A RAKEZ free zone company can be set up with 100% foreign ownership, no local partner, and a starter trade license from AED 6,000 per year for a single shareholder, single activity, and a coworking desk. RAKEZ, the Ras Al Khaimah Economic Zone, is the northern emirate’s consolidated economic authority, and it is unusual in that it issues both free zone licenses and non-free zone (mainland-style) licenses from the same registration desk. That single feature decides more setup questions than price does, so this guide starts with the structure choice and works down to license type, packages, visas, and renewal. For production and storage operations specifically, our industrial and warehousing route starts from infrastructure rather than package price.
Everything below is drawn from the official RAKEZ portal and federal tax sources. RAKEZ package prices are promotional and change often, so treat any specific dirham figure as indicative and confirm the current number on the RAKEZ eportal before you pay.
Free Zone vs Non-Free Zone: The First Decision at RAKEZ
RAKEZ offers two distinct company types under one authority: a free zone entity and a non-free zone entity. The free zone entity gives 100% foreign ownership, customs exemptions inside the zone, and a streamlined setup, but it trades mainly with international markets and other free zones. The non-free zone entity is RAKEZ’s mainland-equivalent license, which can trade directly with the UAE domestic market and government bodies. RAKEZ confirms both structures carry 100% foreign ownership across most sectors.
Choose the RAKEZ free zone license if your customers are overseas, other free zone companies, or you run an online or holding business. Choose the non-free zone license if you need to invoice mainland UAE clients directly, sell to local consumers, or bid for government work. A free zone company can still reach the mainland through a distributor or a separate onshore entity, which is a common structure rather than a workaround.
| Factor | RAKEZ free zone entity | RAKEZ non-free zone entity |
|---|---|---|
| Foreign ownership | 100% | 100% in most activities |
| Mainland UAE trade | Indirect, via distributor or separate mainland entity | Direct, including local consumers and government |
| Customs treatment | Exemptions inside the free zone | Standard mainland customs |
| Typical user | Exporters, consultants, e-commerce, holding companies | Retailers, contractors, service firms serving local clients |
This dual offering is why RAKEZ competes with both pure free zones and mainland registration. If you are still weighing zones, our business setup guide for the UAE maps the full landscape, and the mainland setup without a local sponsor guide covers the onshore route in detail.
RAKEZ License Types and What Each Covers
RAKEZ groups its activities into a set of license categories, and you select the one that matches your core activity. The official RAKEZ license overview lists commercial, service, industrial, educational, media, general trading, individual or professional, and e-commerce licenses, plus a standalone freelancer permit. Each is available in both the free zone and non-free zone structure.
RAKEZ issues commercial, service, industrial, educational, media, general trading, e-commerce, and individual or professional licenses, plus a freelancer permit. A commercial license covers trading and distribution, a service license covers consultancy and professional work, and an industrial license covers manufacturing and processing. You pick the category that matches your main activity, then add related activities under it.
The main license categories
| License | What it covers |
|---|---|
| Commercial | Trading of goods and services, including import, export, distribution, and storage. |
| Service / Professional | Consultancy and professional services across sectors such as IT, management, and advisory. |
| Industrial | Manufacturing, processing, assembly, and production. Typically requires a warehouse or industrial facility. |
| Educational | Training centers, educational consultancies, and institutions. |
| Media | Advertising agencies, production houses, content creators, and publishing. |
| General Trading | Broad flexibility to trade multiple, unrelated product categories under one license. |
| E-Commerce | Selling goods and services through digital platforms and online stores. |
| Individual / Professional | A single individual offering services based on a specific skill or qualification. |
| Freelancer Permit | Independent professionals in fields such as media, education, and IT, operating without a full company. |
The number of activities you can hold under one license depends on the package. RAKEZ typically allows several related activities under a single commercial or service license, while a general trading license is the route when you want to trade unrelated product lines. Confirm the exact activity count against the current RAKEZ activity list before committing, because the ceiling is set per package and can change with promotions. RAKEZ maintains separate free zone and non-free zone activity lists on its portal.
Legal Structures: FZE, FZC, and Branch
Once the license type is set, RAKEZ registers the company under one of three legal structures. The choice follows shareholder count and whether you are forming a new entity or extending an existing one.
RAKEZ registers a free zone company as an FZE with a single shareholder, an FZC with two or more shareholders, or a branch of an existing UAE or foreign company. The FZE and FZC are both limited liability entities, sometimes shown together as FZ-LLC. A branch is not a separate legal person; it carries the parent company’s identity and activities.
| Structure | Shareholders | Notes |
|---|---|---|
| FZE (Free Zone Establishment) | 1 (individual or corporate) | Limited liability, single owner. The most common startup structure. |
| FZC / FZ-LLC | 2 or more | Limited liability with multiple partners, individual or corporate. |
| Branch | Parent company | Extension of an existing UAE or foreign company; no separate share capital. |
RAKEZ Setup Packages and Indicative Costs
RAKEZ sells setup as bundled packages rather than a single flat fee, and the headline price depends on license type, the number of visas, and the workspace you attach. Cost is driven far more by visas and office than by the license itself, so a zero-visa coworking package sits at the bottom of the range and a multi-visa office package at the top.
