RAKEZ Dual License: Free Zone & Mainland: 2026
Ras Al Khaimah Economic Zone (RAKEZ) offers one of the most flexible business structures in the UAE. The RAKEZ Dual License gives entrepreneurs and companies a single setup that covers both the free zone and the UAE mainland. With two licences issued under one application, you can trade freely across the country, bid for federal government contracts, and run your entire operation from one office inside RAKEZ.
The concept began as the “Twin Permit framework,” launched through a collaboration between RAKEZ and the Ras Al Khaimah Department of Economic Development (RAK DED). Today it is formally known as the RAKEZ Dual License, and it has become one of the more popular choices for businesses that want the tax and ownership advantages of free zone incorporation alongside the commercial reach of a UAE mainland presence.
This guide covers everything you need to know: what the Dual License is, who issues each component, which business activities are eligible, what the setup process looks like, what documents you need, and how the costs compare. Whether you are a foreign investor looking at RAK for the first time or an existing RAKEZ client considering an upgrade, this is the authoritative reference.
What is the RAKEZ Dual License and who regulates it?
The RAKEZ Dual License is a combined licensing arrangement that allows one company to hold two licences simultaneously under a single RAKEZ setup. One licence is a RAKEZ free zone licence; the other is a Branch of a Free Zone Company licence issued by the Ras Al Khaimah Department of Economic Development (RAK DED). Together they give the same business legal authority to operate both within the free zone perimeter and across the UAE mainland.
RAKEZ, formally established by the Government of Ras Al Khaimah, is the primary regulator and one-stop authority for the free zone component. It hosts more than 40,000 companies from over 100 countries, operating across more than 50 industries, according to RAKEZ’s official website. The zone describes itself as a “powerhouse business and industrial hub” offering customisable solutions to free zone and non-free zone businesses alike.
RAK DED is the mainland economic regulator for the emirate and is responsible for issuing the Branch of a Free Zone Company licence. This split-regulator structure is what makes the arrangement distinctive: two competent authorities, one cohesive setup, and one office address that satisfies both.
Ras Al Khaimah is located approximately 45 minutes north of Dubai and has its own international airport, Ras Al Khaimah International Airport. The emirate connects to regional trade routes via the Saqr Port and Al Jazeera Port, and is linked to the rest of the UAE by the Emirates Road. This geography makes it a practical and cost-effective base for businesses serving both the GCC domestic market and international export destinations.
What are the two licences that make up the RAKEZ Dual License?
Understanding the two components is the starting point for any investor considering this structure.
Component 1: The RAKEZ Free Zone Licence
This is the primary licence, issued directly by RAKEZ. It grants your company legal status as a free zone entity, which in practice means:
- 100% foreign ownership with no requirement for a UAE national partner
- Zero income and corporate taxation on qualifying free zone income
- Freedom to repatriate capital and profits in full
- No customs duty on goods that are imported for re-export
- Access to RAKEZ’s full portfolio of business services, digital portal (Portal 360), and facilities across its six zones
Depending on the nature of your business, your RAKEZ licence can be a Commercial, E-Commerce, Industrial, General Trading, Professional, Service, Educational, or Media licence. One particularly useful feature, noted by RAKEZ in its official licence information, is the ability to combine commercial and professional activities under a single business licence, so a company that both trades goods and provides related consultancy does not necessarily need two separate licences.
Within the free zone, your company can trade with other free zone entities, export to overseas markets, and import goods for processing or re-export. Selling directly into the UAE mainland, however, requires the second component of the Dual License.
Component 2: Branch of a Free Zone Company (RAK DED)
This is the mainland branch licence, issued by RAK DED. Under UAE commercial law, a free zone company can register a branch on the UAE mainland, and that branch allows direct engagement with mainland customers, participation in UAE government tenders, and operation in sectors that require a physical mainland presence.
Critically, the Branch of a Free Zone Company does not require a separate office. According to RAKEZ’s official information on its Dual License arrangement, the RAKEZ office is sufficient for both licences. This is the central commercial advantage of the structure: one registered address, two trading territories, no duplication of facilities cost.
The branch is a legal extension of the free zone parent company, so there is no second shareholding structure to set up. The free zone company retains its 100% foreign-owned status, and the branch inherits it. You are not introducing new shareholders, a UAE local partner, or a sponsor when you add the RAK DED branch.
