# RAK Free Zone License Cost in 2025/2026: Full Breakdown The RAK Free Zone license cost starts from approximately **AED 5,750 per year**, but the actual first-year cost depends on the licence type, business activity, number of visas, office choice, government charges, and ongoing compliance obligations. This guide breaks down the main cost components of a Ras Al Khaimah free zone licence using 2025/2026 figures sourced from RAKEZ official data and practical setup experience. It covers licence fees, visa costs, office or desk options, government charges, and post-licence compliance considerations so businesses can budget more accurately. ## What Is the RAK Free Zone? RAKEZ was created in 2017 through the merger of RAK Free Trade Zone and RAK Investment Authority. It is the free zone authority for Ras Al Khaimah and is separate from the RAK Department of Economic Development, which handles mainland licences. This matters because free zone and mainland cost structures are different. RAKEZ is also different from RAK ICC. RAK ICC provides offshore and international company structures, while RAKEZ provides operational free zone licences with visa eligibility. If you need a UAE residence visa, you need a RAKEZ structure rather than an offshore-only company. According to RAKEZ’s published 2025 figures, the authority is home to more than 40,000 companies from over 100 countries, with 19,000 new registrations welcomed in 2025. Located approximately one hour from Dubai and around 45 minutes from northern Dubai, RAKEZ offers the UAE legal framework and tax environment at a lower cost than many Dubai free zones. ## Types of RAK Free Zone Licences The licence type you choose determines your fee structure, permitted activities, and visa allocation. Selecting the right licence at the start is important for cost control and regulatory fit. ### Service / Consultancy Licence A service or consultancy licence is used for activities such as management consultancy, IT services, marketing, legal advisory, accounting, HR consultancy, and similar professional services. This is typically issued for company structures such as FZ-LLCs. The starting cost is approximately **AED 11,400 per year**, depending on the activity and package selected. ### Trading / Commercial Licence A trading or commercial licence covers import and export, ecommerce product sales, and wholesale or retail trading of physical goods. A general trading licence allows a broader scope across multiple product categories and usually has a higher fee. A specific trading licence limits the business to named product categories and is generally lower in cost. The RAK free zone general trading licence cost starts from approximately **AED 7,500–15,000 per year**. ### Industrial / Manufacturing Licence An industrial licence is for companies involved in manufacturing, processing, or assembly in Ras Al Khaimah. The licence cost is higher because these businesses usually require facilities or warehouse space. The licence alone starts from approximately **AED 10,000+ per year**, with additional facility costs. ### E-commerce Licence An e-commerce licence is designed for online businesses such as dropshipping, online retail, and digital product sales. It usually has a lower cost structure than a general trading licence because physical office requirements may be more flexible. The starting cost is approximately **AED 5,750–9,000 per year**. ### Freelancer Permit The freelancer permit is the most affordable entry point for individual professionals such as designers, developers, consultants, content creators, and photographers. The RAK free zone freelancer licence cost starts from approximately **AED 5,750–7,500 per year**. It is typically limited to one visa, usually the permit holder’s own, and one or two business activities. Many entrepreneurs begin with a freelancer permit and later upgrade to a company licence as the business grows. ### Educational and Media Licences RAKEZ also offers specialised licences for educational institutions, training centres, media companies, and publishing businesses. These licences have specific requirements, and pricing depends on the activity and structure. ## RAK Free Zone Licence Cost Comparison | Licence Type | Starting Cost / Year | Approx. USD / Year | Best For | Visa Allocation | | --- | ---: | ---: | --- | --- | | Service / Consultancy | AED 11,400+ | USD 3,100+ | Consultancies, IT firms | 1–6 visas | | Trading / Commercial | AED 7,500–15,000 | USD 2,040–4,085 | Importers, ecommerce, traders | 1–6 visas | | Industrial | AED 10,000+ | USD 2,720+ | Manufacturers, processors | Varies | | E-commerce | AED 5,750–9,000 | USD 1,565–2,450 | Online-only businesses | 1–3 visas | | Freelancer Permit | AED 5,750–7,500 | USD 1,565–2,040 | Solo professionals | 1 visa | | Educational / Media | Contact RAKEZ | Contact RAKEZ | Training, publishing, media | Varies | ## Real-World First-Year Cost Scenarios The following examples are indicative first-year cost roll-ups based on commonly used client packages. Actual quotes depend on the selected activities, office package, visa count, and government charges. ### Scenario 1: Solo IT Consultant With Freelancer Permit A solo IT consultant using a freelancer permit, one visa, and a flexi-desk may budget as follows: - Freelancer permit fee: approximately AED 5,750 - Flexi-desk: approximately AED 5,000 - Establishment card and immigration card: approximately AED 1,500 - Visa costs, including entry permit, change of status, medical, Emirates ID, and stamping: approximately AED 4,500 - Basic health insurance: approximately AED 1,500 **Indicative total: AED 18,500–20,500.** ### Scenario 2: Service Company With Two Visas A service company structured as an FZ-LLC with one shareholder, two visas, and a smart desk may budget as follows: - Service licence: approximately AED 11,400 - Smart desk: approximately AED 7,500 - Establishment card and immigration card: approximately AED 1,500 - Two visas: approximately AED 9,000 - Health insurance for two people: approximately AED 3,000 **Indicative total: AED 32,000–35,000.** ### Scenario 3: General Trading Company With Warehouse A general trading company with four visas and a small warehouse may budget as follows: - General trading licence: approximately AED 15,000 - Small warehouse or office package: AED 30,000–60,000+ - Establishment and immigration cards: approximately AED 1,500 - Four visas: approximately AED 18,000 - Health insurance for four people: approximately AED 6,000 **Indicative total: AED 70,000–100,000.