance
The Ras Al Khaimah Economic Zone (RAKEZ) is the main free zone in the emirate, with business parks, industrial zones and academic zones. It offers packages ranging from flexi desks to warehouses and large industrial plots. For a deeper guide, see RAKEZ company formation.
Renewing Your Ras Al Khaimah Trade License
- Licenses are valid for one year and should be renewed before expiry.
- Renewal usually needs a valid lease or flexi desk agreement, shareholder passports and, for some zones, audited accounts.
- Renewal fees are often lower than first-year setup costs because one-time registration fees do not repeat.
- Late renewal can lead to fines, visa blocks and suspended activities.
Planning to add new activities at renewal? See how to add activities to your trade license.
Banking, Tax and Visas
- Bank account: many RAK companies bank with RAKBANK. See how to open a RAK Bank business account.
- Corporate tax: 9% on taxable income above AED 375,000. Free zone companies may get 0% on qualifying income if they meet the conditions set by the Federal Tax Authority. Our corporate tax team handles registration.
- VAT: 5%, with mandatory registration above AED 375,000 of taxable supplies.
- Long-term residency: investors and skilled professionals may qualify for the Golden Visa in Ras Al Khaimah.
Common Mistakes to Avoid
- Choosing a free zone license when most clients are on the UAE mainland
- Picking the cheapest package without enough visa quota
- Forgetting external approvals for regulated activities like food, health or education
- Assuming free zone income is always taxed at 0%
- Missing renewal dates and paying fines
Expert Tip from Our Desk
Start with the visa count you will actually need in year one. RAKEZ packages look cheap at zero visas, but upgrading later can cost more than choosing the right package on day one.
Frequently Asked Questions
How much does a trade license cost in Ras Al Khaimah?
RAKEZ licenses start from about AED 5,499 to 6,010 with no visa, and about AED 12,000 with one visa. Mainland licenses usually cost AED 10,000 to 25,000.
How long does it take to get a RAK trade license?
Usually three to seven working days once documents are complete.
Can foreigners own 100% of a company in Ras Al Khaimah?
Yes, in RAKEZ and for most mainland activities.
What is the difference between RAKEZ and RAK mainland?
RAKEZ is a free zone with low-cost packages and flexi desks, while a mainland license lets you trade directly across the UAE.
Can a RAKEZ company work in Dubai?
Free zone companies mainly serve international and free zone clients. To trade on the mainland, you need a dual license, a mainland branch or a distributor.
Is an e-commerce license available in Ras Al Khaimah?
Yes, RAKEZ and the mainland both offer e-commerce activities.
Do I need an office for a RAK trade license?
A flexi desk is enough for most RAKEZ licenses. Mainland licenses usually need a physical office.
Is RAK ICC a trade license?
No. RAK ICC registers offshore and holding companies, which cannot trade inside the UAE.
Start Your Ras Al Khaimah Business with Confidence
Ras Al Khaimah offers one of the most affordable routes to a UAE trade license. Our team compares RAKEZ and mainland packages, handles approvals and visas, and helps you open your bank account. Explore our full business setup in Dubai services, or if you are expanding across the Gulf, see our business setup in Saudi Arabia support.
