The RAK Free Zone licence 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 licence 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 Most sources give vague ranges or outdated figures, leaving you unable to build an accurate budget.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, renewal costs, and compliance obligations 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 and 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 to 15,000/year.
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.
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. Starting from approximately AED 5,750 to 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 to 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 to 2 business activities.
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) | Best For | Visa Allocation |
| Service / Consultancy (Company) | ~11,400+ | Consultancies, IT firms | 1-6 visas |
| Trading / Commercial | ~7,500-15,000 | Importers, ecommerce, traders | 1-6 visas |
| Industrial | ~10,000+ | Manufacturers, processors | Varies |
| E-Commerce | ~5,750-9,000 | Online-only businesses | 1-3 visas |
| Freelancer Permit | ~5,750-7,500 | Solo professionals | 1 visa |
| Educational / Media | Contact RAKEZ | Training, publishing, media | Varies |
RAKEZ Package-by-Package Fee Comparison
RAKEZ regularly rebrands its bundled offers under specific package names rather than pricing licences in isolation. Understanding what is actually included in each named package prevents budget surprises later.
| RAKEZ Package Name | Indicative Price (AED) | Visas Included | What’s Bundled |
| Biz Starter | ~6,000/year | 0 visas | Licence + co-working desk access, no residence visa |
| Freelancer Permit | ~5,750-7,500/year | 1 visa | Individual licence, 1-2 activities, holder’s own visa only |
| SME Business Set-Up | ~14,000-14,320 (Year 1) | 1 visa | FZ-LLC licence, establishment card, 1 residence visa, basic health insurance |
| Service / Consultancy (Company) | ~11,400+/year | 1-6 visas | FZ-LLC licence, desk options scale with visa count |
| General Trading | ~7,500-15,000/year | 1-6 visas | Broader product-category scope, office/warehouse sized to activity |
Note that package names and inclusions are part of RAKEZ’s active promotional structure and are periodically revised. Always confirm current package names and inclusions with RAKEZ or your advisor before budgeting.
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.
Year 1 vs. Renewal Cost Comparison
A common budgeting mistake is assuming Year 2 costs mirror Year 1. In practice, renewal costs are usually comparable to the initial licence fee, but Year 1 carries several one-time charges that don’t recur.
| Cost Component | Year 1 (New Setup) | Renewal (Year 2+) |
| Licence fee | Full fee | Same fee, unless package or activity changes |
| Establishment card + immigration card | ~AED 1,500 (one-time) | Not repeated unless card itself expires |
| Visa processing | Full visa cost per holder | Only for visa renewal, typically lower than fresh issuance |
| Office / desk fee | Full annual fee | Renewed annually at same or adjusted rate |
| Health insurance | Full annual premium | Renewed annually |
| Refundable e-channel deposit | ~AED 5,000 (refundable, one-time) | Not repeated |
Zero-visa packages typically renew around AED 6,000, while one-visa packages renew closer to AED 12,000, broadly in line with the original setup cost, excluding the one-time establishment costs above. Always confirm exact renewal fees with RAKEZ, since promotional discounts at setup don’t always carry over to renewal.
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.
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.
Annual Audit and Compliance Obligations
Mandatory annual audit
All RAKEZ-licensed entities, free zone and non-free zone alike, must prepare and submit audited financial statements every year, in accordance with International Financial Reporting Standards (IFRS). This is a mandatory annual audit requirement regardless of company size or revenue; even dormant or low-activity entities must comply.
- Filing deadline: within 6 months of financial year-end (commonly 30 June for calendar-year companies)
- Who can audit: only RAKEZ-approved auditors are authorised to conduct the audit
- Late filing penalty: approximately AED 2,500, with potential licence suspension for continued non-compliance
- Why it matters beyond compliance: audited financials also support UAE Corporate Tax filings and substantiate any 0% qualifying free zone income claim
Budget for audit fees as a recurring annual cost alongside your licence renewal. This is frequently the line-item entrepreneurs forget when comparing headline free zone licence costs.
Share Capital and Refundable Deposit Rules
Minimum share capital
RAKEZ sets a minimum share capital of AED 10,000 for a standard FZ-LLC, issued in shares of AED 1,000 or a multiple thereof. Regulated or higher-risk activities carry higher minimums; industrial licences, for example, can require share capital of AED 150,000 or more. Share capital can be denominated in a currency other than AED, subject to prior RAKEZ approval.
