What Is RAKEZ and Why Do 15,000 Companies Choose It?
RAKEZ free zone company formation in 2026 starts from AED 6,010 for a no-visa package (multiple shareholders, 10 activities), AED 12,010 for a solo starter (1 shareholder, 1 activity, 1 visa), or AED 14,010 for the standard package (multiple shareholders, 10 activities, 1 visa), making it one of the most affordable free zones in the UAE. Qualifying businesses earn 0% corporate tax on their qualifying income under Article 18 of Federal Decree-Law No. 47 of 2022, provided they meet the five Qualifying Free Zone Person (QFZP) conditions.
The Ras Al Khaimah Economic Zone (RAKEZ) was established in 2017 through the merger of RAK Free Trade Zone and RAK Investment Authority. Today, it hosts over 15,000 companies from 100+ nationalities across industrial, commercial, and service sectors. RAKEZ operates across multiple zones: the industrial belt at Al Ghail and Al Hamra, the Business Centre in downtown Ras Al Khaimah, and Academic City for education-related businesses.
In this guide, Qaspro Global breaks down every cost, license type, and setup step for RAKEZ in 2026, along with the corporate tax rules every new registrant must understand before applying.
RAKEZ Setup Costs 2026: What You Will Actually Pay
RAKEZ costs depend on the license tier, number of shareholders, permitted activities, and visa quotas. All figures in AED. Government visa fees (AED 3,000–5,000 per person for medical, Emirates ID, and stamping) are separate.
| Package | Shareholders | Activities | Visa Quotas | Annual Cost (AED) |
|---|---|---|---|---|
| No-Visa Package | Multiple | 10 | 0 | 6,010 |
| Solo Starter | 1 | 1 | 1 | 12,010 |
| Standard — 1 Visa | Multiple | 10 | 1 | 14,010 |
| Standard — 2 Visas | Multiple | 10 | 2 | 18,010 |
| Standard — 3 Visas | Multiple | 10 | 3 | 22,010 |
| Standard — 4 Visas | Multiple | 10 | 4 | 26,010 |
The Solo Starter (AED 12,010) suits a single founder with one business activity and one residence visa. The Standard packages support multiple shareholders and 10 activities — better for businesses with partners or diversified revenue. Each additional visa beyond the first adds AED 4,000.
Additional costs to budget:
- UAE residence visa (per person): AED 3,000 to AED 5,000 for medical, Emirates ID, and visa stamping
- Share capital: minimum AED 1,000 for an FZE (not required for many service licenses)
- Document attestation and notarisation (overseas applicants): AED 500 to AED 2,000
- Corporate bank account: most banks charge no account opening fee but require a minimum balance of AED 25,000 to AED 50,000
Renewal costs are lower than the first year. A zero-visa service package typically renews at AED 5,000 to AED 6,500 annually. A one-visa package renews at approximately AED 10,000 to AED 12,000.
RAKEZ License Types: Which One Do You Need?
RAKEZ offers five primary license categories covering over 3,000 permitted business activities. Choosing the wrong license type leads to reclassification fees and compliance delays, so select carefully based on what your business actually does.
- Commercial / Trading License – For companies importing, exporting, storing, and distributing products. Includes a general trading option that permits multiple product categories under one license.
- Industrial / Manufacturing License – For businesses manufacturing, assembling, or processing goods inside the free zone. RAKEZ is the UAE’s largest industrial free zone by land area and offers dedicated factories, warehouses, and land plots near Saqr Port.
- Service / Professional License – For consultants, designers, IT firms, accountants, engineers, and any skill-based service provider. The most common choice for startups and remote workers.
- E-Commerce License – For online retail businesses. Includes warehousing integration options and suits businesses selling to UAE and GCC customers.
- Media License – For content creators, production companies, agencies, and media consultancies operating from RAKEZ’s creative zone.
RAKEZ permits dual-activity licenses for businesses that combine two categories, at an additional fee. Confirm activity eligibility on the RAKEZ portal before submitting your application.
RAKEZ Company Structure: FZE, FZC or Branch?
RAKEZ allows three legal structures. The right choice depends on your ownership arrangement and expansion plans.
- Free Zone Establishment (FZE) – Single shareholder (individual or corporate entity). Most popular for solo entrepreneurs, holding companies, and foreign companies wanting a UAE subsidiary.
- Free Zone Company (FZC) – Two or more shareholders. Used for joint ventures and businesses with multiple founders. Each shareholder’s liability is limited to their share capital contribution.
- Branch of an Existing Company – An extension of your home country or UAE mainland company, with no separate legal identity. Useful for businesses expanding operations into the UAE without creating a new entity.
All three structures allow 100% foreign ownership with no UAE national sponsor or local partner required, consistent with the Companies Law amendment of 2021 that extended full ownership rights across all UAE free zones.
