How to Start a Business in Ras Al Khaimah (2026)
Ras Al Khaimah (RAK) is one of the most cost-effective and accessible business destinations in the UAE. You can start a company here through three routes: a RAKEZ free zone licence from AED 6,000 per year, a mainland licence via the RAK Department of Economic Development (RAK DED), or an offshore holding structure through RAK International Corporate Centre (RAK ICC). According to RAKEZ’s official website, the zone hosts more than 40,000 companies from over 100 countries across 50 industries.
RAK is not simply an affordable alternative to Dubai. The emirate has a well-diversified economy spanning manufacturing, ceramics, logistics, tourism, and professional services. Its location at the northern tip of the UAE, close to the Strait of Hormuz, gives businesses real access to Middle Eastern, North African, European, and Asian markets.
This guide covers the complete setup process for all three routes, the official fees published by the government authorities, the documents you will need, how many visas you can get, and what facilities are on offer across RAKEZ’s six dedicated zones.
What is Ras Al Khaimah and why are entrepreneurs choosing it for business setup?
Ras Al Khaimah is the northernmost of the UAE’s seven emirates. It shares its border with the Sultanate of Oman and has domestic borders with Sharjah, Fujairah, and Umm Al Quwain. The emirate sits along the Arabian Gulf coast and has access to both the Gulf and the Gulf of Oman, which gives trading businesses a dual-access advantage that very few locations in the region can match.
The economy is diversified and relatively non-dependent on oil and gas, which distinguishes it from several other emirates. Key sectors include building materials and ceramics, manufacturing and industrial production, logistics, tourism, and professional services. The proximity to the Strait of Hormuz, one of the world’s most strategically important shipping lanes, makes RAK particularly attractive for import and export businesses.
The cost of doing business in RAK is consistently lower than in Dubai or Abu Dhabi. Office rents, visa fees, and licence costs are all more competitive, particularly within RAKEZ. RAKEZ publishes all-inclusive packages with no hidden fees, making it easier to budget for a setup from day one.
Who regulates businesses in Ras Al Khaimah?
Three separate authorities regulate business in Ras Al Khaimah, depending on whether you choose a free zone, mainland, or offshore structure.
What is RAKEZ and what does it regulate?
The Ras Al Khaimah Economic Zone (RAKEZ) is the government authority responsible for establishing and regulating both free zone and non-free zone businesses in RAK. According to RAKEZ’s official website, the zone currently hosts over 40,000 companies from more than 100 countries across six dedicated zones. Businesses in RAKEZ benefit from 100% foreign ownership, fast digital licensing, and access to modern business and industrial facilities.
RAKEZ operates as a one-stop shop for all government services, handling company registration, licensing, visas, and facility leasing through its Portal 360 digital platform at eportal.rakez.com. Its contact number is +971 7 204 1111 and office hours are Monday to Friday, 8:00 AM to 4:00 PM (UAE time).
What is the RAK Department of Economic Development (RAK DED) and what does it regulate?
The RAK Department of Economic Development (RAK DED) is the government authority responsible for registering and licensing businesses on the mainland of Ras Al Khaimah. Mainland companies can conduct business throughout the UAE, serve the local market directly, and open branches or retail premises wherever they choose.
RAK DED publishes its full economic licensing fees on the official RAK Government portal at rak.ae. Mainland licence fees are categorised by activity type, with commercial, vocational, industrial, and tourism licences ranging from AED 400 to AED 10,000 per year depending on the category. Limited liability company (LLC) formation carries an additional fee of AED 2,500.
What is RAK ICC and what does it regulate?
RAK International Corporate Centre (RAK ICC) is the corporate registry responsible for the incorporation and regulation of international business companies (IBCs) in Ras Al Khaimah. RAK ICC was established under Decree No. 12 of 2015, as amended by Decree No. 4 of 2016, through the consolidation of two existing registries: RAK International Companies (formerly part of RAK Free Trade Zone) and RAK Offshore (formerly part of RAK Investment Authority).
RAK ICC companies are primarily used as offshore holding structures. They cannot operate within the UAE but are suited for holding assets, shares in other companies, and intellectual property outside the UAE. All RAK ICC companies must be incorporated through a RAK ICC-approved registered agent. RAK ICC is located at Floor 8, RAKBANK Headquarters, Al Ghafat Road, Ras Al Khaimah (contact: +971 7 207 7177; [email protected]).
