Understanding RAKEZ

What is RAKEZ?

RAKEZ (Ras Al Khaimah Economic Zone) is a non-traditional free zone authority established to diversify the economy of Ras Al Khaimah emirate. Unlike conventional free zones focused on specific sectors, RAKEZ offers:

• Economic Zone Structure: Special economic zone model allowing diverse business activities
• Flexible Operations: Minimal restrictions on trading, service provision, and professional activities
• Cost Leadership: Lowest setup and renewal costs among UAE free zones
• Comprehensive Services: Support for company formation, visa processing, and ongoing compliance

RAKEZ vs Traditional Free Zones

RAKEZ’s Market Position

RAKEZ has grown rapidly since establishment, now hosting:

• 16,000+ companies across all sectors
• Diverse business communities from 100+ countries
• Thriving trading, service, consulting, and professional sectors
• Growing technology and digital services presence

The zone’s popularity stems from combining affordability with operational flexibility—ideal for entrepreneurs starting UAE operations without huge initial investment.

Why Choose RAKEZ for Company Setup

Cost Leadership

Lowest Setup Costs: Starting from just AED 5,750, RAKEZ offers the most affordable free zone setup among all major UAE zones.

• Complete company formation package: AED 5,750
• Compared to RAK ICC (AED 3,500 + additional costs) or JAFZA (AED 5,000 minimum)
• Annual renewal starting AED 2,850
• No hidden charges; transparent pricing

Operational Flexibility

All Business Activities Supported: Unlike specialized free zones, RAKEZ welcomes virtually all legitimate business activities:

• Trading and import/export (without sector restrictions)
• Professional services (consulting, legal, accounting)
• Technology and software development
• E-commerce and digital businesses
• Manufacturing and light industry
• Services (HR, recruitment, marketing, advertising)
• Education and training
• Real estate advisory and consulting

Business-Friendly Environment

Entrepreneur-Focused Approach: RAKEZ is specifically designed to support business growth:

• Experienced business advisors guide company setup
• Flexible office space options (full offices to virtual addresses)
• Fast processing (typically 3-5 working days)
• Online portal for easy license renewal and compliance management
• Supporting services (accounting, HR, visa processing) available

Strategic Location

Northern Emirates Advantage: Ras Al Khaimah offers strategic benefits:

• Prime location between Dubai and Sharjah
• Direct access to Gulf Cooperation Council (GCC) market
• Lower operational costs than Dubai/Abu Dhabi
• Growing business infrastructure and services
• Close proximity to major markets (Sharjah, Dubai)

Banking & Finance Access

Excellent Banking Support: Major local and international banks operate in RAKEZ jurisdiction:

• RAKBank with specialized RAKEZ company support
• FAB (First Abu Dhabi Bank)
• Mashreq Bank and other major institutions
• Fast bank account opening (3-5 days)
• Comprehensive banking packages for zone companies

Visa Sponsorship

Employee Visa Support: RAKEZ allows reasonable visa allocation for company staff:

• Standard allocation based on company structure
• Flexible approach to visa sponsorship for key employees
• Family visa sponsorship available (spouse, children)
• Competitive compared to other zones

RAKEZ Service Packages

RAKEZ offers tiered service packages designed for different business needs and growth stages:

Package 1: Flex Zone Starter (AED 5,750)

Included Services

• Company name registration and reservation
• Memorandum and Articles of Association (M&A) preparation
• Trade license issuance (1 year validity)
• Business registration in RAKEZ registry
• Certificate of incorporation
• Virtual business address (mail handling included)
• Initial government filing fees

Visa Allocation

• 1-2 visas for director/manager level
• Family sponsorship available (spouse, children)

Ideal For

• Solo entrepreneurs and consultants
• Service providers and professionals
• E-commerce and online businesses
• Startups and small businesses
• Proof-of-concept operations

Annual Renewal

AED 2,850 (includes license renewal and basic compliance filing)

Package 2: Flex Zone Business (AED 7,250)

