Costs, Renewal & Benefits of RAKEZ Free Zone: What You Need to Know

If you’re considering setting up a business in Rakez Free Zone, understanding the costs, renewal process, and benefits is important. Planning ensures your business remains compliant, profitable, and scalable in the long term. This guide explains initial setup costs, recurring fees, and the advantages of being in RAKEZ, so you can make an informed decision.

Initial Costs: What You’ll Pay to Start

Setting up in RAKEZ is designed to be cost-effective, especially for startups and small businesses. Costs vary depending on licence type, workspace choice, and visa inclusion.

RAKEZ Free Zone Licence Costs

• Commercial Licence: Starts around AED 6,000–8,000 per year for small-scale businesses.
• Service (Professional) Licence: Typically AED 7,000–9,000 per year.
• Industrial Licence: Higher costs, around AED 10,000+, depending on the size of the warehouse or production space.
• E-Commerce Licence Rakez: AED 6,000–7,500, often includes a flexi desk and one residence visa.
• Freelancer Permit: AED 7,500–8,500, covers individual operators like consultants, designers, and IT specialists.

Workspace Costs

RAKEZ offers flexible office solutions:

• Flexi Desk: Shared workspace, cheapest option, meets legal requirements for licence issuance.
• Private Office: For businesses needing dedicated space or client meetings. Costs depend on size and facilities.
• Warehouse / Industrial Space: Required for manufacturing or storage-based operations. Pricing depends on area and lease type.

Visa Costs

Some packages include one UAE residence visa, while additional visas are purchased separately:

• Resident visa: AED 3,500–4,500 per visa (approximate, varies).
• Dependent visas: AED 2,000–3,000 per visa.

Tip: Always confirm which items are included in the package before paying, as some cheaper setups may exclude visas or workspace.

Renewal Costs: Keeping Your Business Active

Business setup is only the first step. Annual renewal is essential to keep your RAKEZ licence valid.

• Licence Renewal: Similar to initial licence fees, varies by type.
• Workspace Renewal: Flexi desk, private office, or warehouse lease renewal fees.
• Visa Renewal: Annual renewal for your residence and employee visas.
• Additional Costs: Utilities, auditing/accounting (if applicable), and extra business activities.

Tip: Keep a renewal calendar to avoid penalties and service interruptions. Some businesses underestimate long-term costs, which can add up over time.

Benefits of RAKEZ Free Zone

RAKEZ offers multiple short-term and long-term advantages for entrepreneurs:

Short-Term Benefits

1. Quick Company Setup: Licences are processed rapidly with minimal paperwork.
2. Low Initial Investment: Flexi desk and basic packages let you start a business affordably.
3. 100% Foreign Ownership: No need for a local partner, full profit repatriation.
4. Wide Industry Support: RAKEZ allows over 50 business activities across commercial, service, industrial, and e-commerce sectors.

Long-Term Benefits

1. Strategic Location: Access UAE, MENA, Europe, and Asia markets efficiently.
2. Infrastructure for Growth: Warehouses, industrial land, and business centres.
3. Potential Tax Savings: 0% corporate tax under the designated zone for qualifying income.
4. Scalability: Add multiple business activities under one licence without forming a new company.
5. Business Networking: Opportunities to connect with other RAKEZ businesses and participate in events.

Hidden Costs to Watch Out For

While RAKEZ is transparent, it’s important to plan for:

• Visa renewals beyond the included number.
• Office lease upgrades (from flexi desk to private office or warehouse).
• Bank account setup and documentation delays or fees.
• Optional services like auditing, marketing, or insurance.

Tip: Budget for at least 20–30% extra of your initial setup cost to cover these hidden or recurring expenses.

Conclusion

Understanding renewals costs, and benefits is important for a sustainable business setup in RAKEZ.

• Start small with a flexi desk or basic licence if you’re a freelancer or online business.
• Budget for annual renewal fees, visa costs, and possible upgrades.
• Leverage RAKEZ infrastructure, strategic location, and tax benefits for long-term growth.
• Choose the licence and package that best match your business activity to avoid compliance issues.

RAKEZ Free Zone is ideal for entrepreneurs looking for a flexible, legal, and cost-effective setup in the UAE. Proper planning ensures your business grows smoothly while enjoying all the benefits RAKEZ has to offer.

FAQs About Costs & Benefits

Q.1 Are the setup fees fixed?

No, costs depend on licence type, office size, and package inclusions. Always confirm with RAKEZ or certified partners.

Q.2 How long does it take to renew a licence?

Renewal is usually quick if documents and payments are complete. Expect 1–2 weeks.

Q.3 Can I upgrade my workspace later?

Yes, you can start with a flexi desk and upgrade to private offices or warehouses as your business grows.

Q.4 Does RAKEZ offer tax benefits?

Yes, certain packages in the designated zone offer 0% corporate tax for qualifying income.

Q.5 Are there any hidden or unexpected fees?

Possible additional costs include visa renewals, lease upgrades, or extra business activity registration. Planning avoids surprises.