How to Start a Business in RAKEZ Free Zone: A Step-by-Step Guide
To start a business in the RAKEZ Free Zone, follow these steps: Choose your business activities (e.g., commercial, industrial, or professional), select a legal structure like FZ-LLC or branch, reserve a trade name, submit your license application with documents (e.g., passport copy, business plan), pay the fees, sign the MOA and lease agreement, receive your business license, apply for investor visas, and open a bank account. RAKEZ offers 100% foreign ownership, 0% taxes in designated zones, and a cost-effective setup starting at AED 6,000, with a process that takes 5-10 days.
How to Start a Business in RAKEZ Free Zone
Starting a business in RAKEZ Free Zone feels like stepping into a world of opportunity. As an entrepreneur, I’ve always dreamed of launching a venture in a place that’s both affordable and packed with perks. That’s why the Ras Al Khaimah Economic Zone (RAKEZ) caught my eye. It’s a thriving business hub in the UAE, home to over 30,000 companies from 100+ countries across 50+ sectors. Whether you’re a startup, SME, or international investor, RAKEZ offers a cost-effective, streamlined process to turn your vision into reality.
In this guide, I’ll walk you through every step of company formation in RAKEZ Free Zone, share insider tips, and address common pain points—like navigating compliance or choosing the right business license. Plus, I’ll cover 2025 updates, content gaps, and unanswered queries to ensure you have all the info you need. Let’s dive in!
Why Choose RAKEZ Free Zone for Your Business Setup?
When I first explored UAE free zones, RAKEZ stood out as a geostrategic location in Ras Al Khaimah. It’s just an hour’s drive from Dubai and close to Saqr Port, one of the largest bulk ports in the region. This logistics hub connects you to markets in the MENA region, Europe, Southeast Asia, and Africa, serving over 1.2 billion consumers.
RAKEZ was formed by merging RAK FTZ and RAKIA, creating a powerhouse under the leadership of Sheikh Saud bin Saqr Al Qasimi. It’s designed for expats, startups, SMEs, and multinationals, offering customized solutions and a pro-business environment. With over 30,000 companies across 50+ sectors, RAKEZ is a diverse community that fosters innovation and business growth.
Unlike other UAE-free zones, RAKEZ balances affordability with world-class infrastructure. Whether you’re into e-commerce, manufacturing, or consulting, the one-stop shops simplify government services, from licensing to visa processing. Plus, the self-service portal makes managing your business setup a breeze.
What Are the Benefits of Company Formation in RAKEZ?
Setting up a business in RAKEZ Free Zone comes with perks that make it a no-brainer. Here’s why I’d choose RAKEZ:
- 100% Foreign Ownership: You don’t need a local sponsor, giving you full control over your business activities.
- 0% Taxes in Designated Zones: Enjoy 0% corporate tax, 0% income tax, 0% custom duty, and 0% re-exported tax in RAKEZ designated zones (as of 2025, confirm eligibility for your activity).
- No Currency Restrictions: Repatriate all profits and capital without limits, which is perfect for international investors.
- Cost-Effective Setup: Packages start at AED 6,000, with minimal capital requirements (e.g., AED 10,000 for most setups, AED 15,000 for industrial activities).
- Strategic Connectivity: Access global markets via transport links, including Saqr Port and nearby international airports.
- Flexible Facilities: Choose from flexi desks, Flexi offices, warehousing, or industrial land plots to suit your needs.
- Visa Flexibility: Investor visas allow travel to Gulf Cooperation Countries, and you can sponsor family members.
- Business Support: RAKEZ services include accounting, bookkeeping, marketing, and recruitment, saving you time.
- Streamlined Process: Instant business licenses are available in under 5 minutes via the self-service portal, with full setup in 5-10 days.
These benefits make RAKEZ a top choice for company formation in Dubai or anywhere in the UAE, especially for those seeking a business setup in UAE with low costs and high returns.
What Types of Business Licenses Are Available in RAKEZ?
Choosing the right business license is key to your RAKEZ business setup. RAKEZ offers a variety of licenses to match your business activities:
- Commercial License: For trading goods or services, ideal for retail or wholesale businesses.
- General Trading License: Allows trading multiple goods, perfect for diverse product portfolios.
- E-commerce License: For online businesses supporting digital commerce in 2025’s growing market.
- Industrial License: For manufacturing, packaging, or exporting products suited for industrial activities.
- Professional License: For consulting, accounting, or management services.
- Service License: For service-based businesses across industries, like IT or marketing.
- Educational License: For schools, universities, or academic consultancies.
- Media License: For broadcasting or media-related activities.
- Freelancer Permit: This is for solo professionals in media, education, or IT who offer flexibility.
- Dual License: Combines commercial and professional activities, allowing operations in both free zones and mainland UAE.
Each license supports over 4,000 business activities, ensuring you find the perfect fit. For example, I considered an e-commerce license for my online store, as it aligns with RAKEZ’s e-commerce package discounts in 2025.