Included Services

• All Starter Package benefits
• Physical office space (small office, 10-15 sqm)
• Office furniture and fittings (desk, chair, cabinet)
• Utilities included (electricity, water, AC)
• Reception and call handling service
• Mail handling and package reception
• Internet/WiFi access
• Meeting room access (shared)

Visa Allocation

• 2-3 visas for office operations
• Family sponsorship support

Ideal For

• Small teams (1-3 employees)
• Service-based businesses requiring physical presence
• Consulting and professional firms
• Businesses needing client meeting space

Annual Renewal

AED 4,250 (includes office space, utilities, and compliance services)

Package 3: Flex Zone Professional (AED 8,500)

Included Services

• All Business Package benefits
• Larger physical office (20-25 sqm)
• Premium office equipment and furnishings
• Dedicated phone line and voicemail
• Administrative support (10 hours/week)
• Accounting/bookkeeping services (basic)
• Legal compliance support
• Business consultation access

Visa Allocation

• 3-4 visas based on company structure
• Enhanced family sponsorship flexibility

Ideal For

• Growing businesses with 3-5 team members
• Firms requiring administrative support
• International operations needing local presence
• Companies requiring professional compliance support

Annual Renewal

AED 5,500+ (includes premium services and space)

Custom Packages

RAKEZ also offers customizable packages for unique business requirements:

• Manufacturing Space: Warehouse and production facility packages (AED 12,000+)
• Multi-Office: Multiple office locations within zone
• Enterprise Solutions: Large-scale operations with dedicated support

Approved Business Activities

RAKEZ’s major strength is the extensive list of approved business activities. Unlike specialized zones with sector restrictions, RAKEZ welcomes:

Trading & Commerce

• General trading (import/export of goods)
• Wholesale and retail distribution
• E-commerce and online retail
• Commodity trading
• Automotive parts and accessories trading
• Electronics and IT equipment trading
• Fashion and textile trading

Services & Consulting

• Management consulting
• Business consulting and advisory
• HR and recruitment services
• Marketing and advertising agencies
• Public relations and communications
• Photography and media services
• Translation and interpretation services

Professional Services

• Accounting and bookkeeping
• Auditing services
• Tax advisory (subject to regulations)
• Legal consultation (subject to licensing)
• Engineering consulting
• Architectural services

Technology & Digital

• Software development and programming
• IT consulting and support services
• Website design and development
• Mobile application development
• Cloud computing services
• Digital marketing services
• Data analytics and business intelligence

Education & Training

• Corporate training and development
• Online education and e-learning
• Language training
• Professional certification programs
• Skills development centers

Manufacturing & Production

• Light manufacturing and assembly
• Food and beverage processing (subject to health regulations)
• Packaging and labeling
• Crafts and artisan production
• Product customization and modification

Tourism & Hospitality

• Travel and tour operations
• Hotel and accommodation services (subject to permits)
• Event management and organization
• Tour guide and hospitality services

Real Estate & Construction

• Real estate advisory and consulting
• Property management
• Construction project management
• Interior design and decoration

Healthcare & Wellness

• Healthcare consulting (not direct patient care without licensing)
• Medical equipment trading
• Wellness and fitness consulting
• Nutrition and health advisory

Restricted/Prohibited Activities

Some activities require additional licensing or are restricted:

• Alcohol production/trading (prohibited)
• Direct healthcare provision (requires medical licensing)
• Legal practice (requires local bar admission)
• Insurance operations (requires regulatory approval)
• Banking services (requires central bank approval)
• Securities trading (requires SCA authorization)

Verify your specific business activity with RAKEZ during company formation if you’re uncertain about approval.

