RAK Free Zone License Cost in 2025: What You’ll Actually Pay?

Looking to start a business in the UAE? Look no further than the Ras Al Khaimah (RAK) Free Zone. Business setup in the RAK Free Zone is becoming a top choice for entrepreneurs due to its flexible rules, tax benefits, and excellent location.

But before actually starting a business, it is important to understand the total cost. Applying for a free zone license is just the beginning. You’ll also need to budget for office space, visas, and other fees.

In this guide, we break down the RAK Free Zone license cost in the UAE in 2025. You’ll see the real expenses and hidden charges. This way, you’ll know exactly what you’ll pay to run your business smoothly.

For business setup in the UAE, RAK is increasingly preferred by entrepreneurs aiming for 100% ownership and zero personal or corporate taxes. Compared to other UAE free zones in Dubai and Abu Dhabi, RAKEZ is more affordable and flexible. Besides, it offers a wide range of business licenses for trading, industrial, and professional activities. 

Learn more about what a free zone company in Dubai is to understand how it differs from mainland entities.

Some other benefits offered by this free zone include:

• Flexible licensing options: RAKEZ offers a wide variety of business licenses, including trading, industrial, professional, and e-commerce licenses. This flexibility allows you to choose the license that best fits your business activities.
• Multiple office and warehouse solutions: Whether you need a physical office, flexi-desk, or a warehouse, RAKEZ provides tailored options to suit your requirements. This makes it easy to scale up as your business grows.
• Streamlined registration and approval process: The setup process in RAKEZ is simple and fast. Online applications, quick approvals, and minimal paperwork save you time and reduce stress.
• Strategic location: RAKEZ is well-connected to major UAE ports, airports, and highways. Its location facilitates smooth logistics, international trade, and easy access to regional markets.

For entrepreneurs looking for budget-friendly options, you can also explore the list of the cheapest free zones in the UAE to compare costs before choosing RAK.

Setting up a business in the UAE can be exciting, but understanding the true cost of a RAKEZ license is crucial to avoid unexpected expenses. While RAKEZ promotes transparent pricing with no hidden fees, it’s essential to consider all potential costs involved in the setup process.

Note: Costs are approximate and may vary depending on your business activity, number of visas, and office requirements. It’s recommended to check with RAKEZ or authorized consultants for the most accurate and up-to-date pricing. Contact Safe Ledger today.

Hidden Costs to Consider When Setting Up in RAKEZ

While RAKEZ license fees cover the core setup costs, several additional expenses may arise during the registration, operation, and renewal processes. Being aware of these hidden costs can help you plan your budget more accurately. Common hidden costs include:

• Visa Medical Tests: Mandatory health checks for employees and business owners applying for visas.
• Emirates ID Issuance: Fees for issuing or renewing Emirates IDs for visa holders.
• Document Attestation: Costs for attesting business documents for government or banking purposes.
• Courier and Delivery Charges: Fees for sending documents to government authorities or clients.
• Additional Office or Warehouse Space: Expenses if your business grows beyond the initially rented space.
• Government or Municipality Fees: Occasional charges imposed by local authorities during registration or license renewal.
• Bank Account Processing Fees: Charges associated with opening or maintaining a corporate bank account.

These hidden costs, while not included in the standard license package, can add up. Hence, factoring them into your financial planning is essential.

For a broader understanding of how these expenses fit into a free zone business setup in the UAE, check out our detailed guide on Free Zone Business Setup in the UAE. It covers setup requirements, costs, and key considerations across different UAE free zones.

The cost of obtaining a RAKEZ Free Zone license is not fixed and can vary depending on several key factors. Understanding these factors helps entrepreneurs budget effectively and choose the right package for their business needs.

• Type of License: RAKEZ offers multiple license types, such as commercial, service, industrial, e-commerce, and freelance. Each type has a different fee structure. For example, a general trading license typically costs more than a service license due to additional regulatory requirements.
• Number of Visas: The number of visas included with the license significantly impacts the overall cost. More employee, investor, or dependent visas will increase expenses.
• Office Space Requirements: The license cost can also depend on whether you opt for a flexi-desk, shared office, or private office/warehouse. Larger and fully equipped offices naturally cost more.
• Business Activity: Certain business RAK Free Zone license activities may require extra approvals, certifications, or additional documentation, which can increase license fees.
• Duration and Renewals: Some licenses may include additional charges for longer validity or expedited processing. Annual renewal fees also affect the total long-term cost.
• Professional and Administrative Services: Engaging consultants, PRO services, or legal experts to assist with setup, documentation, or translation can add to the cost of obtaining a license.

Evaluating these factors in advance ensures you select the most cost-effective license while remaining compliant with RAKEZ regulations.

If you are wondering if a free zone company can own property in Dubai, it’s important to note that while free zone companies have some property rights. However, mainland ownership may require special arrangements. Additionally, understanding the difference between free zone and the mainland helps in choosing the right setup for your business goals.

Starting a business in RAKEZ is cost-effective, but there are several strategies to further reduce expenses and make the most of your investment. 

Here are some practical tips:

• Choose the Right License Type: Selecting a license that aligns closely with your business activity can prevent paying for unnecessary features. For example, if you’re a freelancer, a freelance permit may be cheaper than a full commercial license.
• Start with Flexi-Desk or Virtual Office: Instead of opting for a full office space immediately, consider a flexi-desk or virtual office. This can significantly reduce office rental costs while still meeting RAKEZ requirements.
• Plan Visa Requirements Carefully: Only apply for the visas you need initially. You can always add more as your business grows, which helps manage upfront visa costs.
• Bundle Services: Many RAKEZ service providers offer bundled packages for licensing, visas, and office space. Bundling can often save money compared to paying for each service separately.
• Leverage Promotions and Discounts: RAKEZ periodically offers promotional packages or discounts on license fees. Staying updated and timing your application accordingly can reduce costs.
• Use Professional Services Wisely: While PRO and legal services are helpful, shop around for competitive rates. Some tasks, like document translation or minor filings, can sometimes be handled in-house to save on fees.
• Plan for Renewals: Budgeting in advance for annual license and visa renewals prevents last-minute penalties, which can be costly.

Implementing these strategies can help entrepreneurs manage expenses efficiently while ensuring compliance with RAKEZ regulations. This makes business setup smoother and more cost-effective.

Setting up in the RAK Free Zone is a cost-effective way to enter the UAE market. Beyond the license fee, consider visas, office space, and hidden charges to plan your budget accurately. By choosing the right license and optimizing services, you can reduce costs. For smooth setup and expert guidance, SafeLedger can help you navigate all requirements efficiently.