Start Your Business 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.

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.

In the past, Ras Al Khaimah had different free zones, including RAK FTZ and RAKIA. Today, the main authority that manages all free zone operations and issues Ras Al Khaimah Free Zone Trade Licenses 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)

RAKEZ offers many license types fitting various kinds of businesses. Many entrepreneurs choose a RAK free zone license because it offers access to the UAE market while keeping operational costs low. 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.

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.

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.

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.

• 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 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.

Starting a business in Ras Al Khaimah Freezone means you must follow specific legal rules:

• Licensing: You must get the correct trade license from RAKEZ. This depends on what your business does, including:
  • Commercial/General Trading (import/export),
  • Service/Professional (consulting, IT, marketing),
  • Industrial (manufacturing, packaging),
  • Media, Educational, E-commerce, Freelance, among others.

• Company Type: Choose one of the approved legal forms from:
  • Free Zone Establishment (FZE): Single shareholder entity.
  • Free Zone Company (FZC): For 2–50 shareholders
  • Branch Office: Of an existing UAE or foreign company
  • FZ-LLC: Free Zone Limited Liability Company (similar to FZC)
• Registered Address: Your company must have a formal physical address in the free zone. Even a shared desk counts.
• Share Capital: Some free zones require a minimum amount of capital in a bank as company capital, i.e., AED 10,000 (AED 1,000 per share). RAKEZ usually does not require this for common company types. However, a small amount might be written in your company’s legal papers.
• Company Name: Your chosen company name must follow RAKEZ’s rules. It must not be inappropriate or already taken.
• Documents: All required personal and company documents must be valid, complete, and properly checked or translated. For a complete list check the ”Documents Needed for Business Setup in Ras Al Khaimah Freezone” section above.
• Compliance: You must follow all UAE laws. This includes anti-money laundering (AML), Ultimate Beneficial Owner (UBO) disclosure, Corporate Tax, and VAT where applicable.

As of May 2024, an audit of financial statements is mandatory for all free zone. Tax exemptions for free zone companies apply only if you qualify under the FTA’s criteria for “qualifying free zones” and “qualifying activities.

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.

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.

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.

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.