The RAKEZ free zone business setup process is not just about buying the cheapest licence package. Your activity, company structure, visa needs, workspace, and tax position all affect the final cost. Here is what to consider before applying.
One very pragmatic option to set up a base in the UAE without being part of the expensive operational costs of central Dubai is through an Economic Zone like Ras Al Khaimah Economic Zone (RAKEZ). RAKEZ allows for trading, services, e-commerce, media, education, and industrial businesses- with packages available for everything from a Coworking space to a large warehouse or development land.
For many foreign investors, RAKEZ can be a very go-to option: 100% foreign ownership, full profit repatriation, and flexible setup options. The UAE also does not levy personal income tax on individuals.
Why Choose a RAKEZ Free Zone Business Setup in the UAE?
RAKEZ is located in Ras Al Khaimah, so it is not a Dubai free zone. This distinction matters if your customers, office, or operations need to be specifically based in Dubai.
For entrepreneurs setting up your business in RAKEZ and operating from RAK, the zone has several practical advantages:
.
- Dual Licensing Model: Ability to issue both Free Zone and Non-Free Zone (Mainland-equivalent) licenses under a single authority.
- Cost Efficiency: Up to 30–50% cheaper setup and renewal fees compared to premier central Dubai free zones.
- Custom Facilities: Flexi-desks, executive offices, warehouses, and industrial land plots.
| Business packages start at AED 6,000, while its all-inclusive package is advertised at AED 14,000 on its current promotion page. |
Types of UAE Free Zone License Available at RAKEZ
RAKEZ lists around 10 different types of licence that come under 4 licence categories. Choosing the correct UAE free zone license starts with identifying what the company will actually do.
1. Commercial & General Trading License
A commercial licence covers trading in goods and services, while a general trading licence is intended for trading multiple goods.
Importers, exporters, distributors and businesses that need storage may consider these options. Product-specific approvals can still apply, so a general trading licence should not be treated as permission to trade every regulated product.
2. Service & Professional License
These licences suit businesses providing services or professional expertise. Examples include consultancy, IT services, marketing and other professional activities. Your selected activity should match the work you actually perform. Choosing a vague or unsuitable activity simply because it is cheaper creates problems later.
3. E-Commerce & Media License
The 3rd type of licence is for RAKEZ dedicated e-commerce and media activities for businesses selling goods or services electronically and companies carrying out permitted media activities.
An online business needs to select the correct activity. Having an e-commerce licence does not cover every possible digital activity.
4. Industrial, Educational & Freelancer Permits
Industrial licences cover activities such as manufacturing, packaging and processing. RAKEZ also offers educational licences and freelancer permits for eligible professions, including certain media, education and IT-related activities.
RAKEZ Free Zone Setup Costs & Package Breakdown (2026)
If you are comparing the cost of a Free zone business setup in the UAE, do not stop at the advertised starting price. RAKEZ currently advertises:
Instant Licence Basic Package: AED 6,000
Lite Package: AED 12,000
All-inclusive setup package: AED 14,000, including a UAE residence visa.
| RAKEZ also states that an all-inclusive visa package is priced at AED 16,500 per year in its business setup information, which helps explain why package prices can vary across promotions and offerings. |
Your final budget can increase when you add:
- Additional visas
- Immigration and establishment services
- Medical and Emirates ID processing
- Office or warehouse space
- Special approvals
- Banking assistance
- Tax and accounting services
For example, for industrial businesses, the budget can rise considerably because facility size, power requirements and fit-out become major cost factors.
So, rather than asking only “How much does RAKEZ cost?”, ask for the complete first-year cost for your exact activity and visa requirement when considering.
How to Apply for a UAE Free Zone License at RAKEZ: Step-by-Step
Planning to open a company in a Dubai free zone? Check the jurisdiction first. RAKEZ is in Ras Al Khaimah, and that may or may not suit your operating model. Follow these steps:
Step 1: Select Business Activity & Structure
Choose the activity first, then select the appropriate structure. RAKEZ supports structures such as a Free Zone LLC and branches. An FZE is generally used for a single shareholder, while an FZC structure is used for multiple shareholders.
Step 2: Reserve Your Trade Name
Submit your proposed company name and ensure it follows UAE naming requirements. The name also needs approval from the relevant authority.
Step 3: Submit Your Documents
For individual shareholders, documents can include passport copies, completed applications, Emirates ID or visa information where applicable, and a business plan for certain activities. Corporate shareholders and branches may need additional documents.
Step 4: Pay and Receive the Licence
RAKEZ supports online applications and digital processing. Its Instant Licence service states that eligible applicants can complete the process online without a physical visit and receive the licence digitally.
Step 5: Process Visas and Emirates ID
After licensing, eligible applicants can proceed with immigration formalities, residence visa processing, medical fitness testing and Emirates ID procedures.
Step 6: Open a Corporate Bank Account in Dubai or UAE
Company formation does not guarantee banking approval. When opening a corporate bank account in Dubai or UAE, banks conduct their own checks and can request incorporation documents, proof of address, shareholder information, business details, and source-of-funds evidence.
What Happens After the RAKEZ Setup?
A company licence is not the end of the process.
After that, you need to manage:
- Licence renewals
- Corporate Tax registration and filing
- VAT registration if applicable
- Accounting and bookkeeping
- Visa renewals
- UBO requirements
- Lease or facility renewals
The UAE’s free zone Corporate Tax regime does not mean every free zone company pays 0% tax. A Qualifying Free Zone Person can receive 0% on Qualifying Income, while income outside that definition can be subject to 9% Corporate Tax.
That makes compliance planning just as important as choosing a low-cost package.
Streamline Your RAKEZ Free Zone Business Setup with Ventaraa
Need help assessing the right structure, licence, and expected costs? Speak with Ventaraa’s business setup experts before you commit to a package.
Ventaraa simplifies your RAKEZ setup with end-to-end support, clear pricing, and guidance tailored to your business activity. You get 100% pricing transparency, complete PRO documentation and clearing assistance, plus support throughout the corporate bank account application process.
Book a Free Consultation with Ventaraa Setup Experts Today.
Frequently Asked Questions
How much does a RAKEZ free zone business setup cost in 2026?
RAKEZ packages currently start around AED 6,000, while visa-inclusive packages cost more. Your total depends on licensing, visas, facilities, activity, and additional government fees.
Is physical presence required in the UAE to set up a company in RAKEZ?
Not always. Eligible applicants can complete parts of the incorporation process remotely, but visa, medical, Emirates ID, and biometric procedures require physical presence where applicable.
Can you open a bank account in Dubai if your company is registered in RAKEZ?
Yes, you can open a corporate bank account in Dubai for a company registered in the Ras Al Khaimah Economic Zone (RAKEZ). Approval depends on the bank’s due diligence, business activity, ownership, documents, and transaction profile.
Can a RAKEZ company operate and sell in Dubai?
A RAKEZ company can conduct permitted business in accordance with UAE regulations, but operating directly in Dubai’s mainland market may require additional approvals, arrangements, or a suitable mainland structure.
Can you change your RAKEZ business activity after getting the licence?
Yes, you can change, add, or remove your business activities after your Ras Al Khaimah Economic Zone (RAKEZ) licence has been issued. But it is subject to approval, documentation, and applicable government or RAKEZ fees.