How Much Does a RAK Free Zone Company Setup Cost?

Ras Al Khaimah Freezone Company Formation by CB Solutions

Starting a business in the UAE is an attractive proposition — especially in a free zone like Ras Al Khaimah (RAK). One of the most important questions that potential entrepreneurs ask is: How much does it cost to set up a company in the RAK Free Zone? So if you are planning for Ras Al Khaimah freezone company formation then this if your place. In this post, we break down the key cost components, using expertise from CB Solutions (cbsolutions.ae), to give you a realistic estimate.

Why Choose RAK Free Zone?

Before diving into costs, it’s worth quickly revisiting why someone might pick RAK Free Zone for company formation:

1. 100% foreign ownership — no need for a local partner.
2. Tax benefits, such as no personal or corporate tax (depending on profit thresholds).
3. Flexible office options, from shared flexi-desks to full offices or industrial facilities.
4. Relatively low cost compared to many other UAE free zones.
5. Breakdown of RAK Free Zone Company Setup Cost

Using data from CB Solutions, here’s a breakdown of the typical costs when forming a company in RAK Free Zone (Ras Al Khaimah).

License Fees

• Trade / Commercial License: ~ AED 5,750 to AED 7,750 per year.
• Consultancy / Service License: ~ AED 7,500 to AED 12,500 per year.
• General Trading License: Much higher — CB Solutions suggests ~ AED 25,000 to AED 30,000 per year, depending on the scale.

Company Registration & Administration

• Registration Fee: About AED 2,000 – AED 3,000 (one-time) according to CB Solutions.
• Incorporation / Other Admin Fee: Around AED 1,000 – AED 3,000 (one-time).

Office Costs

• Flexi Desk (shared workspace): AED 7,000 to AED 10,000 / year (CB Solutions)
• Physical / Dedicated Office: AED 15,000 to AED 25,000 / year (depending on size and location) per CB Solutions.

Visa Costs

Employee visa (per visa): ~ AED 2,500 to AED 3,500, according to CB Solutions (excluding medical / Emirates ID).

Note: These are visa application costs; medical, Emirates ID, and stamping might be extra / additional costs depending on service provider.

Miscellaneous / Other Costs

• Bank Account Opening: Around AED 1,000 to AED 3,000 (one-time), per CB Solutions.
• PO Box: ~ AED 1,000 to AED 1,500 / year.
• Legal / PRO Services: Varies, depending on complexity and provider. CB Solutions mentions potentially needing legal assistance, especially for document preparation.

Estimated Total Cost (First Year)

• Putting all of the above together, CB Solutions estimates that your first-year cost for setting up a company in RAK Free Zone will typically fall in the ballpark of:
• AED 20,000 to AED 50,000.
• This wide range reflects how much variation there is, depending on:
• Type of license (commercial, professional, trading)
• Office choice (flexi-desk vs full office)
• Number of visas needed
• Additional services (banking, legal, PRO)
• Comparison With Other Sources / Providers
• Other industry sources broadly align with CB Solutions’ estimates, giving further validity to these numbers:
• According to RAKPro, license costs in RAK Free Zone are roughly AED 5,000 to AED 12,000, depending on activity.

Aziend Consultancy lists RAKEZ (the economic zone for RAK) license + business setup costs starting from:

• Professional / service: ~ AED 11,500+
• Commercial: ~ AED 12,500+
• Industrial: ~ AED 18,000+ (for manufacturing)
• Farahat & Co. gives very activity-specific license costs: e.g., service license from ~ AED 17,800; general trading from ~ AED 32,185; visa processing and Emirates ID also included in their breakdown.

Tips to Optimize Your Setup Cost

• If you want to minimize your initial setup cost in RAK Free Zone, here are some strategies:
• Start with a Flexi-Desk: Opting for a shared or flexi workspace dramatically lowers your office cost.
• Limit Visas Initially: Apply only for the number of visas you actually need at the beginning; you can scale up later.
• Choose the Right License Type: Don’t over-license — pick a license that matches your core business activity.
• Negotiate PRO / Legal Fees: Use a consultant like CB Solutions effectively — they may help you reduce PRO or document-processing costs.
• Use Economical Banking: Some UAE banks or fintechs may offer cost-efficient business account options; check associated deposit or maintenance costs.

Why Use CB Solutions for RAK Free Zone Company Formation

• Since “ras al khaimah freezone company formation by CB Solutions” is your key phrase, here are a few reasons why CB Solutions is a strong choice for this process:
• Expertise & Specialization: CB Solutions has detailed knowledge of RAK Free Zone setup, and their published cost breakdown (on their website) gives transparency.
• All-In-One Service: They handle not just the license and registration, but also visa processing, PRO work, and other backend tasks.
• Comparative Cost Advantage: Their cost estimates are competitive compared to other free-zone consultants — which helps you save without compromising on quality.
• Trusted Guidance: For first-time entrepreneurs, having a consultant simplifies paperwork, ensures compliance, and helps avoid hidden costs.

Final Takeaway

• Estimated first-year cost for a RAK Free Zone company formation (via CB Solutions) is likely to be in the AED 20,000–50,000 range.
• The exact cost will depend heavily on your license type, office setup, visa needs, and additional services.
• Working with a consultant like CB Solutions gives you clarity and helps you make cost-efficient but compliant decisions.