Share capital does not need to sit in a blocked bank account for most standard FZ-LLC activities in RAKEZ, unlike some other jurisdictions, but this should be confirmed for your specific activity, since regulated categories may have different requirements.
Refundable e-channel deposit
Separate from share capital, RAKEZ requires a refundable deposit of approximately AED 5,000 for e-channel access (the portal used for visa and immigration transactions). This deposit is returned when the company is liquidated or the e-channel is closed, provided there are no outstanding violations, but it is a real upfront cash requirement that’s easy to overlook when comparing headline licence fees.
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 to 2,500 per activity. If unsure, consult an advisor to ensure your activities match your actual business operations. Timeline: 1 to 3 days.
Step 2: Select a company name and get approval
RAKEZ naming guidelines: the 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). Trade name reservation is submitted as part of this step, and rejected names cost time and sometimes a re-submission fee, so have 2 to 3 backup names ready. Timeline: 1 to 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 to 2 business days.
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.
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 to 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 to 4 weeks per visa.
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. Timeline: 2 to 6 weeks.
Dual Licensing and Mainland Trading Permissions
By default, a standard RAKEZ free zone licence permits international trade and free-zone-to-free-zone activity, but does not automatically grant mainland trading rights. To sell directly to UAE mainland consumers or open a mainland retail presence, you generally need one of the following:
- A distributor arrangement, working through a mainland-licensed distributor for physical goods
- A mainland branch, registered separately with the relevant mainland DED
- RAKEZ’s Dual Licence, which combines a free zone licence with a UAE free zone company branch licence, allowing you to combine commercial and professional activities and operate across both the free zone and mainland UAE under a more unified structure
Dual licensing is worth evaluating early if mainland market access is part of your growth plan, since retrofitting this after incorporation is more expensive than structuring it from the outset. It’s a decision best made alongside your activity selection in Step 1, not after your licence is issued.
Hidden Costs Beyond the Core Licence
Beyond the headline licence fee, several recurring or situational charges catch first-time applicants off guard:
- Trade name reservation and approval: a processing fee applies to reserve your company name, and rejected names (for naming-convention or trademark reasons) cost time and sometimes a re-submission fee
- External approvals: certain regulated activities (industrial operations, specific trading categories, professional services requiring a governing body’s sign-off) need approvals from bodies outside RAKEZ, typically ranging AED 2,000 to 10,000+ depending on the activity
- Document attestation: documents originating outside the UAE (Certificate of Good Standing, corporate documents for a parent company registered abroad or in another UAE free zone) require legalisation and attestation up to UAE Embassy level, which carries its own cost and adds processing time
- Activity amendment fees: adding an activity after issuance costs approximately AED 1,000 to 2,500 per activity, and if it falls in a different RAKEZ activity group, the licence may need full reissuance
- PRO and translation costs: documents not in Arabic require certified Arabic translation for renewal and certain amendment filings
None of these individually break a budget, but stacked together they can add 15 to 25% on top of the quoted base licence fee in a typical first year.
Visa Quota Pricing by Office Type
Visa allocation in RAKEZ is tied directly to the office or facility package you choose, not just your licence type. This is a common point of confusion when comparing quotes.
| Office Type | Indicative Annual Cost (AED) | Typical Visa Quota |
| Flexi-desk | ~5,000 | 1-2 visas |
| Smart desk | ~7,500 | 2-3 visas |
| Physical office (small) | ~10,000-20,000+ | 3-6 visas |
| Warehouse / industrial facility | 30,000-60,000+ | Varies by facility size |
If you need more visas than your current package allows, upgrading office type, not just paying a visa fee, is usually the underlying requirement. Factor this into cost comparisons rather than looking at visa fees in isolation.
One Factor Makes the Biggest Difference
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 to 10 weeks longer and have a higher rate of file rejection by the bank’s compliance team.
Activity amendment and upgrade costs
Upgrading or amending your licence after issuance is common as businesses grow, but it isn’t free:
- Adding a business activity: ~AED 1,000-2,500 per activity, provided it sits within your existing activity group
- Cross-group activity change: if the new activity falls outside your original RAKEZ activity group, the licence may require reissuance at full price rather than a simple amendment
- Freelancer-to-company upgrade: moving from a Freelancer Permit to a full FZ-LLC company licence is treated as a new company registration, not an amendment, so most setup fees apply again
- Timing rule: submit amendment requests at least 60 days before your licence expiry date to avoid processing delays running into renewal
We recommend defining the full activity list before incorporation, not after. This remains the most reliable way to avoid the activity-change cost trap.
