# RAK Free Zone Companies: 2026 Guide to RAKEZ, RAK ICC and the Top Sectors Ras Al Khaimah (RAK) has become one of the smartest options for entrepreneurs who want a UAE business without Dubai-level costs. RAKEZ alone is now home to over 40,000 companies from more than 100 countries, with 19,000 new registrations in 2025 alone. This guide profiles the major RAK free-zone authorities, the most common types of companies found there, indicative setup costs for 2026, and the corporate tax obligations that apply from day one. If you are planning to launch a UAE business, understanding the complete RAK free zone company setup process can help you choose the right licence structure, visa package, and banking strategy. ## RAK Free-Zone Authorities: Quick Distinction ### RAKEZ — Ras Al Khaimah Economic Zone RAKEZ was created in 2017 through the merger of RAK Free Trade Zone and RAK Investment Authority. It is an operational free zone offering trading, services, industrial, e-commerce, and freelance licences with visa eligibility. Most RAK free-zone companies are RAKEZ entities. ### RAK ICC — RAK International Corporate Centre RAK ICC is an offshore and international business company registry. RAK ICC companies cannot obtain UAE residence visas and cannot conduct business in the UAE. They are typically used as holding entities for international assets, intellectual property, or parent companies in cross-border structures. ### Which One Do You Need? If you need a UAE residence visa or want to do business in or from the UAE, you need RAKEZ. If you only want a tax-efficient international holding vehicle with no UAE presence, RAK ICC may be suitable. ## Most Common RAKEZ Company Profiles ### Solo Consultant or Freelancer A freelancer permit starts from approximately AED 5,750 per year. This option is suited to individual consultants, designers, developers, and content creators. It generally supports a single activity and one visa. ### Single-Shareholder Service Company — FZE A service or consultancy licence starts from approximately AED 11,400+. This structure is suited to IT firms, marketing agencies, and advisory practices. ### Trading or E-Commerce Company A commercial or e-commerce licence typically ranges from approximately AED 7,500 to AED 15,000. An import/export code is available. This profile is suited to e-commerce sellers, importers, and general traders. ### Industrial or Manufacturing Company An industrial licence starts from approximately AED 10,000+ for the licence alone, with warehouse and facility costs added separately. This is suited to SME manufacturers and assembly operations. ### Holding Company RAK ICC IBCs are commonly used to hold shares in operating companies or intellectual property. They do not provide UAE physical presence or visa eligibility. ## Indicative First-Year Costs for RAKEZ Companies in 2026 | Profile | Licence Type | Annual Licence | Indicative First-Year Total | |---|---:|---:|---:| | Solo professional | Freelancer Permit | ~AED 5,750 | ~AED 18,000–20,500 | | Service company | Service / Consultancy | ~AED 11,400+ | ~AED 32,000–35,000 | | E-commerce seller | E-commerce | ~AED 5,750–9,000 | ~AED 20,000–28,000 | | Trading company with 4 visas | Trading / General Trading | ~AED 15,000 | ~AED 70,000–100,000 | First-year totals include flexi-desk, establishment and immigration cards, visas, and basic health insurance. Always confirm against the current RAKEZ quote. ## Why Choose RAKEZ for a UAE Company? RAKEZ is often attractive because it offers: - Low licence fees compared with major UAE free zones. - 100% foreign ownership across all RAKEZ entity types. - Proximity to Dubai and Sharjah — approximately one hour from Dubai, 45 minutes from northern Dubai, and 30 minutes from Sharjah. - An Instant Licence option that can deliver a licence in as little as one business day. - The same UAE legal framework and tax benefits as Dubai free zones, at materially lower cost. ## Tax Position for RAKEZ and RAK ICC Companies RAKEZ entities are subject to UAE corporate tax under Federal Decree-Law No. 47 of 2022. They may qualify for 0% corporate tax on qualifying income under the Qualifying Free Zone Person regime, subject to Cabinet Decision No. 100 of 2023 and Ministerial Decision No. 265 of 2023. Non-qualifying income is taxed at 9% above AED 375,000. RAK ICC IBCs are also taxable persons under UAE corporate tax law, but they typically have limited or no UAE-sourced income. The specific compliance treatment depends on the use case, so professional advice should be taken before relying on an IBC structure. ## BCL Globiz Experience: Common Practical Issues 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 a bank account, but they typically take 8–10 weeks longer and have a higher rate of rejection by the bank’s compliance team. Another common issue is the activity-change cost trap. Adding a business activity after licence issuance can cost approximately AED 1,000–2,500 per activity. However, if the new activity falls into a different RAKEZ activity group, the licence may need to be reissued at full price. For this reason, the activity list should be defined before incorporation, not after. ## Frequently Asked Questions ### What is the difference between RAKEZ and RAK ICC? RAKEZ is an operational free zone with visa eligibility. RAK ICC is an offshore and IBC registry without UAE physical presence or visa eligibility. If you need UAE residence visas or want to do business in the UAE, you need RAKEZ. ### How much does a RAK free-zone company cost in 2026? Indicative first-year totals are: - AED 18,000–20,500 for a freelancer permit with one visa and flexi-desk. - AED 32,000–35,000 for a service company with two visas and smart desk. - AED 70,000–100,000 for a general trading company with four visas and a small warehouse. ### Are RAK free-zone companies subject to UAE corporate tax? Yes. RAKEZ entities are subject to UAE corporate tax under Federal Decree-Law No. 47 of 2022. They may benefit from a 0% rate on qualifying income if they meet the Qualifying Free Zone Person conditions. Non-qualifying income is taxed at 9% above AED 375,000. ### Can a RAK free-zone company do business across the UAE? Yes, for invoicing. RAKEZ companies can invoice clients anywhere in the UAE. However, selling physical goods directly to UAE mainland consumers typically requires a mainland trade licence or a dual-licence arrangement. ### How long does it take to set up a RAK free-zone company? RAKEZ’s Instant Licence option can deliver a licence in as little as one business day. Standard processing usually takes 3–5 business days. A realistic total timeline, including visas and bank account opening, is 4–8 weeks.