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What types of legal structures can I use to set up a company in Ras Al Khaimah?
What legal entities are available in RAKEZ?
RAKEZ offers three types of legal entities, which can be established as either free zone or non-free zone entities, as detailed on RAKEZ’s official getting-started page:
- Free Zone Establishment (FZE): A single-shareholder entity with limited liability. Suitable for sole entrepreneurs wanting 100% ownership with a clean, simple structure.
- Free Zone Company (FZC): An entity with two or more shareholders (and up to five under standard packages). Offers limited liability and is suitable for joint ventures or businesses with multiple co-founders.
- Branch: A branch of an existing UAE company or foreign company registered at RAKEZ. The branch carries the name of its parent entity and operates within the same activities.
RAKEZ also offers a Dual License, which combines a UAE free zone licence with a UAE free zone company branch licence. This allows the same entity to operate in the RAKEZ free zone and on the UAE mainland simultaneously, without creating two separate companies.
What legal structures are available on the mainland (RAK DED)?
Under RAK DED, the main mainland legal structures are:
- Limited Liability Company (LLC): Two to 50 partners with liability limited to the extent of their capital contribution. The most commonly used structure for foreign investors on the mainland. Fee: AED 2,500 per the official RAK DED fee schedule.
- Sole Proprietorship: Single owner. UAE and GCC nationals can set up in any activity; foreigners may set up in certain professional activities with a local service agent. Fee: AED 400.
- Civil Company: For professional practices such as consultancies, medical clinics, and legal firms operating under the UAE Civil Code.
- Branch of a Foreign Company: Extension of a foreign parent entity, carrying the same name and activities. Must appoint a national service agent. Fee: AED 10,000.
Following the amendments introduced under Federal Law No. 32 of 2021 (the Commercial Companies Law), 100% foreign ownership is now permitted for most mainland activities, removing the previous requirement for a 51% UAE national shareholder in the majority of sectors.
What types of companies can I form through RAK ICC?
RAK ICC offers several offshore entity types, as listed on the official RAK ICC website at rakicc.com. The most commonly used are:
- Company Limited by Shares: Requires at least one shareholder, one director, and one secretary. Suitable for holding assets and shares in other companies.
- Company Limited by Guarantee: Suited for non-profit and membership structures.
- Holding Company: A Company Limited by Shares structured specifically for holding and managing subsidiary companies or investments.
- RAK ICC Foundation: A private foundation structure for succession planning, asset protection, and philanthropy.
- Segregated Portfolio Company: For collective investment schemes and fund structures requiring portfolio segregation.
All RAK ICC companies must be incorporated through a registered agent listed in the RAK ICC Agents Directory at rakicc.com/agents/agents-directory.
What business activities and licence types are available in Ras Al Khaimah?
What licence types does RAKEZ offer?
According to RAKEZ’s official business setup guide at rakez.com/en/join-us/getting-started, the following licence types are available:
- Commercial: For trading in goods and services.
- Educational: For educational institutions or education consultancy companies.
- E-commerce: For trading goods and services via electronic means.
- General Trading: For businesses trading across multiple product categories.
- Individual/Professional: For a single owner operating in a specific field of expertise.
- Industrial: For manufacturing, importing, packaging, and exporting products.
- Media: For media-related business activities.
- Professional: For individuals providing professional services.
- Service: For service and consultancy businesses across any industry.
- Freelancer Permit: For professionals in media, education, IT, and analytics working independently.
RAKEZ’s all-inclusive package permits up to five business activities under a single licence. The Dual License is also available, merging commercial and professional activities so businesses can operate in the free zone and on the UAE mainland under one structure.
What licence types are available on the mainland (RAK DED)?
According to the official RAK Government portal at rak.ae, the main mainland licence categories are:
- Commercial Licence: For all forms of commercial trading.
- Industrial Licence: For manufacturing, industrial, and processing activities.
- Vocational/Professional Licence: For skill-based businesses, craftsmen, and professional services.
- Tourism Licence: For hospitality, tourism, and travel-related activities.
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Should I set up in RAKEZ (free zone), mainland RAK, or RAK ICC (offshore)?
The right structure depends on three key factors: whether you need to sell directly to UAE customers, whether you need a physical UAE presence, and what level of operational flexibility you require.
