RAKEZ Freezone Company Setup: A Complete Guide

RAKEZ is one of the few Free Zones because it lets you set up a Free Zone entity or a non-Free Zone (mainland) entity within its business ecosystem.

Ras Al Khaimah Economic Zone is not a single generic Free Zone; it has around 6 specialized Free Zones, offering customized infrastructure for businesses operating in each one of them. All are strategically located near both air and sea gateways, offering strong opportunities for international trade.

These advantages have attracted more than 40,000 companies that range from startups to large corporations operating in over 50 sectors, providing clear evidence of how successful this Free Zone is. 

If you've already explored UAE Free Zones and decided to set up your company at RAKEZ, this guide will help you determine whether RAKEZ is the best option for your business and provide a step-by-step roadmap for setting up. Then, we’ll walk you through the key post-licensing steps that help you remain compliant.

What is RAKEZ and where is it located?

RAKEZ is an economic Free Zone and government licensing authority that supports both Free Zone and non-Free Zone entities under the same jurisdiction.

It has several specialized Free Zones, and each one of them supports specific business models.

It’s located in the Emirate of Ras Al Khaimah, benefiting from Ras Al Khaimah International Airport and Saqr Port, which support its international and regional trading.

Who is RAKEZ best for?

RAKEZ serves many business types through its dedicated zones, helping businesses across sectors establish a presence in a rich business ecosystem. 

But before starting the RAKEZ company formation process, make sure RAKEZ is the best option for your business by checking whether the conditions below suit your company.

• Trading and logistics businesses that can benefit from trading gateways at RAKEZ, such as RAK Airport and Saqr Port.
• Industrial businesses involved in manufacturing activities can rely on the robust infrastructure available in RAKEZ industrial zones.
• Companies in the education sector can set up in a dedicated zone that supports educational activities.
• Media businesses that need modern infrastructure to conduct their operations and be a part of a well-connected business ecosystem.
• Startups and SMEs looking for 100% foreign ownership and to benefit from the affordable setup packages in RAKEZ zones.
• Freelancers who offer professional services to clients in RAKEZ, while being eligible for a residence visa and a workspace to operate from.

What zones and facilities does RAKEZ offer?

RAKEZ isn't a single free zone; it has several dedicated zones that suit different business sectors. For this reason, you need to understand what each free zone provides to choose the right option for your company.

You’ll also find a strong link between RAKEZ zones and your operational requirements, as you’ll have to select a facility option that supports your operational efficiency. Below are the main specialized zones at RAKEZ and the facility options you can choose from.

• El Nakheel Business Zone: It serves the commercial and service sector with flexible infrastructure that helps startups and SMEs conduct their activities.
• El Hamra Business Zone: It offers access to both commercial and logistics hubs in RAKEZ, supporting startups and SMEs and boosting connectivity.
• RAKEZ Academic Zone: It’s a dedicated zone that mainly focuses on the education sector and training providers, such as universities and training consultancies.
• RAKEZ Media Zone: It’s designed for media companies and creative professionals who need a connected and modern infrastructure to operate from.
• Al Hamra Industrial: It serves free zone and non-free zone businesses working in industrial manufacturing by allowing them to adjust facilities to business requirements.
• Al Ghail Industrial Zone: It suits large-scale industrial projects for both Free Zone and non-Free Zone businesses because it allows them to build their own facilities and offers a strategic location near RAK Airport.
• Al Hulaila Industrial Zone: It’s designed for free zone businesses engaged in heavy industrial activities, and it supports large bulk port trading because of its proximity to Saqr Port.

Available facility types across RAKEZ zones:

• Coworking space: It’sa shared workspace that allows you to conduct meetings and operate from, offering cost-effective packages designed for service and commercial businesses and freelancers.
• Serviced office: A new type of workspace that offers permanent office space for companies across sectors, serving as a dedicated space at a lower cost than standard offices.
• Standard office: Mainly designed for SME businesses, it offers a customizable office based on their needs and provides access to services they may need while working, such as business center services.
• Executive office: It offers dedicated, large office options for businesses that need more space for employees and clients, and it also provides multiple services such as housekeeping and access to business center services.
• Shell & core office: It provides undeveloped spaces so you can customize the facilities to your business requirements, which can also improve your visa eligibility.
• Warehouse: It provides customizable warehouses that include offices that help businesses operate smoothly, and it suits businesses in different sectors because of its accessible location near air and sea ports in RAKEZ.
• Plot for development: It’s mainly designed for industrial and logistics businesses, enabling them to build their own facilities near major logistical hubs and emirates. It also simplifies operations by providing essential services, such as access to manpower for loading and cargo handling.
• Staff and labor accommodation: It provides housing for the male workforce working in industrial zones to reduce transportation costs, and it also provides access to services and amenities such as grocery stores and cafeterias.

