RAKEZ, or Ras Al Khaimah Economic Zone, is a government initiative designed to attract foreign investment by offering a simplified RAKEZ company setup process and low operational costs. It is one of the fastest-growing economic zones in the UAE, hosting over 18,000 companies from more than 100 countries. Located in the northern emirate of Ras Al Khaimah, RAKEZ combines the benefits of a Free Zone and Mainland environment with modern infrastructure and pro-business regulations. It serves a wide range of sectors, including manufacturing, logistics, education, services, trading, and e-commerce.
Why Choose RAKEZ for Your Business?
Setting up a company in RAKEZ offers a wide range of benefits for both entrepreneurs and foreign investors. One of the most attractive features is its cost-effective setup and operations. RAKEZ is known as one of the most affordable economic zones in the UAE, offering low licence fees, flexible leasing solutions, and streamlined registration processes that make it particularly appealing to startups and SMEs. Another significant advantage is the opportunity for 100% foreign ownership, combined with attractive tax benefits. Businesses in RAKEZ enjoy zero personal or corporate income tax and benefit from duty-free import and export within the free zone, significantly reducing operational costs.
Types of Licences Offered in RAKEZ
To align with the diverse business needs of investors, RAKEZ provides several types of business licences:
1. Commercial Licence
For trading in goods, equipment, or materials. Ideal for import-export businesses and local distribution operations.
2. General Trading Licence
Allows for a broader range of goods and commodities under one licence. Suitable for businesses managing multiple product categories or operating as wholesalers.
3. Industrial Licence
For manufacturing, processing, and assembling products. Grants access to RAKEZ’s industrial zones with warehousing and land leasing options.
4. Service Licence
Suited for service-based businesses such as consulting, IT, marketing, and business support. Enables professional firms to operate within RAKEZ or serve international clients remotely.
5. E-commerce Licence
Enables the operation of online trading platforms or digital marketplaces. Supports both B2C and B2B models, enabling integration with digital goods, retail, and logistics.
6. Educational Licence
For training institutes, schools, and other educational service providers. Applicants must meet specific curriculum, faculty, and facility requirements approved by RAKEZ. Each licence type comes with particular activity approvals and may require supporting documentation during the application process.
Business Structures Available in RAKEZ
When proceeding with your RAKEZ company setup, you can choose from the following legal structures.
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Free Zone Establishment (FZE)
A single-shareholder company with limited liability status. Ideal for solo entrepreneurs or holding companies seeking complete control and streamlined governance.
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Free Zone Company (FZC)
Allows for multiple shareholders (individuals or companies). A flexible structure for joint ventures, partnerships, or investment-backed startups.
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Branch of a Local or International Company
An extension of an existing business with no separate legal identity. Suitable for companies wanting to expand to RAKEZ without forming a new entity or meeting share capital requirements.
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RAKEZ Mainland (Dual Licence Option)
A unique structure that provides access to both Free Zone and Mainland markets. Offers a broader market reach and allows you to operate directly in the UAE without a local distributor. Your chosen structure will impact ownership rules, reporting requirements, and visa eligibility.
Step-by-Step Guide to Setting Up a Business in RAKEZ
1. Choose Business Activity
Start by selecting your business activity from RAKEZ’s approved list. It’s crucial that the activity aligns with your operations and complies with UAE laws. Misalignment can result in licence rejections or operational limitations.
2. Select Legal Structure
Decide whether an FZE, FZC, or branch structure best suits your business model. Consider the number of shareholders, liability, and plans for expansion.
3. Reserve Trade Name and Get Initial Approval
- Ensure the business name is unique and follows RAKEZ naming guidelines.
- Apply for initial approval for the trade name and selected activity. (This step usually takes 1–2 business days.)
4. Submit Required Documents
You will need to gather and submit the following
- Passport copy of shareholder(s) and manager
- Visa copy and NOC (if applicable)
- Passport-sized photos
- Proof of address (utility bill not older than 3 months)
- Corporate documents for branches (Certificate of Incorporation, MOA, etc.)
- Business plan for specific activities
Working with a formation expert can help ensure document compliance.
