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Overview of Business Setup in Ras Al Khaimah Free Zone

Ras Al Khaimah (RAK) is one of the fastest-growing investment destinations in the UAE, and its Ras Al Khaimah Economic Zone (RAKEZ) is a top choice for entrepreneurs seeking cost-effective, globally connected business setups. Known for its competitive pricing, strategic location, and investor-friendly policies, RAK Free Zone offers an ideal gateway to the Middle East, Africa, Europe, and Asia.

RAK Free Zone combines Dubai-level connectivity with lower operational costs. It’s especially attractive for startups, SMEs, and manufacturing businesses that need warehousing and industrial facilities without the high price tag of other UAE free zones.

Why Pick Ras Al Khaimah Free Zone for Your Business?

The Ras Al Khaimah Economic Zone (RAKEZ) is the main free zone in RAK. Many people choose it for clear reasons:

  • Low Costs: RAKEZ is known for being very affordable. This includes lower fees to set up. Office choices are also cheaper.
  • Full Foreign Ownership: You can own 100% of your business even if you are a foreign owner from another country apart from the UAE. You do not need a local partner from the UAE.
  • No Corporate Taxes: You will pay 0% company tax on profits that qualify. There is also no personal income tax. You also pay no customs duties on goods you bring in or send out.
  • Easy Money Transfer: You can easily send all your profits and money back to your home country.
  • Quick Processing: The process to get your license is fast. It often takes only a few days.
  • Good Location: RAK is well-placed. It is close to major shipping routes and airports. This helps businesses reach markets in the Middle East, Asia, and Africa.
  • Wide Range of Facilities: RAKEZ offers many options for offices, storage buildings (warehouses), and industrial land. These fit different business needs.
  • Simple, Transparent Regulations: Clear licensing rules, digital compliance via customer portals, and sector-specific support make governance streamlined and investor-friendly.

How Many Free Zones Are There in Ras Al Khaimah?

In the past, Ras Al Khaimah had different free zones. These included RAK FTZ and RAKIA. Today, the main authority that manages all free zone operations and licenses in Ras Al Khaimah is the Ras Al Khaimah Economic Zone (RAKEZ).

RAKEZ runs several special zones for different business needs:

  • RAKEZ Business Zone
  • RAKEZ Industrial Zone (including Al Hamra, Al Ghail, and Al Hulaila)
  • RAKEZ Technology Park
  • RAKEZ Academic Zone
  • RAK Maritime City Free Zone (RMCFZ)

Types of Licenses in Ras Al Khaimah Freezone

RAKEZ offers many license types fitting various kinds of businesses. The main types include:

  • Commercial License: For buying, selling, importing, and exporting goods. This can be:
    • General Trading License: Allows trading in many different products.
    • Specific Trading License: For trading only certain types of products (e.g., electronics, food).
  • Service License: For businesses that provide services. This includes business advice, marketing, IT services, advertising, education, healthcare, and real estate services.
  • Industrial License: For businesses that make, produce, assemble, or package goods.
  • Professional License: For people or companies offering special services that need specific skills (e.g., legal, engineering, accounting).
  • E-commerce License: For online shops and businesses selling products or services through websites.
  • Media License: For businesses in media, publishing, advertising, and broadcasting.
  • Educational License: For schools, colleges, training centers, and online learning platforms.
  • Freelancer Permit: A special license for independent professionals working for themselves (e.g., in media, education, or IT).

RAKEZ also lets you combine several related activities under one license. This gives great freedom for businesses that do different things. Always check that your exact activities are allowed under your chosen license.

Documents Needed for Business Setup in Ras Al Khaimah Freezone

Having the correct documents required for business setup at RAKEZ makes the process smooth and quick:

For Individual Owners and Managers:

  • Passport Copy: A clear, color copy of your passport. It must be valid for at least 6 months.
  • UAE Visa Copy (if you live in the UAE): If you already have a visa to live in the UAE.
  • Emirates ID Copy (if you have one): A copy of both sides of your UAE national ID card.
  • Passport-Sized Photograph: A recent photo of yourself with a white background.
  • No Objection Certificate (NOC): If you work in the UAE under another company's visa, you might need a formal letter from your current employer saying they agree.
  • Resume (CV): Your work history paper. This is sometimes needed, especially for certain jobs or for the manager.

