The RAK Free Zone license cost starts from approximately AED 5,750/year, which sounds straightforward. It isn’t. The actual total you’ll pay in your first year depends on your license type, business activity, number of visas, office choice, and ongoing compliance obligations. Most sources give vague ranges or outdated figures, leaving you unable to build an accurate budget.
This guide breaks down every cost component of a Ras Al Khaimah free zone licence — from the base fee to visas, office space, government charges, and post-licence compliance — using 2025/2026 figures sourced from RAKEZ official data and on-the-ground setup experience. Whether you’re evaluating RAK company formation cost against Dubai alternatives or planning a UAE free zone company setup for the first time, you’ll walk away with a clear picture of total first-year costs for your specific business type.
What Is the RAK Free Zone (RAKEZ)?
RAKEZ was created in 2017 from the merger of RAK Free Trade Zone (RAK FTZ) and RAK Investment Authority (RAKIA). It is the free zone authority for Ras Al Khaimah — distinct from the RAK Department of Economic Development (DED), which handles mainland licences. This distinction matters because the cost structures are completely different.
A common confusion point: RAKEZ vs. RAK ICC (RAK International Corporate Centre). RAK ICC is a separate entity offering offshore/international company structures (IBC), while RAKEZ offers operational free-zone licences with visa eligibility. If you need a residence visa, you need RAKEZ.
Per RAKEZ’s own published 2025 figures, the authority is now home to over 40,000 companies from 100+ countries, with 19,000 new registrations welcomed in 2025 alone. Located approximately one hour from Dubai (and 45 minutes from northern Dubai), it offers the same UAE legal framework and tax benefits as Dubai free zones — at a fraction of the Ras Al Khaimah free zone licence cost.
Types of RAK Free Zone Licences
The licence type you choose directly determines your fee structure, permitted activities, and visa allocation. Understanding the options is essential before looking at costs.
Service / Consultancy Licence (Company)
Covers management consultancy, IT services, marketing, legal advisory, accounting, HR consultancy, and similar professional services for companies (FZ-LLC entities). Starting cost: from approximately AED 11,400/year, depending on the activities and package.
Distinct from the Freelancer Permit (below), which is the cheaper individual-licence equivalent.
Trading / Commercial Licence (General Trading)
Covers import/export, ecommerce product sales, and wholesale/retail trading of physical goods. A general trading licence offers a broader scope across multiple product categories at a higher fee. A specific trading licence limits you to named product categories at a lower fee. The RAK free zone general trading licence cost starts from approximately AED 7,500–15,000/year. This is the Ras Al Khaimah trade licence cost that most ecommerce operators and goods traders should budget for.
Industrial / Manufacturing Licence
For companies involved in manufacturing, processing, or assembly within RAK. Higher cost due to facility and warehouse requirements. Starting from AED 10,000+/year for the licence alone, plus significant facility costs. Less common for service-oriented entrepreneurs but relevant for manufacturers looking at RAK’s industrial zones.
E-commerce Licence
A specialised licence for purely online businesses — increasingly popular in 2025/2026. Lower cost structure than general trading because physical office requirements may be relaxed. Ideal for dropshipping, online retail, and digital product sales. Starting from approximately AED 5,750–9,000/year.
Freelancer Permit (Individual Professional Licence)
The most affordable entry point into the UAE market. The RAK free zone freelancer licence cost starts from approximately AED 5,750–7,500/year.
Designed for individual professionals — designers, developers, consultants, content creators, photographers. Key limitations: typically allows only 1 visa (the holder’s own) and is limited to 1–2 business activities. Many entrepreneurs start here and upgrade to a full company licence as they grow.