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Who is the RAKEZ Dual License designed for?
The Dual License is most appropriate for businesses that have one foot in the UAE domestic market and one foot pointing outward. The following profiles represent the most common applicants:
Import-export businesses
Companies that import goods and sell them both within the UAE and to overseas buyers benefit from the free zone’s customs advantages on re-exports, combined with the branch’s ability to serve mainland buyers directly. This is particularly relevant for trading companies handling goods in categories where both UAE retail and international distribution are part of the model.
Traders seeking federal government contracts
Federal and UAE mainland government entities generally require suppliers to hold a mainland licence or branch registration. The Branch of a Free Zone Company satisfies this requirement in most categories, making your company eligible to bid for public tenders from which free-zone-only companies are typically excluded.
SMEs expanding from free zone to mainland
If you started in a free zone and your mainland customer base is growing, the Dual License provides a formal and cost-efficient route to serve those customers without relocating your company or creating a separate mainland LLC.
Manufacturers
Industrial companies based at RAKEZ’s Al Ghail, Al Hamra, or Al Hulaila Industrial Zones can manufacture goods in the free zone (with customs-duty-free import of raw materials) and then sell finished products directly into the UAE mainland market through the RAK DED branch.
Professional and service firms
Consultancies, IT firms, engineering companies, and similar service providers that work for UAE government departments or large mainland corporates need a mainland presence. The branch licence provides it, without requiring a full mainland LLC structure.
Foreign investors wanting UAE-wide reach without a UAE partner
Because the branch is an extension of the 100% foreign-owned free zone company, there is no requirement to take on a UAE national shareholder or sponsor, unlike a conventional mainland LLC prior to the 2021 Companies Law amendments, or in regulated sectors that still require local shareholding.
What business activities are permitted under the RAKEZ Dual License?
RAKEZ issues licences across a wide spectrum of activities. According to RAKEZ’s official licence activity list, the zone caters to businesses across more than 50 industries. The main licence categories available are:
| Licence Type | Nature of Business |
| Commercial | Trading in goods and services |
| Educational | Educational institutions and consultancy |
| E-Commerce | Trading goods or services via digital platforms |
| General Trading | Trading across multiple product categories under one licence |
| Individual/Professional | Single proprietors with one defined speciality |
| Industrial | Manufacturing, importing, packaging, and exporting products |
| Media | Media-related business activities |
| Professional | Providing professional services across a field of expertise |
| Service | Consultancy or services across any industry |
| Freelancer Permit | Media, education, IT, and analysis professionals working independently |
One RAKEZ-specific benefit relevant to the Dual License is the ability to combine commercial and professional activities under a single business licence. This means a company that both trades goods and provides related consultancy services can do so under one licence, reducing cost and administrative overhead compared to holding two separate licences.
The Branch of a Free Zone Company licence issued by RAK DED mirrors the activities of the parent free zone licence. RAK DED aligns the branch activities to those already approved by RAKEZ, so there is no separate activity approval process required for the mainland element. This keeps the administrative burden manageable.
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What are the steps to set up under the RAKEZ Dual License?
RAKEZ describes its company formation process as three core steps, and the Dual License follows this same framework with an additional coordination stage for the RAK DED branch registration.
Step 1: Customise your package
Work with RAKEZ’s business development team to choose the most suitable legal entity, licence type, and facility for your business needs. At this stage, you confirm that you want the Dual License arrangement. RAKEZ’s team will advise whether your intended activities are permissible under the Dual License, which licence category best fits your model, and which RAKEZ zone and facility type is appropriate for your industry.
Step 2: Submit your application and documents
Your RAKEZ business development manager guides you through the application form. You submit the required documents (see the next section for the full list), and RAKEZ issues an invoice, which can be sent by email or collected in person at a RAKEZ office. Payment can be made by cash, cheque, bank transfer, or online through Portal 360.
Step 3: Receive your RAKEZ free zone licence
Once RAKEZ processes and approves your application, your free zone licence, registration set, and bank introduction letter are issued. This typically happens within a matter of days under standard processing. RAKEZ also offers an Instant Licence option for eligible activity categories, where the licence can be issued online within minutes upon successful document submission and payment.