RAKEZ (free zone) is ideal for businesses serving international markets, e-commerce operations, media and technology companies, light manufacturing, and logistics. You get 100% foreign ownership, no minimum capital requirement, and packages starting from AED 6,000 per year. Free zone companies can trade within the UAE by using a local distributor or agent.
Mainland RAK (RAK DED) is the best option if you need to trade directly in the UAE local market, open a retail outlet, bid for government contracts, or operate in sectors restricted to mainland entities. Following Federal Law No. 32 of 2021, most activities permit 100% foreign ownership on the mainland.
RAK ICC (offshore) is suited for holding companies, asset protection structures, succession planning, and international structuring. RAK ICC companies cannot trade within the UAE, but they can hold shares in other companies, intellectual property, and assets outside the UAE.
RAK Business Setup Comparison: RAKEZ Free Zone vs Mainland vs Offshore
| Feature | RAKEZ Free Zone | Mainland RAK (DED) | RAK ICC Offshore |
| Foreign ownership | 100% | Up to 100% Most activities
|
100% |
| UAE local market access | Via distributor or agent | Direct | Not permitted |
| Physical office required | Coworking space minimum | Yes (tenancy contract) | No |
| Visa eligibility | Yes | Yes | No |
| Minimum capital | None | None Most activities
|
None stated |
| Starting cost | AED 6,000 / year | AED 2,500+ (LLC fee) | Via registered agent |
| Dual licence option | Yes RAKEZ Dual License
|
N/A | N/A |
| Instant digital licence | Yes | No | No |
| Regulator | RAKEZ | RAK DED | RAK ICC |
What are the steps to register a company in Ras Al Khaimah?
How do I register a RAKEZ free zone company?
According to RAKEZ’s official three-step setup process at rakez.com/en/join-us/getting-started, registration follows these stages:
- Customise your package: Work with RAKEZ business development professionals to choose your legal entity type, licence type, and facility. You can also start the process entirely online via the instant licence portal at instantlicence.rakez.com.
- Submit your application and documents: Fill out the online or in-person application form and submit the required documents. RAKEZ will issue an invoice by email or at their office. Payment can be made by cash, cheque, bank transfer, or online.
- Receive your business licence: Once licensing formalities are complete, RAKEZ issues your licence along with your registration package and a bank letter. The visa application process then begins.
RAKEZ’s instant licence removes the need for paperwork and physical visits. The basic package can be completed and the licence issued within minutes of online application submission, according to the official RAKEZ instant licence page at rakez.com/en/promotions/instant-licence.
How do I register a mainland company with RAK DED?
For a mainland company in Ras Al Khaimah, the process involves the following steps:
- Choose your business activity and determine the appropriate licence category.
- Obtain initial approval from RAK DED (fee: AED 100 per the official fee schedule).
- Reserve a trade name with RAK DED. Fees range from AED 200 to AED 3,000 depending on name type (Arabic general names, proper Arabic names, or foreign names).
- Obtain any sector-specific approvals from relevant ministries or regulatory bodies where your activity requires them.
- Sign and attest the Memorandum of Association (for LLCs and corporate structures).
- Submit the complete document package to RAK DED.
- Pay the applicable licence fees as per the official RAK DED economic licensing fee schedule.
- Obtain your economic licence and sign a tenancy contract for your business premises.
How do I incorporate a RAK ICC offshore company?
RAK ICC companies are incorporated exclusively through RAK ICC-approved registered agents. You cannot apply directly to RAK ICC without an agent. The process is:
- Select a registered agent from the RAK ICC Agents Directory at rakicc.com/agents/agents-directory.
- The agent will provide the required incorporation checklist and assist with document preparation.
- Prepare your documents (passport copies, proof of address, KYC forms, and business plan as required).
- Submit your application through your registered agent.
Receive your certificate of incorporation upon approval.
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What documents are required to register a company in Ras Al Khaimah?
The documents required vary by authority and structure.
For RAKEZ free zone registration:
RAKEZ requires a valid passport copy for each shareholder and director, a visa or Emirates ID copy for UAE residents, and proof of residential address. For the instant online licence, only a passport and (where applicable) a visa or Emirates ID are needed to begin.
