How to Start a Business in the RAK Free Zone?

If you’re thinking about starting a business in the UAE, few options match the flexibility, affordability, and investor-friendly environment of the RAK Free Zone, officially known as RAKEZ (Ras Al Khaimah Economic Zone). Situated in the northern emirate of Ras Al Khaimah, RAKEZ has become a prime destination for startups, freelancers, SMEs, and multinational companies looking to enter the Middle East market with minimal overhead and maximum ownership control.

In this complete guide, we’ll explain everything you need to know about how to start a business in RAK Free Zone — from understanding its advantages and license options to legal structures, documentation, costs, and procedures — so you can make a confident start in the UAE.

What is the RAKEZ Free Zone?

The Ras Al Khaimah Economic Zone (RAKEZ) is a thriving business and industrial hub strategically located in the northern part of the United Arab Emirates. Established under the visionary leadership of His Highness Sheikh Saud bin Saqr Al Qasimi, the Ruler of Ras Al Khaimah, RAKEZ was created to unify and expand the operations of the RAK Free Trade Zone (RAK FTZ) and RAK Investment Authority (RAKIA). 

Designed to empower both local and international investors, RAKEZ serves as a gateway connecting the UAE to major trade corridors across the Middle East, Africa, Europe, and Asia. It provides a competitive business environment with cost-efficient setup packages, streamlined licensing procedures, and 100% foreign ownership, making it one of the most accessible free zones in the region.

RAKEZ is home to thousands of startups, SMEs, and multinational companies operating across diverse industries such as trading, logistics, manufacturing, education, media, and technology. Its modern infrastructure includes industrial zones, flexi-desk offices, warehouses, and land for development, giving entrepreneurs the flexibility to scale their operations with ease.

In addition to its strong infrastructure, RAKEZ offers fast visa processing, world-class connectivity via seaports and airports, and a business-friendly regulatory framework that encourages innovation and growth. With its low operational costs, supportive ecosystem, and commitment to excellence, RAKEZ continues to be a preferred destination for investors seeking a stable and growth-oriented base in the UAE.

Why Choose RAK Free Zone for Business Setup?

The RAK Free Zone is known for being one of the most affordable and efficient free zones in the UAE. It combines cost-effective registration, simplified procedures, and 100 % foreign ownership under the management of RAKEZ. Whether you’re an entrepreneur exploring new markets, a freelancer seeking legal residency, or an established company expanding into the Gulf, this zone provides unmatched flexibility.

Some of the core benefits include:

• 100 % foreign ownership – no local sponsor required.
• Zero corporate and personal income tax.
• Full profit and capital repatriation.
• Strategic connectivity via Ras Al Khaimah seaports and airports.
• Fast-track license issuance within 24–48 hours.
• Low-cost business packages starting around AED 5,750.

These advantages make RAK Free Zone a natural choice for investors who want to reduce costs while maintaining global credibility.

Strategic Advantages of RAKEZ Business Setup

When it comes to rakez business setup, entrepreneurs benefit from an environment designed to support growth. RAKEZ is one of the UAE’s largest economic zones, housing over 18,000 companies from 100+ countries. Its ecosystem supports industrial, commercial, service, and digital sectors alike.

Key strategic benefits include:

1. Multiple business parks – industrial, academic, and business parks offering tailor-made infrastructure.
2. Flexible facility options – from virtual offices to warehouses and land for industrial development.
3. Investor-centric services – one-window approvals, government coordination, and visa facilitation.
4. Sustainability focus – RAKEZ actively promotes environmentally responsible industrial practices.
5. International presence – with representative offices in India, Turkey, and Germany to assist global investors.

In short, RAKEZ delivers an all-in-one solution for business setup, licensing, and expansion.

RAKEZ – The Authority Behind RAK Free Zone

The original RAK Free Trade Zone (RAK FTZ) and RAK Investment Authority (RAKIA) merged in 2017 to form the Ras Al Khaimah Economic Zone (RAKEZ). This consolidation created a single governing body that manages all licensing, registration, and operational services across the emirate.

Today, RAKEZ oversees:

• Free Zone Companies
• Non-Free Zone (Mainland) Entities
• Offshore Companies

Its head office is located in Al Nakheel, Ras Al Khaimah, with service centers in Dubai and Abu Dhabi for easy access. The merger simplified compliance, improved digital services, and made the region one of the UAE’s easiest jurisdictions for new investors.

What Types of Licenses Are Available in the RAK Free Zone?

Obtaining the right RAK Free Zone License is the foundation of your setup. RAKEZ offers several license categories covering nearly every business activity imaginable — from consulting and trading to manufacturing and education. Each license includes 100 % foreign ownership and full repatriation of profits.