Step 4: RAK DED branch registration
After your RAKEZ free zone licence is issued, RAKEZ coordinates with RAK DED to register the Branch of a Free Zone Company on your behalf. RAK DED issues the branch licence, confirming the parent company’s RAKEZ entity details and authorising mainland trading. You do not need to visit RAK DED separately or manage two parallel applications; RAKEZ handles this coordination as part of the Dual License service.
Step 5: Begin operations and process visas
Once both licences are in hand, your company is authorised to operate across both the RAKEZ free zone and the UAE mainland. Your RAKEZ office address serves as the registered address for both licences. You can then begin the visa application process for shareholders and employees, which is managed entirely through RAKEZ’s client services and Portal 360.
What documents do I need to apply for the RAKEZ Dual License?
The document requirements for the Dual License align with RAKEZ’s standard company formation process. Requirements may vary by legal entity and licence type, but the following documents are typically required:
For individual applicants (new company formation):
- Colour copy of a valid passport
- UAE residence visa copy and Emirates ID (for UAE residents only)
- A completed RAKEZ application form
For corporate shareholders (where the shareholder is a company):
- Certificate of incorporation of the parent company (certified copy)
- Memorandum and Articles of Association of the parent company, certified and translated into English if not already in English
- Board resolution authorising the formation of the RAKEZ entity
- Proof of the registered address of the parent company
- Passport copies of all directors and authorised signatories
Additional documents may be required depending on your licence type. Industrial licence applicants may need a business plan and details of manufacturing processes or machinery. Educational licence applicants may need accreditation documents or regulatory approvals from the relevant UAE educational authority. RAKEZ’s business development team will advise on any sector-specific requirements at the consultation stage.
For the RAK DED branch component, RAKEZ coordinates the additional documentation with RAK DED as part of the Dual License service. You will not need to manage two separate application portals independently.
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What are the government fees and setup costs for the RAKEZ Dual License?
RAKEZ publishes clear, transparent pricing for its standard setup packages through its Instant Licence portal. The two headline packages applicable to the free zone component are:
| Package | Annual Cost (AED) | Annual Cost (USD Approx.) | What is Included |
| Basic Package | AED 6,000 | USD 1,634 | 1 shareholder, 1 business activity, co-working workspace (Compass Coworking Centre) |
| All-Inclusive Package | AED 16,500 | USD 4,496 | Up to 5 shareholders, up to 5 business activities, 1 UAE residence visa, co-working workspace |
These package prices apply to the standard RAKEZ free zone licence. The Dual License, which adds the RAK DED branch registration, carries additional fees. RAKEZ advises that a tailored quote be requested from their business development team for the Dual License specifically, as the branch registration fees depend on the activity type and the RAK DED fee schedule in force at the time of application.
Beyond the licence fee itself, investors should budget for the following additional costs:
- Visa fees for shareholders and employees (amount varies by the number of visas and the facility type chosen)
- Medical examination and Emirates ID fees for each visa applicant
- Office or warehouse rental (if upgrading beyond the co-working workspace included in the standard packages)
- Annual licence renewal fees (the trade licence is valid for one year from the date of issuance and must be renewed before expiry to avoid penalties)
RAKEZ states on its official website that its packages come with no hidden fees, and all invoices are sent to the client before payment is made. USD equivalents above are calculated at the AED/USD fixed exchange rate of 3.67.
Is there a minimum share capital requirement for the RAKEZ Dual License?
RAKEZ does not publish a prescribed mandatory minimum share capital figure for standard free zone entities on its official website. This is consistent with the approach of many UAE free zones, which have moved away from rigid capital requirements for most business types in recent years.
For a Free Zone Limited Liability Company (FZ-LLC), which is the most common legal entity used at RAKEZ, the structure can accommodate between one and 50 shareholders. The minimum share capital applicable to your specific licence type, if any, will be confirmed by RAKEZ at the application stage and will depend on your chosen activity and legal entity.
For the Non-Free Zone Entity (mainland LLC registered through RAK DED), different rules may apply. However, since the Dual License is structured around a Free Zone Entity holding a branch, the free zone capital rules are the primary reference point.
