Thinking about launching your business in the UAE? If you’re looking for a cost-effective, flexible, and 100% foreign-owned setup, the RAK Free Zone (now part of RAKEZ – Ras Al Khaimah Economic Zone) is one of the best choices in the region. With simplified procedures, competitive pricing, and investor-friendly policies, it’s become a hotspot for entrepreneurs, freelancers, startups, and international companies.
In this guide, we’ll explain how to start a business in the RAK Free Zone, what legal structures are available, the registration process, license types, required documents, and the benefits of choosing RAKEZ over other UAE jurisdictions.
Why Choose RAK Free Zone for Business Setup?
RAK Free Zone is one of the most affordable and flexible places to start a business in the UAE. With quick setup, low costs, and full foreign ownership, it’s ideal for startups, freelancers, and international investors looking for a smooth and business-friendly entry into the Middle East.
Strategic Advantages of RAKEZ
Ras Al Khaimah Economic Zone (RAKEZ) is one of the largest and most affordable free zones in the UAE. It’s ideal for new entrepreneurs and SMEs thanks to its:
- 100% foreign ownership
- Full profit repatriation
- Zero corporate tax and zero personal income tax
- Access to global markets via seaports and airports
- Business setup packages starting as low as AED 5,750
- Fast-track license issuance in 24–48 hours
RAKEZ is especially attractive for e-commerce startups, traders, consultants, manufacturers, and freelancers who want a low-cost entry into the UAE market without the high overhead of Dubai or Abu Dhabi.
RAKEZ – The Entity Behind RAK Free Zone
The RAK Free Zone was merged into RAKEZ (Ras Al Khaimah Economic Zone) in 2017. Today, RAKEZ governs all the operations, licensing, and business services previously handled by the RAK Free Trade Zone (RAK FTZ) and RAK Investment Authority (RAKIA).
RAKEZ provides support for:
- Free zone companies
- Non-free zone (mainland) entities
- Offshore companies
- Industrial and commercial licenses
- Virtual and flexi-desk packages
Its headquarters are in Al Nakheel, Ras Al Khaimah, with offices in Dubai, Abu Dhabi, and internationally in India, Turkey, and Germany.
What Types of Licenses Are Available in RAK Free Zone?
RAKEZ offers a variety of licenses based on your business activity. Whether you’re trading, offering services, manufacturing, or selling online, there’s a license that fits your needs. Each license allows 100% foreign ownership and comes with flexible packages to help you launch and scale your business easily.
Commercial License
For companies involved in buying, selling, import/export, and general trading. Ideal for:
- Online stores
- Exporters and wholesalers
- Physical retailers
Service License
For professionals and consultants. Popular among:
- Marketing agencies
- IT service providers
- Freelancers and business consultants
Industrial License
For light or heavy manufacturing and industrial activities. Suits:
- Factories
- Food processing units
- Product assembly businesses
E-commerce License
For digital entrepreneurs selling products or services online.
Educational License
Required for training centers, coaching institutes, and educational consultancies.
All licenses issued by RAKEZ come with 100% foreign ownership and full profit repatriation.
Legal Structures in RAK Free Zone (RAKEZ)
RAKEZ offers flexible legal structures to suit every business type. Whether you’re starting alone or with partners, you can choose between a Free Zone Establishment (FZE), Free Zone Company (FZC), or open a branch of your existing company. Each structure is designed to support growth and full ownership.
Free Zone Establishment (FZE)
- Single shareholder (individual or company)
- Ideal for solopreneurs or freelancers
Free Zone Company (FZC)
- 2 to 5 shareholders
- Suitable for startups with partners
Branch of a Foreign Company
- Allows an overseas company to register a local branch under RAKEZ
- Maintains the same name and structure as the parent company
Each structure is designed to meet the needs of both individuals and companies who want to tap into the UAE and global markets.
Step-by-Step Guide to Start a Business in RAK Free Zone
Here’s how to start your business in RAK Free Zone through RAKEZ in a few simple steps:
Step 1 – Choose Your Business Activity
Decide what type of business activity you’ll be conducting. RAKEZ offers over 1000 business activities, including:
- Consultancy
- Logistics
- Food trading
- Manufacturing
- E-commerce
Each activity has a designated code and falls under a specific license category.
Step 2 – Select Legal Structure
Choose between:
- FZE (1 shareholder)
- FZC (2-5 shareholders)
- Branch company (foreign or UAE)
Step 3 – Choose Your Facility Type
RAKEZ offers different office and warehouse solutions:
- Shared Workstation (Flexi Desk)
- Standard Office
- Executive Office
- Warehouse
- Land for Development
If you’re a digital entrepreneur or freelancer, a flexi-desk is usually sufficient.
Step 4 – Submit Documents
You’ll need:
- Passport copy
- Passport-size photo
- Entry stamp or visa copy (if applying from within UAE)
- Business plan (for some sectors)
- NOC (if under existing UAE visa)
Step 5 – Sign Legal Documents
After initial approval, you’ll sign:
- Memorandum of Association (MOA)
- Articles of Incorporation
- Lease Agreement (for office space)
You can do this online or via courier if you’re applying from overseas.
