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 you’ll find there, the indicative costs of setting one up in 2026, and the corporate-tax obligations that apply from day one.
If you’re planning to launch a UAE business, understanding the complete RAK Free Zone company setup process helps you choose the right licence structure, visa package, and banking strategy.
RAK Free-Zone Authorities – Quick Distinction
RAKEZ (Ras Al Khaimah Economic Zone)
Created in 2017 from the merger of RAK Free Trade Zone (RAK FTZ) and RAK Investment Authority (RAKIA). 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)
Offshore / international business company (IBC) registry. RAK ICC companies cannot obtain UAE residence visas and cannot conduct business in the UAE. They’re typically used as holding entities for international assets, IP, or as parent companies in cross-border structures.
Which 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 fit.
Most Common RAKEZ Company Profiles
Solo Consultant / Freelancer
Freelancer Permit. From approximately AED 5,750/year. Single activity, single visa. Good for individual consultants, designers, developers, content creators.
Single-Shareholder Service Company (FZE)
Service or consultancy licence from approximately AED 11,400+. Suited for IT firms, marketing agencies, advisory practices.
Trading / E-commerce Company
Commercial or e-commerce licence from approximately AED 7,500–15,000. Import/export code available. Suited for ecommerce sellers, importers, and general traders.
Industrial / Manufacturing Company
Industrial licence from approximately AED 10,000+ for the licence alone, plus warehouse and facility costs. Suited for SME manufacturers and assembly operations.
Holding Company
RAK ICC IBCs are commonly used to hold shares in operating companies or intellectual property. No UAE physical presence, no visa eligibility.
Indicative First-Year Costs (RAKEZ, 2026)
| Profile | Licence Type | Annual Licence (AED) | First-Year Total |
| Solo professional | Freelancer Permit | ~5,750 | ~18,000–20,500 |
| Service company | Service / Consultancy | ~11,400+ | ~32,000–35,000 |
| E-commerce seller | E-commerce | ~5,750–9,000 | ~20,000–28,000 |
| Trading company (4 visas) | Trading / General Trading | ~15,000 | ~70,000–100,000 |
First-year totals include flexi-desk, establishment + immigration cards, visas, and basic health insurance. Confirm against the current RAKEZ quote.
Why RAKEZ for Your UAE Company?
- Lowest licence fees among major UAE free zones.
- 100% foreign ownership across all RAKEZ entity types.
- Approximately one hour from Dubai (45 minutes from northern Dubai), 30 minutes from Sharjah.
- Instant Licence option delivers a licence in as little as 1 business day.
- Same UAE legal framework and tax benefits as Dubai free zones at materially lower cost.
Tax Position
RAKEZ entities are subject to UAE corporate tax under Federal Decree-Law No. 47 of 2022. They can qualify for 0% corporate tax on qualifying income under the QFZP regime (Cabinet Decision No. 100 of 2023; 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 the UAE corporate tax law, but typically have limited or no UAE-sourced income. Specific compliance treatment depends on the use case — get advice before relying on IBC structures.
What We See Most Often (BCL Globiz Experience)?
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. Define the activity list before incorporation, not after.
Frequently Asked Questions
What’s the difference between RAKEZ and RAK ICC?
RAKEZ is an operational free zone with visa eligibility. RAK ICC is an offshore / 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: AED 18,000–20,500 for a freelancer permit with 1 visa and flexi-desk; AED 32,000–35,000 for a service company with 2 visas and smart desk; AED 70,000–100,000 for a general-trading company with 4 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 QFZP 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. Selling physical goods directly to UAE mainland consumers typically requires a mainland trade licence or dual-licence arrangement.
How long does it take to set up a RAK free-zone company?
RAKEZ’s Instant Licence option delivers a licence in as little as 1 business day. Standard processing 3–5 business days. Total realistic timeline including visas and bank-account opening: 4–8 weeks.
Reach out to our experts at info@bcl.ae.