For mainland RAK DED registration:
The standard mainland document checklist, per RAK DED requirements, includes:
- Completed licence application form
- Passport copies of all owners, partners, and managers
- Residence certificates and visa copies (where applicable)
- Attested tenancy contract for the business premises
- Copy of the ownership certificate (if the applicant owns the premises)
- National ID copies for UAE national owners or partners
- Reserved trade name certificate
- Attested Memorandum of Association (for LLCs)
- Sector-specific approvals from relevant ministries (if required for the activity)
For RAK ICC offshore incorporation:
The registered agent will supply a checklist. Typical requirements include:
- Certified passport copies for all shareholders, directors, and the company secretary
- Proof of residential address for each person (utility bill or bank statement, no older than three months)
- Completed KYC (Know Your Customer) forms
- Business plan or description of the company’s intended purpose
- For corporate shareholders: certified copies of the parent company’s certificate of incorporation, memorandum and articles of association, and register of directors and shareholders
Upon annual renewal for RAK ICC companies, an annual return filing is required along with updated KYC documents if any identification documents have expired during the year, per the RAK ICC company renewal checklist at rakicc.com.
What are the government fees and setup costs for a business in Ras Al Khaimah?
All fees below are sourced directly from RAKEZ’s official pricing pages and the RAK DED Economic Licensing Fees table on the official RAK Government portal at rak.ae. Fees are in AED. USD equivalents use an approximate rate of AED 3.67 per USD.
RAKEZ Free Zone Packages
| Package | Annual Fee (AED) | Annual Fee (USD approx.) | Key Inclusions |
| Basic Package | AED 6,000 | ~USD 1,634 |
1 shareholder, 1 activity, coworking space access |
| All-Inclusive Package | AED 16,500 | ~USD 4,496 |
Up to 5 shareholders, up to 5 activities, coworking space, 1 UAE residence visa |
| BusinessWomen Package | From AED 6,000 | From ~USD 1,634 |
Flexible payment, visa discounts, zero-balance bank account option, UAE visa eligibility |
RAKEZ also offers customised packages for SMEs and industrial businesses. Contact RAKEZ directly at +971 7 204 1111 or via the Portal 360 at eportal.rakez.com for a tailored quote. E-commerce licence holders receive additional benefits including a 50% discount on additional media and commercial licences, and two free additional business activities worth AED 4,000.
RAK DED Mainland Licence Fees
The following fees are sourced from the official RAK Government portal economic licensing fees table:
| Item | Fee (AED) |
| Licence Fees | |
| Commercial / Vocational / Industrial / Tourism Licence — Category 1 (new or renewal) | AED 10,000 |
| Commercial / Vocational / Industrial / Tourism Licence — Category 2 | AED 5,000 |
| Commercial / Vocational / Industrial / Tourism Licence — Category 3 | AED 2,500 |
| Commercial / Vocational / Industrial / Tourism Licence — Category 4 | AED 1,000 |
| Commercial / Vocational / Industrial / Tourism Licence — Category 5 | AED 400 |
| Al Ghad Licence (new or renewal) | AED 1,000 |
| Formation Fees | |
| Limited Liability Company (LLC) formation fee | AED 2,500 |
| Sole Proprietorship formation fee | AED 400 |
| Partnership Company | AED 400 |
| Branch of a foreign company | AED 10,000 |
| Free zone branch | AED 5,000 |
| Administrative Fees | |
| Initial approval of licence issuance | AED 100 |
| Trade name reservation (Arabic general names) | AED 200 (2 months) |
| Trade name reservation (proper Arabic or Arab country/city names) | AED 1,000 (2 months) |
| Trade name reservation (foreign country/city or foreign name) | AED 3,000 (2 months) |
| Express transactions | AED 250 |
| Amendment of valid licence information | AED 150 |
Note: RAK ICC offshore registration fees are not published publicly and are negotiated directly with your chosen registered agent. Contact RAK ICC at +971 7 207 7177 or [email protected] for further information.
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What is the minimum share capital requirement for a company in Ras Al Khaimah?
For RAKEZ free zone entities, there is no stated minimum share capital requirement. RAKEZ allows companies to declare their capital at a level appropriate to their business activities, with no minimum threshold specified on the official RAKEZ website.
For mainland RAK DED companies, Federal Law No. 32 of 2021 (the Commercial Companies Law) does not impose a fixed minimum capital on most LLC structures. Partners determine the capital requirement in the Memorandum of Association. However, certain regulated activities carry specific capital requirements set by their respective regulators. For example, public joint stock companies require a minimum capital of AED 30 million and private joint stock companies require a minimum of AED 5 million, per Federal Law No. 32 of 2021.
