What Factors Influence the Cost of Establishing a Company in RAK Free Zone?

Establishing a company in Ras Al Khaimah (RAK) Free Zone can be an attractive option for businesses looking to operate in a business-friendly environment with various incentives. One of the main factors is the type of business activity you wish to engage in. Different activities have different requirements and fees associated with them. Several factors influence the cost of setting up a company in RAK Free Zone, which we’ll explore in this blog.

1. Type of License

The type of business activity you plan to undertake determines the type of license you will require. RAK Free Zone offers licenses for various activities, such as trading, consultancy, industrial, and others. The specific activities you plan to undertake under your license will also impact the cost, as certain activities may require additional permits or approvals.

2. Office Space

RAK Free Zone requires companies to have physical office space. Offices located in prime areas with easy access to amenities and transportation tend to be more expensive than those in less desirable locations. Some companies may opt for flexi-desk options initially to minimize costs.

3. Number of Visas

The number of visas you require for your employees is a significant cost factor. It is important for businesses to carefully consider all of these factors and conduct thorough research before making a decision on establishing a company in RAK Free Zone. The more visas you need, the higher the costs will be.

4. Registration and Renewal Fees

There are one-time registration fees for setting up a company in RAK Free Zone. The larger the company, the higher the fees will be. Additionally, the duration of the registration or renewal also affects the cost.

5. Legal and Documentation Costs

You will need to engage with legal advisors and possibly translators to handle documentation and ensure compliance with local laws. Different legal structures, such as a free zone company, branch office, or a representative office, may have varying legal and documentation requirements, which can affect the overall cost.

6. Location and Facilities

The location within RAK Free Zone can affect costs. Companies located in prime areas with easy access to transportation networks and amenities may have higher costs compared to those in less desirable locations. Facilities such as warehousing and logistics services may also incur additional costs.

7. Additional Services

RAK Free Zone offers various additional services, such as IT services, conference rooms, and business support services. Availing these services can add to your initial and ongoing costs. The cost of recruitment, salaries, and benefits for your workforce should be factored into your budget.

8. Miscellaneous Costs

There are other miscellaneous costs to consider, such as bank account opening fees, insurance, and transportation costs. The facilities and amenities available in the chosen location also impact the cost. For instance, if a company requires specialized infrastructure or access to certain services, it may incur additional expenses.

What are the Financial Requirements for Registering a Company in RAK Free Zone?

Setting up a company in Ras Al Khaimah (RAK) Free Zone offers numerous advantages, including strategic location, business-friendly environment, and attractive tax incentives. Each type of structure has its own set of financial obligations, so it’s important to understand the differences before proceeding. Here’s a comprehensive guide to help you navigate through the financial aspects:

Initial Capital Requirements

Unlike some other jurisdictions, RAK Free Zone does not mandate a specific minimum capital requirement for most business activities. On the other hand, if you are looking to establish a branch of an existing company, there is no specific minimum capital requirement.

Registration and Licensing Fees

  1. Registration Fee: The initial registration fee varies depending on the type of entity you choose (e.g., Free Zone Company, Branch, or Freelancer).
  2. License Fee: Every business registered in RAK Free Zone must pay an annual license fee. The fee amount depends on the type of license and business activity.

Office Space Requirements

RAK Free Zone requires companies to lease office space within the free zone. The size and cost of the office space depend on the type and scale of your business operations.

Other Financial Considerations

  1. Bank Account: Opening a corporate bank account in the UAE is a requirement for company registration. The bank may have its own minimum deposit requirements.
  2. Visa Costs: If you plan to sponsor employees or yourself for residence visas, there are costs associated with visa processing, medical tests, and Emirates ID.

Additional Costs

  1. Legal Fees: Engaging a local consultant or legal advisor to assist with the registration process incurs fees. This ensures compliance with local laws and regulations.
  2. Annual Renewal Fees: Besides the initial setup costs, businesses are required to pay annual renewal fees to maintain their license and continue operations.