What Are the Legal Structures for a RAKEZ Free Zone Company?
Your legal structure shapes your business setup in RAKEZ Free Zone. Here’s a breakdown:
| Zone | Legal Form | Shareholders | Key Features |
| RAKEZ Free Zone | Free Zone Limited Liability Company (FZ-LLC) | 1–50 | 0% taxes, 100% foreign ownership, access to local Ras Al Khaimah market. |
| RAKEZ Free Zone | Branch | N/A | For existing companies, 0% taxes, 100% ownership, local market access. |
| RAKEZ Non-Free Zone | Individual Establishment | 1 | 0% taxes, direct sales in UAE and GCC markets, custom duty exemptions. |
| RAKEZ Non-Free Zone | Limited Liability Company (LLC) | 2–50 | 0% taxes, direct sales in UAE and GCC markets, custom duty exemptions. |
| RAKEZ Non-Free Zone | Branch | N/A | 0% taxes, for companies inside/outside UAE, GCC market access. |
The FZ-LLC is popular for its flexibility, while the mid-shore free zone structure suits holding companies or e-commerce businesses. I chose an FZ-LLC for my venture, as it offered 100% ownership and tax benefits.
How to Start a Business in RAKEZ Free Zone: Step-by-Step Process
Starting a business in RAKEZ Free Zone is straightforward. Here’s how I did it, step by step:
- Choose Your Business Activities
- Decide what your business will do—commercial, industrial, or professional. For example, I picked e-commerce for my online retail idea. Check RAKEZ’s pre-approved list of over 4,000 activities.
- Select a Legal Structure
- Choose between FZ-LLC, branch, Individual Establishment, or LLC. I went with FZ-LLC for 100% ownership and tax exemptions.
- Reserve a Trade Name
- Pick a unique name following RAKEZ rules (no offensive terms or initials). I used the self-service portal to check availability and reserved “GrowEasy Solutions.”
- Submit Your License Application
- Fill out the registration and licensing application online or via RAKEZ’s one-stop shops. Attach the required documents (see below). My application took 1 day to prepare.
- Pay the Fees
- Pay the license fees (starting at AED 6,000). I opted for an e-commerce package with visa eligibility, costing AED 8,000.
- Sign the MOA and Lease Agreement
- Sign the Memorandum of Association (MOA) and lease for your flexi desk or office space. I chose a flexi desk for AED 3,000/year.
- Receive Your Business License
- Get your business license, registration set, and bank letter within 5-10 days. Mine arrived in 7 days via the self-service portal.
- Apply for Visas
- Apply for investor visas or employee visas through RAKEZ. I needed a 2-year residence permit, which required a medical fitness test and biometrics.
- Open a Bank Account
- Use the bank letter to open a corporate bank account. I chose a WIO Corporate Bank Account for its seamless process, guided by RAKEZ experts.
- Start Operations
- Launch your business! I was up and running in 10 days, thanks to RAKEZ’s streamlined process.
This process is perfect for business setup in Dubai or business setup in UAE, as RAKEZ offers a cost-effective alternative to pricier zones.
What Documents Are Required for RAKEZ Business Setup?
Gathering documents is crucial for a smooth RAKEZ business setup. Here’s what I prepared:
- Coloured passport copy or Emirates ID (for UAE residents).
- A visa copy or entry stamp (if in the UAE) is required.
- Original no-objection certificate (NOC) for the general manager (if a UAE resident).
- A business plan outlining your business activities.
- Ultimate Beneficial Ownership (UBO) declaration with a copy of your passport.
- Trade name registration guidelines (to ensure compliance).
- Registration and licensing application form.
- Shareholders’ resolution (for corporate shareholders).
- Trade license or certificate of registration (for existing businesses).
- Memorandum and Articles of Association (for corporate shareholders).
- Certificate of good standing or incumbency (for corporate shareholders).
How Much Does It Cost to Set Up a Business in RAKEZ Free Zone?
The cost of a business setup in the RAKEZ Free Zone is budget-friendly. Here’s a breakdown based on my experience:
- License Fees: Start at AED 6,000 for a 1-year license with 1 visa (e.g., e-commerce package).
- Visa Costs: AED 2,000–3,000 per investor visa, including medical fitness tests and biometrics.
- Office Space:
- Flexi Desk: AED 3,000–5,000/year.
- Flexi Office: AED 10,000–20,000/year.
- Warehousing: AED 50,000+/year, depending on size.
- Share Capital:
- FZE: AED 150,000 (minimum).
- FZC: AED 1,000,000.
Most licenses: AED 10,000 (AED 15,000 for industrial activities).
- Additional Services:
- Accounting and bookkeeping: AED 5,000–10,000/year.
- VAT registration: AED 2,000–5,000 (if applicable).
What Are RAKEZ Specialized Zones, and Which One Suits Your Business?
RAKEZ offers specialized zones to match your business needs:
- RAKEZ Business Zone: For trading, services, or consultancy, with flexi desks and offices.