Educational and Media Licences
RAKEZ offers specialised licences for educational institutions, training centres, and media/publishing companies. These are niche categories with specific requirements. Contact RAKEZ directly for pricing on these specialised licence types.
| Licence Type | Starting Cost (AED/year) | Starting Cost (USD/year) | Best For | Visa Allocation |
| Service / Consultancy (Company) | ~11,400+ | ~3,100+ | Consultancies, IT firms | 1–6 visas |
| Trading / Commercial | ~7,500–15,000 | ~2,040–4,085 | Importers, ecommerce, traders | 1–6 visas |
| Industrial | ~10,000+ | ~2,720+ | Manufacturers, processors | Varies |
| E-Commerce | ~5,750–9,000 | ~1,565–2,450 | Online-only businesses | 1–3 visas |
| Freelancer Permit | ~5,750–7,500 | ~1,565–2,040 | Solo professionals | 1 visa |
| Educational / Media | Contact RAKEZ | Contact RAKEZ | Training, publishing, media | Varies |
Real-World First-Year Cost Scenarios
Three indicative roll-ups based on packages we use most often for clients. Figures rounded; actual quotes depend on activity list, office choice, and number of visas.
Scenario 1 — Solo IT consultant, freelancer permit, 1 visa, flexi-desk
- Freelancer permit fee: ~AED 5,750
- Flexi-desk: ~AED 5,000
- Establishment card + immigration card: ~AED 1,500
- Visa (entry permit, change of status, medical, Emirates ID, stamping): ~AED 4,500
- Health insurance (basic): ~AED 1,500
Indicative total: ~AED 18,500–20,500.
Scenario 2 — Service company (FZ-LLC), 1 shareholder, 2 visas, smart desk
- Service licence (company): ~AED 11,400
- Smart desk: ~AED 7,500
- Establishment card + immigration card: ~AED 1,500
- Visas x 2: ~AED 9,000
- Health insurance x 2: ~AED 3,000
Indicative total: ~AED 32,000–35,000.
Scenario 3 — General trading, 4 visas, small warehouse
- General trading licence: ~AED 15,000
- Small warehouse / office package: AED 30,000–60,000+ (varies sharply)
- Establishment + immigration cards: ~AED 1,500
- Visas x 4: ~AED 18,000
- Health insurance x 4: ~AED 6,000
Indicative total: ~AED 70,000–100,000.
Benefits of Choosing a RAK Free Zone Licence
Beyond cost savings, here are the key advantages that make RAK Free Zone a strong choice for international entrepreneurs.
Cost Advantage
RAK offers some of the lowest licence fees among major UAE free zones, with flexi-desk options from approximately AED 5,000/year. For entrepreneurs prioritising budget efficiency, RAK is hard to beat.
100% Foreign Ownership
No local sponsor or partner required. You retain full ownership and control of your company. This applies to all RAKEZ entity types.
0% Personal Income Tax and Corporate Tax Benefits
The UAE has no personal income tax. Corporate tax at 9% applies to taxable income above AED 375,000 — but qualifying free zone entities may benefit from 0% corporate tax on qualifying income if they meet the conditions (qualifying income definitions, adequate substance, compliant transfer pricing).
Proper structuring and compliance are essential to claim this benefit. Learn more about UAE corporate tax compliance.
Strategic Location
Approximately one hour from Dubai by road (45 minutes from northern Dubai), with access to RAK International Airport and RAK seaport. Ideal for businesses that want a UAE presence without Dubai-level costs.
Fast and Simple Setup Process
RAKEZ’s Instant Licence option allows you to receive your licence in as little as 1 business day. Minimal documentation requirements. The entire process can be completed remotely for non-residents.
100% Repatriation of Profits
Full repatriation of capital and profits with no currency restrictions. No foreign exchange controls.
Step-by-Step Process to Get a RAK Free Zone Licence
Step 1 — Choose Your Business Activity and Licence Type
Use RAKEZ’s official activity list to identify your category. Choose activities carefully at the start – adding later costs AED 1,000–2,500 per activity. If unsure, consult an advisor to ensure your activities match your actual business operations.
Timeline: 1–3 days (research and decision)
Step 2 — Select a Company Name and Get Approval
RAKEZ naming guidelines: name must not be offensive, must not infringe existing trademarks, and must end in the proper suffix (e.g., “FZ-LLC” for a free-zone limited liability company). Have 2–3 backup names ready.