RAK ICC does not publicly state a minimum capital requirement for standard offshore company structures. Your registered agent will advise on any requirements for specialist products such as the Segregated Portfolio Company or RAK ICC Foundation.
How many visas can I get with a RAK business licence?
The number of visas available to a RAK company depends on the facility type and size, rather than a flat quota applied to all licences.
For RAKEZ free zone companies, the all-inclusive package at AED 16,500 per year includes one UAE residence visa. Additional visas can be applied for through RAKEZ’s visa services (fees apply), with the number of eligible visas determined by your office or facility type and size. Industrial facilities and warehouses typically support larger visa quotas than coworking or serviced office arrangements. Eligible business owners can also apply for the UAE Golden Visa through RAKEZ’s Golden Visa services at rakez.com/en/customer-services/golden-visa.
For mainland companies under RAK DED, the Ministry of Human Resources and Emiratisation (MOHRE) determines visa quotas based on the size of the premises and the nature of the business activity. The standard rule applied across the UAE mainland is a minimum of nine square metres of office space per employment visa, though this can vary by sector and activity type.
RAK ICC offshore companies are not eligible for UAE residence visas, as they are international business entities without a physical UAE operational presence. If UAE visas are a priority, you will need a RAKEZ or mainland licence rather than an RAK ICC offshore structure.
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What office and facility options are available in Ras Al Khaimah?
What are the RAKEZ zones and where are they located?
According to RAKEZ’s official zones page at rakez.com/en/about-us/zones, RAKEZ operates across six dedicated zones, each tailored to specific types of businesses:
- Al Ghail Industrial Zone: For large-scale industrial and manufacturing enterprises. Ideal for businesses requiring extensive land plots and heavy production facilities.
- Al Hamra Industrial Zone: A modern zone accommodating both light industries and heavier industrial projects. Strategically located between RAK city and neighbouring emirates.
- RAKEZ Academic Zone: Home to qualified international educational institutions and related educational service providers.
- Al Hulaila Industrial Zone: For businesses with a focus on heavier industrial manufacturing, offering large industrial plots and on-site labour accommodation.
- Al Nakheel Business Zone: A modern zone for SMEs and freelancers with first-class business centres, serviced offices, and coworking facilities.
- Al Hamra Business Zone: Positioned between the RAK city centre and neighbouring emirates, suitable for commercial businesses, professional service firms, and SMEs.
What types of facilities does RAKEZ offer?
RAKEZ offers eight facility types, as listed on the official RAKEZ facilities page at rakez.com/en/about-us/facilities:
- Coworking Space: Located in the Compass Coworking Centre, ideal for freelancers, startups, and solo entrepreneurs. Included in both the RAKEZ basic and all-inclusive packages at no additional cost.
- Serviced Offices: Dedicated private office space within premier business centres, combining a professional address with cost-effectiveness. Suited to businesses wanting permanence without long-term lease commitments.
- Standard Offices: Cost-effective private office spaces for SMEs that want a professional presence without executive pricing.
- Executive Offices: Larger private offices for growing companies accommodating a bigger team.
- Shell and Core Offices: Undeveloped commercial units ready to be fully fitted out to your specifications. Suitable for businesses with specific interior requirements.
- Warehouses: Customisable warehouses of various sizes, located in proximity to RAK seaport and RAK International Airport.
- Land for Development: Industrial land plots for large-scale manufacturing operations. RAKEZ also provides the option to build on-site staff and labour accommodation on these plots.
Staff and Labour Accommodation: On-site housing for male workforce at RAKEZ industrial zones, reducing the logistical burden for manufacturers employing large teams.
What are the key benefits of setting up a business in Ras Al Khaimah?
Ras Al Khaimah offers a well-documented combination of commercial, fiscal, and logistical advantages, as summarised from the official RAKEZ and RAK Government portals:
- 100% foreign ownership: Available for all RAKEZ free zone companies and for most mainland activities under Federal Law No. 32 of 2021.
- No restrictions on profit repatriation: There are no foreign exchange controls, and capital and profits can be repatriated in full.
