Dubai International Advisory Consultants

RAKEZ Free Zone
Company Formation in UAE

Start your business setup in RAKEZ Free Zone, UAE, and enjoy 100% foreign ownership, tax benefits, and a cost-effective company formation process. This guide to rakez company setup covers costs, required documents, and the exact registration steps.

Company Setup in RAKEZ Free Zone, UAE

Looking to set up your business in the UAE? RAKEZ Free Zone is one of the most dynamic and cost-effective business hubs, offering 100% foreign ownership, a competitive tax position, and access to established infrastructure. At Dubai International Advisory Consultants, we make the rak free zone company formation process fast, hassle-free, and affordable so you can focus on growing your business while we handle the paperwork.

RAKEZ is now home to over 40,000 companies from more than 100 countries, with 19,000 new company registrations in 2025 alone, a 44% increase over the previous year. It’s a base for startups, SMEs, and large enterprises expanding into the Middle East, Africa, and Asia. Whether you’re launching an e-commerce store, trading company, or manufacturing unit, RAKEZ’s six specialised zones and choice of free-zone or non-free-zone structures give you options most single-purpose zones can’t match.

If you’re ready to set up your company with RAKEZ Free Zone, Dubai International Advisory Consultants can handle the process from activity selection through to license delivery.

Company Setup in RAKEZ Free Zone, UAE

Why Choose RAKEZ Free Zone for Business Setup?

If you’re comparing cost-effective places to set up your company in the UAE, RAKEZ Free Zone is worth including in that comparison. Here’s why so many companies choose RAKEZ:

100% foreign ownership

No local sponsor is required, giving you full control of your business.

Zero corporate and personal taxes

An eligible Qualifying Free Zone Person may benefit from a 0% corporate tax rate on qualifying income, subject to meeting all applicable conditions. Taxable income that does not qualify may be subject to the standard 9% rate. There is no personal income tax in the UAE.

Strategic location

Get access to global markets, with connectivity to the Middle East, Africa, and Asia.

Affordable setup costs

One of the more budget-friendly free zones for entry-level packages, worth comparing directly against other zones for your specific activity.

Diverse business activities

RAKEZ supports more than 3,000 permitted business activities, whether you’re in trading, manufacturing, consulting, or e-commerce.

Hassle-free visa and office solutions

Visa options including the UAE Golden Visa for qualifying investors, co-working spaces, private offices, and warehouses, depending on your package and facility.

With six specialised zones, more than 40,000 companies, and both free-zone and non-free-zone licensing options, RAKEZ offers a genuinely broad platform for launching or scaling a business in the UAE.

RAKEZ Free Zone Areas — Where Will Your Business Be Located?

RAKEZ operates across six dedicated zones in Ras Al Khaimah, each designed for specific business types, per RAKEZ’s official zone directory:

  • Al Ghail Industrial Zone: Large-scale industrial and manufacturing enterprises.
  • Al Hamra Industrial Zone: Light and heavy industry projects.
  • Al Hamra Business Zone: Commercial and services businesses, with access to Al Hamra’s retail and port facilities.
  • Al Nakheel Business Zone: SMEs and freelancers, home to RAKEZ’s headquarters and business centres.
  • Al Hulaila Industrial Zone: Heavier industrial manufacturing.
  • RAKEZ Academic Zone: Training institutes, universities, EdTech companies, and professional development centres.

Your DIAC consultant will recommend the right zone based on your business activity, budget, and operational needs.

Steps to Start a Business in RAKEZ Free Zone

Starting a rak free zone company setup is a structured, cost-effective process. Whether you’re launching a startup, SME, or multinational company, here’s a step-by-step guide:

1. Select Your Business Activity

The first step is to decide what type of business you want to run. RAKEZ offers a wide range of business activities across more than 3,000 categories, including trading, manufacturing, consulting, education, media, and e-commerce. Choosing the right activity ensures you get the appropriate business license and can operate legally in the UAE.

2. Choose a Legal Structure

Decide on the legal framework for your company. RAKEZ currently offers:

  • Free Zone Establishment (FZE) – A single-shareholder company with limited liability.
  • Free Zone Limited Liability Company (FZ-LLC, still often called FZC) – Two or more shareholders, up to the authority’s permitted maximum of 50.
  • Branch of an Existing Company – If you already own a company elsewhere, you can establish a branch in RAKEZ to expand your presence.

Each structure has its benefits, so choosing the right one depends on your business goals and expansion plans. See RAKEZ’s official legal entity guidance for the current full detail on each structure.

3. Submit Application and Required Documents

Once you’ve finalized your business activity and structure, it’s time to apply for your RAKEZ license. Document requirements vary by structure, see the Documents section below for a general guide.

RAKEZ authorities will review and process your application, ensuring it aligns with UAE regulations.

4. Obtain Initial Approval

After submitting your documents, RAKEZ will conduct a compliance check. If everything is in order, you’ll receive an initial approval, allowing you to move forward with your business setup.

5. Lease Office or Warehouse Space

Every business in RAKEZ must have a registered office address. RAKEZ offers flexible workspace options, including:

  • Flexi-desks – Cost-effective setup for startups and freelancers.
  • Private offices – For SMEs and growing businesses requiring a dedicated workspace.
  • Warehouses and industrial land – For manufacturing and logistics companies needing large-scale infrastructure.

Depending on your business type, our team can help you find the best option for your operational needs.

6. Pay License Fees and Get Your Business License

Once your application is approved and your office space is secured, you’ll need to pay the RAKEZ licensing fees. The cost varies depending on the license type, business activity, and additional services required. After payment, you’ll receive your RAKEZ business license.