  • Corporate Tax: Companies in RAK Free Zone are exempt from corporate and income taxes for a guaranteed period, extendable for up to 50 years.
  • Value Added Tax (VAT): As of 2018, VAT is applicable in the UAE, currently set at 5%. Most goods and services are subject to VAT, but certain exemptions may apply.

How Does the Cost of Establishing a Company in RAK Free Zone Compare to Other Free Zones?

When considering where to establish your business in the UAE, the cost implications play a significant role. With its strategic location, state-of-the-art infrastructure, and business-friendly environment, RAK Free Zone provides an ideal setting for companies looking to establish a presence in the UAE without breaking the bank. Ras Al Khaimah (RAK) Free Trade Zone offers a competitive environment for business setup, but how does its cost compare to other free zones in the region?

Understanding the Costs Involved

  1. Initial Setup Costs:
    • RAK Free Zone: The initial setup costs in RAK Free Zone are relatively competitive compared to other free zones. Depending on the business type and activity, you can expect costs for licensing, registration, and visa processing.
    • Other Free Zones: Free zones like Dubai (DMCC), Abu Dhabi (ADGM), and Sharjah (SAIF Zone) also offer competitive initial setup costs, but they can vary based on the free zone and business activity.
  2. License Fees:
    • RAK Free Zone: License fees in RAK Free Zone are structured to accommodate different business sizes and types, making it accessible for startups and SMEs.
    • Other Free Zones: License fees in other free zones may differ based on the free zone’s regulations and the type of business activity.
  3. Operational Costs:
    • RAK Free Zone: Operational costs, including office space and utilities, in RAK Free Zone are generally lower compared to major cities like Dubai.
    • Other Free Zones: Operational costs can vary significantly depending on the location and the free zone.

Cost Comparison with Other Free Zones

  1. Dubai (DMCC):
    • Setup Costs: Dubai Multi Commodities Centre (DMCC) is known for its premium location and services, which reflects in slightly higher setup costs compared to RAK Free Zone.
    • License Fees: DMCC offers a wide range of licenses but may have higher annual renewal fees compared to RAK.
  2. Abu Dhabi (ADGM):
    • Setup Costs: Abu Dhabi Global Market (ADGM) offers a robust regulatory environment but can have higher initial setup costs compared to RAK.
    • License Fees: License fees in ADGM are competitive, and the free zone offers various incentives for different business sectors.
  3. Sharjah (SAIF Zone):
    • Setup Costs: Sharjah Airport International Free Zone (SAIF Zone) offers competitive setup costs similar to RAK Free Zone.
    • License Fees: License fees are structured to support different business needs, similar to RAK.

Why Choose RAK Free Zone?

  • Cost-Effectiveness: RAK Free Zone provides a cost-effective solution for startups and SMEs looking to establish their business in the UAE.
  • Strategic Location: Located near the Dubai International Airport and the Port of Ras Al Khaimah, RAK Free Zone offers strategic access to major markets.
  • Industry-Specific Zones: RAK Free Zone has dedicated zones for various industries, offering specialized facilities and services.

Creative Business Solution offers a comprehensive breakdown of the costs associated with setting up a company in the RAK Free Zone, providing potential entrepreneurs with a clear understanding of the financial investment required to establish their business in this thriving economic hub. From registration fees to licensing costs, our detailed product description outlines all the necessary expenses involved in the process, ensuring that clients are well-informed and prepared for the financial commitments ahead.

Cost of Setting Up a Company in RAK Free Zone:-

Setting up a company in RAK Free Zone is a cost-effective solution for entrepreneurs looking to establish their business in the United Arab Emirates. The initial cost of setting up a company in RAK Free Zone includes a one-time registration fee, license fee, and visa fees for shareholders and employees. Additionally, there are annual renewal fees to maintain the company’s license and visa status. The cost of setting up a company in RAK Free Zone varies depending on the type of business activity, the size of the company, and the number of visas required.