RAK vs. Dubai, Sharjah, and Ajman Free Zones
| Factor | RAK (RAKEZ) | Dubai (e.g., IFZA) | Sharjah (e.g., SHAMS) | Ajman Free Zone |
| Starting licence cost | ~AED 5,750/year | Generally higher, ~AED 12,000+/year | Competitive, similar range to RAK | Similar range to RAK |
| Mandatory annual audit | Yes, for all entities | Varies by free zone and activity | Varies by free zone and activity | Varies by free zone and activity |
| Distance from Dubai | ~45-60 minutes | N/A | ~30-40 minutes | ~30-45 minutes |
| Dual licensing (mainland access) | Available via Dual Licence | Available via similar dual/branch structures | Available via similar structures | Available via similar structures |
RAK’s core advantage remains cost efficiency without sacrificing full foreign ownership, repatriation rights, or access to the same UAE legal and tax framework as Dubai free zones. The trade-off for most businesses is less about legal capability and more about the perceived prestige of a Dubai address and marginally longer travel time for in-person banking or client meetings. RAKEZ’s own instant licence option and remote-friendly setup narrow that gap considerably for founders who don’t need daily Dubai presence.
Planning to set up your company in Ras Al Khaimah? Explore our complete RAKEZ Business Setup Services to get expert assistance with licence selection, visa processing, banking support, and end-to-end UAE company formation.
Frequently Asked Questions
What is the total cost of a RAK free zone licence in 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.
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.
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. 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 to 5 business days. However, the total setup timeline (including visa processing) is typically 4 to 8 weeks. Visa processing alone takes 2 to 4 weeks per visa, and bank account opening adds another 2 to 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.
What is the RAKEZ licence renewal fee, and is there a late penalty?
Renewal fees are generally comparable to the original licence fee, for example, around AED 6,000 for a zero-visa package or AED 12,000 for a one-visa package. RAKEZ’s official renewal guidance states there is no grace period after expiry, and a late fee of approximately AED 50 per day applies immediately, alongside possible additional penalties from immigration or tax authorities if visas are affected. Always renew before expiry to avoid this.
Is an annual audit mandatory for RAKEZ companies?
Yes. All RAKEZ-licensed entities must submit IFRS-compliant audited financial statements annually, typically within 6 months of financial year-end, using a RAKEZ-approved auditor. Late filing carries a penalty of approximately AED 2,500.
What is the minimum share capital for a RAKEZ company?
Standard FZ-LLC entities require a minimum share capital of AED 10,000, issued in shares of AED 1,000 each. Regulated activities, such as industrial licences, require higher minimums. A separate refundable deposit of approximately AED 5,000 also applies for e-channel access.
Can a RAKEZ free zone company trade on the UAE mainland?
Not by default. A standard RAKEZ licence covers international trade and free zone activity. To sell directly to mainland consumers, you typically need a distributor arrangement, a mainland branch, or RAKEZ’s Dual Licence, which combines free zone and mainland branch permissions under one structure.
Quick Summary
- Starting cost: RAK free zone licences start from approximately AED 5,750/year, but total first-year cost typically runs AED 18,500 to 100,000+ depending on licence type, visas, and office.
- Named packages: RAKEZ markets bundled options such as Biz Starter (~AED 6,000, 0 visas) and SME Business Set-Up (~AED 14,000-14,320, 1 visa), alongside standard licence categories.
- Renewal: Renewal fees are broadly comparable to the original licence fee (~AED 6,000-12,000 depending on visa count), but there is no confirmed grace period after expiry, so renewing on time matters.
- Compliance: Every RAKEZ company must file an IFRS-compliant annual audit within 6 months of financial year-end, and hold minimum share capital of AED 10,000 (higher for regulated activities), plus a refundable AED 5,000 e-channel deposit.
- Mainland access: A standard licence doesn’t include mainland trading rights by default; a distributor arrangement, mainland branch, or RAKEZ Dual Licence is needed to sell directly to mainland UAE consumers.
- Hidden costs: Trade name reservation, external approvals for regulated activities, document attestation, and activity amendment fees (~AED 1,000-2,500 each) can add 15-25% on top of the base licence fee.
- How RAK compares: RAK remains one of the most cost-efficient UAE free zones against Dubai, Sharjah, and Ajman, without sacrificing 100% ownership, repatriation rights, or the UAE’s tax framework.
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