It is worth noting that certain regulated activities carry sector-specific capital requirements at a federal level, regardless of the jurisdiction in which the company is incorporated. Healthcare, banking, insurance, and certain financial services activities are subject to their own capital thresholds set by the relevant federal regulators (such as the UAE Central Bank, the Insurance Authority, or the Dubai Financial Services Authority). If your intended activity falls within a regulated category, you should confirm the applicable capital requirement with the relevant federal authority before applying.
Under UAE Federal Decree-Law No. 32 of 2021 on Commercial Companies, general requirements for LLC capital were liberalised for many activities. Professional advice from a UAE-qualified corporate lawyer is recommended if your intended activity falls in or near a regulated sector.
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How many visas can I obtain with my RAKEZ Dual License?
The number of UAE residence visas available under the RAKEZ Dual License depends on your chosen package, legal entity, and the type of facility or workspace you hold. According to RAKEZ’s official guidance:
- The Basic Package (AED 6,000) does not include a residence visa as standard.
- The All-Inclusive Package (AED 16,500) includes one UAE residence visa.
- Additional visas can be obtained separately, and the quota increases significantly with larger physical office and warehouse facilities.
For companies holding physical office or industrial space, RAKEZ’s visa allocation is typically tied to the size of the facility, consistent with UAE practice across most free zones. Businesses that expand into warehouse or industrial space in zones such as Al Ghail Industrial Zone or Al Hamra Industrial Zone can access considerably higher visa quotas, making those zones well suited to businesses with larger workforces.
The Branch of a Free Zone Company element does not independently generate a separate visa quota. Visa allocation is governed by the RAKEZ free zone licence and the facility held. All visa applications, including those for shareholders, general managers, and employees, are processed through RAKEZ’s client services and its Portal 360 digital platform, with medical and Emirates ID services available at the RAKEZ Al Hamra Medical Centre.
Investors interested in long-term residence should note that RAKEZ offers Golden Visa services. The Golden Visa is a 10-year renewable UAE residence visa, introduced under UAE Cabinet Resolution No. 56 of 2021, available to investors, entrepreneurs, and specialised talent who meet the relevant criteria set by the General Directorate of Residency and Foreigners Affairs (GDRFA) or the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP). Eligibility for the Golden Visa is assessed separately from the Dual License structure and depends on investment thresholds and other qualifying conditions.
What office and facility options are available at RAKEZ?
RAKEZ operates across six dedicated zones in Ras Al Khaimah, each designed for a specific business profile. According to the RAKEZ Zones page on the official website:
Al Ghail Industrial Zone
Ideal for large-scale industrial manufacturing enterprises. Al Ghail offers extensive land plots with purpose-built industrial infrastructure, making it the primary choice for heavy manufacturing companies requiring significant production space.
Al Hamra Industrial Zone
A modern zone catering to both light and heavy industry projects, located in the Al Hamra area approximately 40 minutes from Dubai. Clients based here frequently cite its accessibility from other emirates as a key operational advantage.
RAKEZ Academic Zone
Home to qualified international educational institutions and education service providers. Educational licence holders looking to establish schools, training centres, or education consultancies will be directed to this zone.
Al Hulaila Industrial Zone
Designed for businesses requiring heavier industrial manufacturing capacity. Al Hulaila accommodates high-intensity production operations and is positioned farther from residential areas to allow for this.
Al Nakheel Business Zone
Located in the RAK city centre, Al Nakheel is a modern zone for SMEs, freelancers, and commercial businesses, comprising first-class business centres and modern office facilities. This is the natural base for commercial, professional, and service licence holders who need a central city address.
Al Hamra Business Zone
Positioned between the RAK city centre and neighbouring emirates, Al Hamra Business Zone serves businesses seeking a blend of modern office space and easy access to Dubai and other UAE markets.
Within these zones, RAKEZ offers the following facility types:
| Facility Type | Description | Best For |
| Flexi / Co-working | Shared desk space in the Compass Coworking Centre; included in both packages | Startups, freelancers, lean-operating companies |
| Standard Offices | Private office space in Al Nakheel and Al Hamra Business Zones | SMEs wanting a dedicated workspace |
| Executive Offices | Premium office suites for a more formal business environment | Professional services firms and regional HQs |
| Shell & Core Offices | Empty shells ready for tenant fit-out to custom specifications | Companies with specific interior requirements |
| Warehouses | Covered units for storage and light operational use across industrial zones | Trading and light industrial businesses |
| Land for Development | Plots for constructing bespoke facilities from the ground up | Large-scale manufacturers and industrial operators |
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What are the key benefits of the RAKEZ Dual License?