For Companies Owning Shares (Corporate Shareholders):

  • Certificate of Incorporation / Registration: Proof that the parent company exists.
  • Memorandum and Articles of Association (MOA/AOA): These are the main legal rules of the parent company.
  • Board Resolution: A formal decision from the parent company's board of directors. It must clearly state the choice to set up a new company (or branch) in RAKEZ. It also needs to name the person who will manage it and show how shares are owned.
  • Certificate of Incumbency / Good Standing Certificate: Papers from the parent company's home country. This lists the current directors and owners. They also confirm the company is legally active.
  • Trade License / Business Registration Certificate: Proof of the parent company's active business license.
  • Chamber of Commerce and Department of Economic Development registrations (If applicable).

Important Notes for All Documents:

  • Translations: Any documents not in English or Arabic must be legally translated into English. A certified translator in the UAE must do this.
  • Official Checks (Attestation/Legalization): Company documents from outside the UAE may need special stamps and checks. This usually involves several steps:
    1. Getting them officially signed (notarized) in their home country.
    2. Getting them checked by the Foreign Affairs Ministry in that country.
    3. Getting them checked by the UAE Embassy in that country.
    4. A final check by the UAE Ministry of Foreign Affairs.

It is wise to talk to a business setup expert like SafeLedger. They can ensure all your papers meet IFZA and UAE legal rules.

How to Set Up a Business in Ras Al Khaimah Freezone?

Setting up your business in Ras Al Khaimah Freezone is a straightforward process. Here are the steps:

Step 1: Define Your Business & License Type:

  • Decide exactly what your business will do.
  • Choose the best license type from RAKEZ's options.

Step 2: Choose a Company Name:

  • Pick a unique company name. It must follow UAE naming rules.
  • Send it to RAKEZ for approval and to save it.

Step 3: Select Your Company Type:

  • Decide on the type of company:
    • Free Zone Establishment (FZE): For one owner.
    • Free Zone Company (FZC): For two or more owners.
    • Branch Office: This is an extension of an existing company.

Step 4: Choose Your Office Space:

  • Select the type of office space you need (shared desk, private office, warehouse, or land).

Step 5: Submit Documents & Application:

  • Provide all the required personal and company documents.
  • Fill out the application forms. Send them to RAKEZ.

Step 6: Sign Legal Documents:

  • Sign the necessary company agreements (like the main company agreement or lease agreement). This can often be done remotely.

Step 7: Pay Fees:

  • Pay the fees for your chosen license, registration, and office space.

Step 8: Receive Your License & Company Documents:

  • Once approved, RAKEZ will give you your business license and other legal papers.

Step 9: Open Corporate Bank Account:

  • Use your new company documents to open a business bank account in a UAE bank.

Step 10: Apply for Visas (if needed):

  • If you or your employees need to live in the UAE, you can then apply for visas. This includes medical tests and getting the Emirates ID.

Business Setup Cost & Prices in RAKEZ

The cost to set up a business in Ras Al Khaimah Free Zone is extremely affordable. How much you pay depends on certain choices:

  • License Type: Different business activities need different licenses. These licenses have varying fees.
License Type Approximate Starting Cost (AED)
Commercial From ~5,500 AED
Professional From ~6,000 AED
Industrial From ~7,500 AED

 

  • Business Activities: If your business has many different activities, this might affect the total cost.
  • Office Space: You can pick from:
    • Flexi-desk/Co-working space: This is the cheapest choice, optionally from ~5,499–6,000 AED. You share a desk in a common area.
    • Flexi-desk with visa eligibility: From ~6,500 AED.
    • Dedicated office: This is a private office space. It costs more typically from around 10,000 AED and up.
    • Warehouse/Industrial land: For making or storing products, these are the most expensive choices, with prices varying widely based on size and customization.
  • Investor or Employer Visa: The number of visas you need for yourself and your employees will add to the cost. Packages often include some visas. Extra ones cost more between ~3,500–5,000 AED (including medical test, Emirates ID, stamping).
  • Extra Services: Things like legal help, document translation, and hiring a business setup consultant in Ras Al Khaimah will add to your total expense.