RAKEZ Office Space Options in 2026
RAKEZ offers more facility types than most UAE free zones, reflecting its dual focus on industrial operations and service businesses.
- Flexi-Desk – Shared workspace with a registered RAKEZ business address. Sufficient for service companies, freelancers, and remote-first businesses. No dedicated workstation.
- Smart Desk – Dedicated desk in a shared office environment with storage and meeting room access. Good for founders who visit RAK occasionally.
- Serviced Office – Private enclosed office for teams of 2 to 10 people. Fully furnished with reception, internet, and utilities included.
- Industrial Units and Warehouses – Ranging from 250 to 2,500 square metres. Ideal for manufacturing, logistics, assembly, and storage. Located at Al Ghail and Al Hamra industrial zones.
- Land Plots – Long-term lease of industrial land for large-scale manufacturing facilities, starting from 2,500 square metres.
RAKEZ’s industrial zones sit adjacent to Saqr Port, one of the largest bulk-cargo ports in the Middle East. This proximity makes RAKEZ the top choice in the UAE for logistics, commodities, and heavy manufacturing businesses.
Who Should Choose RAKEZ in 2026?
RAKEZ is the right free zone for specific business types, and the wrong choice for others. Qaspro Global advises businesses to match the free zone to their actual operational model before committing to a multi-year license.
Choose RAKEZ if:
- You need industrial units, warehousing, or large manufacturing space at lower cost than Dubai free zones
- You are a freelancer or solo consultant who wants the most affordable UAE residency and trade license
- Your business operates entirely within the free zone or internationally and does not require Dubai mainland market access
- You need proximity to Saqr Port for import, export, or logistics operations
- You want a UAE holding company structure with minimal ongoing cost
Consider IFZA or DMCC instead if:
- Your clients require a Dubai address for credibility (RAKEZ is registered in Ras Al Khaimah, not Dubai)
- You hold frequent client meetings in Dubai (RAKEZ is 45 to 60 minutes from central Dubai)
- You operate in finance, tech, or commodities where DMCC’s JLT ecosystem provides networking value
- You need immediate access to Dubai coworking communities or accelerator programmes
RAKEZ vs IFZA vs DMCC: Which Free Zone Costs Less in 2026?
| Free Zone | Emirate | Entry-Level Cost (AED) | Industrial Units | Ideal For |
|---|---|---|---|---|
| RAKEZ | Ras Al Khaimah | From 6,010 (no visa) / 12,010 solo / 14,010 standard | Yes | Manufacturing, logistics, affordable setups |
| IFZA | Dubai | From 12,900 | No | Startups, remote work, Dubai address |
| DMCC (JLT) | Dubai | From 35,484 | No | Finance, commodities, premium ecosystem |
How to Register a Company in RAKEZ: Step-by-Step 2026
RAKEZ company formation completes in 3 to 5 working days once all documents are submitted. The entire process is handled through the RAKEZ online portal, making in-person visits to Ras Al Khaimah optional.
- Select your business activity from RAKEZ’s directory of 3,000+ permitted activities. Confirm the activity is allowed under your chosen license type.
- Choose company structure (FZE, FZC, or Branch) based on your ownership arrangement.
- Reserve your company name online. Names must not conflict with existing UAE companies or include restricted words such as UAE, Emirates, Royal, or Government.
- Prepare and submit documents: passport copy (all shareholders), proof of residential address (utility bill or bank statement not older than 3 months), and completed RAKEZ application form. Branch registrations require notarised and attested parent company documents.
- Select your facility and visa package: choose flexi-desk (from AED 6,010), smart desk, serviced office, or industrial unit based on your business needs and budget.
- Pay fees and receive your trade license digitally within 3 to 5 business days.
- Apply for UAE residence visa (if required): RAKEZ processes residence visas directly. Submit biometrics at any typing centre in Ras Al Khaimah or a designated service centre.
- Open a corporate bank account: RAK Bank, Emirates NBD, and Mashreq all have RAKEZ partnerships. Account approval typically takes 2 to 4 weeks depending on the bank’s KYC requirements.
Corporate Tax Rules for RAKEZ Companies in 2026
RAKEZ companies are subject to UAE Corporate Tax under Federal Decree-Law No. 47 of 2022. FTA registration on EmaraTax is mandatory for all RAKEZ entities regardless of revenue. The 0% corporate tax rate is available only to businesses that qualify as a Qualifying Free Zone Person (QFZP) under Article 18 of FDL 47 of 2022.
To retain 0% tax on qualifying income, a RAKEZ company must satisfy five conditions simultaneously:
- Maintain adequate substance in the free zone: core income-generating activities must be conducted from RAKEZ, with appropriate employees and assets present.
- Earn only qualifying income: income from transactions with other free zone persons, qualifying IP income, and certain treasury or HQ activities qualify. Non-qualifying income must not exceed 5% of total revenue or AED 5 million (whichever is lower) under the de minimis rule in Ministerial Decision No. 229 of 2025.