Based on RAKEZ’s official communications and the published structure of the Dual License, the principal advantages for investors are:
100% foreign ownership across both licences
The free zone entity carries full foreign ownership, and the Branch of a Free Zone Company inherits that structure. There is no requirement for a UAE national shareholder or local service agent for the branch, which is a significant departure from older mainland company models.
One office, two trading territories
The Dual License explicitly allows a single RAKEZ office address to serve as the registered address for both the free zone licence and the mainland branch. Maintaining two separate physical offices is not required, which meaningfully reduces annual running costs compared to holding a full dual-entity structure.
Access to federal government contracts
The Branch of a Free Zone Company licence enables participation in public tenders and federal government procurement processes, which are typically restricted to entities holding a UAE mainland registration. This opens a substantial category of business opportunity that is not available to free-zone-only companies.
Competitive and transparent setup costs
RAKEZ’s standard packages start from AED 6,000 per year, making Ras Al Khaimah one of the more cost-competitive free zone destinations in the UAE. The all-inclusive package at AED 16,500 incorporates a UAE residence visa and co-working space, removing separate line items from the early-stage budget.
One-stop coordination
RAKEZ handles the RAK DED branch coordination as part of the Dual License process, so investors deal primarily with one authority for the majority of the setup rather than navigating two separate application systems independently.
Strategic location and market access
Ras Al Khaimah is approximately 45 minutes north of Dubai, 90 minutes from Abu Dhabi, and has its own international airport. According to RAKEZ’s official website, the zone connects investors to growing markets across the Middle East, North Africa, Europe, and South and Central Asia.
Zero corporate tax on qualifying free zone income
Free zone entities that satisfy the Qualifying Free Zone Person conditions under the UAE Corporate Tax Law (Federal Decree-Law No. 47 of 2022) pay 0% corporate tax on qualifying income. The standard UAE corporate tax rate of 9% applies on profits above AED 375,000 for non-qualifying income and for mainland businesses, as confirmed by the UAE Federal Tax Authority. The tax position of a Dual License entity should be reviewed with a qualified UAE tax adviser, as the branch’s mainland income may be treated differently from qualifying free zone income.
How does the RAKEZ Dual License compare to other RAK and UAE business structures?
The table below sets out the key differences between the Dual License and two comparable alternatives: a standard RAKEZ free zone-only licence and a RAK mainland LLC registered solely through RAK DED.
RAKEZ Dual Licence vs Free Zone Only vs RAK Mainland LLC
| Feature | RAKEZ Dual Licence | RAKEZ Free Zone Only | RAK Mainland LLC (RAK DED) |
| Regulator | RAKEZ + RAK DED | RAKEZ | RAK DED |
| UAE Mainland Trading | Yes (via branch) | No (local agent needed) | Yes |
| Federal Government Tenders | Yes | No | Yes |
| Foreign Ownership | 100% | 100% | 100% (most sectors, post-2021) |
| Separate Mainland Office Needed | No (one RAKEZ office) | N/A | Yes |
| Customs Duty (re-exports) | None (free zone) | None (free zone) | Standard UAE rate |
| Corporate Tax (qualifying) | 0% on qualifying income | 0% on qualifying income | 9% above AED 375,000 |
| No. of Licences | 2 (free zone + branch) | 1 | 1 |
| Setup Cost (from) | Tailored quote (contact RAKEZ) | AED 6,000 per year | Varies by activity (contact RAK DED) |
A standard free zone-only setup is simpler and less expensive, but restricts direct selling to mainland UAE customers. For businesses whose model relies on mainland customers or government contracts, the Dual License provides the necessary coverage.
The mainland LLC through RAK DED gives full mainland trading rights without the free zone element. Following the amendments to UAE Federal Decree-Law No. 26 of 2020, foreign investors can now hold 100% ownership in most mainland activities, reducing one historic advantage of free zones in this comparison. However, the mainland LLC does not provide customs-duty-free re-exports, and the overall cost and regulatory framework differs from the free zone model.