7. Open a Corporate Bank Account

After licensing, the company may apply for a UAE corporate bank account. We support document preparation and suitable bank introductions, but final approval remains subject to the bank’s own KYC, source-of-funds, and compliance review. Our accounting services team assists with bookkeeping and financial compliance post-setup, and our PRO services team coordinates the visa and Emirates ID steps that typically run alongside account opening.

8. Start Your Business Operations

Once the licence and any required external approvals are issued, the company can begin its permitted business activities. Depending on your activity, this may also involve customs registration, sector-specific permits, or facility inspection before full operations begin.

Documents Required for RAKEZ Business Setup

The following documents are required to register a company in RAKEZ Free Zone:

Usually required

  • Passport copies of all shareholders and managers
  • Proof of address (utility bill or tenancy contract)
  • Trade name approval

 

May be required, depending on activity and licence type

  • Visa copies, if applicable
  • Business plan, for certain license types
  • No Objection Certificate (NOC), for UAE residents employed elsewhere

Corporate shareholder and branch documents

  • Memorandum and Articles of Association (MOA/AOA)
  • Application form from the RAKEZ authority
  • Parent company documents and board resolutions, for branch structures

If your documents include trademark registrations or existing company certificates, our trademark registration team can assist with verification and UAE protection.

Cost of Business Setup in RAKEZ Free Zone

Rak free zone company setup cost depends on your license type, visa count, and office requirement. Here is a general, indicative breakdown:

Package Type License Cost Visa Quota Office Activities
Freelance / Sole Establishment
From approximately AED 6,000/year
Package-dependent
Flexi-desk
1 activity
Starter Business Package
Approximately AED 11,000–13,000/year
Package-dependent
Flexi-desk / Shared
Up to 3 activities
Professional / Service License
Approximately AED 13,000–16,000/year
Package-dependent
Private office option
Multiple activities
Commercial / Trading License
Approximately AED 14,000–18,000/year
Package-dependent
Office or warehouse
Trading + storage
Industrial License
Approximately AED 18,000–35,000/year
Package-dependent
Warehouse / industrial land
Manufacturing + storage

RAKEZ vs Other Free Zones Comparison Table

FeatureRAKEZIFZADMCCAjman Free Zone
License CostFrom approximately AED 6,000From approximately AED 12,900From approximately AED 50,000+From approximately AED 6,500
LocationRas Al KhaimahDubai (Silicon Oasis)Dubai (Jumeirah Lakes Towers)Ajman
Business Activities3,000+1,500+2,500+1,000+
100% Foreign OwnershipYesYesYesYes
Corporate TaxQualifying Free Zone Persons may receive 0% on qualifying income; 9% otherwiseQualifying Free Zone Persons may receive 0% on qualifying income; 9% otherwiseQualifying Free Zone Persons may receive 0% on qualifying income; 9% otherwiseQualifying Free Zone Persons may receive 0% on qualifying income; 9% otherwise
Physical Office RequiredFlexi-desk OKFlexi-desk OKOffice requiredFlexi-desk OK
Bank Account SupportApplication support availableApplication support availableApplication support availableApplication support available
Visa QuotaDepends on package and facilityDepends on packageDepends on officeDepends on package and facility
Best ForStartups, manufacturing, e-commerceE-commerce, consulting, techCommodities, trading, financeBudget startups
DIAC Setup SupportFull serviceFull serviceFull serviceFull service

Popular Business Activities Section

RAKEZ supports 3,000+ business activities across multiple categories, and this is where rakez freezone flexibility stands out most. Here are the most popular license types our clients set up:

▬ E-Commerce License in RAKEZ

Ideal for businesses selling products online. Includes the right to import, store, and export goods. A RAKEZ e-commerce license starts from approximately AED 11,000/year and includes a flexi-desk and UAE visa eligibility, subject to your package; a corporate bank account can then be applied for separately, with approval decided by the bank.

▬ Trading License in RAKEZ

For businesses buying and selling physical goods locally or internationally. RAKEZ trading licenses cover general trading, specific commodity trading (electronics, textiles, foodstuffs), and re-export operations.

▬ Industrial / Manufacturing License in RAKEZ

RAKEZ is one of the few UAE free zones with purpose-built industrial infrastructure, warehouses, factories, and industrial land, at competitive rates. Suited to light manufacturing and heavy industry.

Benefits of Setting Up a Business in RAKEZ Free Zone

Setting up in RAKEZ Free Zone means access to six specialised zones, more than 40,000 companies in its community, and both free-zone and non-free-zone licensing structures. Here’s why RAKEZ stands out:

▬ Cost-Effective Business Solutions

RAKEZ offers some of the more competitive entry-level business setup packages among UAE free zones, worth comparing directly for your specific activity. With flexible office solutions, businesses can start small and scale up as they grow.

▬ 100% Foreign Ownership

Unlike mainland businesses that require a local sponsor, RAKEZ Free Zone allows 100% foreign ownership. This means you have full control over your company’s decisions, operations, and profits.

▬ Zero Taxation Policies

An eligible Qualifying Free Zone Person may benefit from 0% corporate tax on qualifying income, with the standard 9% rate applying to income that doesn’t qualify, and full profit repatriation. For UAE VAT registration and compliance, our VAT consultants can guide you through registration and filing requirements.

▬ Access to Global Markets

If you are considering both a free zone and an offshore structure, explore our RAK offshore company formation guide for the requirements and costs specific to an offshore entity.

Start Your Business in RAKEZ Free Zone Today!

Get your RAKEZ Free Zone business license with Dubai International Advisory Consultants. Our team supports the process from activity selection through to license delivery. Contact us today to get started.

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