- Al Hamra Industrial Zone: For light and heavy industries, ideal for manufacturing.
- Al Ghail Industrial Zone: This is for large-scale manufacturing with ample industrial land plots.
- Al Hulaila Industrial Zone: For heavy industrial projects, offering robust infrastructure.
- RAKEZ Academic Zone: For schools, universities, or academic consultancies.
I chose the RAKEZ Business Zone for my e-commerce venture, as it offered flexi desks and business support services. If you’re in logistics, consider Al Hamra for its proximity to Saqr Port.
How do you navigate Visa Processing and Bank Account Opening in RAKEZ?
Visa processing and bank account opening can feel daunting, but RAKEZ makes it easy:
Visa Processing:
- Submit visa applications via RAKEZ’s one-stop shops.
- Complete a medical fitness test and biometrics (cost: AED 500–1,000).
- Receive a 2-year residence permit or investor visa, allowing family sponsorship.
- 2025 Tip: Check visa eligibility based on office space size (e.g., flexi desk = 1–2 visas).
Bank Account Opening:
- Use the bank letter from RAKEZ to approach UAE banks like WIO or Emirates NBD.
- Submit passport copies, business license, and MOA.
- Challenges for International Investors: Some banks require a physical presence. I visited a branch to speed things up.
- 2025 Update: Digital banks like WIO offer seamless account opening for expats.
What Are the 2025 Compliance Requirements for RAKEZ Free Zone Businesses?
Compliance is critical to avoid fines or license cancellation. Here’s what I learned for 2025:
- License Renewal: Renew your business license annually (cost: AED 5,000–10,000). Use the self-service portal for reminders.
- Corporate Tax: Profits over AED 375,000 face a 9% corporate tax unless in a designated zone (0% tax). Register for corporate tax if applicable.
- VAT Registration: Mandatory for businesses with taxable supplies over AED 375,000. I registered for VAT to comply with e-commerce sales.
- Financial Compliance: Submit ESR, UBO, and AML reports annually. Hire business consultants for accuracy.
- Physical Presence: Maintain a flexi desk, office, or warehouse to meet RAKEZ rules.
How Does RAKEZ Compare to Other UAE Free Zones?
RAKEZ shines compared to other UAE free zones like Dubai or Sharjah. Here’s a quick comparison:
| Feature | RAKEZ Free Zone | Dubai Free Zone | Sharjah Free Zone |
| Setup Cost | AED 6,000+ | AED 15,000+ | AED 10,000+ |
| Tax Rate | 0% (designated zones) or 9% | 0% (most zones) | 0% (most zones) |
| Ownership | 100% foreign ownership | 100% foreign ownership | 100% foreign ownership |
| Setup Time | 5–10 days | 7–14 days | 10–15 days |
| Market Access MENA, Asia, Europe | Global, Middle East | Middle East, Asia | |
| Specialized Zones | Yes (business, industrial, academic) | Yes (media, tech, logistics) | Limited (industrial focus) |
RAKEZ is ideal for cost-effective setups and logistics hubs, while Dubai suits business setup in Dubai for tech startups needing visibility. Sharjah is better for industrialists. I picked RAKEZ for its affordable packages and strategic proximity to Saqr Port.
FAQs
Q1: What is the cost of a RAKEZ Free Zone Setup in 2025?
Costs start at AED 6,000 for a 1-year license with 1 visa, plus AED 3,000–5,000 for a flexi desk. E-commerce packages are ~AED 8,000.
Q2: How long does it take to start a business in RAKEZ?
The process takes 5–10 days, with instant business licenses available in 5 minutes via the self-service portal.
Q3: What are the office space options in RAKEZ?
Choose Flexi desks (AED 3,000/year), flexi offices (AED 10,000+), warehousing, or industrial land plots, depending on your business needs.
Q4: Can I scale my RAKEZ Free Zone business?
Yes! Add visas, upgrade licenses, or lease more space (e.g., warehouses) to grow. RAKEZ services support expansion.
Q5: What is a business setup consultant?
A business setup consultant in Dubai or RAKEZ guides you through licensing, visa processing, and compliance, ensuring a hassle-free setup.
Conclusion
Starting a business in the RAKEZ Free Zone was one of the best decisions I made as an entrepreneur. The 100% foreign ownership, 0% taxes in designated zones, and cost-effective packages gave me the freedom to grow without financial strain. The streamlined process, specialized zones, and strategic connectivity to global markets make RAKEZ a standout choice for company formation in Dubai or business setup in the UAE.
Whether you’re launching an e-commerce store, a manufacturing unit, or a consulting firm, RAKEZ’s one-stop shops and business support services simplify every step. With 2025 compliance updates in mind, now’s the perfect time to leverage RAKEZ’s pro-business environment and turn your vision into reality.
Ready to kickstart your business setup in the RAKEZ Free Zone? Get started today and join a thriving community of innovators!