Timeline: 1–2 business days for name reservation
Step 3 — Submit Application and Documents
Required documents: passport copy (valid for 6+ months), passport-size photograph, brief business plan or activity description (for some activities), and proof of residential address. For non-residents, all documents can be submitted remotely via email or RAKEZ’s online portal.
Timeline: 1–2 business days for submission and initial review
Step 4 — Choose Your Office / Facility Package
Select a flexi-desk, smart desk, physical office, or warehouse based on your needs and budget. Start with a flexi-desk — you can always upgrade later.
Timeline: Same day (part of the application process)
Step 5 — Pay Fees and Receive Your Licence
RAKEZ accepts payment via bank transfer, credit card, and (for some packages) instalment plans. The RAKEZ instant licence option delivers your licence within 1 business day. Standard processing takes 3–5 business days.
Timeline: 1–5 business days
Step 6 — Apply for Visas (If Needed)
Once the licence is issued, you can apply for residence visas. Process: entry permit → fly to UAE → medical fitness test → Emirates ID biometrics → visa stamping. Health insurance must be arranged before or during this process.
Timeline: 2–4 weeks per visa from start to finish
Step 7 — Open a Corporate Bank Account
This is often the most challenging step. UAE banks have strict KYC (Know Your Customer) requirements. Common requirements: business plan, proof of business activity, personal bank statements, and reference letters.
Work with an advisor who has established banking relationships – this significantly improves approval rates and speeds up the process.
Timeline: 2–6 weeks
Planning to set up your company in Ras Al Khaimah? Explore our complete RAKEZ Business Setup Services to get expert assistance with license selection, visa processing, banking support and end-to-end UAE company formation.
What We See Most Often (BCL Globiz Experience)
In our setup work, the single biggest determinant of RAKEZ banking success is whether the shareholder is physically in the UAE for the bank meeting. Remote-only setups can secure an account but typically take 8–10 weeks longer and have a higher rate of file rejection by the bank’s compliance team.
Activity-change cost trap: adding a business activity after issuance costs approximately AED 1,000–2,500 per activity — but if the new activity sits in a different RAKEZ activity group, the licence may need to be reissued at full price. We recommend defining the activity list before incorporation, not after.
Frequently Asked Questions
What is the total cost of a RAK free zone licence in 2025/2026?
Total first-year RAK free zone licence cost ranges from approximately AED 18,500 for a freelancer permit (with 1 visa and a flexi-desk) to AED 70,000+ for a trading company with multiple visas and a warehouse. The licence fee alone starts from approximately AED 5,750, but the total RAK free zone company setup cost includes registration, visa processing, office/desk, government fees, and compliance costs. See the real-world scenarios above for indicative totals by business type.
What types of licences are available in RAK Free Zone (RAKEZ)?
RAKEZ offers six main licence types: Service / Consultancy, Trading / Commercial (including General Trading), Industrial / Manufacturing, E-Commerce, Freelancer Permit, and specialised licences (Educational, Media). Each type has a different fee structure and permitted activity scope — see the licence types comparison table above.
Do I need to rent a physical office for a RAK free zone licence?
No. A physical office is not required for most licence types. RAKEZ offers flexi-desk and smart desk options starting from approximately AED 5,000/year, which are sufficient for service, consultancy, and e-commerce businesses. The RAK free zone office cost for a flexi-desk is the most cost-effective approach for most entrepreneurs — you can always upgrade later.
How long does it take to get a RAK free zone licence?
RAKEZ offers standard licence processing which takes 3–5 business days. However, the total setup timeline (including visa processing) is typically 4–8 weeks. Visa processing alone takes 2–4 weeks per visa, and bank account opening adds another 2–6 weeks.
Can I operate anywhere in the UAE with a RAK free zone licence?
A RAK free zone licence allows you to operate within the RAKEZ free zone, conduct international trade (import/export), and provide services to clients globally — including UAE-based clients in many cases. However, to sell physical goods directly to UAE mainland consumers or open a retail outlet, you would typically need a mainland trade licence or a dual-licence arrangement. Many service-based businesses operate effectively across the UAE with just a free-zone licence.
Reach out to our experts at info@bcl.ae.
