Business setup in UAE free zones

RAKEZ - Ras Al Khaimah Economic Zone (ex. RAK FTZ)

verified by : Elena Ovchinnikova

05 Jan 2024

RAKEZ Overview

RAKEZ stands for Ras Al Khaimah Economic Zone. It was established after the consolidation of 2 free zones – RAK Free Zone and RAK Investment Authority, which made the zone really huge.

It is one of the most popular free zones for business setup in the UAE – even people who have not heard much of UAE free zones, know about it and are interested in business setup in Ras Al Khaimah. It is situated not far from RAK Airport and has a seaport in close proximity, which makes for a very strategic location.

RAKEZ consists of 6 different field-specific zones.

  1. AL Ghail Industrial Zone. This zone is dedicated to massive industrial manufacturers.
  2. Al Hamra Industrial Zone. This zone is suited for enterprises in light and heavy industry sectors.
  3. RAKEZ Academic Zone. This zone hosts top international education institutions and service vendors.
  4. Al Hulaila Industrial Zone. This zone is meant for heavy industry producers.
  5. Al Nakheel Business Zone. This zone includes top-notch business centers for freelancers and SMEs.
  6. AL Hamra Business Zone. This zone is a business space with access to commercial, industrial, and logistics hubs, as well as entertainment and residential facilities.

Ras Al Khaimah Economic Zone is home to over 18,000 companies including entrepreneurs, SMEs, freelancers, startups, and manufacturers. It is a global-scale business and industrial hub covering over 50 industry sectors and providing free zone and non-free zone company formation solutions.

Free zone offices and warehouses

Ras Al Khaimah company formation would be a good option for any business, but it’s specifically suitable for companies that need warehousing facilities.

RAKEZ is one of the few free zones that always has customizable warehouses and plots of industrial land for development. You can also build or rent ready-made staff and labor accommodations. They have all the benefits that Jebel Ali company setup offers but suit much smaller budgets.

Ras Al Khaimah Economic Zone has offices in RAK and Abu Dhabi. You can opt for a flexi-desk or a smart office in any of these Emirates. In Abu Dhabi, the cost will be about 2,000 AED higher. Office types vary from co-working spaces with flexi-desks to executive offices and are tied to the number of eligible visas.

Ras Al Khaimah economic zone activities

Ras Al Khaimah business license can be obtained for a huge variety of business activities, and you can be sure that you will find what you need.

The activity array of RAKEZ is one of the largest among all the UAE free zones. Activities are divided into license categories that in turn are divided into multiple groups, each with its own activity list.

Some activities require a company manager to have a relevant educational degree, which should be proved by a certificate attested in UAE Embassy in the country of origin. Usually such activities are related to a professional service that requires certain qualifications, for example:

  • Accounting and bookkeeping
  • Architectural design and consultancy
  • Aviation consultancy
  • Communication engineering consultancy and many more.

RAKEZ has enforced substance requirements and many activities now fall under it. They will need to be registered under special conditions, such as:

  • Dedicated office space or a warehouse
  • Submission of a business plan
  • Having a company manager on the company resident visa

RAKEZ License costs

Here is the list of licenses offered by RAKEZ:

  • Commercial
  • Services
  • Industrial
  • Media
  • Educational
  • Individual/Professional
  • E-Commerce
  • General Trading
  • Business Invest
  • Freelance Permit

Ras Al Khaimah Free Trade Zone Authority often runs promotions and discount campaigns. The prices are reasonable starting from 5,499 AED for a zero-visa company with a 1-year contract.

RAKEZ also has a special product for women called BusinessWomen with prices 40% lower than usual. If you are a woman, you can pick any package and any activity and simply pay less!

Apart from that, if you want to save money in the long run, you can register a 3-year package. The discount in this case will be 25%. On top of that, all resident visas under the company will be free of charge.

RAKEZ cheapest license package fees:

Type of licence Cost, AED
Zero-visa Commercial/Services/Media/E-Commerce/Education package 5,499
1 visa Individual/Professional package 13,000
1 visa Commercial/Services/Media/E-Commerce/Education package 13,500

In addition, the 1 visa starter package allows for a combination of General Trading and E-Commerce licenses. You can choose either of them as the primary license, and the other one will come free of charge.

RAKEZ Free zone company setup

Business setup in Ras Al Khaimah can be done within about a week. Your personal visit will be required, but you don’t have to go all the way to Ras Al Khaimah - you can visit the zone’s representative office in Dubai.

Company formation types in RAKEZ include FZEs (Free Zone Establishments) with a single shareholder, FZCs (Free Zone Company) with 2-5 shareholders, and branches of both local and foreign companies.

RAKEZ also has international offices in India, Turkey, and Germany, where your application can be filed.

The Ras Al Khaimah company register is not open to the public and kept confidential.

In case your setup is rejected due to any force majeure reason after you have made the payment to the free zone, you will be granted a 100% refund.

RAKEZ Resident visas

Packages start with zero visas and go up to 4 visas in case you rent a ready-made executive office. Of course, if you rent a warehouse, for example, your company will be eligible for more visas since you’ll need to hire more staff.