What licence types are available in RAKEZ?

Since RAKEZ offers many business activities, you’ll need to wisely select the appropriate license type that supports the activities you’ll conduct. 

Below are the main license types at RAKEZ, so you can select the one that matches your business needs.

• Commercial license: suitable for businesses that import and export goods using the trading gateways at RAKEZ. 
• Educational license: for businesses in the education sector, such as universities and training companies. 
• E-commerce license: designed for businesses that sell products online through their own websites or digital platforms.
• General trading license: suits companies that trade several product categories, as it allows them to trade under a single license. 
• Individual license: designed for sole business owners who provide services in a single field based on their expertise. 
• Industrial license: for businesses involved in the manufacturing and assembling of products, such as food processing and jewelry manufacturing.
• Media license: for businesses operating in the media and creative industry overall, such as advertising agencies and production companies.
• Professional license: for individuals who provide professional services for other clients, such as marketing or business consultancy.
• Services license: suitable for businesses that provide any service-based activities, such as consultancy or accounting services. 
• Freelance permit: designed for independent professionals who offer services under their own name, such as editors and actors.

What legal entities can you register in RAKEZ?

RAKEZ legal entities are a key factor in shaping your management structure and shareholder liability. You need to select the option that supports your business model by checking the options below.

What documents are usually required for RAKEZ setup?

RAKEZ documents vary depending on the legal entity you’ve chosen, which affects how smooth your setup will be, so you need to prepare the right documents. Below are the common documents required for RAKEZ Free Zone company setup.

• Application for registration and licensing.
• Application for registration with the Department of Economic Development (for non-free zone entities).
• Application for chamber of commerce membership.
• Colored passport copies of shareholders and managers.
• Visa copies of shareholders and managers.
• Original no-objection certificate (if you’re a UAE resident).
• Shareholders’ board resolution.
• Family book and Emirates ID.
• Business plan (for specific activities).
• Memorandum and articles of association.
• UBO Declaration.

If you’re setting up a branch entity, you’ll need these additional documents:

• Copy of the parent company’s trade license.
• Commercial register.
• Certificate of registration
• Certificate of good standing.
• Certificate of incumbency.

Step-by-step: how to set up a business in RAKEZ

RAKEZ offers a smooth setup process with 3 main steps; to speed things up, prepare all required documents to avoid delays. Below are the stages you’ll navigate through during RAKEZ business setup.

Step 1: Customize your setup package

You'll start by identifying all business activities you'll conduct within RAKEZ to get a clear idea of the right license type. 

Then, you’ll need to select one of the legal entities available at RAKEZ, and make this decision wisely because it determines each shareholder’s liability and responsibility within the company.

Next, select the facility you’ll operate from; RAKEZ offers many options. Choose the one that suits your operational and visa requirements, as facility types affect visa eligibility.

Step 2: Submit the application and the documents 

The authority will ask you to complete the registration form with all required information, along with the documents we’ve already listed. Taking your time to ensure that everything is complete at this stage will help you prevent delays.

After submission, the authority will send your invoice that includes the required fees to proceed with the setup.

Step 3: Receive the business license

Once you pay the fees, the authority will issue your trade license, confirming that your company is officially registered at RAKEZ. The business license gives you the legal permission to conduct business operations in the zone you’ve chosen.

How much does it cost to set up in RAKEZ?

RAKEZ company formation costs depend on various factors such as the license, facilities, and visa. RAKEZ offers customizable packages so you can include whatever you need in your business operations. Below are the estimated costs for each cost factor you’ll need during the setup.

RAKEZ also offers inclusive setup packages starting from AED 6,000 and AED 14,000, which include everything you'll need to start business operations; this could be an affordable option to establish your company.

How do visas work in RAKEZ?