- Corporate tax efficiency: The UAE corporate tax rate is 9%, applicable only to taxable profits above AED 375,000 (approximately USD 102,100), per the Federal Tax Authority guidance effective June 2023. Qualifying free zone businesses may be eligible for a 0% rate on qualifying income.
- Low setup costs: RAKEZ packages start from AED 6,000 per year, with an all-inclusive option at AED 16,500, making RAK one of the most price-competitive free zone jurisdictions in the UAE.
- Instant digital licensing: RAKEZ’s instant licence requires no paperwork and no physical visit. The entire process is completed online.
- One-stop government services: RAKEZ manages registration, licensing, visas, and facilities through a single portal, reducing administrative complexity.
- Strategic location: RAK’s proximity to the Strait of Hormuz and its dual Gulf-of-Oman access connects businesses to markets across the Middle East, North Africa, Europe, and Asia.
- Industrial capability: RAKEZ’s three industrial zones offer warehouses, land for development, and labour accommodation that are difficult to match at comparable prices elsewhere in the UAE.
- Low cost of living: Compared to Dubai or Abu Dhabi, RAK offers a lower cost of living for staff, which helps attract and retain talent.
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Are there any unique advantages or incentives available in Ras Al Khaimah?
RAKEZ publishes a UAE Incentives Programme for qualifying businesses, accessible at rakez.com/en/promotions/uae-incentives. The instant licence capability is a particularly notable differentiator: a company can be incorporated, a licence issued, and documentation received entirely online, which is especially valuable for overseas investors who cannot travel to the UAE.
The RAKEZ Dual License is a standout product in the UAE free zone market. Rather than maintaining two separate legal entities, the Dual License allows a business to hold a RAKEZ free zone licence and a UAE mainland branch licence simultaneously under one structure. This lets businesses serve the local UAE market directly from a free zone entity, at a materially lower cost than establishing two independent companies.
For e-commerce businesses, RAKEZ offers additional incentives including a 50% discount on additional media, commercial, and service licences; two free additional business activities with a combined value of AED 4,000; exclusive payment gateway rates with Telr; and discounted website and application development. These are detailed on the official RAKEZ e-commerce page at rakez.com/en/e-commerce.
The RAKEZ BusinessWomen Package starts from AED 6,000 per year and includes flexible payment options, a zero-balance bank account option, visa discounts, and UAE residence visa eligibility. Details are available from RAKEZ directly.
How does Ras Al Khaimah compare to other UAE free zones?
RAK’s primary distinction is its combination of low cost, industrial capability, and fast setup processes. The table below compares key parameters across commonly considered UAE jurisdictions. Note that DMCC and IFZA figures are indicative: always verify directly with the relevant authority as pricing changes frequently.
Freezone Comparison: RAKEZ vs DMCC vs IFZA vs Mainland UAE
| Feature | RAKEZ | DMCC (Dubai) | IFZA (Dubai) | Mainland UAE |
| Starting licence cost | AED 6,000 / yr | ~AED 15,000 / yr | ~AED 12,500 / yr | From ~AED 2,500 Plus licence fee
|
| All-inclusive with visa | AED 16,500 / yr | Higher | Higher | Varies |
| Industrial / warehouse space | Extensive 3 industrial zones
|
Limited | Limited | Available |
| 100% foreign ownership | Yes | Yes | Yes | Yes Most activities
|
| UAE local market access | Via distributor or agent | Via distributor | Via distributor | Direct |
| Dual licence option | Yes RAKEZ Dual License
|
Limited | Limited | N/A |
| Instant digital licence | Yes | No | Partial | No |
| Number of companies | 40,000+ | 20,000+ | Growing | N/A |
Tips: Starting a Business in RAK
- Use the instant licence for speed. If you are a sole entrepreneur or a small team, the RAKEZ basic package at AED 6,000 can be completed entirely online with just a passport scan. A valid UAE free zone licence can be obtained within minutes, and a business bank account opened within a few days. This is one of the fastest legitimate company setup routes in the UAE.
- Consider the Dual License if you need UAE market access. Rather than maintaining two separate entities, RAKEZ’s Dual License gives you a free zone company and a UAE mainland branch under one structure. It is well suited to service businesses that want to operate in both environments without doubling compliance costs.
- Match your facility choice to your visa needs from the start. Visa quotas in RAKEZ depend on your facility type. If you plan to hire a team of ten or more, factor in warehouse or larger office options early in the planning process. Upgrading your facility later to accommodate more visas is possible but involves additional processing and cost.