Commercial License

Ideal for import/export, trading, distribution, or general commerce. Suitable for online retailers, exporters, and wholesalers.

Service License

Designed for consultants, freelancers, and professional service providers such as marketing agencies, IT firms, or business consultants.

Industrial License

For manufacturing, assembly, and industrial operations. Perfect for factories, production units, and food processing companies.

E-commerce License

For digital entrepreneurs selling goods or services online. It offers a low-cost entry into the booming Gulf e-commerce market.

Educational License

Required for training centers, coaching institutes, and educational consultancies.

All license types are issued under RAKEZ’s authority, ensuring transparency, credibility, and straightforward renewals.

Legal Structures for RAK Free Zone Company Setup

Choosing the correct legal structure is vital for a free zone company setup, as it defines ownership, liability, and flexibility. RAKEZ offers several structures tailored to different investor needs.

Free Zone Establishment (FZE)

• One shareholder (individual or corporate).
• Ideal for freelancers, solopreneurs, or single-owner companies.

Free Zone Company (FZC)

• Two to five shareholders.
• Best for startups or partnerships seeking shared ownership.

Branch of a Foreign Company

• Allows overseas entities to register a local branch under RAKEZ without forming a new legal entity.
• Operates under the same name and ownership as the parent company.

Each structure provides 100 % ownership, minimal bureaucracy, and straightforward repatriation of profits.

Step-by-Step Guide to Start a Business in RAK Free Zone

Setting up a company in RAKEZ follows a systematic process designed for speed and clarity. 

Here’s how you can establish your business in just a few steps.

Step 1 – Choose Your Business Activity

RAKEZ lists over 1,000 permitted activities grouped under trade, consultancy, logistics, manufacturing, and e-commerce. Selecting the right activity determines your license type and regulatory requirements.

Step 2 – Select Legal Structure

Decide whether you want an FZE, FZC, or a branch office based on ownership preferences and expansion goals.

Step 3 – Select Facility Type

RAKEZ offers multiple workspace solutions:

• Flexi Desk (Shared Workstation) – best for freelancers.
• Standard Office – affordable private office space.
• Executive Office – premium workspace with amenities.
• Warehouse or Industrial Land – for manufacturing and logistics firms.

Step 4 – Prepare and Submit Documents

For individuals: passport copy, visa or entry stamp, NOC (if employed in the UAE), and passport-size photo.

For corporates: certificate of incorporation, MOA, board resolution, and power of attorney.

All documents must be attested and notarized if issued outside the UAE.

Step 5 – Initial Approval and Signing

After document review, RAKEZ issues preliminary approval. You’ll sign the Memorandum of Association (MOA), Articles of Incorporation, and Lease Agreement electronically or in person.

Step 6 – Pay Setup Fees

Setup cost varies by license and facility. Packages begin around AED 5,750 and can reach AED 25,000+ for larger offices or industrial spaces.

Step 7 – Receive Your Business License

Once payment is confirmed, you’ll receive your Trade License, Certificate of Incorporation, and Lease Agreement. Congratulations — your RAK Free Zone company is now ready to operate.

RAKEZ Business Setup Packages and Costs

RAKEZ tailors packages for every entrepreneur profile. Here are the most popular options:

Package Type                          Starting Price (AED)                     Best For

RAKEZ Freelancer Permit           6,100                         Solo professionals & consultants

Business Starter Package             5,750                         Startups & micro-enterprises

Industrial License Package          11,000                       Manufacturing & warehousing

E-commerce Package                       7,200                        Online businesses & retailers

Each package includes:

• Trade License
• Shared desk facility
• Access to RAKEZ services
• Optional visa eligibility

These cost-effective packages make RAKEZ one of the most accessible gateways to the UAE market.

Documents Required for Business Registration

Proper documentation ensures quick approvals and avoids compliance delays.

For Individual Shareholders

• Valid passport copy
• Passport-size photo (white background)
• Visa copy or entry stamp
• No-Objection Certificate (NOC) if already residing in the UAE

For Corporate Shareholders

• Certificate of Incorporation
• Board Resolution approving company formation
• Memorandum of Association (MOA)
• Power of Attorney
• Passport copies of directors and authorized signatories

All foreign documents must be attested at the UAE Embassy and the MOFA.

RAKEZ Visa Services for Entrepreneurs and Employees

A RAKEZ company provides eligibility for several visa categories handled entirely through the RAKEZ Customer Portal.

