Ras Al Khaimah · UAE
RAK freezone company formation
Ras Al Khaimah has become one of the UAE's busiest gateways for international founders, and RAK freezone company formation is the route most of them take. The process is largely digital, cost-competitive, and built around the Ras Al Khaimah Economic Zone (RAKEZ). The notes below set out how it works, what it costs in 2026, and the choices that shape a typical setup.
What does RAK freezone company formation cost in 2026?
Pricing for RAK freezone company formation is modular, so the headline figure depends on the licence type, the number of activities, the office facility, and how many visas are attached. Entry-level, zero-visa packages start at roughly AED 5,499 to 6,000 a year, while licences bundled with UAE residence visas usually begin higher.
The RAK free zone license cost also moves with the promotions that RAKEZ runs through the year, and the renewal fees are generally close to the original setup. The ranges below are indicative public figures rather than fixed quotes.
| Licence / package | Indicative start (AED / year) | Residence visas | Typical profile |
|---|---|---|---|
| Biz Starter (zero-visa) | from ~5,499–6,000 | 0 | Online, consulting & holding startups |
| Service / professional | from ~8,200 | up to 2 | Freelancers, consultants, agencies |
| Commercial / trading | ~14,000–16,000 | 1–2 | Import, export & distribution |
| E-commerce | ~12,000–15,000 | 1–2 | Online retail platforms |
| Industrial | facility-based, from ~15,000 capital | varies | Manufacturing & assembly |
Which zones make up RAK free zone in Ras Al Khaimah?
RAKEZ was created in 2017 by merging the RAK Free Trade Zone (RAK FTZ) and the RAK Investment Authority, and today it spans several specialised areas across the emirate. Each zone suits a different kind of activity, from desk-based services to heavy industry near the coast and the ports.
- RAKEZ Business Zone (with Al Nakheel) — offices for service, trading and SME companies
- Al Hamra Industrial Zone — light and heavier industry close to the coast
- Al Ghail Industrial Zone — large-scale manufacturing further inland
- Al Hulaila Industrial Zone — heavy industry around Khor Khwair, Saqr Port and the airport corridor
- RAKEZ Academic Zone — universities, schools and training providers
- A common mix-up: Hamriyah Free Zone, often searched alongside these, actually sits in neighbouring Sharjah rather than RAK
RAKEZ or RAK ICC — which one are you really forming?
Two different Ras Al Khaimah authorities are frequently grouped together. RAKEZ is the economic zone for companies that actually operate in or from the UAE, while RAK ICC (the RAK International Corporate Centre) is an offshore registry for international holding companies.
The distinction matters because only a RAKEZ entity can lease an office, employ staff and sponsor UAE residence visas. Some investors combine both through the Premium Product, where a RAK ICC company owns a RAKEZ subsidiary.
| Criterion | RAKEZ (free zone) | RAK ICC (offshore IBC) |
|---|---|---|
| Main purpose | Trading & operating in/from the UAE | Holding, IP & international structuring |
| UAE residence visas | Available | Not available |
| Office in the UAE | Flexi-desk to warehouse | Not permitted |
| Trading inside the UAE | Yes, invoicing across the UAE | Activity kept outside the UAE |
| How you register | Direct or via the RAKEZ portal | Through a registered agent only |
| Common users | SMEs, traders, manufacturers | Family offices, holding companies |
What exactly is RAK freezone company formation?
In plain terms, RAK freezone company formation is the process of registering a business inside a licensed economic zone in Ras Al Khaimah, most often through RAKEZ. The resulting entity is usually a Free Zone Limited Liability Company (FZ-LLC) that an overseas founder can own outright.
The appeal is a mix of full foreign ownership, complete repatriation of capital and profits, and a remote registration path that does not require relocating first. It is frequently weighed up by founders comparing low-cost emirates such as Ajman against the Ras Al Khaimah Economic Zone.
Which documents are needed for RAK freezone company formation?
Paperwork for a standard RAK free zone company is light, and most files are uploaded through the official portal. Regulated or specialist activities can call for a few extra approvals.
- Passport copy for every shareholder and director
- A recent passport-size photograph
- UAE entry stamp or visa copy, where this applies
- The completed application and chosen activity list
- A No-Objection Certificate if you are currently UAE-sponsored
- A short business plan or qualifications for regulated activities
How does the RAK freezone company formation process work?
The RAK company formation sequence is short and mostly online. Each stage feeds the next, and the whole flow can often be completed without travelling to the emirate.
| Step | Stage | What happens |
|---|---|---|
| 1 | Activity & structure | Choose up to six activities and an entity type such as an FZ-LLC |
| 2 | Trade name | Submit a preferred company name for authority approval |
| 3 | Documents | Upload passports, photos and the application; add approvals for regulated work |
| 4 | Licence issued | Settle the incorporation fees and receive the trade licence |
| 5 | Visas & banking | Apply for residence visas and an Emirates ID, then open a corporate account |
What licence types can a RAK free zone company hold?
RAKEZ publishes a broad activity list across more than fifty sectors, and a single licence can usually carry several compatible activities. The main categories cover most business models.
- Commercial / trading — importing, exporting, distributing and storing goods
- Service / professional — consultancy, freelancing and other professional services
- Industrial — manufacturing, processing, assembly and packaging
- E-commerce — online retail and electronic trading platforms
- General trading & educational — wide product ranges or Academic Zone institutions
Do you need a physical office, and what about visas?
A registered address inside the zone is required, but a full private office is not always necessary. For many licences a flexi-desk or co-working space is enough, and the facility you pick sets how many residence visas the company can sponsor.
Each RAK free zone visa is tied to that quota, so a flexi-desk typically caps the number while a serviced office or warehouse allows more. Freelancer permits, aimed at individual professionals, usually come with a single visa.
Frequently asked questions about RAK freezone company formation
How long does RAK freezone company formation take?
Straightforward applications are often approved within a few working days, with many setups described as taking around five to seven working days once documents are ready. Most of the work happens remotely through the RAKEZ portal. Activities that need outside approvals can take longer.
Can foreigners own 100% of a RAK free zone company?
Yes. Free zone structures in Ras Al Khaimah allow full foreign ownership with no local Emirati shareholder, and both capital and profits can be repatriated in full.
Is RAK free zone income really tax-free?
Personal income is not taxed, and a Qualifying Free Zone Person can access a 0% corporate tax rate on qualifying income under Federal Decree-Law No. 47 of 2022. Income that does not qualify is taxed at 9% above AED 375,000, and VAT registration applies once taxable turnover passes the same threshold.
What is the difference between RAKEZ and RAK ICC?
RAKEZ is an operational free zone whose companies can hold offices, employ staff and sponsor UAE residence visas. RAK ICC is an offshore registry used for international holding and asset-protection companies that cannot trade inside the UAE or obtain residence visas.
Do I need a physical office in Ras Al Khaimah?
A registered address within the zone is required, yet for many licences a flexi-desk or co-working space satisfies it. The facility chosen also determines how many residence visas the company can apply for.
How can I verify or renew a RAK free zone licence?
Licence details can be checked on the RAKEZ portal using the company name or licence number. Renewal is generally handled once a year through the same system, and the renewal fee tends to be close to the original setup cost.
How do you reach the RAK free zone authority?
RAKEZ runs an official website and online portal and publishes a UAE toll-free line, 800 RAKEZ (72539). It also operates service centres in Ras Al Khaimah and a business centre in Dubai.
Which activities are allowed in RAK free zone?
The approved activity list runs across more than fifty sectors, from trading and consultancy to manufacturing, media and education. Several compatible activities can usually sit under one licence, subject to the authority's grouping rules.