Setting up a business in the UAE is an exciting step—but choosing the right emirate and license type can make all the difference. If you’re aiming for affordability, flexibility, and access to both regional and international markets, getting a Trade License in Ras Al Khaimah is a smart and strategic move.
Ras Al Khaimah (RAK), one of the fastest-growing business destinations in the UAE, offers a low-cost, business-friendly environment with simplified procedures for foreign investors. Whether you’re a first-time entrepreneur or expanding your operations, this guide explains everything you need to know.
What is the Ras Al Khaimah Trade License?
A Trade License in Ras Al Khaimah is the official legal document issued by the Ras Al Khaimah Economic Zone (RAKEZ) or the Department of Economic Development (DED) that allows businesses to conduct trading activities within the emirate or internationally.
It permits you to legally engage in buying and selling goods or commodities, whether through wholesale, retail, import, export, or online platforms. The license is mandatory for opening bank accounts, signing contracts, and operating legally in the region.
Types of Trade Licenses in Ras Al Khaimah
Ras Al Khaimah offers multiple license options to suit different business needs. Here’s a quick breakdown:
Commercial Trade License
Allows trading of goods and services across the UAE and globally. Suitable for wholesale, retail, and distribution businesses.
General Trading License
Covers a broader scope of activities, including multiple unrelated goods. Perfect for companies with diverse product lines.
E-Commerce License
Ideal for selling products through digital channels like websites or third-party marketplaces.
Professional License
Though not strictly a trading license, it’s suitable for consultancy, marketing, and service-based firms offering professional expertise.
Each license can be issued by RAKEZ, RAK DED, or other licensing authorities depending on whether you’re setting up in a free zone or the mainland.
Step by Step Process Obtaining a Trade License in Ras Al Khaimah
Getting a trade license is straightforward when broken into clear steps:
Step 1: Choose Your Business Activity
Pick your business activity from the approved list. This will determine the license type and regulatory body you apply through.
Step 2: Decide on Legal Structure
Will your business be a sole proprietorship, LLC, branch of a foreign company, or a free zone entity? This decision affects ownership rules and tax implications.
Step 3: Select a Trade Name
Propose a name that aligns with your brand and complies with naming conventions—no religious terms, government references, or offensive language.
Step 4: Apply for Initial Approval
Submit your application to RAKEZ or RAK DED for preliminary approval to proceed.
Step 5: Arrange Office or Workspace
Depending on your license, you may need a physical office, warehouse, or at least a flexi-desk space.
Step 6: Submit Required Documents
Provide the necessary paperwork (see next section), sign contracts, and pay the initial fees.
Step 7: Receive Your Trade License
Once approved, your license is issued along with your business registration certificate.
Documents Needed for Obtaining Your Trade License in Ras Al Khaimah
Having your documentation ready speeds up the process. Here’s what you’ll typically need:
- Passport copy of all shareholders
- Emirates ID and residence visa (if applicable)
- Proof of address (utility bill)
- Proposed company name
- Application form
- Memorandum of Association (for LLCs)
- No Objection Certificate (if under sponsorship)
- Business plan (for certain activities)
- Lease agreement (Ejari or RAKEZ lease)
Documents may vary slightly between free zone and mainland setups, so check with your consultant or licensing authority.
Ras Al Khaimah Trade License Cost
The cost of a Trade License in Ras Al Khaimah is highly competitive, especially compared to Dubai or Abu Dhabi. Here’s an estimate:
| License Type | Estimated Annual Cost (AED) |
| Commercial License | 8,000 – 12,000 |
| General Trading License | 13,000 – 18,000 |
| E-Commerce License | 6,000 – 10,000 |
| Professional License | 7,000 – 11,000 |
Add-on expenses may include:
- Flexi-desk: AED 3,000 – 7,000
- Office rent: AED 8,000 – 25,000+
- Visa per employee: AED 3,000 – 5,000
- Establishment card: AED 1,000 – 2,000
Free zones like RAKEZ often offer startup packages that bundle license, workspace, and visa quotas at a discounted rate.
Advantages of Securing a Trade License in Ras Al Khaimah
Ras Al Khaimah stands out for both affordability and flexibility. Here are the key benefits:
Cost-Effective Setup
The cost of setting up and renewing a business is significantly lower than other emirates.
100% Foreign Ownership
Free zones allow complete control over your company without needing a local partner.
Fast Licensing Process
You can get your trade license issued in just 3–5 business days in most cases.
No Income Tax
Enjoy a tax-free personal income environment and zero import/export duties in free zones.
Modern Infrastructure
Access to world-class logistics, warehousing, and office spaces at lower costs.
Strategic Location
Proximity to ports and airports makes Ras Al Khaimah a strategic hub for trading and logistics companies.
Renewing Your Trade License in Ras Al Khaimah
To continue business operations legally, your license must be renewed annually. The renewal process is simple and often cheaper than the initial setup.
Steps to Renew:
- Submit the renewal application before expiry
- Pay the annual license fee
- Update any lease or tenancy agreements
- Submit required renewal documents (see below)
Late renewals may result in penalties or business suspension.
Documents Needed for License Renewal in Ras Al Khaimah
To renew your Trade License in Ras Al Khaimah, prepare the following:
- Copy of current trade license
- Valid lease agreement or flexi-desk contract
- Valid Emirates ID and visa (if applicable)
- Updated business activity (if changed)
- Payment receipt of renewal fee
Keep records updated to avoid delays or rejections.
Conclusion
Setting up a business in the UAE doesn’t have to be overwhelming or expensive. The Trade License in Ras Al Khaimah offers a perfect blend of simplicity, affordability, and global access for startups, traders, and SMEs.
Whether you’re launching a new e-commerce venture, setting up a trading company, or expanding your international business, Ras Al Khaimah provides all the tools you need—without the high costs of other emirates.
For tailored support, licensing packages, and step-by-step assistance, connect with a specialist in Business Setup in Dubai, UAE who understands both the local rules and your business goals.
FAQs
How long does it take to get a trade license in Ras Al Khaimah?
Typically, it takes 3 to 5 working days if all documents are in order and your business activity doesn’t require special approvals.
Can I operate outside RAK with this license?
If you set up in the mainland, yes. Free zone companies can only operate within the free zone or export internationally unless they appoint a UAE distributor.
Is the trade license cost fixed or does it vary?
It varies depending on the business activity, number of shareholders, type of office, and visa requirements.
Do I need a local sponsor for a RAK trade license?
No, if you set up in a free zone like RAKEZ, you can have 100% foreign ownership. For mainland businesses, local sponsorship may still apply.
What happens if I don’t renew my license on time?
You may face penalties, visa suspension, and the inability to operate legally. Timely renewal is critical to keep your business active.