** ## Benefits of Choosing a RAK Free Zone Licence ### Cost Advantage RAK offers some of the lowest licence fees among major UAE free zones, with flexi-desk options from approximately **AED 5,000 per year**. For cost-conscious entrepreneurs, this can make RAKEZ a strong alternative to higher-cost jurisdictions. ### 100% Foreign Ownership RAKEZ allows full foreign ownership. No local sponsor or local partner is required, and the shareholder retains full ownership and control of the company. ### UAE Tax Advantages The UAE has no personal income tax. Corporate tax applies at 9% on taxable income above AED 375,000. However, qualifying free zone entities may benefit from **0% corporate tax on qualifying income** if they meet the relevant conditions, including qualifying income requirements, adequate substance, and compliant transfer pricing. Proper structuring and ongoing compliance are essential for businesses seeking to rely on free zone corporate tax benefits. ### Strategic Location Ras Al Khaimah is approximately one hour from Dubai by road and around 45 minutes from northern Dubai. It also provides access to RAK International Airport and RAK seaport, making it attractive for businesses that want a UAE presence without Dubai-level operating costs. ### Fast Setup Process RAKEZ’s Instant Licence option can allow a licence to be issued in as little as one business day. Standard processing typically takes three to five business days, and the application process can be completed remotely for non-residents. ### 100% Repatriation of Profits RAKEZ companies can repatriate capital and profits in full, with no currency restrictions or foreign exchange controls. ## Step-by-Step Process to Get a RAK Free Zone Licence ### Step 1: Choose the Business Activity and Licence Type Start by identifying the correct activity from RAKEZ’s official activity list. This should match the company’s actual operations. Adding activities later can cost approximately **AED 1,000–2,500 per activity**, so it is better to select the right activity list before incorporation. **Typical timeline:** 1–3 days. ### Step 2: Select a Company Name and Obtain Approval The proposed company name must follow RAKEZ naming guidelines. It must not be offensive, must not infringe existing trademarks, and must include the proper suffix, such as “FZ-LLC” for a free zone limited liability company. It is useful to prepare two or three backup names. **Typical timeline:** 1–2 business days for name reservation. ### Step 3: Submit the Application and Documents Commonly required documents include: - Passport copy valid for at least six months - Passport-size photograph - Brief business plan or activity description, where required - Proof of residential address For non-residents, documents can usually be submitted remotely by email or through RAKEZ’s online portal. **Typical timeline:** 1–2 business days for submission and initial review. ### Step 4: Choose the Office or Facility Package RAKEZ offers flexi-desk, smart desk, physical office, and warehouse options. Many businesses begin with a flexi-desk and upgrade later as their operational needs increase. **Typical timeline:** Same day as part of the application process. ### Step 5: Pay Fees and Receive the Licence RAKEZ accepts payment by bank transfer, credit card, and, for some packages, instalment plans. The Instant Licence option can deliver the licence within one business day. Standard processing takes approximately three to five business days. **Typical timeline:** 1–5 business days. ### Step 6: Apply for Visas After the licence is issued, residence visa applications can begin. The usual process is: - Entry permit - Arrival or status change in the UAE - Medical fitness test - Emirates ID biometrics - Visa stamping - Health insurance arrangement **Typical timeline:** 2–4 weeks per visa. ### Step 7: Open a Corporate Bank Account Corporate bank account opening is often the most challenging step because UAE banks apply strict KYC requirements. Common requirements include: - Business plan - Proof of business activity - Personal bank statements - Reference letters Working with an advisor who understands UAE bank requirements and has established banking relationships can improve the likelihood of approval and shorten the process. **Typical timeline:** 2–6 weeks. ## Practical Insights From BCL Globiz Experience In BCL Globiz’s setup work, one of the biggest factors affecting RAKEZ banking success is whether the shareholder is physically present in the UAE for the bank meeting. Remote-only setups can still secure a bank account, but they typically take eight to ten weeks longer and have a higher risk of rejection by the bank’s compliance team. Another common cost trap is changing activities after licence issuance. Adding an activity may cost approximately **AED 1,000–2,500 per activity**. If the new activity falls under a different RAKEZ activity group, the licence may need to be reissued at full price. Defining the activity list before incorporation is usually the safer and more cost-effective approach. ## Frequently Asked Questions ### What is the total cost of a RAK free zone licence in 2025/2026? The total first-year RAK free zone licence cost ranges from approximately **AED 18,500** for a freelancer permit with one 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 full first-year setup cost includes registration, visa processing, desk or office space, government fees, and compliance-related costs. ### What types of licences are available in RAK Free Zone? RAKEZ offers six main licence categories: - Service / Consultancy - Trading / Commercial, including general trading - Industrial / Manufacturing - E-commerce - Freelancer Permit - Specialised licences, including Educational and Media licences Each licence type has a different permitted activity scope, fee structure, and visa allocation. ### 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 per year**, which are usually sufficient for service, consultancy, and e-commerce businesses. Businesses can upgrade to a physical office or warehouse later if needed. ### How long does it take to get a RAK free zone licence? RAKEZ standard licence processing usually takes **3–5 business days**. The total setup timeline, including visas, is typically **4–8 weeks**. Visa processing alone usually takes **2–4 weeks per visa**, while bank account opening may add another **2–6 weeks**. ### Can I operate anywhere in the UAE with a RAK free zone licence? A RAK free zone licence allows a business to operate within RAKEZ, conduct international trade, and provide services to clients globally, including UAE-based clients in many cases. However, selling physical goods directly to UAE mainland consumers or opening a retail outlet usually requires a mainland trade licence or a dual-licence arrangement. Many service-based businesses can operate effectively across the UAE with only a free zone licence.