A RAKEZ company setup gives entrepreneurs a practical way to establish a business in the UAE without taking on the cost of a large office from the first day. You can begin with a coworking package, apply for a residence visa and move into a private office, warehouse or industrial facility as the business grows.
RAKEZ stands for Ras Al Khaimah Economic Zone. It licenses free-zone and non-free-zone businesses across trading, services, e-commerce, media, education and manufacturing. RAKEZ says its business community includes more than 40,000 companies operating across over 50 sectors.
Current promotional packages provide a useful starting point for budgeting. RAKEZ advertises a Biz Starter package at AED 6,000 and an all-inclusive business package at AED 14,000 per year. The second option includes one UAE residence visa under the published offer. These prices can change and the final amount depends on your activities, visa requirements, shareholders and workspace. Check the current RAKEZ offers before submitting an application.
This guide explains the main RAKEZ licence options, setup costs, formation process and benefits. It also covers the extra expenses that do not always appear in the headline package price.
What Is RAKEZ?
RAKEZ is a business licensing authority established by the Government of Ras Al Khaimah. It provides company registration, licence issuance, immigration support and commercial facilities through one economic-zone system.
RAKEZ supports small service companies, factories and large industrial operators. Premises range from coworking desks and offices to warehouses and land for development. Foreign investors often choose the free-zone route for full ownership and a smaller physical footprint.
A free-zone structure may suit a consultancy serving international clients or an online seller managing operations remotely. A mainland company may be more suitable when most sales happen directly within the UAE local market.
Before choosing a jurisdiction, read Nexture’s guide to Dubai mainland vs free-zone business setup. It explains how ownership, customer access, office requirements and business activities can affect your decision.
In a 30-minute call we map your situation against jurisdiction, activity and cost — no commitment required.
RAKEZ Licence Options
The right licence depends on your actual activities. Your activity list affects approvals, premises, tax treatment and invoicing, so choose exact activities rather than a convenient broad label.
RAKEZ issues several licence categories for commercial, professional and industrial businesses.
Licence type | Suitable for | Typical activities |
Commercial licence | Buying, selling, importing and exporting approved goods | Auto parts, building materials, food products and equipment |
General trading licence | Trading several approved product groups | Consumer goods, garments, electronics and household products |
E-commerce licence | Selling goods or services through online channels | Online shops, marketplace sellers and digital portals |
Service licence | Providing approved business services | Marketing, management support, software services and consultancy |
Professional licence | Work based on professional knowledge or technical skill | IT, design, engineering support and specialist advice |
Individual or professional licence | A single owner providing an approved professional activity | Independent consultants and specialist practitioners |
Industrial licence | Manufacturing, processing, assembly or packaging | Factories, fabrication units and food processing |
Media licence | Approved media and communication work | Advertising, content production and publishing |
Educational licence | Education, training or learning support | Training institutes and education consultancies |
Freelancer permit | Independent work in approved fields | Media, education, IT and analytical work |
Commercial and General Trading Licences
A commercial licence covers approved goods listed on the company licence. A general trading licence offers wider product coverage and may suit businesses selling several unrelated product categories.
Both options can still require customs registration or product-specific approval. This is especially important when you plan to trade food, medical products, cosmetics, chemicals or other regulated goods.
Do not assume that a licence automatically covers every product you intend to sell. Prepare a clear product list and ask whether each category requires another authority’s approval.
Service and Professional Licences
These licences suit consultants, agencies, technology companies and skilled professionals. Common activities include management consultancy, marketing services, software development, design and technical support.
Solo founders should compare an individual licence, freelancer permit and Free Zone Limited Liability Company, or FZ-LLC. Consider personal liability, visa needs, banking plans and whether you may add shareholders later.
A low-cost freelancer permit can work for independent work. An FZ-LLC may be more suitable when you want a separate legal entity, expect to hire employees or plan to sign larger commercial contracts.
E-Commerce Licence
An e-commerce licence covers approved online selling activities. RAKEZ currently advertises e-commerce company setup from AED 6,000.
Confirm whether you will sell physical products, operate a marketplace, provide digital services or trade through platforms such as Amazon. Each model may need different activities or approvals.
Online sellers still need the correct product activity. You may also require customs registration, payment-gateway approval or product registration depending on what you sell.
Nexture’s e-commerce licence guide explains the wider licensing choices available to online businesses in the UAE.
Industrial Licence
An industrial licence covers manufacturing, processing, assembly and packaging. The project may require a suitable warehouse or industrial plot, environmental approval, civil defence clearance and technical plans.
Prepare details about your production process, machinery, power consumption, raw materials, workforce and expected output before requesting a quotation. These details help determine the correct facility and approval route.