Types of Visas

1. Investor Visa – valid for two years, for company owners/shareholders.
2. Employee Visa – for staff sponsored by the company.
3. Dependent Visa – for family members of investors or employees.

Visa Process Includes

• Medical fitness test
• Emirates ID biometrics
• Health insurance coverage
• Entry permit issuance and stamping

This integrated system makes residency and visa management straightforward for all RAKEZ entities.

Benefits of Starting a Business in the RAK Free Zone

Entrepreneurs choose RAKEZ because it offers everything required to run a business successfully:

• Quick incorporation – licenses issued within 2–3 days.
• Low setup and renewal costs.
• No annual audit requirement for many license types.
• Modern infrastructure and global connectivity.
• Access to bank account facilitation through approved banks.
• Networking events and business support community.

With this combination of speed, affordability, and infrastructure, RAKEZ provides one of the most entrepreneur-friendly ecosystems in the UAE.

Comparison: RAK Free Zone vs Other UAE Free Zones

RAKEZ remains unbeatable for entrepreneurs who want a quick, affordable, and compliant entry into the UAE.

Can You Start a RAK Free Zone Business Remotely?

Yes — one of RAKEZ’s most significant advantages is the ability to set up your company remotely. Investors living outside the UAE can:

• Apply online through the RAKEZ Portal.
• Upload documents and sign agreements digitally.
• Pay setup fees via secure online gateway.
• Receive all company documents electronically.

You can also appoint a registered business consultant to handle the process end-to-end while you remain abroad. This convenience makes RAKEZ ideal for global entrepreneurs seeking remote incorporation.

Key Insights on Growth and Expansion

Beyond initial setup, RAKEZ supports long-term scalability. Companies can easily:

• Upgrade facilities as they grow (from shared desk to office to warehouse).
• Add business activities under the same license.
• Open branches in other UAE emirates or internationally.
• Collaborate with local suppliers to access the GCC market.

RAKEZ also provides access to customs support, logistics hubs, and industrial lands, helping investors expand from the startup phase to full-scale production or export operations.

RAK Free Zone License Renewal and Compliance

All RAKEZ licenses are valid for one year and must be renewed before expiration. Renewal can be completed online by paying the annual fee and updating tenancy or lease documents.

RAKEZ does not require an annual audit for small entities, but larger firms may need to submit basic financial reports depending on license type. Maintaining compliance ensures continuous visa eligibility and avoids penalties.

Future Outlook: Why RAKEZ Is Perfect for Global Entrepreneurs

As Ras Al Khaimah continues to invest in infrastructure, sustainability, and logistics, RAKEZ is evolving into a hub for manufacturing, trade, and digital innovation. With government incentives and its strategic access to GCC markets, it’s positioned to attract more foreign investors, startups, and tech companies over the next decade.

If you’re looking to establish a base in the UAE with minimal cost, maximum control, and firm support, RAKEZ is one of the most intelligent choices available today.

Conclusion

Starting a business in the RAK Free Zone through RAKEZ is one of the easiest, fastest, and most affordable ways to establish a legal presence in the UAE. From cost-effective licensing and 100 % ownership to digital applications and investor support, RAKEZ empowers entrepreneurs at every stage.

Whether you’re launching a consultancy, an e-commerce store, or a manufacturing unit, RAKEZ provides the infrastructure, flexibility, and credibility your venture needs.

If you’re ready to begin your journey, connect with an experienced business setup advisor in RAK Free Zone today — and take the first confident step toward success in the UAE.

FAQs

What is RAKEZ, and how is it different from RAK Free Zone?

RAKEZ (Ras Al Khaimah Economic Zone) is the unified authority that manages all operations, licenses, and services of the former RAK Free Zone and RAK Investment Authority, offering investors a single, simplified platform.

How much does it cost to start a business in the RAK Free Zone?

Setup packages start around AED 5,750 for flexi-desk options. Costs vary depending on license type, office space, and visa requirements.

Can a foreigner own 100 % of a company in the RAK Free Zone?

Yes, foreign investors enjoy full ownership without needing a local sponsor.

What types of licenses are available in RAKEZ?

RAKEZ issues commercial, service, industrial, e-commerce, freelancer, and educational licenses, covering over 1,000 business activities.

How long does it take to set up a business in the RAK Free Zone?

Typically 2–3 working days, provided all documents are correctly submitted.

Do I need to be in the UAE to start a RAK Free Zone company?

No. RAKEZ supports remote incorporation with online submissions and couriered documents.

Is a RAKEZ company eligible for UAE residency visas?

Yes. A RAKEZ license holder can apply for investor and employee visas and later sponsor dependents.