RAKEZ: Ras Al Khaimah's Low-Cost Free Zone
RAKEZ is one of the cheaper ways to set up a UAE company, and a good fit for some businesses — trading, light industrial, and owners who want a low running cost. It's also a lower-cost free zone, which can mean a bank asks more questions. Here's what it actually costs, what it's good for, and where it isn't the right choice.
Talk to us about RAKEZ- RAKEZ — the RAKEZ free zone in Ras Al Khaimah, about an hour from Dubai — is a government authority known for low-cost setup and strong industrial and warehousing options.
- The basic one-person package — licence plus one residence visa, without a physical office or extra services — is around AED 14,000 a year. RAKEZ sets that as an inclusive price, so it doesn't change from one year to the next.
- There's no “lifetime” visa; a RAKEZ residence visa runs for two years, then is renewed.
- Banking is variable: a lower-cost free zone can mean more questions from a bank, so we speak to the bank about the company before we set it up.
- RAKEZ doesn't change the tax position — corporate tax and VAT apply the same as anywhere in the UAE. It's a cost and location choice.
What RAKEZ is known for — and how we handle it
Based on real client reviews of RAKEZ — rated 3.7 from 520 Google reviews.
What RAKEZ is
RAKEZ — the Ras Al Khaimah Economic Zone — is the government free zone of Ras Al Khaimah, about an hour up the coast from Dubai. It's one of the larger UAE free zones by company numbers, and it's built around affordability and space: alongside the usual trading and services licences, it has real industrial parks, warehousing and land — the things that are expensive or simply unavailable in the Dubai free zones.
For a lot of owners the appeal is simple: it's one of the lower-cost ways to get a UAE company and residence visa, from a recognised government authority.
What RAKEZ is good for
RAKEZ tends to suit:
- Trading and general commercial businesses that want a low running cost and don't need a Dubai address.
- Light industrial, manufacturing and warehousing — RAKEZ has the parks, space and land for it, which most Dubai free zones don't.
- Owners who want a low running cost — a real licence and visa without a Dubai address, where the business doesn't need one.
If your business is one of these, RAKEZ is often the sensible, no-frills choice.
What it costs
The basic one-person RAKEZ package — the licence plus one residence visa, without a physical office or any extra services — is around AED 14,000 a year. RAKEZ sets that as an inclusive price, so it stays the same from one year to the next rather than spiking in a renewal year. If you need a physical office, warehousing, land, extra visas or a larger licence, those cost more. We confirm the exact figure with you before anything starts.
Opening a bank account
Banking from a lower-cost free zone is variable. UAE banks sometimes ask more questions of companies from the lower-cost free zones, especially where the activity or the ownership isn't straightforward. It's very doable; it just isn't automatic.
That's why, before we set the company up, we look at the activity, how it's owned and where the money comes from, then speak to the bank directly about the company so they can tell us if they see any issues and what they'd need to open the account. If RAKEZ would make the banking harder than it needs to be for your particular business, we'll say so — and tell you which route would be cleaner.
Tax — RAKEZ doesn't change it
A RAKEZ company sits inside the normal UAE tax rules. Corporate tax is 0% on the first AED 375,000 of taxable profit and 9% above it. A free zone company can keep 0% on its qualifying income only if it meets the Qualifying Free Zone Person conditions — real substance, qualifying income, audited accounts — and that's tested every year. VAT is 5% where it applies. RAKEZ is a cost-and-location decision, not a way around tax.
Where RAKEZ isn't the right choice
RAKEZ isn't for everyone. If you need a Dubai address in front of clients, a Dubai free zone like IFZA or Meydan will fit better; if you're doing regulated or financial work, that points to DIFC or ADGM; and if your customers are mostly in the UAE, mainland may be the better route. None of that makes RAKEZ a worse free zone — it's about matching the setup to what the business actually needs, which we work out with you first.
How we set it up
We start from what the business does and how it'll bank, not from the cheapest licence. We confirm the activity, check the banking, get the RAKEZ licence and the residence visa issued, sort the Emirates ID (your UAE identity card), and handle the corporate-tax registration and the ongoing accounting afterwards — the same advisor, year after year.
Standard setup runs about 7 to 10 working days, and you'll need to be in the UAE for roughly 7 of those for the visa medical and Emirates ID. RAKEZ also offers a fast-track service — the full company, residence visa and Emirates ID in 5 to 6 working days — for an extra AED 4,500. A lot of clients take it: weighed against the extra hotel nights and flights, especially on a busy schedule, it often works out cheaper.
Gareth and his company were recommended to me by a friend. His stella service and advice from start to finish of setting up my company and visa application were outstanding. He and his team were nothing but efficient, kind and professional and made the whole process smooth and efficient. A huge thank you.
Sharon Galantino · Google review
Frequently asked questions
How much does a RAKEZ company cost?
The basic one-person package — the licence plus one residence visa, without a physical office or extra services — is around AED 14,000 a year. RAKEZ sets that as an inclusive price, so it stays the same year to year. A physical office, warehousing, land, extra visas or a larger licence cost more; we confirm the exact figure before anything starts.
Can you set up in a free zone that is not listed here?
Yes. These are the free zones our clients use most often — not the only ones we work with. The UAE has more than forty free zones, and we can set up in any of them. If you are considering one that is not covered here, ask us and we will talk it through.
Is a residence visa included with a RAKEZ licence?
Yes — RAKEZ sells the basic licence as a package that includes one residence visa (with the Emirates ID, the medical test, and the establishment card — the document that lets the company sponsor visas), which is part of why the cost stays flat year to year. There's no “lifetime” visa; the residence visa runs for two years, then is renewed.
Is RAKEZ good for opening a bank account?
It's variable. UAE banks sometimes ask more of companies from lower-cost free zones, so it depends on the activity and ownership. We speak to the bank about the company before we set it up, so there are no surprises — and we tell you honestly if RAKEZ would make banking harder than it needs to be.
Does a RAKEZ company pay UAE corporate tax?
Yes, under the same rules as any UAE company: 0% on the first AED 375,000 of profit, 9% above it, and 0% on qualifying income only if it meets the Qualifying Free Zone Person conditions. VAT is 5% where it applies. Choosing RAKEZ doesn't change any of that.
How long does it take to set up a RAKEZ company?
Standard setup is about 7 to 10 working days, with around 7 working days in the UAE for the visa medical and Emirates ID. RAKEZ also offers a fast-track service — the full company, residence visa and Emirates ID in 5 to 6 working days — for an extra AED 4,500, which many clients take once they weigh the saved hotel nights and flights.
Can a RAKEZ company trade in the UAE mainland?
Like any free zone company, it sells mainly outside the UAE or to other free zone companies by default; to sell into the local UAE market it normally needs a mainland distributor or a branch. If your customers are mostly in the UAE, mainland may suit you better.
RAKEZ or IFZA — which is better?
Neither is “better” — they suit different businesses. RAKEZ is cheaper and strong for trading, industrial and warehousing, and for owners who don't need a Dubai address. IFZA is Dubai-based and suits businesses that want a Dubai address in front of clients. The right one depends on your activity, where your customers are, and how it'll bank, which we work out with you.
Where to read next
These are the free zones we use most for our clients. If the one you are considering is not here, we can set it up too — just ask.
Talk to us about RAKEZ
Tell us what the business does and where your customers are, and we'll tell you honestly whether RAKEZ fits, what it'll cost, and how it'll bank. We deal with you directly, start to finish.
Talk to us about RAKEZ