RAKEZ already offers specific numbers of visas in its inclusive setup packages, but this can limit your visa requirements if you don’t keep in mind that your visa eligibility is strongly linked to the facility type you choose. 

So you need to choose the facility and visa together to match your operational and visa requirements. However, you can apply for other visas later if needed, but RAKEZ will charge additional fees.

What happens after you get the RAKEZ licence?

When you start your company, you may feel overwhelmed by all the processes you think are so important to your business. In fact, you need to focus on a few simple procedures that will have a major impact on your company’s growth. Below are the key factors to consider after you set up your company at RAKEZ.

• Open a corporate bank account: This lets your company become financially and operationally active by separating your personal finances from your business finances. This gives your company its own financial identity with clients, which supports your company’s trust and credibility.
• Corporate tax registration: It's not just about registering for CT because it also helps you understand the compliance cycle that happens throughout the year. It starts with filing the CT and submitting clear financial records by year-end to stay compliant.
• VAT registration: Although some RAKEZ zones are designated zones, you'll still need to register for VAT in the UAE. Proper VAT filing will help you keep VAT-compliant invoices and get a clearer picture of the business profits.
• Set up an operational system: It helps you create consistent workflows by connecting all business departments to a clear overview of the day-to-day processes across the company. This will not only create efficient workflows, but also influence major business growth decisions.

Common mistakes businesses make when choosing RAKEZ

Business mistakes that happen in their first setup year are almost inevitable due to a lack of experience, as they cost them money and time to correct them. Instead, you can understand the major mistakes businesses make and how to prevent them.

• Choosing the wrong zone: As mentioned, RAKEZ includes various specialized zones that support specific business activities, so you need to choose the one that matches your business operations.
• Selecting the wrong license: If you intend to conduct specific business activities but you choose the wrong license type. You’ll need to change the license type to operate, which will cost you time and money as well.
• Workforce planning: You need a clear long-term strategy to scale your business, as your chosen facility type affects how many employees your company can sponsor. Because of that, you need to plan for the workforce and facility together.
• Future budget planning: Understand that initial setup costs are only part of the overall budget, so set aside additional funds for operational costs that may arise, such as additional visa applications and renewals.
• Using an operational system: It helps you keep a clear record of every procedure in your company, such as internal tasks and deliveries within departments, which helps you reduce risk and make better business decisions.

How Can Daftra Help You in RAKEZ Free Zone

Daftra provides a customizable ERP system tailored to your business model. Daftra UAE VAT-compliant accounting software helps you complete the steps above to scale your business and increase profits. Here's how it can help you achieve that:

• Handles CT filings to keep clean financial records.
• Automates invoicing cycles to prevent manual errors.
• Generates detailed financial reports.
• Organizes business workflows across different departments.
• Tracks employees' progress on several projects.

FAQs about RAKEZ Free Zone

How many free zones are there in Ras Al Khaimah?

RAKEZ has around 7 specialized zones, each serving specific business needs. For the commercial and service sectors, it has El Nakheel and El Hamra Business Zones. It also provides strong infrastructure in Al Hamra, Al Ghail, and Al Hulaila Industrial Zones. It also meets the needs of the academic and media sectors in RAKEZ Academic Zone and RAKEZ Media Zone.

Can a RAKEZ free-zone company trade directly in the UAE mainland? 

Businesses in RAKEZ can’t trade directly in the mainland, as they will need an agent or distributor to sell their goods. However, RAKEZ offers a dual license for businesses that want to operate on the mainland without registering a new facility.

Is RAKEZ tax-free?

Not completely; it applies only in some cases if you qualify for tax benefits by meeting specific rules set by the FTA. Some specialized zones at RAKEZ don’t charge VAT on certain goods transactions, as they’re considered designated zones. In addition, you may not be charged corporate tax in RAKEZ if you qualify as a QFZP. 

How long does RAKEZ company setup take? 

It varies by business, depending on document preparation and whether additional approvals are needed, but in most cases the setup timeline is 4 to 14 days.

How much does it cost to set up a company in RAKEZ Free Zone? 

Generally, RAKEZ doesn’t have fixed costs for company setups, but it offers inclusive packages; their costs vary depending on the license, facility, and number of visas you choose. Currently, RAKEZ offers packages starting from AED 6,000 to AED 12,000 for professionals and startups.