Complete Cost Breakdown 2026

Setup Costs (First Year)

Annual Renewal Costs (Year 2+)

Optional Add-on Services

• Accounting Services: AED 150-300/month (basic bookkeeping)
• HR Services: AED 200-400/month (payroll processing)
• VAT Registration: AED 1,000-1,500 (one-time, if applicable)
• Import/Export License: AED 2,000-3,000 (activity-specific)
• Additional Office Space: AED 1,400-2,500/month
• Dependent Visa Sponsorship: Included with salary requirements

Cost Comparison Example (Year 1)

Solo Consultant with Virtual Address:

• RAKEZ Starter Package: AED 5,750
• Bank account setup: AED 1,200
• Total first year: AED 6,950
• Annual renewal: AED 2,850

Small Business with Office & 2 Visas:

• RAKEZ Business Package: AED 7,250
• Bank account: AED 1,200
• 2 Visa sponsorships: AED 5,000
• Medical + Emirates ID (2 people): AED 1,300
• Total first year: AED 14,750
• Annual renewal: AED 8,250 (with 2 visas)

Visa Allocation & Employee Sponsorship

Visa Allocation by Package

Flex Starter: 1-2 visas for director/manager level

• Ideal for solo entrepreneurs
• Can sponsor spouse as dependent
• Children sponsorship available with salary requirements

Flex Business: 2-3 visas for office operations

• Director visa + 1-2 employee visas
• Spouse and children dependent sponsorship
• Flexible for small team expansion

Flex Professional: 3-4 visas for growing team

• Director + 2-3 employee visas
• Enhanced family sponsorship flexibility
• Can increase with company growth

Employee Salary Requirements

RAKEZ is generally flexible with salary requirements for visa sponsorship, recognizing that many companies may sponsor lower-level staff at AED 2,500 minimum with proper documentation and business justification.

Family Dependent Sponsorship

Spouses and children can be sponsored as dependents:

• Spouse: Requires proof of marriage, medical examination, and your salary above minimum threshold
• Children: Under 18 (or 25 if university student) with birth certificates and school records
• Salary Requirements: AED 3,000-4,000 for spouse + 1 child; increases with additional children

Learn more in our detailed family visa sponsorship guide.

Visa Processing Timeline

• Application Submission: 1 day
• Medical Examination: 1-2 days
• Immigration Processing: 5-10 working days
• Visa Issuance: 1-2 days
• Emirates ID Registration: 1-2 weeks
• Total Timeline: 2-4 weeks

Step-by-Step Setup Process

Step 1: Choose Your Package & Business Activity (1 day)

Decide which package suits your business needs and confirm your business activity is RAKEZ-approved:

• Review three packages: Starter, Business, Professional
• Determine if you need physical office or virtual address
• Estimate visa sponsorship needs (0, 1-2, 3+)
• Identify your primary business activity

Step 2: Gather Required Documents (1-2 days)

• Passport copy (clear front and back)
• Proof of address (utility bill or bank statement)
• Business plan summary (brief description)
• FATCA/CRS beneficial ownership declaration
• Visa sponsor authorization (if applicable)

Step 3: Company Name Registration (1 day)

Submit preferred company names to RAKEZ:

• Provide 3-5 name options in order of preference
• Names checked for availability and compliance
• RAKEZ confirms available name within 24 hours
• Name reserved for 60 days during which you must finalize registration

Step 4: Application Submission (1 day)

Submit complete application to RAKEZ:

• Completed company formation application form
• All supporting documents
• Selected business package
• Payment of setup fees
• Appointment of director (you or designated person)

Step 5: Document Preparation (1-2 days)

RAKEZ prepares official documents:

• Memorandum and Articles of Association
• Board resolutions
• Director appointment letters
• Authorized signatory documentation

Step 6: License Issuance (3-5 working days)

Upon approval, RAKEZ issues:

• Official trade license
• Certificate of incorporation
• Business registration number
• Office/address assignment (if applicable)

Step 7: Bank Account Opening (3-5 days)

Open company bank account with RAKEZ-recommended banks:

• Submit trade license and incorporation certificate
• Complete bank’s KYC procedures
• Fund company account
• Receive bank details and account access

Step 8: Visa Sponsorship (if required – 2-4 weeks)

If sponsoring employees/family:

