RAKEZ has become one of the most popular UAE free zones for cost-conscious entrepreneurs. The authority is now home to over 40,000 companies from more than 100 countries, with 19,000 new registrations in 2025 alone.
This guide focuses on the mechanics of setting up a RAKEZ company in 2026 — choosing the licence, the document pack, the timeline, banking, and the post-setup corporate-tax compliance. For a directory of RAK free-zone company types, see our separate RAK Free Zone Companies guide.
Businesses looking for affordable UAE company formation solutions increasingly choose RAKEZ company setup services for low-cost licensing, flexible visa options, and streamlined remote incorporation.
RAKEZ Licence Types (Quick Pick)
- Freelancer Permit — solo professionals; from ~AED 5,750; 1 visa.
- Service / Consultancy Licence — service companies; from ~AED 11,400+; multiple visas.
- Commercial / Trading Licence — import / export and ecommerce; from ~AED 7,500–15,000.
- Industrial Licence — manufacturing and assembly; from ~AED 10,000+ plus facility costs.
- E-commerce Licence — online-only businesses; from ~AED 5,750–9,000.
Entity Options
- FZE — single shareholder.
- FZ-LLC / FZC — two or more shareholders.
- Branch — extension of an existing UAE or overseas company.
- Freelancer Permit — individual professional licence with one visa.
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. Small Business Relief is available for entities with revenue ≤ AED 3 million for tax periods starting before 1 January 2027.
Step-by-Step Setup
Step 1 — Choose Activity and Licence Type
Use RAKEZ’s official activity list. Choose carefully — adding activities later costs AED 1,000–2,500 each, and if the new activity sits in a different RAKEZ activity group, the licence may need to be reissued at full price.
Timeline: 1–3 days research.
Step 2 — Reserve Company Name
Name must not be offensive, must not infringe trademarks, and must end in the proper suffix (FZE, FZ-LLC depending on entity type). Have 2–3 backup names ready.
Timeline: 1–2 business days.
Step 3 — Submit Application and Documents
Standard documents: passport copy (valid 6+ months), passport-size photograph, brief business plan or activity description (for some activities), and proof of residential address. Non-residents can submit remotely via email or the RAKEZ portal. Corporate shareholders also submit certificate of incorporation, MOA, board resolution, and good-standing certificate.
Timeline: 1–2 business days for initial review.
Step 4 — Choose Office / Facility Package
Options: flexi-desk (from ~AED 5,000/year), smart desk, physical office, warehouse. Most service companies start with a flexi-desk and upgrade later.
Step 5 — Pay Fees and Receive Licence
Payment by bank transfer, credit card, or (for some packages) instalments. RAKEZ’s Instant Licence option delivers the licence in as little as 1 business day. Standard processing 3–5 business days.
Step 6 — Establishment Card and Immigration Card
Both required for visa sponsorship. Approximately AED 1,500 each annually.
Step 7 — Apply for Visas
Process: entry permit → enter UAE → medical examination → Emirates ID biometrics → visa stamping. 2–4 weeks per visa.
Step 8 — Open Corporate Bank Account
UAE banks conduct strict KYC. Documents typically required: trade licence, MOA, passport and visa copies, proof of business activity, personal bank statements, reference letters. 2–6 weeks. Tier-1 banks (Emirates NBD, ADCB, RAK Bank) prefer in-person meetings; digital banks (Wio, Mashreq Neo) often clear faster as a first account.
Step 9 — Register for VAT and Corporate Tax
VAT registration mandatory above AED 375,000 in taxable supplies; voluntary above AED 187,500. Corporate-tax registration on EmaraTax is mandatory for every RAKEZ entity within the deadline matched to your trade-licence issuance date (FTA Decision No. 3 of 2024). AED 10,000 penalty for late registration regardless of revenue.
Indicative First-Year Cost Scenarios (2026)
Solo Consultant, Freelancer Permit, 1 Visa, Flexi-Desk
- Freelancer Permit: ~AED 5,750
- Flexi-desk: ~AED 5,000
- Establishment + immigration cards: ~AED 1,500
- Visa (entry permit, medical, Emirates ID, stamping): ~AED 4,500
- Basic health insurance: ~AED 1,500
Indicative total: ~AED 18,500–20,500.
Service Company FZ-LLC, 1 Shareholder, 2 Visas, Smart Desk
- Service licence: ~AED 11,400
- Smart desk: ~AED 7,500
- Establishment + immigration cards: ~AED 1,500
- Visas × 2: ~AED 9,000
- Health insurance × 2: ~AED 3,000
Indicative total: ~AED 32,000–35,000.
General Trading, 4 Visas, Small Warehouse
- General trading licence: ~AED 15,000
- Small warehouse package: ~AED 30,000–60,000+
- Establishment + immigration cards: ~AED 1,500
- Visas × 4: ~AED 18,000
- Health insurance × 4: ~AED 6,000
Indicative total: ~AED 70,000–100,000.
What We See Most Often (BCL Globiz Experience)
Banking is the slowest step. The single biggest determinant of approval rate 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 higher rejection rates with bank compliance teams.
Activity-list trap: adding a business activity after issuance costs AED 1,000–2,500 each, but if it 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
How long does a RAK free-zone company setup take?
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.
How much does a RAK free-zone company setup cost?
Indicative first-year totals: AED 18,500–20,500 for a freelancer permit with 1 visa; AED 32,000–35,000 for a service company with 2 visas; AED 70,000–100,000 for a general trading company with 4 visas and a small warehouse.
Can I set up a RAK free-zone company remotely?
Yes. The licence application and approval can be completed remotely. However, you will need to visit the UAE in person for visa stamping (medical and Emirates ID biometrics), and most banks require an in-person meeting for account opening.
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 qualify for a 0% rate 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.
Can a RAK free-zone company sell to UAE mainland customers?
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 a dual-licence arrangement.
Reach out to our experts at info@bcl.ae.