Dual Licence
RAKEZ also offers a dual-licence route that combines a free-zone licence with a branch licence for eligible mainland operations. This may help certain free-zone companies establish a legal operating route into the local market.
Eligibility depends on the activity and company structure. Do not treat mainland access as automatic simply because your company holds a RAKEZ free-zone licence.
How Much Does a RAKEZ Company Setup Cost?
RAKEZ currently advertises Biz Starter at AED 6,000 and an all-inclusive SME package at AED 14,000 per year with one residence visa and coworking access. These are promotional prices, not a guaranteed total for every applicant.
Package | Advertised cost | Published features | Suitable for |
Biz Starter | AED 6,000 | Company licence, up to five shareholders and up to five activities under the offer | Small service businesses, consultants and founders without a bundled visa requirement |
All-inclusive SME package | AED 14,000 yearly | Licence, one residence visa, coworking access, up to 10 activities and up to 50 shareholders | Founders who want a company and one UAE residence visa |
E-commerce package | From AED 6,000 | E-commerce setup with access to selected marketplace support services | Online sellers and digital businesses |
The AED 14,000 offer currently permits up to three extra visas at AED 4,000 each. An optional AED 2,500 support upgrade is also advertised. Promotional terms can change, so request a dated quotation showing every inclusion.
Costs That May Be Added
Ask RAKEZ or your business setup adviser for an itemised quotation that includes:
Initial approval and registration
Trade licence issuance
Establishment card or immigration file
Visa allocation
Entry permit or status change
Medical fitness test
Emirates ID
Health insurance
Office, coworking or warehouse rent
External approvals
Customs registration
Document translation and attestation
Corporate tax registration and bookkeeping
Licence amendment, renewal and cancellation
A founder may choose the AED 6,000 licence then add a residence visa, immigration file, medical test and larger facility. The first-year total will be much higher.
This does not necessarily mean the advertised package is incorrect. It means the package covers a defined group of services and your requirements fall outside them.
Compare the first-year cost and annual renewal cost separately. Ask whether the licence renewal price remains the same and whether immigration, visa and facility renewals happen on different dates.
A written two-year estimate is more useful than comparing licence fees alone.
Documents Required for RAKEZ Company Formation
- The exact document list depends on your nationality, residence status, shareholders, activity and legal form.
- An individual shareholder will usually need:
A clear passport copy
UAE visa or entry-stamp copy, where applicable
Emirates ID copy for UAE residents
Passport-size photograph
No-objection certificate when required
Proposed company names
Selected business activities
Contact details and residential address
Business plan for activities that require one
Ultimate beneficial owner information
A corporate shareholder may also need:
Certificate of incorporation
Memorandum and articles of association
Commercial registration document
Board resolution approving the new company
Certificate of good standing
Shareholder and director records
Passport copies of authorised signatories
Attested or legalised foreign documents
Confirm the latest checklist before arranging legalisation because foreign corporate documents can require several attestation stages.
RAKEZ Company Setup Process
- Define Your Business Model
Write down what you will sell, who will buy it and where customers are located. Be specific because “consulting” may be too broad when the real activity is management, technology or marketing consultancy.
A clear business model also helps with your bank-account application later.
- Select Your Business Activities
Choose activities from the official RAKEZ activity list, which contains more than 6,000 options. Ask whether your chosen activities can appear on one licence and whether any require outside approval.
Avoid adding activities simply because the package permits several. Each activity should have a genuine connection to your planned business.
- Choose the Legal Entity
A small free-zone business commonly uses an FZ-LLC, while an existing UAE or foreign company may open a branch. Liability, ownership and document requirements differ, so decide before applying.
- Reserve the Company Name
Submit several options in case your preferred name is unavailable. The name must follow UAE naming rules and avoid protected, offensive or approval-dependent wording.
- Pick the Facility and Visa Package
A consultant may manage with coworking access. A small team may need a serviced office. A trader could require storage and customs support. A manufacturer may need a warehouse or industrial land.
Visa eligibility is often linked to the package and facility. Check the available visa quota before signing a lease or paying the licence fee.
- Submit the Application
Provide shareholder, manager and beneficial-owner details then upload the supporting documents. Regulated activities may be referred to another authority.
RAKEZ describes the general process as choosing the package and legal structure, submitting the documents and receiving the business licence. You can review the official RAKEZ setup process before applying.
- Pay the Fees and Receive the Licence
Once the application is approved, pay the quotation. RAKEZ then issues the incorporation and licensing documents.
Straightforward applications may be processed quickly. Applications involving industrial premises, regulated activities, corporate shareholders or foreign document attestation usually take longer.
- Complete Immigration and Visa Procedures
Where your package includes residency, complete the establishment-file, entry-permit, status-change, medical-fitness and Emirates ID steps.
The sequence depends on whether you are applying from inside or outside the UAE. Health insurance and additional immigration charges may also apply.