- Comply with UAE transfer pricing rules: related-party transactions must be priced on an arm’s length basis and documented under Article 34 of FDL 47 of 2022.
- Maintain audited financial statements: mandatory under Ministerial Decision No. 84 of 2025 for all QFZP-electing entities, regardless of revenue size.
- Elect QFZP status on your corporate tax return: the election is made annually on EmaraTax when submitting the CT return for each tax period.
If any single condition is not met, the FTA applies the standard 9% rate to all taxable income for that tax period plus the four years that follow. Businesses with revenue under AED 3 million can alternatively elect Small Business Relief under Cabinet Decision No. 75 of 2023 and pay 0% tax without meeting QFZP conditions. This option ceases once revenue exceeds AED 3 million in any tax period.
For a full breakdown of what counts as qualifying versus non-qualifying income, see our guide on Qualifying Free Zone Person (QFZP) rules in the UAE.
Documents Required for RAKEZ Company Formation 2026
- Passport copy (all shareholders and directors, minimum 6 months validity)
- UAE residence visa copy (if already resident in the UAE)
- Proof of residential address (utility bill or bank statement, not older than 3 months)
- Completed RAKEZ online application form
- Three proposed company name options
- Business plan (required for industrial, educational, and some trading licenses)
- No Objection Certificate (NOC) from current UAE sponsor (if on an employment visa)
- For branch registration: Certificate of Incorporation and Board Resolution from the parent company (attested by UAE Embassy and Ministry of Foreign Affairs)
Frequently Asked Questions
How much does RAKEZ company formation cost in 2026?
RAKEZ company formation starts from AED 6,010 for a no-visa package (multiple shareholders, 10 activities). A solo starter with one shareholder, one activity, and one visa costs AED 12,010. The standard multi-activity package with one visa is AED 14,010. Each additional visa adds AED 4,000: two visas AED 18,010, three visas AED 22,010, four visas AED 26,010. Industrial unit packages start from AED 20,000 and vary based on facility size. Renewal in subsequent years is typically 20 to 30% lower.
Can a foreigner own 100% of a RAKEZ company?
Yes. RAKEZ allows 100% foreign ownership for all license types and company structures with no UAE national sponsor or local partner required. This applies to Free Zone Establishments (FZE), Free Zone Companies (FZC), and foreign company branches equally, consistent with UAE free zone ownership rules.
Does a RAKEZ company pay UAE corporate tax?
Yes. All RAKEZ companies must register for UAE Corporate Tax on EmaraTax and file annual returns. Businesses qualifying as a QFZP under Article 18 of Federal Decree-Law No. 47 of 2022 pay 0% tax on qualifying income. Businesses with revenue under AED 3 million can elect Small Business Relief under Cabinet Decision No. 75 of 2023 for 0% tax without QFZP conditions.
What is the minimum share capital for a RAKEZ company?
The minimum share capital for a RAKEZ FZE is AED 1,000. Many service license packages do not impose any minimum share capital. Industrial and some trading licenses may require higher capital depending on the activity scope. Share capital is declared on the incorporation documents but is not typically deposited into a blocked escrow account.
How long does RAKEZ company formation take?
RAKEZ company formation takes 3 to 5 working days from the date of complete document submission. Overseas applicants who need document attestation should add 5 to 10 working days for notarisation and legalisation. UAE residence visa processing adds a further 5 to 10 working days after the trade license is issued.
What is the difference between RAKEZ and RAK ICC?
RAKEZ (Ras Al Khaimah Economic Zone) issues operational trade licences for active businesses conducting real commercial activity. RAK ICC (International Corporate Centre) is an offshore company registry for holding structures that do not trade in the UAE. RAKEZ companies qualify for UAE residence visas; RAK ICC companies do not. For an active UAE business with residency, RAKEZ is the correct choice.
Can a RAKEZ company trade with mainland UAE customers?
Yes, but with limitations. A RAKEZ company can sell goods to mainland UAE customers subject to standard 5% import customs duty. However, providing services directly to mainland UAE clients typically generates non-qualifying income under QFZP rules, counting toward the 5% de minimis limit. If mainland sales form a large share of revenue, a dual licence or mainland expansion may be more tax-efficient.
Does RAKEZ require audited financial statements?
RAKEZ companies electing QFZP status must maintain audited financial statements under Ministerial Decision No. 84 of 2025, regardless of revenue size. This is a corporate tax requirement, not a RAKEZ licensing condition. Companies that do not elect QFZP and have annual revenue below AED 50 million may use unaudited management accounts for their corporate tax return.
Need Help Setting Up in RAKEZ?
Qaspro Global helps businesses choose the right UAE free zone, complete the RAKEZ registration process, apply for residence visas, and structure operations to qualify for 0% corporate tax from day one. Contact us today for a free consultation on RAKEZ and all UAE free zone options in 2026.