- Check corporate tax eligibility carefully. Free zone businesses in the UAE can qualify for a 0% rate on qualifying income under the UAE Corporate Tax Law (Federal Decree-Law No. 47 of 2022). However, qualifying conditions are specific and the rules are detailed. Review the Federal Tax Authority guidance at tax.gov.ae and consult a licensed UAE tax adviser before making structural decisions based on tax benefits alone.
- RAK ICC is for holding, not trading. If you want to protect offshore assets or hold shares in other companies without a physical UAE presence, a RAK ICC company is a cost-effective and well-regulated option. However, it cannot conduct business in the UAE local market. Do not use a RAK ICC entity where you need to invoice UAE customers or apply for UAE visas.
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Frequently Asked Questions About Starting a Business in Ras Al Khaimah
The minimum cost to start a business in Ras Al Khaimah through RAKEZ is AED 6,000 per year (approximately USD 1,634) for the basic package, which includes one shareholder, one business activity, and access to a coworking space. The all-inclusive package, which adds up to five shareholders, five activities, and one UAE residence visa, is AED 16,500 per year (approximately USD 4,496). For mainland licences via RAK DED, fees range from AED 400 to AED 10,000 per year depending on the activity category, plus AED 2,500 for LLC formation and additional premises costs.
Through RAKEZ’s instant licence, you can obtain a free zone business licence within minutes of completing your online application, with no paperwork and no physical visit required, according to the official RAKEZ instant licence page. More complex structures, such as industrial setups, non-free zone entities, or mainland LLC formations with sector-specific approvals, will take longer, typically several working days to a few weeks depending on the activity and the completeness of documents submitted.
Yes. Foreigners can own 100% of a RAKEZ free zone company, with no UAE partner required. On the mainland, Federal Law No. 32 of 2021 permits 100% foreign ownership in most activities, removing the previous 51% local shareholder requirement in the majority of sectors. RAK ICC offshore companies are also available to non-residents and can be incorporated without any UAE national involvement, through an approved registered agent.
Not for a RAKEZ free zone company. Both the basic and all-inclusive packages include access to a shared coworking space, which satisfies the facility requirement for licensing purposes. You do not need to rent a dedicated private office unless your business requires it or your visa quota demands it. For mainland RAK DED licences, a tenancy contract for physical business premises is typically required as part of the licence application.
The UAE introduced a federal corporate tax of 9% on taxable profits above AED 375,000 (approximately USD 102,100), effective for financial years beginning on or after 1 June 2023, per the Federal Tax Authority at tax.gov.ae. Profits at or below this threshold are taxed at 0%. Free zone businesses that meet the qualifying free zone person criteria under Federal Decree-Law No. 47 of 2022 may be eligible for a 0% rate on qualifying income. Consult a licensed UAE tax adviser for guidance specific to your situation.
RAKEZ (Ras Al Khaimah Economic Zone) is the government free zone authority of Ras Al Khaimah. It hosts more than 40,000 companies from over 100 countries and is one of the largest free zones in the UAE by company count. RAKEZ stands out for offering both free zone and non-free zone entity formations, the RAKEZ Dual License (allowing free zone and mainland operations under a single entity), an instant online licence with no paperwork, competitive pricing from AED 6,000 per year, and six dedicated zones covering everything from coworking to heavy industrial land plots.
RAK ICC (RAK International Corporate Centre) is the offshore company registry in Ras Al Khaimah. Unlike RAKEZ, which issues licences for operating businesses, RAK ICC registers international business companies (IBCs) for holding, asset protection, and succession planning. RAK ICC companies cannot conduct business in the UAE, do not require a physical UAE office, and are not eligible for UAE visas. They are incorporated through RAK ICC-approved registered agents and are governed by the RAK ICC Business Companies Regulations, established under Decree No. 12 of 2015.
Yes, if you hold a RAKEZ licence or a mainland RAK DED licence. The RAKEZ all-inclusive package at AED 16,500 includes one UAE residence visa. Additional visas can be obtained based on your facility type and size. Mainland companies under RAK DED are eligible for visas determined by MOHRE based on office size (the standard rule is nine square metres of office space per visa). RAK ICC offshore companies are not eligible for UAE residence visas.