5. Lease Office or Warehouse Facility
RAKEZ offers flexible facilities to suit every business
- Flexi Desks (shared space for freelancers and startups)
- Standard Offices (private space for SMEs)
- Warehouses and Industrial Land (for manufacturing or logistics businesses)
Office leasing is mandatory to obtain your business licence and issue visas.
6. Pay Fees and Obtain Licence
Once your documents and lease agreement are approved, you’ll proceed with payments for
- Registration and licence issuance
- Office or warehouse rent
- Immigration file and establishment card fees
- Visa packages (optional)
Upon payment, your official RAKEZ business licence and registration documents will be issued.
RAKEZ Business Setup Cost Breakdown
| Cost Item | Estimated Cost (AED) |
| Company Registration Fee | 5,000 – 7,000 |
| Licence Fee (by activity) | 10,000 – 15,000 |
| Flexi Desk Lease | 7,000 – 12,000/year |
| Standard Office Lease | 15,000 – 25,000/year |
| Warehouse Rent | Starts at 25,000/year |
| Visa (per person) | 3,500 – 5,000 |
| Emirates ID & Medical Test | 1,500 – 2,000 |
Documents Required to Set Up a Business in RAKEZ
Be sure to prepare the following
- Passport copies of all shareholders and managers
- Proof of residential address
- Passport-sized photographs
- NOC from current UAE employer (if applicable)
- Corporate shareholder documents (if applicable)
- A simple business plan for consultancy, trading, or educational activities
Translations or notarisation may be required for foreign documents.
Business Setup Timeline
The entire RAKEZ company setup process is typically fast and efficient
- Trade name and pre-approval – 1–2 working days
- Document submission and facility lease – 2–3 working days
- Licence issuance – 3–5 working days
- Visa and Emirates ID – 5–10 working days
Fast-track options are available for urgent setups.
Post-Setup Obligations
After your company is formed, ensure the following
- Apply for Visa and Emirates ID – Essential for residency and business operations.
- Open a UAE Corporate Bank Account – Use your licence, MOA, and Emirates ID to open an account.
- Register for VAT (if applicable) – Mandatory if your annual revenue exceeds AED 375,000.
- Annual Compliance – Renew your licence and maintain bookkeeping and audit records as per RAKEZ requirements.
Benefits of Using a Business Setup Consultant
Setting up in RAKEZ is streamlined, but expert support can significantly simplify the process. While the procedures are investor-friendly, navigating licensing rules, document requirements, and government approvals can be overwhelming without local expertise. A professional business consultant bridges this gap by offering the following advantages.
Help with Selecting the Right Structure and Licence
Consultants assess your business model, target market, and long-term goals to recommend the most suitable legal structure and licence type. This ensures regulatory compliance and prevents costly restructuring later.
Accurate Document Preparation and Submission
Every jurisdiction has unique paperwork, including MOAs, business plans, and identification documents. Consultants prepare and review your records in line with RAKEZ’s requirements, avoiding rejection due to errors or omissions.
Quicker Approvals and Reduced Risk of Rejections
Experienced consultants have established relationships with RAKEZ authorities, helping to fast-track your application. They also know how to handle edge cases like unusual business activities or cross-border ownership structures.
Support with Visa Processing, Banking, VAT, and Accounting
After licence issuance, setup experts can assist in opening a UAE corporate bank account, applying for investor and employee visas, and registering for VAT. They also connect you with accounting firms or handle bookkeeping in-house.
Long-term Assistance with Renewals and PRO Services
Consultants don’t just help with setup, they offer ongoing support through annual licence renewals, document attestation, employee visa renewals, and compliance with labour and immigration rules. This is especially helpful for foreign investors, remote entrepreneurs, and first-time founders who may not be familiar with UAE regulations or Arabic-language documentation.
Final Thoughts
The RAKEZ company setup offers businesses a gateway to the UAE’s dynamic market with unmatched affordability, infrastructure, and government backing. Whether you’re a freelancer, manufacturing unit, or trading company, RAKEZ provides tailored solutions to match your goals. Plan wisely, choose the correct business structure, and seek expert support to launch confidently. With its strategic advantages and ease of setup, RAKEZ is a wise choice for businesses ready to expand in the Middle East and beyond.