Estimated Costs for the First Year:

A basic license package (without visas and with a shared desk) can start from about AED 6,000 to AED 10,000. Packages with visas and private office spaces will be more expensive. They might range from AED 20,000 to AED 40,000 or more. It is best to ask for a specific price quote for your exact business.

RAKEZ Free Zone Company Formation Options: Top Zones

RAKEZ offers flexible options for different business needs:

  • Business Zone: For companies that work mainly from an office.
  • Industrial Zone: For making products, production, and heavy industries.
  • Technology Park: For trading and light manufacturing.
  • Academic Zone: For schools and training centers.
  • Al Hamra Industrial Zone: Good for both light and heavy industrial work.
  • Al Ghail Industrial Zone: Best for very large industrial manufacturing.
  • Al Hulaila Industrial Zone: Also for heavier industrial manufacturing.

RAKEZ also has packages that combine a license, office space, and visa eligibility. This makes setup simpler.

Government Authorities for Business Process

The main government authority for business setup in Ras Al Khaimah Free Zone is:

  • Ras Al Khaimah Economic Zone (RAKEZ): This is the main authority. It issues licenses, regulates free zone companies, and provides all services for registration, visas, and facilities.

Other authorities might be involved for specific business activities:

  • Federal Tax Authority (FTA): This authority handles Company Tax registration and reports, and VAT registration (if needed).
  • Ministry of Human Resources & Emiratisation (MOHRE): This ministry deals with work contracts and visa processes. Free zones often have their visa departments, but they follow MOHRE rules.
  • Immigration Department (ICP): This department handles entry permits, the Emirates ID, and residency visas.
  • Other Bodies: Depending on your business (e.g., healthcare, education), you might need more approvals from specific ministries or departments in the UAE.

Role of Business Setup Consultants in Ras Al Khaimah

Business setup consultants in Ras Al Khaimah are very important. They make your company formation smooth and easy. Their expert knowledge is very valuable. This is especially true for foreign investors who do not know the local laws.

Consultants can help you with:

  • Legal Advice: Guiding you on the best company type and license for your business.
  • Document Preparation: Making sure all your papers are correct and properly checked.
  • Application Submission: Handling all paperwork and sending applications to RAKEZ.
  • Government Contact: Acting as your representative with RAKEZ and other government groups.
  • Visa Processing: Helping with visa applications for owners and employees.
  • Bank Account Opening: Helping you prepare papers and guiding you through opening a business bank account.
  • Ongoing Rules: Advising on yearly renewals, tax duties (Company Tax, VAT), and other legal rules.
  • Saving Time and Money: They help prevent mistakes that could cause delays or extra costs.
  • Market Information: Giving useful information about the local market and business environment.

Hiring an experienced consultant can greatly simplify your business setup in Ras Al Khaimah Free Zone.

Target Sectors & Ideal Business Activities in Ras Al Khaimah Freezone

Ras Al Khaimah Freezone (RAKEZ) supports many different industries. Some of the main areas and good business activities include:

  • Trading: General trading, import/export, retail (online and in shops), and specialized trading of goods.
  • Services: Business advice, marketing, IT services, HR services, legal advice, financial advice, and other professional services.
  • E-commerce: Online stores and digital shops.
  • Manufacturing & Industrial: Making products, assembling, packaging, and industrial production.
  • Logistics & Warehousing: Managing supply chains, sending goods, and providing storage. These benefit from RAK's good location.
  • Education & Training: Schools, training centers, and online learning.
  • Media: Creating content, media production, advertising, and publishing.
  • Healthcare: Clinics and medical centers (these need special approvals).
  • Freelancing: Individuals working for themselves in various fields.