- Open a Corporate Bank Account
Banks run their own compliance checks and may request incorporation papers, contracts, source-of-funds evidence and transaction forecasts.
A RAKEZ licence does not guarantee bank approval. Your business model, nationality, activity, customer countries and expected payments can affect the review.
Nexture’s company formation and business setup service can assist with planning, document preparation, licensing and banking coordination.
Benefits of a RAKEZ Company Setup
Low Starting Cost
The AED 6,000 package gives founders a relatively affordable entry point. It may suit a small service or online business that does not require a bundled residence visa.
Full Foreign Ownership
A RAKEZ free-zone company can be fully foreign-owned. You do not need to transfer part of the company’s equity to a local shareholder simply to complete the incorporation.
More Than 6,000 Activities
The activity list helps founders choose a licence that closely matches the business and may allow several related activities under one licence.
Flexible Workspace
You can choose coworking access, serviced offices, standard offices, warehouses or land based on current requirements. This allows a small business to avoid paying for more space than it needs.
Support for Industrial Businesses
Manufacturers can access larger facilities and industrial infrastructure, subject to planning for utilities, labour, logistics and regulatory approvals.
Online Company Services
RAKEZ Portal 360 lets businesses submit service requests, track applications, make payments and download documents online.
Residence Visa Options
Selected packages include a UAE residence visa or allow extra visas for founders and employees. Always check the quota, validity period and renewal expenses in the written offer.
We’ll model the requirements and send back a single-page breakdown within 24 hours.
Corporate Tax and VAT Rules
A RAKEZ free-zone company remains within the UAE corporate-tax system. It must complete corporate tax registration when required and comply with filing, accounting and record-keeping obligations.
The 0% free-zone corporate-tax rate is not automatic. It applies to qualifying income earned by a Qualifying Free Zone Person that meets the required conditions.
Income that does not qualify may be taxed under the standard corporate-tax rules. Income connected to a permanent establishment outside the free zone can also receive different treatment.
Read Nexture’s UAE corporate tax guide before preparing a financial forecast based on a 0% tax rate.
VAT is separate from corporate tax. A UAE-resident business must generally complete VAT registration with the Federal Tax Authority when taxable supplies and imports exceed AED 375,000 over the previous 12 months or are expected to exceed the threshold within the next 30 days.
Voluntary VAT registration may be available when taxable supplies, imports or qualifying expenses exceed AED 187,500.
Possible Limitations to Consider
RAKEZ will not suit every business. A company serving mainly Dubai customers may prefer an office closer to its clients.
Businesses selling goods directly into mainland UAE must confirm the permitted operating route. Depending on the activity, this may involve a distributor, branch, customs registration or dual licence.
Inspect industrial facilities before making a long-term commitment. Check utility capacity, loading access, permitted production activities and worker-accommodation requirements.
Service companies should verify the available visa quota. Non-resident founders should also consider banking requirements and whether an in-person visit may be needed.
Nexture’s guide to starting a UAE business as a non-resident explains these points in more detail.
Conclusion
A RAKEZ company setup can suit consultants, online sellers, traders and manufacturers seeking competitive pricing, full foreign ownership and flexible facilities.
Focus on the complete operating model rather than the advertised licence fee. Confirm your activities, mainland trading route, visa quota, facility, external approvals, tax position and renewal costs before paying.
Ask for an itemised quotation and calculate at least two years of expected spending. This lets you compare RAKEZ fairly with other free zones and mainland structures.
Frequently Asked Questions
What is the cheapest RAKEZ company setup package?
RAKEZ currently advertises the Biz Starter package at AED 6,000. The final amount can increase when you add visas, immigration services, premises, approvals or other support.
Can a foreign investor own the full company?
Yes. A RAKEZ free-zone company can have 100% foreign ownership.
Does the AED 6,000 package include a residence visa?
Do not assume that it does. RAKEZ separately advertises an AED 14,000 all-inclusive package with one residence visa. Confirm every inclusion in writing before paying.
Can a RAKEZ company trade in mainland UAE?
It depends on the activity and trading method. A free-zone company may need a distributor, agent, branch, dual licence or another approved arrangement for direct mainland business.
How long does company formation take?
Simple applications can be processed quickly and selected packages are promoted as 24-hour or instant routes. Applications requiring outside approval, attested corporate documents or industrial facilities take longer.
Is corporate tax always 0% in RAKEZ?
No. The 0% rate applies only to qualifying income when the company meets the Qualifying Free Zone Person conditions. Free-zone businesses still need to handle registration, filings and proper financial records.
Can I open the company remotely?
Many formation steps can be handled remotely. Banking, immigration or regulated activities may require added documents or an in-person step. Read Nexture’s guide to setting up a UAE company remotely before making travel plans.