Step 6 – Pay Setup Fees
Your setup cost depends on:
- License type
- Facility selected
- Number of visas required
Packages start from AED 5,750 and may go up to AED 25,000+ depending on customization.
Step 7 – Receive Your License
RAKEZ will issue:
- Trade license
- Lease agreement
- Certificate of incorporation
- Share certificates
You can start operating immediately once you receive your documents.
RAKEZ Business Setup Packages
RAKEZ offers tailored packages for different types of businesses:
| Package Type | Starting Price (AED) | Best For |
| RAKEZ Freelancer Permit | AED 6,100 | Solo professionals |
| RAKEZ Business Starter Package | AED 5,750 | Small startups |
| RAKEZ Industrial License | AED 11,000 | Manufacturing |
| RAKEZ E-commerce License | AED 7,200 | Online businesses |
These packages include:
- License
- Shared desk space
- Access to business services
- 1 visa eligibility (optional)
Documents Required to Start a Business in RAKEZ
To set up your business in RAKEZ, you’ll need a few basic documents. These help verify your identity and business intent. Whether you’re an individual entrepreneur or a corporate investor, having the right paperwork ready can speed up approvals and get your company licensed in just days.
For Individual Shareholders:
- Passport copy
- Passport-size photo
- Visa copy or entry stamp
- NOC (if on existing UAE visa)
For Corporate Shareholders:
- Certificate of incorporation
- Board resolution
- Memorandum of Association
- Power of attorney
- Valid passport copies of all company directors
All documents must be notarized and attested (if applying from outside UAE).
RAKEZ Visa Services for Business Owners
RAKEZ offers visa packages for shareholders, employees, and dependents.
Types of Visas:
- Investor visa (2 years validity)
- Employee visa
- Dependent/family visa
All visa processing is handled by RAKEZ’s Customer Portal and includes:
- Medical tests
- Emirates ID processing
- Health insurance requirement
- Entry permit issuance
Benefits of Starting a Business in RAK Free Zone
- Fast business setup (2–3 working days)
- Affordable packages for startups
- No annual audit requirement
- Strategic location near seaports and international airports
- 100% capital and profit repatriation
- Networking events and RAKEZ community support
- No currency restrictions
- Wide range of license activities
RAKEZ is especially suitable for entrepreneurs looking to enter the UAE market with low overhead and full control.
Comparison: RAK Free Zone vs. Other UAE Free Zones
| Feature | RAKEZ | Dubai Free Zone | Abu Dhabi Free Zone |
|——–|——–|——————|
| Ownership | 100% Foreign | 100% Foreign | 100% Foreign |
| Setup Cost | Low | High | Medium |
| Licensing Speed | Fast (2–3 days) | Slower (5–10 days) | Medium |
| Office Options | Flexible & Remote | Expensive | Government-controlled |
| Tax Benefits | 0% Tax | 0% Tax | 0% Tax |
| Visa Packages | Yes | Yes | Yes |
RAKEZ is ideal for entrepreneurs who want quick setup, low cost, and regulatory simplicity.
Can You Start a RAK Free Zone Business Remotely?
Yes, RAKEZ allows international entrepreneurs to:
- Apply online
- Submit documents remotely
- Sign legal agreements digitally
- Receive all company documents via email
You can also appoint a registered business consultant to manage your setup from anywhere in the world.
Conclusion
Starting a business in the RAK Free Zone is one of the most accessible and affordable ways to enter the UAE market. Whether you’re a freelancer, a startup founder, or an established company looking for a low-cost base, RAKEZ gives you the infrastructure, licensing, and flexibility you need.
With fast-track setup, remote processing, and no hidden costs, it’s the smart choice for modern entrepreneurs.
Ready to launch your business in RAK Free Zone? Let a trusted business setup advisor guide you through the process today.
FAQs
What is RAKEZ and how is it different from RAK Free Zone?
RAKEZ (Ras Al Khaimah Economic Zone) is the authority that now manages and regulates the RAK Free Zone. It was created by merging the RAK Free Trade Zone and RAK Investment Authority to offer streamlined licensing and business setup services.
How much does it cost to start a business in RAK Free Zone?
The cost of starting a business in RAKEZ starts from AED 5,750 for basic packages like flexi-desk licenses. The final cost depends on license type, office space, visa requirements, and business activity.
Can a foreigner own 100% of a company in RAK Free Zone?
Yes. RAKEZ allows 100% foreign ownership across all its license types. You do not need a local UAE partner to set up a free zone company in RAK.
What types of licenses are available in RAKEZ?
RAKEZ offers several licenses including:
- Commercial License
- Service License
- Industrial License
- E-commerce License
- Freelancer Permit
- Educational License
Each license supports different business activities based on your company type.
How long does it take to set up a business in RAK Free Zone?
Business setup in RAKEZ typically takes 2 to 3 working days, provided all documents are submitted correctly. You can also complete the entire process remotely.
Do I need to be in the UAE to start a RAK Free Zone company?
No. You can start a RAK Free Zone business remotely. RAKEZ allows digital applications, couriered document signing, and third-party authorization through business setup agents.
Is a RAKEZ company eligible for UAE residency visas?
Yes. As a RAKEZ license holder, you’re eligible to apply for investor and employee visas. You can also sponsor your family once your investor visa is issued.
