RAKEZ Free Zone: Ras Al Khaimah's Low-Cost Option
The RAKEZ free zone 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 is the government free zone of Ras Al Khaimah, up the coast from Dubai, known for low-cost setup and strong industrial and warehousing options.
- The basic one-person package is around AED 14,000 a year. That covers the licence plus one residence visa, without a physical office or extra services. RAKEZ sets that as an inclusive price, so it doesn't change from one year to the next.
- There's no “lifetime” visa; on the setups we run, 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.
Source (residence visa): our own record of the RAKEZ setups we run, and RAKEZ’s own employment visa page listing its “Standard Visa - 2 Years”.
What RAKEZ is known for — and how we handle it
Based on real client reviews of RAKEZ on Google.
What is RAKEZ?
RAKEZ is the government free zone of Ras Al Khaimah, up the coast from Dubai. The name stands for the Ras Al Khaimah Economic Zone. It's built around affordability and space: alongside the usual trading and services licences, it has real industrial parks, warehousing and land. Those are 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 is RAKEZ good for?
RAKEZ is good for trading, light industry and warehousing, and for owners who want a low running cost. It 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, because 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.
On the space side, RAKEZ is the landlord as well as the licensing authority: it leases offices, warehouses, industrial land and labour accommodation directly. What any of it costs depends on the size and the park, so it is quoted case by case rather than published. If a warehouse or a plot is the reason you are looking at RAKEZ, that is the conversation to have before the licence, not after.
Source: RAKEZ’s own business setup page lists “Leasing options: Flexible solutions for offices, warehouses, industrial land, and labour accommodations”.
What does a RAKEZ company cost?
The basic one-person RAKEZ package is around AED 14,000 a year. That covers the licence plus one residence visa, without a physical office or any extra services. 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 or a larger licence, those cost more.
Extra visas are the one line RAKEZ prices openly: on that same package it will add up to three more, at AED 4,000 each. We confirm the exact figure with you before anything starts.
Source: RAKEZ’s own business setup page offers an “all-inclusive package for just AED 14,000 … from your trade license to a UAE residence visa, with no hidden costs or surprises … guaranteed renewal pricing” and says “Add up to 3 additional visas by simply paying AED 4,000 for each”.
| What you pay for | The figure | Where it comes from |
|---|---|---|
| Basic one-person package: the licence plus one residence visa, no physical office | around AED 14,000 a year, the same each year | RAKEZ’s own published package price |
| Extra visas on that package | up to three more, at AED 4,000 each | RAKEZ’s own published price |
| Fast track: the full company, residence visa and Emirates ID | an extra AED 4,500, done in 5 to 6 working days | What it has cost and taken on the setups we run, a figure we last set in August 2026 |
| Office, warehouse or industrial land | Quoted case by case rather than published | RAKEZ’s own leasing, listed on its business setup page |
Anything outside the package, such as an office, a warehouse or a larger licence, we price with you for your business before anything starts, so you know the full cost up front.
Can a RAKEZ company open a bank account?
Yes, but 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.
RAKEZ is cheaper, and at Start Business Services we weigh that against the activity. For most trading and services businesses a UAE bank is comfortable with a Ras Al Khaimah company. Where the activity is one banks associate with a specialist free zone, the questions get longer — and we say so before anyone pays for a licence.
Does RAKEZ change the tax a company pays?
No, a RAKEZ company sits inside the normal UAE tax rules. In plain terms, the standard rule in the UAE’s corporate tax law is no corporate tax on the first slice of profit and a flat rate on the rest.
A free zone company that meets a stricter set of conditions is taxed a different way, and the tax law calls that a Qualifying Free Zone Person. If it is not a Qualifying Free Zone Person, corporate tax is 0% on the first AED 375,000 of taxable profit and 9% above it, so that first slice of profit stays in the business.
If it meets the conditions for a Qualifying Free Zone Person, it pays 0% on its qualifying income and 9% on everything else. Real substance, qualifying income and audited accounts are among those conditions, and it's tested every year. There's no AED 375,000 band in that case.
VAT is 5% where it applies. That is added to what the company charges its customers and paid over to the government. The Ministry of Finance’s VAT page puts it this way: “Ultimate consumers generally bear the VAT cost while businesses collect and account for the tax”. RAKEZ is a cost-and-location decision, not a way around tax.
Sources: the AED 375,000 band is set by the Cabinet’s decision on the corporate tax threshold, and the Federal Tax Authority’s guide for free zone companies sets out the Qualifying Free Zone Person rules.
When is RAKEZ not the right choice?
If you need a Dubai address in front of clients, a Dubai free zone like IFZA or Meydan will fit better. If a Dubai address is what you need and you want the company stage handled online, Meydan, a Dubai government free zone that runs its setup through a digital portal, is one of the free zones we set up. 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 do we set up a RAKEZ company?
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. It's the same advisor, year after year.
In our experience, 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. On the setups we run, it has taken the full company, residence visa and Emirates ID through in 5 to 6 working days, at 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 is around AED 14,000 a year. That covers the licence plus one residence visa, without a physical office or extra services. RAKEZ sets that as an inclusive price, so it stays the same year to year. A physical office, warehousing, land or a larger licence cost more. Extra visas are the one line RAKEZ prices openly: on that same package it will add up to three more, at AED 4,000 each. 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 work with most of them, though we don't handle Abu Dhabi companies. 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, which is part of why the cost stays flat year to year. The establishment card is the document that lets the company sponsor visas. There's no “lifetime” visa; on the setups we run, 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, on the same rules as any UAE company. Under the standard rule, corporate tax is 0% on the first AED 375,000 of profit and 9% above it. A company that meets the stricter Qualifying Free Zone Person conditions pays 0% on qualifying income and 9% on everything else, with no AED 375,000 band. VAT is 5% where it applies, charged to your customers and paid over to the government. Choosing RAKEZ doesn't change any of that.
How long does it take to set up a RAKEZ company?
In our experience, 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. On the setups we run, it has taken the full company, residence visa and Emirates ID through in 5 to 6 working days at an extra AED 4,500, and many clients take it 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, as the UAE Government portal’s guide to running a business in a free zone explains. 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, ask us and we'll tell you straight whether it's one we work with.
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