• Submit visa applications with supporting documents
• Complete medical examinations
• Immigration processing and approval
• Visa issuance and Emirates ID registration

Total Setup Timeline: 2-4 weeks (faster without visa sponsorship, slightly longer with visas)

Banking & Business Operations

Banking Options in RAKEZ

Primary Banking Partners

• RAKBank: Dedicated RAKEZ company packages, fast account opening, specialized support
• FAB (First Abu Dhabi Bank): Competitive pricing, international access, full suite services
• Mashreq: Trade finance, international payments, comprehensive banking
• ADIB: Islamic banking options for Sharia-compliant operations

Account Opening Process

Required Documents

• Trade license (original)
• Certificate of incorporation
• Director passport and UAE visa
• Board resolution authorizing account opening
• Specimen signature cards
• Beneficial ownership declaration

Account Features

• Business checking account with debit card
• Multi-currency accounts (USD, EUR, GBP, AED)
• International SWIFT transfers
• Credit card facilities (subject to business type)
• Online banking and mobile app access
• Payroll processing and employee transfers

Operating Your RAKEZ Company

Annual Requirements

• Trade license renewal (before annual expiry)
• Annual financial reporting (if required)
• Visa renewal (for sponsored employees)
• Compliance filing with RAKEZ

Ongoing Operations

• Regular bank account monitoring
• Employee salary processing
• Basic accounting and bookkeeping
• Invoice and payment management
• Government correspondence management

Tax & Compliance

VAT: If your turnover exceeds AED 375,000, VAT registration is mandatory. RAKEZ can facilitate registration and compliance support.

Income Tax: Currently no corporate income tax in UAE (for profits from UAE operations). However, foreign investors may have home country tax obligations.

Annual Reporting: Basic financial reporting required for license renewal. RAKEZ can recommend accounting services.

Frequently Asked Questions

Is RAKEZ company legitimate for international business?

Yes, absolutely. RAKEZ is a government-established economic zone with full international regulatory recognition. Over 16,000 legitimate companies operate there. RAKEZ companies are fully compliant with FATCA, CRS, and international standards.

Can I have a virtual office only?

Yes. The Flex Starter package includes a virtual business address for mail handling without requiring physical office space. This is popular with consultants, online businesses, and companies with limited local operations.

How is RAKEZ different from RAK ICC?

RAKEZ is newer, more flexible on business activities, and slightly higher cost. RAK ICC is specialized for holding/investment companies with lower cost but stricter activity restrictions. Choose RAKEZ for general business; RAK ICC for investment structures.

Can I change my business activity after setup?

Yes, you can request to add or change business activities. RAKEZ reviews the request and typically approves if it’s a legitimate business activity. Changes may require licensing amendment (small fee).

What happens if I don’t renew my license?

Your license expires and your company becomes inactive. Bank account access is restricted, visas become invalid, and operations must cease. Renewal is easy (online process, minimal fee), so keep it current.

Can I upgrade or downgrade packages?

Yes. You can change packages during annual renewal. Upgrading to add office space or services is straightforward. Downgrading is also possible if your needs reduce.

How long does complete setup take?

Without visa sponsorship: 2-3 weeks. With employee/family visas: 3-4 weeks. Expedited processing available for additional fee if needed urgently.

Can I do import/export business in RAKEZ?

Yes, trading and import/export is approved. You may need additional import/export licensing (handled by RAKEZ team) which costs approximately AED 2,000-3,000 one-time.

What’s the minimum capital requirement?

No minimum capital is required to set up a RAKEZ company. However, having some initial capital (AED 5,000+) to fund operations and bank account is recommended.

Can my spouse take over if I leave UAE?

If you’re the visa sponsor and leave, your family’s visas are affected. You can appoint another director, but visa sponsorship transfer requires immigration approval. Planning succession is important for family security.

Are there restrictions on nationalities?

No. RAKEZ welcomes entrepreneurs from all countries. Over 100 nationalities operate RAKEZ companies. Visa sponsorship depends on immigration law, not on your nationality.