RAKEZ's different zones (Business, Industrial, and Academic) are made to support these diverse areas.

Risks, Challenges for a Business Setup in Ras Al Khaimah Freezone

While starting a business in Ras Al Khaimah Freezone has many advantages, it is wise to know about possible risks:

  • Limited Access to Mainland UAE: Free zone companies usually cannot directly sell goods or services to customers in the main part of UAE. They would need a local distributor or a mainland branch.
  • Changing Rules: UAE laws (especially tax laws like Corporate Tax) can change. Businesses must stay updated to follow all rules.
  • Annual Renewals and Rules: Missing deadlines for renewing your license, sending tax reports (VAT, Corporate Tax), or other declarations can lead to fines.
  • Visa Limits: The number of visas you can get might depend on your chosen office space. Smaller offices might limit visa applications.
  • Bank Account Opening: While free zone companies can get bank accounts, sometimes opening a business bank account in the UAE can be hard due to strict rules.
  • Finding Skilled Workers: Finding special talent in RAKEZ might mean looking in other parts of the UAE or in other countries.
  • Dependence on Free Zone Authority: Your business operation is directly controlled by RAKEZ's rules. Changes in their rules can affect your business.
  • Difficulty in Closing Business: Closing a free zone company involves specific steps. You must meet all your duties to avoid future problems.

Despite these, good planning and help from business setup consultants in Ras Al Khaimah can help you overcome most challenges.

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Frequently Asked Questions (FAQs)

The main free zone authority in Ras Al Khaimah is RAKEZ (Ras Al Khaimah Economic Zone). It oversees and regulates all business activities within the emirate’s free zone areas, offering a range of business licenses and facilities for investors across various sectors.

Q-1. What is the main free zone in Ras Al Khaimah?

The main free zone authority in Ras Al Khaimah is RAKEZ (Ras Al Khaimah Economic Zone). It oversees and regulates all business activities within the emirate’s free zone areas, offering a range of business licenses and facilities for investors across various sectors.

Q-2. How much does it cost to set up a business in Ras Al Khaimah Free Zone?

RAKEZ setup costs typically start from AED 6,000 to AED 10,000 for basic license packages. The final cost depends on factors like business activity, office type (flexi-desk or physical space), visa requirements, and additional services like legal documents or approvals.

Q-3. How long does it take to set up a company in RAKEZ?

Company formation in RAKEZ is efficient and fast. If all required documents are submitted correctly, the business license is usually issued within 2 to 5 working days, making it one of the quickest jurisdictions for UAE company setup.

Q-4. Can a person from another country own 100% of a company in RAKEZ?

Yes, 100% foreign ownership is fully allowed in RAKEZ. You don’t need a local Emirati partner or sponsor. This makes it highly attractive for international entrepreneurs seeking complete control of their UAE business.

Q-5. Do RAKEZ companies pay company tax?

RAKEZ companies that meet Qualifying Free Zone Person conditions can enjoy a 0% corporate tax on qualifying income. However, all businesses must register with the Federal Tax Authority (FTA) and comply with tax reporting and filing requirements annually.

Q-6. What types of licenses are available in RAKEZ?

RAKEZ offers various license types, including:

  • Commercial,
  • Service,
  • Industrial,
  • E-commerce,
  • Media,
  • Educational,
  • Professional, and
  • Freelancer licenses.

The license type you choose depends on your business activity and operational needs.

Q-7. Do I have to be in RAK in person to set up my company?

No, physical presence in RAK is not required for most company formations. The entire process can be done remotely through email and courier services, especially when working with a licensed business setup consultant or authorized agent.

Q-8. What are the main benefits of setting up in RAKEZ?

RAKEZ offers several advantages:

  • 100% foreign ownership,
  • 0% personal and corporate tax,
  • Full profit repatriation, customs exemptions,
  • Cost-effective setup, and
  • Fast licensing.

It’s ideal for SMEs, startups, and international businesses looking for UAE market entry with minimal overhead.