For businesses that need a manufacturing base alongside direct mainland sales, the Dual License with an industrial facility in Al Ghail or Al Hamra Industrial Zone is a particularly efficient arrangement: manufacture in the free zone with duty-free raw material imports, and sell the finished goods into the UAE mainland through the branch.
Tips: Getting the Most from Your RAKEZ Dual License
- Request a bespoke cost breakdown from RAKEZ’s business development team before committing. The published AED 6,000 and AED 16,500 packages apply to the free zone-only setup. The Dual License, which includes the RAK DED branch, carries a different fee schedule that RAKEZ will quote on request.
- Confirm your intended activities against both the RAKEZ licence activity list and the RAK DED mainland activity classifications before applying. Some activities are classified or worded differently by the two authorities, which can affect the approval process.
- If you plan to bid for federal government contracts, check that your specific branch activity description matches the wording required by the procuring authority. Government tenders often specify exact activity descriptions and may reject applications where there is a mismatch.
- Plan your visa requirements from day one. The Basic Package (AED 6,000) does not include a visa. If you or your shareholders need UAE residence visas, budget for the All-Inclusive Package (AED 16,500) or add visas separately. Visa quotas increase considerably with larger office or warehouse facilities.
- Check the UAE Federal Tax Authority’s Qualifying Free Zone Person criteria if you want to benefit from the 0% corporate tax rate on qualifying income. A Dual License entity earns both free zone and mainland-sourced income, and the qualifying income rules apply only to the free zone component. A tax adviser familiar with the UAE Corporate Tax Law should review your specific income mix before you file.
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Frequently Asked Questions About the RAKEZ Dual License
A standard RAKEZ free zone licence allows a company to operate within the free zone perimeter, trade with other free zone entities, and export internationally. It does not confer direct selling rights on the UAE mainland. The Dual License adds a Branch of a Free Zone Company licence issued by RAK DED, extending trading rights to the UAE mainland and enabling participation in federal government tenders. Both licences are managed through RAKEZ from a single registered office address.
No. The RAKEZ Dual License is built around a 100% foreign-owned free zone entity. The Branch of a Free Zone Company is a legal extension of that entity and inherits the same ownership structure. Unlike a conventional mainland LLC in the pre-2021 regulatory environment, you do not need a UAE national as a shareholder or local service agent for this arrangement.
Yes, in most cases. The Branch of a Free Zone Company licence provides the mainland registration that most federal government procurement processes require. If you wish to bid for contracts from Abu Dhabi or Dubai government bodies (rather than RAK government bodies), you should confirm the specific registration requirements with the relevant procuring authority, as some tenders carry additional conditions.
RAKEZ’s standard free zone licence can be issued within a matter of days of submitting a complete application and payment. The additional RAK DED branch registration adds some processing time. RAKEZ coordinates this on your behalf, so the overall timeline is typically a few days to a few weeks, depending on document completeness and the complexity of the activity. RAKEZ also offers an Instant Licence option for eligible free zone activities, where the free zone licence component can be issued online within minutes.
Yes. Existing RAKEZ clients who hold a standard free zone licence can apply to add the Branch of a Free Zone Company (RAK DED) element, effectively upgrading their setup to the Dual License structure. This is done through RAKEZ’s client services team or Portal 360, and a fee applies for the branch registration. Contact RAKEZ directly or use Portal 360 to initiate the process.
Certain activities regulated at a federal level, such as banking, insurance, legal services, and some healthcare services, require approvals from sector-specific federal authorities regardless of the licence structure. For these activities, the RAK DED branch may need a No Objection Certificate from the relevant regulator before the branch can be issued. RAKEZ’s business development team can advise on any activity-specific restrictions at the consultation stage.
RAKEZ does not publish a mandatory minimum share capital for most standard licence types on its official website. The applicable capital requirement, if any, depends on the specific activity and legal entity chosen and will be confirmed by RAKEZ at the application stage. Certain regulated activities carry their own federal-level capital requirements set by the relevant sector regulator, independent of the RAKEZ or RAK DED licence structure.
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