RAKEZ visa costs in AED:

  RAKEZ fee, AED Medical checkup, AED Emirates ID, AED
Investor 3,850 300 370
Employee 3,800 + 2,000 deposit 300 370

Health insurance is not mandatory for RAKEZ company owners, but it will be required for the dependents in case you open visas for your family members.

RAKEZ Company renewal

Ras Al Khaimah business license renewal costs 1,000 AED less than the incorporation. Renewal can be done without the personal presence of the shareholder.

RAKEZ requires financial audits of the companies. You need to submit it at the end of your financial year, which would be December by default or another month of your choice.

RAKEZ Company amendments

The company can be amended at any time. The most frequently happening amendments include the following changes:

  • Shareholders/managers
  • Company name
  • Business activity
  • Office facility

Personal presence of the shareholder or manager is required for the application for the amendments.

RAKEZ Business liquidation

Ras Al Khaimah free trade zone company liquidation takes about 3-4 weeks. Make sure to cancel all the visas under the company before you apply for its liquidation.

The government cost of company closure is 3,500 AED.

Expert opinion

Overall, we usually recommend RAKEZ to those who are looking to open an industrial, manufacturing, or assembling business due to its ready-made facilities. It can also be recommended to individual professionals, startups, and SMEs as it offers flexi-desks, co-working spaces, and offices.

Apart from that, if you want to have a physical office and do not require a location near Dubai, RAKEZ would be a perfect choice as well.

If you are residing in Abu Dhabi and want to have an office facility with a reasonable price there, RAKEZ is also the free zone of your choice.

If you want to check other options, have a look at SHAMS company formation as a possible alternative.

Benefits of RAKEZ company

  • High chances to get 1 resident visa package for "high risk nationalities" (Bangladesh, Lebanon, Egypt, and others)
  • Reasonable price of executive offices with location in RAK and flexi-desks in Abu Dhabi
  • No E-channel Deposit for packages with flexi facility
  • Large variety of business activities
  • Readily available warehouses of any sizes
  • Own seaport within RAKEZ Free Zone
  • No income tax
  • RAKEZ company can hold real estate property in Dubai

Start your business in RAKEZ today

Freelance permit costs in RAKEZ free zone

Up to 2 years visa

LICENSE TYPE VISAS INCLUDED TOTAL COST
Freelance permit 1 year visas AED 17,070 $4,800 download breakdown
Freelance permit 2 years visas AED 22,920 $6,300 download breakdown

Commercial, service, e-commerce, media and educational license costs in RAKEZ free zone

Up to 4 visas company – commercial, service, e-commerce, media, educational

LICENSE TYPE VISAS INCLUDED TOTAL COST
Commercial/Service/E-Commerce/Media/Educational license no visas AED 17,840 $4,900 download breakdown
Commercial/Service/E-Commerce/Media/Educational license 1 visa AED 27,465 $7,550 download breakdown
Commercial/Service/E-Commerce/Media/Educational license 2 visas AED 36,491 $10,000 download breakdown
Commercial/Service/E-Commerce/Media/Educational license 3 visas AED 47,530 $13,050 download breakdown
Commercial/Service/E-Commerce/Media/Educational license 4 visas AED 54,426 $14,950 download breakdown

Up to 6 visas company – commercial, service, e-commerce, media, educational

LICENSE TYPE VISAS INCLUDED TOTAL COST
Commercial/Service/E-Commerce/Media/Educational license 5 visas AED 70,818 $19,400 download breakdown
Commercial/Service/E-Commerce/Media/Educational license 6 visas AED 77,764 $21,350 download breakdown

General trading license costs in RAKEZ free zone

Up to 2 visas company

LICENSE TYPE VISAS INCLUDED TOTAL COST
General Trading - Flexi Desk 1 visa AED 37,202 $10,200 download breakdown
General Trading - Flexi Desk 2 visas AED 44,148 $12,100 download breakdown

Up to 4 visas company

LICENSE TYPE VISAS INCLUDED TOTAL COST
General Trading - Flexi Desk 1 visa AED 39,587 $10,850 download breakdown
General Trading - Flexi Desk 2 visas AED 46,958 $12,900 download breakdown
General Trading - Flexi Desk 3 visas AED 53,780 $14,750 download breakdown
General Trading - Flexi Desk 4 visas AED 60,426 $16,550 download breakdown

Up to 6 visas company

LICENSE TYPE VISAS INCLUDED TOTAL COST
General Trading - Flexi Desk 5 visas AED 77,818 $21,350 download breakdown
General Trading - Flexi Desk 6 visas AED 84,764 $23,250 download breakdown

Businesswomen commercial and service license costs

Up to 1 visa freelance

LICENSE TYPE VISAS INCLUDED TOTAL COST
Freelance permit 1 visa AED 10,101 $2,750 download breakdown

