How to Set Up Your Business in RAKEZ Free Zone

If you are planning to start a business in the UAE, the RAKEZ Free Zone (Ras Al Khaimah Economic Zone) is one of the most flexible and cost-effective options. It is suitable for startups, service providers, consultants, freelancers, and small industrial businesses. We will help you understand what RAKEZ is, what licences and business activities it allows, pricing estimates, benefits, and answers to common questions that can help you make a well-informed decision.

What is RAKEZ Free Zone?

RAKEZ, short for Ras Al Khaimah Economic Zone, is a business and industrial hub in the northern emirate of Ras Al Khaimah. It is strategically positioned to connect businesses to markets across the UAE, the Middle East, Asia, Africa, and Europe. RAKEZ provides both free zone and non-free zone company formation options. It supports over 50 different industries and offers access to modern office spaces, warehouses, land for industrial development, and comprehensive business support services. By setting up in RAKEZ, entrepreneurs benefit from a one-stop setup process, easier visa processing, and access to facilities that suit businesses of any size.

Key Services Provided by RAKEZ

When you register for your business in RAKEZ, you will receive a many of services, including:

• Company registration and licence issuance for your chosen business activity.
• 100% foreign ownership in most free zone entities; no local partner is required.
• Flexible office space solutions: From co-working/flexi desks to private offices, warehouses, and land plots for industrial projects.
• Visa and immigration support: RAKEZ assists in processing residence visas for owners, employees, and dependents.
• Banking support: Guidance for opening corporate bank accounts and required documentation.
• Special packages and incentives: Some free zones offer 0% corporate tax on qualifying income or discounted packages for many business activities.

Understanding RAKEZ Licence Types for New Entrepreneurs in UAE

RAKEZ offers different licence types depending on the type of business you want to operate. Choosing the correct licence is important to ensure compliance and smooth operations.

Commercial Licence
This licence is for businesses involved in buying, selling, or trading goods. It covers import, export, retail, and wholesale operations. If you want to sell electronics, furniture, or fashion products in the UAE or abroad, a commercial licence allows you to legally import, store, and sell these items.

Service Licence (Professional Licence)
Professional licence is for individuals or companies offering services such as consultants, IT specialists, marketing agencies, or freelancers. A digital marketing consultant or IT support provider can operate legally in the UAE under this licence, invoice clients, and obtain a residence visa for themselves or employees.

Industrial Licence
For businesses involved in manufacturing, production, or logistics, this licence allows setting up factories, warehouses, and packaging units. A small furniture manufacturing unit, food packaging business, or logistics company can operate under this licence.

E‑Commerce Licence
Perfect for online businesses. Whether you are selling products on your website, Amazon, or other platforms, this licence makes your online operations legal. Running a drop shipping store or an online electronics shop. or digital product sales platforms can obtain ecommerce licence setup in rakez free zone.

Freelancer Permit
For individual operators who want to work independently without forming a company. It is suitable for media professionals, designers, consultants, or IT specialists. A freelance graphic designer or social media consultant can work legally under this permit and operate from a flexi-desk setup.

Educational / Media Licence
For training institutes, coaching centers, or media companies, this licence allows offering courses, workshops, or media production. Example: An IT training center, a language school, or a small media production company can operate legally under this licence.

Business Categories / Allowed Activities in RAKEZ Free Zone

RAKEZ Free Zone supports many business activities.

Here is a clear breakdown to help you choose what fits your plan:

Trading & General Trading
Businesses buying, selling, or importing/exporting goods fit this category. RAKEZ provides warehouses for storing goods. Electronics trading, furniture import/export, and fashion items retail.

Services / Consultancy
For professional services businesses offering professional or technical services. Whether you are a consultant, marketer, SEO specialist, or designer, RAKEZ provides the framework to operate legally and professionally. A digital marketing agency, business consultant, or graphic design studio.

Industries / Manufacturing
Perfect for light manufacturing, packaging, or warehousing businesses. RAKEZ gives you the infrastructure and space to run small-scale industrial operations. Furniture production, packaging of food items, or logistics and storage services.

E-Commerce
For entrepreneurs running online stores or digital business models, this category makes setting up easy, especially if you choose flexible office packages like flexi-desks. Dropshipping, online retail shops, or digital product sales.

Freelancing / Media
Ideal for individuals or small teams who do not need a full office. RAKEZ supports freelancers in fields like media, IT, consultancy, or creative services. A freelance SEO expert, content creator, or media production professional.

Pricing & Packages – Short Term / Long Term View

Short‑Term Pricing: (Estimates)

• Entry-level packages: starting from AED 6,000 for a basic licence with minimal workspace.
• Designated Zone” packages: starting from AED 16,550/year, including one UAE residence visa.

Long‑Term Considerations:

1. Annual renewal costs: Once your first year is done, you’ll have to pay renewal fees and possibly upgrade from flexi‑desk to private office as you scale.
2. Visa renewal, employee visa costs, office lease upgrades, utilities, audit/accounting (if applicable), all add to long‑term cost.
3. Benefit: Over the long term, you enjoy tax advantages, full profit repatriation, and access to global markets, which offset higher up‑front costs.

Major Benefits of Setting Up in RAKEZ

Here are the top benefits for both short‑term startup goals and long‑term growth:

Short‑Term Benefits:

• Quick licence issuance and minimal paperwork.
• Affordable entry options (flexi‑desk, small licence), meaning you can start with lower upfront capital.
• 100% foreign ownership, full profit repatriation, you don’t need a local partner.

Long‑Term Benefits:

• Strategic access to the UAE, MENA, Europe, and Asia markets via RAKEZ infrastructure.
• Infrastructure suited for growth warehouses, industrial land, and business centres.
• Potential tax savings: their “Designated Zone” offers 0% corporate tax on qualifying income.
• Flexibility to add additional business activities under one licence (up to several activities), so you can expand your business scope without forming a new company.

How to Choose If RAKEZ Is Right for You

• Freelancers or service providers seeking low-cost, fast setup may choose flexi desk + service licence.
• Traders or manufacturers needing warehouses, land, or logistics support should consider commercial or industrial licences.
• Ensure your business activity is on RAKEZ approved list (50+ industries).
• Budget for renewal and banking requirements, not just the first-year cost.
• Pick the correct licence type to avoid delays or extra charges.
• Review the licence you need (commercial/service/industrial); picking the wrong one can cause delays or additional costs.

 

FAQs About RAKEZ Free Zone

Q1. Can a foreign investor own 100% of the company?

Yes, most RAKEZ Free Zone entities allow 100% foreign ownership.

Q2. What business activities are allowed?

RAKEZ supports over 50 industries, including trading, services, industrial, e-commerce, freelancing, education, and media.

Q3. How much does it cost to set up in RAKEZ?

Basic entry packages may start around AED 6,000/year. More comprehensive packages, like the Designated Zone, start around AED 16,550/year. Costs vary based on licence type, office setup, and visas.

Q4. Are there hidden fees?

Renewal includes licence fees, office lease, visa renewals, and optional upgrades. Budget for these long-term costs.

Q5. Can I operate entirely online?

Yes, e-commerce and digital business models are supported. Some packages offer incentives for online businesses.

Q6. Do I need a physical office?

At minimum, a flexi-desk or shared workspace is required. Private offices or warehouses incur extra costs.