If you’re planning to start a business in the UAE but want low costs, tax benefits, and flexible setup options, the Ras Al Khaimah Free Trade Zone (RAK FTZ) is one of the most attractive choices. Known for its 100% foreign ownership, zero corporate tax, and fast licensing process, the RAK FreeZone has become a hub for entrepreneurs, startups, and international companies looking to enter Middle Eastern markets without heavy financial commitments.
This guide will walk you through everything you need to know about RAK FreeZone company formation — from costs and business structures to visa options and industry activities. We’ll also compare it to other UAE free zones so you can make an informed decision for your business.
What Is RAK FreeZone and Why Choose It?
The Ras Al Khaimah FreeZone is a special economic area in the Emirate of Ras Al Khaimah, offering business owners the ability to own their companies fully, benefit from no personal or corporate income tax, and enjoy simplified import-export regulations.
It’s strategically located near a seaport, major highways, and is just an hour away from Dubai, making it ideal for trading, manufacturing, and service-based businesses.
Key reasons to choose RAK FreeZone:
- 100% foreign ownership with no local sponsor requirement
- Zero income and corporate tax policies
- Full repatriation of profits and capital
- Lower setup and renewal costs compared to Dubai or Abu Dhabi free zones
- Access to global markets via seaport, airport, and road networks
RAK FTZ’s Reputation Among Entrepreneurs
RAK FreeZone is especially popular among SMEs, e-commerce startups, and international traders because of its affordability, flexibility, and ease of doing business. Its licensing procedures are among the fastest in the UAE, and many companies can start operating within a week of applying.
How Much Does RAK FreeZone Company Formation Cost?
The cost of RAK FreeZone company formation is one of its biggest advantages over other UAE free zones.
Average RAK FTZ costs include:
- Business license fees: AED 11,000–15,000 (varies by activity)
- Flexi-desk packages: Starting from AED 8,000 annually
- Visa packages: AED 3,000–5,000 per visa
- Additional government fees: For approvals, inspections, and renewals
While prices may change based on the business activity and office requirements, RAK FTZ remains one of the most budget-friendly free zones in the UAE.
How RAK FTZ Costs Compare to Other Free Zones
Compared to Dubai’s DMCC or JAFZA, where license fees can exceed AED 20,000 annually, RAK FTZ offers significant savings — making it a perfect choice for cost-conscious entrepreneurs.
Which Business Structures Can You Register in RAK FTZ?
RAK FreeZone offers multiple legal entity types so that companies can choose the structure that best suits their operations:
- Free Zone Establishment (FZE) – For single shareholders.
- Free Zone Company (FZC) – For two to five shareholders.
- Branch of a Local or Foreign Company – For existing companies expanding into the UAE.
Choosing the Right Structure for Your Business
If you’re a solo entrepreneur, an FZE might be the best option. If you’re starting with partners, an FZC provides a shared ownership structure. Branch offices are ideal for international companies looking to operate in the UAE without setting up a separate entity.
What Are the Steps to Set Up a RAK FreeZone Company?
The process of RAK FreeZone company formation is streamlined and designed for speed:
- Select your business activity
- Choose the legal entity type
- Submit required documents (passport copies, business plan, application form)
- Pay the license and facility fees
- Sign the incorporation documents
- Receive your business license and start operations
Timeline for Company Registration
On average, company formation in RAK FreeZone takes 5–7 working days, depending on document readiness and activity approvals.
RAK FreeZone vs Other UAE Free Zones — Which Is Cheaper?
RAK FTZ stands out for low setup and renewal costs. While Dubai’s DMCC and Abu Dhabi’s ADGM target large corporates and financial firms, RAK FTZ caters to startups, SMEs, and traders with affordable packages and fewer overheads.
What Are the Visa Options and Processing Time?
RAK FreeZone visas are available for investors, employees, and family members.
- Investor visas: Valid for 2–3 years
- Employee visas: Based on office space quota
- Family visas: Sponsorship available once the investor visa is approved
Visa processing time typically ranges from 5–10 working days.
What Industry Activities Are Allowed in RAK FTZ?
RAK FreeZone offers licenses for a wide range of activities, including:
- Commercial trading
- General trading
- Manufacturing
- Consultancy and services
- E-commerce
- Media and education
Does RAK FreeZone Offer Office and Facility Packages?
Yes — RAK FTZ provides flexi-desks, serviced offices, warehouses, and land plots for development. This flexibility allows businesses to scale operations without large initial investments.
Conclusion
Whether you’re a small business owner, a startup founder, or an international investor, RAK FreeZone company formation offers one of the most affordable, flexible, and business-friendly environments in the UAE. With fast setup times, full foreign ownership, and tax-free policies, it’s the perfect launchpad for entrepreneurs targeting regional and global markets.
Working with a trusted Company formation in RAK Freezone service provider can make the process even smoother, ensuring compliance and maximizing your business potential.
FAQs
Can I operate outside RAK FreeZone with my license?
Yes, but you’ll need to comply with mainland regulations or work with a local distributor.
Can I open a bank account for my RAK FTZ company?
Yes — RAK FreeZone companies can open UAE corporate bank accounts.
Is RAK FreeZone good for e-commerce businesses?
Absolutely — it’s one of the most cost-effective UAE free zones for online sellers.
Do I need to be in the UAE to register my company?
Not always — many steps can be completed remotely through approved agents.
What is the license renewal process in RAK FTZ?
You need to renew annually by paying the renewal fees and submitting updated documents.
