By Adil Ahmad, Business Setup Consultant at Gulf Corporate Services
Summary
RAKEZ company formation is one of the most affordable ways to start a UAE business. RAKEZ’s Biz Starter package costs AED 6,000 with no visa, while the all-inclusive package with one visa costs AED 14,000. Extra visas add AED 4,000 each. Licences can be issued within 24 hours. This guide covers RAKEZ licence types, costs, visas, zones, renewal, tax, and setup steps.
RAKEZ Company Formation Cost at a Glance
| RAKEZ package | Price (AED) | What you get |
|---|---|---|
| Biz Starter | 6,000 | Licence, up to 5 activities and 5 shareholders, coworking access |
| All-Inclusive Business Set-Up | 14,000 | 1 residence visa, up to 10 activities, up to 50 shareholders, shared workstation |
| Additional visas (All-Inclusive) | 4,000 each | Up to 3 extra visas |
| BusinessWomen package | from 6,000 | Visa eligibility and discounts for women founders |
| Premium services add-on | 2,500 | VIP visa support, banking help, corporate tax registration |
Package prices come from RAKEZ’s SME offers and the Biz Starter package page, and can change, so confirm before you pay. Government visa costs such as medical and Emirates ID are extra.
What Is RAKEZ?
RAKEZ, the Ras Al Khaimah Economic Zone, is the main free zone authority in Ras Al Khaimah. It licenses free zone companies and also helps investors operate in the RAK mainland. According to a RAKEZ announcement in August 2026, its community has grown to 50,000 companies from more than 100 countries across over 50 industries.
RAKEZ operates several zones:
- Al Nakheel Business Zone and Al Hamra Business Zone for offices and trading
- Al Ghail Industrial Zone and Al Hulaila Industrial Zone for factories and warehouses
- Academic Zone for education providers
For a wider view of the emirate, read our guide to business setup in Ras Al Khaimah.
Why Choose RAKEZ for Business Setup in Ras Al Khaimah Free Zone
- Some of the lowest licence costs in the UAE, from AED 6,000
- 100% foreign ownership and full profit repatriation
- Licences in as little as 24 hours through the digital portal
- Flexi desks, offices, warehouses, and industrial land in one authority
- Multi-year licences and instalment payments
- About 45 to 60 minutes by road from Dubai
- Option to add a RAK mainland branch licence while keeping the same office
Who Should Choose RAKEZ (and Who Should Not)
RAKEZ is a strong fit if you are:
- A startup or consultant who wants the lowest possible licence cost
- A trader or e-commerce seller who needs a warehouse
- A manufacturer looking for affordable industrial land
- An investor who mainly needs UAE residency and a bank account
It is a weaker fit if you need a regulated financial licence, a prestigious Dubai address for client meetings, or frequent government contracts in Dubai. In those cases, a Dubai free zone or mainland licence may serve you better.
RAKEZ Licence Types
| Licence | Best for |
|---|---|
| Commercial | Trading, import, export, and general trading |
| Service | Consulting, marketing, IT, and agencies |
| Industrial | Manufacturing, processing, and assembly |
| E-commerce | Online stores and digital platforms |
| Media | Content creation, production, and publishing |
| Educational | Training centres and institutes in the Academic Zone |
| Freelancer permit | Individuals working under their own name |
Commercial and service activities usually sit on separate licences, so plan your activity list carefully. See our guides to the e-commerce license and the Ras Al Khaimah freelance visa.
RAKEZ License Cost and Packages Explained
The headline price is only part of your first-year RAKEZ cost. A realistic budget looks like this:
| Cost item | Approx. cost (AED) |
|---|---|
| Licence package (no visa) | 6,000 |
| Licence package with 1 visa | 14,000 |
| Establishment card | 1,000 to 2,000 |
| Medical, Emirates ID, and visa stamping per person | 3,000 to 5,000 |
| Health insurance per person | 800 to 2,500 |
| Bank account minimum balance | varies by bank |
So a solo founder with one visa usually spends about AED 18,000 to 22,000 in year one. Read what an establishment card in UAE is and why you need it before applying for visas.
RAKEZ Visa Cost and Visa Allocation
Your visa quota depends on your facility:
- Biz Starter: no visa included, but you can upgrade
- All-Inclusive: 1 visa, plus up to 3 more at AED 4,000 each
- Offices and warehouses: quota grows with space
- Dependent visas: 20% discount on the All-Inclusive package
Visas usually take 3 to 10 working days after the licence. You can sponsor your family and later apply for a golden visa in Ras Al Khaimah if you qualify. Learn more about the UAE residence visa.
Legal Structures for RAKEZ Company Formation
- Free zone company: one to 50 shareholders, individuals or corporates, with limited liability
- Branch of a foreign company: the parent company stays fully liable
- Branch of a UAE company: for existing UAE businesses expanding into RAKEZ
Most service activities have little or no paid-up capital requirement, but some activities need more. Confirm yours when you apply.