Q-9. What is the role of business setup consultants in Ras Al Khaimah?

Business setup consultants handle the end-to-end process, company formation, document preparation, government approvals, visa services, and compliance. They reduce errors, save time, and ensure you meet RAKEZ and UAE legal requirements from start to finish.

Q-10. What are the main documents needed for RAKEZ setup?

For individuals: passport copy, visa or Emirates ID (if applicable), passport-size photo, and address proof. For corporate shareholders:

  • Certificate of Incorporation,
  • Memorandum and Articles of Association,
  • Board Resolution, and
  • A Valid Good Standing Certificate from the parent company.

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Smooth Company Setup, but Communication Can Improve

I recently used SafeLedger.ae to set up my UAE Free Zone company and the overall experience was positive. The onboarding process was smooth, and they guided me through documentation, licensing, and Emirates ID formalities efficiently. I especially appreciated how everything was coordinated online, which saved me a lot of time.That said, there were moments where communication lagged, especially when I had follow-up. A bit more proactive client communication would make the experience flawless.Overall, SafeLedger is a good choice for entrepreneurs looking to establish a business in the UAE at a reasonable cost. Just keep in mind to stay on top of follow-ups to avoid delays.
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Sahil Seth

May 12, 2025

I had an exceptional experience…

I had an exceptional experience registering my company with them. They lived up to their promises, delivered results on time, and were always available to address my queries. Their support throughout the process made launching my new venture smooth and hassle-free.
sadhika chopra

sadhika chopra

Aug 9, 2024

Best service provider

Best experience I have ever faced in a service based industry. They took regular follow ups in a very professional way and are very understanding as well. It was a hassle free experience throughout the journey.
ANSHAM

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Aug 9, 2024

I wanted to express my gratitude for…

I wanted to express my gratitude for the seamless incorporation process. The experience was smooth and efficient, and your team's professionalism and attention to detail were greatly appreciated.Thank you for your support and excellent service throughout this process.
Yashika Agarwal

Yashika Agarwal

Aug 9, 2024

Safe ledger made my incorporation…

Safe ledger made my incorporation journey to smooth and also made sure that I will experience the best.Thanks for the efforts to the whole safe ledger team, They are excellent in what they are doing right now.For sure will suggest them
Kashish Gupta

Kashish Gupta

Aug 9, 2024

I had a great experience while…

I had a great experience while incorporating my new venture through Safe Ledger FZCO
Chirag Yadav

Chirag Yadav

Aug 9, 2024

5/5

Smooth Company Setup, but Communication Can Improve

I recently used SafeLedger.ae to set up my UAE Free Zone company and the overall experience was positive. The onboarding process was smooth, and they ...

Sahil Seth

Sahil Seth

May 12, 2025

5/5

I had an exceptional experience…

I had an exceptional experience registering my company with them. They lived up to their promises, delivered results on time, and were always availabl...

sadhika chopra

sadhika chopra

Aug 9, 2024

5/5

Best service provider

Best experience I have ever faced in a service based industry. They took regular follow ups in a very professional way and are very understanding as w...

ANSHAM

ANSHAM

Aug 9, 2024

5/5

I wanted to express my gratitude for…

I wanted to express my gratitude for the seamless incorporation process. The experience was smooth and efficient, and your team's professionalism and ...

Yashika Agarwal

Yashika Agarwal

Aug 9, 2024

5/5

Safe ledger made my incorporation…

Safe ledger made my incorporation journey to smooth and also made sure that I will experience the best.Thanks for the efforts to the whole safe ledger...

Kashish Gupta

Kashish Gupta

Aug 9, 2024

5/5

I had a great experience while…

I had a great experience while incorporating my new venture through Safe Ledger FZCO

Chirag Yadav

Chirag Yadav

Aug 9, 2024

5/5

I had a fantastic experience with Safe…

I had a fantastic experience with Safe Ledger for registering our business, all thanks goes to Safe Ledger and their professional team to help me with...

Humza zaini

Humza zaini

Aug 8, 2024

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