1 year license

LICENSE TYPE VISAS INCLUDED TOTAL COST
License Women in power - Service. Trading no visa AED 14,980 $4,150 download breakdown
License Women in power - Service. Trading 1 visa AED 27,448 $7,520 download breakdown
License Women in power - Service. Trading 2 visas AED 35,954 $9,850 download breakdown
License Women in power - Service. Trading 3 visas AED 45,184 $12,400 download breakdown
License Women in power - Service. Trading 4 visas AED 52,130 $14,300 download breakdown
License Women in power - Service. Trading 5 visas AED 62,554 $17,150 download breakdown
License Women in power - Service. Trading 6 visas AED 69,500 $19,050 download breakdown

3 years license with 40% discount and free investor visa options

LICENSE TYPE VISAS INCLUDED TOTAL COST
License Women in power - Service. Trading 1 visa AED 43,187 $11,850 download breakdown
License Women in power - Service. Trading 2 visas AED 54,423 $14,950 download breakdown
License Women in power - Service. Trading 3 visas AED 66,540 $18,200 download breakdown
License Women in power - Service. Trading 4 visas AED 73,486 $20,150 download breakdown
License Women in power - Service. Trading 5 visas AED 89,528 $24,550 download breakdown
License Women in power - Service. Trading 6 visas AED 96,474 $26,450 download breakdown

Documents for Ras Al Khaimah economic zone setup

DOCUMENTS

PROCEDURE

INDIVIDUAL SHAREHOLDER

  • Passport
  • Latest utility bill as address proof
  • Passport size photo
  • NOC from sponsor for UAE visa holders
  • 1 week- Security approval
  • 1 time- Visit RAKEZ for document signing
  • 3 days- Company establishing
  • 1 week- Establishment card
  • 1 week- Entry permit
  • 1 day- Medical Check-Up and Emirates ID
  • 3 days- Visa stamping

Top 10 questions about RAK Economic Zone company

  • Can I open a bank account remotely?

    No, a personal visit to the UAE is required as per the regulations of the UAE Central Bank. Local banks require this visit to verify the client's identity.

  • Do banks give debit and credit cards or loans?

    In most cases, you can obtain a debit card for your newly opened company, especially if there is only one shareholder. However, a credit card is usually issued against a fixed deposit. As for loans, banks may consider your eligibility based on your company's operations and profits. It is recommended to apply for a loan after at least one year of company operations.

  • Can a free zone company have offices outside the free zone?

    Officially, the office of a free zone company should be located within the free zone where it is registered. However, if you need an office in Dubai, you have the option to rent space in a Business Center and use it on a flexible basis. It is important to note that the minimum required space (flexi desk) in the free zone cannot be canceled.

  • Why do I need a flexi desk or office?

    A flexi desk is a mandatory requirement for any company eligible for resident visas. It serves as the minimum physical office space that a company with individuals under its visa must have. Additionally, a flexi desk can facilitate bank account opening as banks require evidence of a company having some form of office or physical presence.

  • Do free zone companies need to pay VAT?

    VAT obligations depend not only on the place of registration but also on where the business activities take place. VAT becomes applicable when the taxable turnover reaches AED 375,000. If a free zone company's trading activities take place abroad, the turnover is not considered taxable as long as the transactions occur outside the UAE. However, if goods are imported to the UAE, VAT at a rate of 5% must be added to invoices and paid.

  • Are there any other taxes to be paid?

    The UAE is free from income tax. However, there is a 5% import tax on goods brought into the country and a 5% VAT on trading or service transactions that occur within the UAE.

    On June 1, 2023, the UAE introduced 9% corporate tax, however, companies registered in UAE free zones are exempt from this tax if they do not make profits from activities on the UAE mainland or this profit is less than AED 375,000 per year. Branches of companies registered in free zones and carrying out activities on the mainland will be taxed at the mainland rate.

  • Why would a free zone company be better for me than an offshore or mainland entity?

    The suitability of a free zone company versus an offshore or mainland entity depends on your business model and requirements. However, a free zone setup offers advantages such as 100% foreign ownership, eligibility for resident visas, the ability to conduct business both within and outside the UAE, and greater favorability with banks compared to offshore companies. Additionally, free zones often offer flexi desk spaces instead of executive offices, making it a cost-effective way to start a business without unnecessary obligations.

  • Can you guarantee the opening of a bank account?

    While we strive to make the account opening process as smooth as possible, we cannot guarantee the approval as it ultimately depends on the bank. Each case goes through several bank departments for approval, and the bank may contact you directly for clarifications. Providing a clear picture of your business to the bank increases the chances of successful account opening. We do our best to prepare you and your company for a smooth and fast account opening process.

  • When and how should I renew my company? How much does it cost?

    Your company should be renewed annually, and the cost is typically lower than the initial setup cost. The renewal fees depend on your company package, and you can obtain the price by downloading the Estimate from our website. Company renewal does not require the personal presence of the owner and can be done by your agent. After renewal, the new license must be presented to the bank to extend the bank account, which is included in our renewal service.

  • How can I pay the fees?

    You have multiple options for fee payment. You can make payments via bank transfer, cash, or online using a card.

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