RAKEZ Mainland Branch: Trading in RAK Mainland
One feature many investors miss is the RAKEZ mainland option. RAKEZ companies can obtain a branch licence from the RAK Department of Economic Development (RAK DED) and operate in the RAK mainland using the same free zone office. This lets you sell directly to UAE customers and bid for local contracts without renting a second office. For the full mainland route, see how to get a trade license in Ras Al Khaimah. Larger industrial investors can also work with the Ras Al Khaimah Investment Authority.
RAKEZ Zones and Facilities
- Coworking and flexi desks: cheapest option, ideal for startups and consultants
- Smart offices and executive offices: for teams that need more visas
- Warehouses: for traders and e-commerce fulfilment
- Industrial land: for factories you build yourself
- Pre-built factories: for faster manufacturing setup
Choose the facility first, because it decides your visa quota and your VAT treatment.
How to Set Up a Company in RAKEZ: Step-by-Step
- Choose your business activities and licence type.
- Pick a package and facility.
- Reserve your trade name.
- Submit your application and documents on the RAKEZ portal.
- Pay the fees and sign the lease or service agreement.
- Receive your licence, often within 24 hours for standard activities.
- Apply for the establishment card and visas.
- Open a corporate bank account.
You can start most steps remotely. You only need to be in the UAE for medical tests and biometrics.
Documents Required for RAKEZ Company Formation
- Passport copies of all shareholders and the manager
- Passport-size photos
- Proof of residential address
- Current UAE visa or entry stamp, if you are in the UAE
- For corporate shareholders: certificate of incorporation, memorandum of association, and board resolution, attested
- Business plan for some industrial or regulated activities
RAKEZ License Renewal Cost and Process
RAKEZ licences are valid for one year, and multi-year options are available for many activities. The All-Inclusive package promotes the same renewal price. To renew:
- Renew your lease or facility agreement
- Submit audited accounts if required for your activity
- Pay the renewal fee on the portal
- Renew the establishment card and visas on time
Late renewal can lead to fines and frozen visa services. Our PRO services team can track these dates for you.
Corporate Tax, VAT and Designated Zones in RAKEZ
RAKEZ is not completely tax-free anymore. Plan for:
- Corporate tax: 9% on taxable income above AED 375,000, or 0% on qualifying income for a Qualifying Free Zone Person that meets substance and audit conditions
- VAT: 5%, with mandatory registration above AED 375,000 in taxable supplies
- Designated zones: RAKEZ industrial zones in Al Hamra, Al Ghail, and Al Hulaila have special VAT treatment for goods
Check current guidance from the Federal Tax Authority. Our team handles corporate tax registration and VAT registration.
Opening a Bank Account for a RAKEZ Company
Banks treat RAKEZ companies like other free zone companies. Expect:
- A review of 2 to 4 weeks
- A business plan, source of funds, and expected transactions
- A minimum balance that depends on the bank
RAKBANK is a popular local choice. See how to open a RAKBANK business account.
RAKEZ vs Other UAE Free Zones
| Free zone | Starting cost | Best for |
|---|---|---|
| RAKEZ | from AED 6,000 | Low-cost setup, industry, warehouses |
| IFZA | from about AED 12,900 | Dubai address at a mid-range price |
| DMCC | from about AED 20,000+ | Premium Dubai address, commodities |
| SHAMS | from about AED 5,750 | Media and freelancers in Sharjah |
Prices other than RAKEZ are approximate market starting points. If you need a Dubai address, compare all options in our free zone company setup guide.
Common Mistakes to Avoid
- Choosing a no-visa package and then paying more to upgrade
- Mixing commercial and service activities without checking the rules
- Forgetting establishment card and medical costs in the budget
- Missing audit or renewal deadlines
- Assuming 0% corporate tax without meeting qualifying conditions
Expert tip from Adil Ahmad: If you are sure about your plans, pay for a multi-year licence. Price locks and multi-year discounts usually save more than any first-year promotion.
FAQs on RAKEZ Company Formation
How much does RAKEZ company formation cost?
From AED 6,000 for the Biz Starter package with no visa, or AED 14,000 with one visa.
How long does RAKEZ company setup take?
The licence can be issued within 24 hours for standard activities. Visas take another 3 to 10 working days.
Can foreigners own 100% of a RAKEZ company?
Yes. RAKEZ allows full foreign ownership.
How many visas can I get with a RAKEZ licence?
The All-Inclusive package includes 1 visa and allows up to 3 more. Larger offices allow more.
Do I need to visit the UAE to set up in RAKEZ?
Not for the licence. You need to visit for visa medicals and biometrics.
Can a RAKEZ company trade in Dubai?
It can trade internationally and with other free zones. To sell directly on the UAE mainland, you need a mainland branch licence or a local distributor.
Is RAKEZ tax-free?
Not fully. Corporate tax is 9% above AED 375,000, with 0% possible on qualifying free zone income.
Can I renew my RAKEZ licence for more than one year?
Yes. Multi-year licences are available for many activities.
Start Your RAKEZ Company Today
Our team handles RAKEZ company formation from package selection to visas and banking. We also support business setup in Dubai and business setup in Saudi Arabia. Speak with our business setup consultants for a free, itemised RAKEZ quote.