The RAKEZ instant license starts at an official AED 6,000 for a basic package with one shareholder, one activity, and a coworking facility, and AED 12,000 for a lite all-inclusive package with up to five shareholders, five activities, and one residence visa. A wider all-inclusive package with a UAE residence visa and shared workstation is listed at around AED 16,500 per year. These are promotional figures, so verify the live price on the RAKEZ eportal.
Decision point: the advertised price is rarely the total. A headline like AED 6,000 usually covers a zero-visa or single-shareholder license with a coworking desk. Add residence visas, an industrial or general trading activity, or a physical office, and the real first-year cost rises well above the banner figure. Before you pay, get a written quote that itemizes the license, each visa, the establishment card, and the workspace, and confirm whether the number is a first-year promotion or the standing renewal rate. When in doubt, verify the setup provider and the quote against the official RAKEZ portal.
What drives the RAKEZ price
| Cost driver | Effect on total |
|---|---|
| License type | Service and professional licenses are usually cheapest; general trading and industrial cost more. |
| Number of visas | Each residence visa adds government and medical fees on top of the package. |
| Workspace | Coworking or flexi-desk is cheapest; standard offices and warehouses add annual rent. |
| Number of activities | Extra or unrelated activities may push you into a higher package tier. |
Compared with Dubai zones, RAKEZ generally undercuts on the entry package. If you are benchmarking, our guides to IFZA free zone setup and the larger industrial and logistics option at JAFZA in Jebel Ali give directly comparable structures and cost drivers.
Workspace and Visa Quota at RAKEZ
Your workspace choice does two things at RAKEZ: it satisfies the license requirement for a registered address, and it sets how many residence visas you can apply for. This link between office and visa quota is the single most misunderstood part of free zone setup.
RAKEZ workspace options run from a flexi-desk or coworking seat, through shared workstations, standard and executive offices, to warehouses and land for development. A flexi-desk or coworking package usually carries a small visa quota, often zero to a handful, while a private office or warehouse unlocks more visas because the quota scales with the physical space you lease.
For a solo consultant, a flexi-desk or the coworking package at RAKEZ Compass is normally enough. A company planning to hire needs to size the office to the headcount, because you cannot issue more residence visas than your workspace quota allows. Industrial operators leasing a warehouse or land get the highest quotas. If your plan centers on sponsoring your own residence, read our investor visa through company registration guide, and freelancers should compare the freelance visa route and its free zone costs.
What Actually Happens When You Set Up a RAKEZ Company
RAKEZ describes company formation as a short, mostly online sequence. The official RAKEZ formation steps and the getting-started flow break the process into a handful of stages, and the instant license route can issue a digital license the same day.
You choose your business activity and license type, pick the free zone or non-free zone structure and the legal form, reserve a company name, submit passport copies and application documents, and pay. RAKEZ then issues the trade license, registration set, and a bank letter, after which visa processing and Emirates ID begin. The lightest instant-license path is fully online with no physical visit.
The setup sequence step by step
- Choose the activity and license type. Match your core activity to a commercial, service, industrial, or other RAKEZ license, and decide free zone or non-free zone.
- Select the legal structure. FZE for one shareholder, FZC for two or more, or a branch of an existing company.
- Reserve the trade name. Submit proposed names for RAKEZ approval against UAE naming rules.
- Submit documents and pay. Provide passport copies, the application, and any activity-specific approvals, then pay by card, transfer, or the eportal.
- Receive the license. RAKEZ issues the trade license, registration set, and bank letter. The instant route can deliver this digitally the same day.
- Open a business bank account. Use the license and registration set to apply. Our guide to a UAE business bank account covers what banks ask for.
- Process visas and Emirates ID. Apply for the establishment card, then residence visas up to your workspace quota, with medical and Emirates ID steps.
Regulated activities, such as certain educational, media, financial, or industrial lines, need extra approvals from the relevant authority and add time. A plain trading or consultancy license is the fastest path.
Corporate Tax for a RAKEZ Free Zone Company
A RAKEZ free zone company is inside the UAE corporate tax system, not outside it. The 9% federal corporate tax applies from financial years starting on or after 1 June 2023, and free zone companies can access a 0% rate only by qualifying, according to the Federal Tax Authority.
A RAKEZ free zone company can pay 0% corporate tax on qualifying income only if it is a Qualifying Free Zone Person, meaning it has adequate substance in the zone, earns qualifying income within the de minimis limit, keeps audited accounts, and complies with transfer pricing. Non-qualifying income, including most direct sales to mainland UAE customers, is taxed at 9%.
This is where the free zone versus non-free zone choice returns. A non-free zone RAKEZ company follows the standard 9% regime with the AED 375,000 zero-rate band. A free zone company chasing 0% must meet every qualifying condition, and selling to the mainland can break it. The mechanics matter for any RAKEZ setup, so read our detailed guide to free zone qualifying income and the 0% rate before assuming your license is tax-free. Every RAKEZ company must also register for corporate tax regardless of its rate.
Renewing a RAKEZ License
A RAKEZ license is issued for one year and must be renewed annually to keep the company and its visas valid. Renewal repeats most of the original cost, since the license fee and workspace lease recur each year, and letting it lapse can trigger penalties and block visa renewals.
Renew before the license expiry date by settling the annual license fee, renewing the workspace lease, and keeping the establishment card and visas current. Because the renewal largely mirrors the initial package, budget for a similar annual figure rather than a one-off setup cost. The same discipline applies across the UAE, and our trade license renewal guide walks through timing, documents, and penalties.
FAQ
What is RAKEZ?
RAKEZ is the Ras Al Khaimah Economic Zone, the emirate’s consolidated economic authority for company registration. It hosts businesses across dozens of industries and is notable for issuing both free zone and non-free zone (mainland-style) licenses from one authority, which lets investors pick the structure that fits their market.
How much does it cost to set up a company in RAKEZ?
RAKEZ setup packages start at an official AED 6,000 for a basic instant license with one shareholder, one activity, and a coworking desk, and AED 12,000 for a lite package that includes one residence visa. Adding more visas, a physical office, or industrial activities raises the total. Prices are promotional and change, so confirm the current figure on the RAKEZ eportal.
Does a RAKEZ free zone company allow 100% foreign ownership?
Yes. RAKEZ confirms 100% foreign ownership for free zone entities and for non-free zone entities across most sectors, with no local partner required. This applies to both the FZE single-shareholder structure and the FZC multi-shareholder structure.
What is the difference between a RAKEZ free zone and non-free zone license?
A free zone license gives 100% ownership and customs exemptions inside the zone but trades mainly with international and other free zone markets. A non-free zone license is RAKEZ’s mainland-equivalent option, letting the company invoice UAE clients and government bodies directly. A free zone company reaches the mainland indirectly through a distributor or a separate onshore entity.
How many visas can I get with a RAKEZ license?
The visa quota is tied to your workspace. A flexi-desk or coworking package usually carries a small quota, often zero to a few visas, while a private office or warehouse unlocks more because the number scales with the space you lease. You cannot issue more residence visas than your workspace allows, so size the office to your hiring plan.
How long does RAKEZ company formation take?
The lightest instant-license route can issue a digital trade license the same day, fully online with no physical visit. A standard setup with a physical office and multiple visas typically takes several working days to a couple of weeks, and regulated activities that need external approvals take longer.
Do RAKEZ companies pay corporate tax?
Yes, RAKEZ companies are within the UAE corporate tax system. A free zone company can pay 0% on qualifying income only if it meets every Qualifying Free Zone Person condition, including substance, audited accounts, and the de minimis limit. Non-qualifying income, including most direct mainland sales, is taxed at 9%, and every company must register for corporate tax.
What legal structures does RAKEZ offer?
RAKEZ registers a free zone company as an FZE with one shareholder, an FZC (also shown as FZ-LLC) with two or more shareholders, or a branch of an existing UAE or foreign company. The FZE and FZC are limited liability entities. A branch is not a separate legal person and carries the parent company’s activities.
Can a RAKEZ free zone company trade in the UAE mainland?
Not directly under a free zone license. To sell into the mainland market, a free zone company appoints a local distributor or registers a separate mainland entity. Alternatively, you can set up as a RAKEZ non-free zone entity from the start, which is designed for direct mainland trade with UAE clients and government.
Can I convert a RAKEZ free zone company to mainland later?
Yes, businesses often move onshore as they grow to reach mainland clients directly. The process involves new licensing and can require re-registration rather than a simple switch. Our guide on converting a free zone company to mainland covers the steps and the trade-offs.
Official Sources
- RAKEZ — Getting Started: Business Setup, Structures, and Packages
- RAKEZ — Which Free Zone License Is the Right One (license types)
- RAKEZ — Steps to Free Zone Company Formation in the UAE
- RAKEZ — Instant License Packages and Pricing
- Federal Tax Authority — UAE Corporate Tax
Information current as of July 2026. RAKEZ package prices are promotional and change frequently, license and visa rules can be updated, and corporate tax treatment depends on your specific facts and income mix. This article is general information, not legal or tax advice. Confirm current fees, activities, and eligibility on the official RAKEZ eportal and with the Federal Tax Authority or a qualified advisor before you register.
