Is RAK Free Zone Setup Cost Competitive Compared to Others?

Ras Al Khaimah (RAK) has become a popular choice for entrepreneurs looking to establish a business in the UAE, thanks to its attractive business environment and competitive setup costs. With its strategic location in the United Arab Emirates, RAK Free Zone provides businesses with a cost-effective solution to establish their presence in the Middle East. RAK offers several free zones that cater to a variety of industries, making it a viable option for both startups and established businesses.

Understanding RAK Free Zones

RAK free zones, such as RAKEZ (Ras Al Khaimah Economic Zone) and RAKICC (Ras Al Khaimah International Corporate Centre), provide a business-friendly environment with numerous benefits, including 100% foreign ownership, zero personal and corporate income tax, and full repatriation of profits and capital. The cost of setting up a business in RAK Free Zone is significantly lower than in other free zones, with various cost-effective packages available to suit different business needs.

Comparing Setup Costs

When evaluating the setup costs in RAK free zones, it’s essential to compare them with other popular free zones in the UAE, such as Dubai, Abu Dhabi, and Sharjah. The setup cost in RAK Free Zone is significantly lower than many other free zones in the region, allowing businesses to save on their initial investment and allocate those funds towards other essential aspects of their operations. Here’s a breakdown of the key costs involved:

  1. Registration Fees: RAK free zones generally offer competitive registration fees, which vary based on the type of business activity and the chosen free zone.
  2. License Fees: The annual license fees in RAK free zones are competitive compared to other UAE free zones, with options for different types of licenses tailored to specific business activities.
  3. Office Space Costs: The cost of office space in RAK free zones is often more affordable compared to prime locations in Dubai or Abu Dhabi, making it an attractive option for businesses looking to minimize overhead costs.
  4. Visa Costs: RAK free zones offer cost-effective visa solutions, allowing businesses to sponsor employee and investor visas at competitive rates.

Why Choose RAK Free Zones?

  • Cost-Effective Solutions: RAK free zones provide cost-effective business setup solutions without compromising on quality or service.
  • Strategic Location: Located close to major ports and airports, RAK offers excellent logistics and access to global markets.
  • Supportive Ecosystem: RAK free zones provide a supportive ecosystem with business-friendly regulations and incentives to foster growth and innovation.
  • Diverse Industry Options: RAK free zones cater to a wide range of industries, including manufacturing, trading, services, and consulting, offering flexibility for various business needs.

How Much Does it Cost to Establish a Company in RAK Free Zone?

Establishing a company in Ras Al Khaimah (RAK) Free Zone can be an attractive option for entrepreneurs looking to set up in the UAE. The total cost of establishing a company in RAK Free Zone can vary depending on the type of business activity, the size of the company, and the specific requirements of the business owner. However, one of the initial considerations for any business owner is the cost involved.

Initial Setup Costs

  1. Registration Fees:
    • Company Registration: The initial cost for registering your company in RAK Free Zone typically starts around AED 5,000 to AED 15,000 (approximately USD 1,360 to USD 4,080), depending on the type of business activity and the structure of the company.
    • License Fees: The annual license fee for your business activity ranges from AED 2,500 to AED 25,000 (approximately USD 680 to USD 6,800), depending on the business type and size.
  2. Office Space:
    • Flexi Desk: For smaller companies or those just starting out, a Flexi Desk package with shared office space can cost between AED 8,000 to AED 15,000 per year (approximately USD 2,180 to USD 4,080).
    • Executive Office: Renting an executive office can range from AED 20,000 to AED 40,000 per year (approximately USD 5,450 to USD 10,900), depending on the size and location within the free zone.

Additional Costs

  1. Visa Fees:
    • Employee Visa: The cost per employee visa application is approximately AED 3,500 to AED 4,000 (approximately USD 950 to USD 1,090), which includes visa processing, medical tests, Emirates ID, and visa stamping.
    • Investor/Partner Visa: For business owners or partners, the cost can vary and typically starts from AED 7,000 to AED 10,000 (approximately USD 1,900 to USD 2,730).
  2. Miscellaneous Costs:
    • Legal Fees: Depending on the complexity of your company structure and legal requirements, legal fees can range from AED 5,000 to AED 15,000 (approximately USD 1,360 to USD 4,080).
    • Bank Account Opening: Banks in the UAE generally require an initial deposit and might have additional fees for account maintenance and transactions.


The total cost of establishing a company in RAK Free Zone can vary significantly based on your business activities, the number of employees, office space requirements, and other factors. However, as a general guideline, you should budget between AED 20,000 to AED 50,000 (approximately USD 5,450 to USD 13,600) for the initial setup phase, including registration, license, and basic office facilities.

What Factors Influence the Setup Cost in RAK Free Zone?

Setting up a business in Ras Al Khaimah (RAK) Free Zone offers numerous advantages, including strategic location, tax exemptions, and simplified business processes. It is essential for businesses to carefully assess these factors and create a detailed budget plan to ensure that they are prepared for all the associated costs of setting up in RAK Free Zone. Understanding these factors can help you plan your budget effectively and make informed decisions. Let’s delve into the key considerations that influence the setup costs in RAK Free Zone:

1. Business Activity and License Type

The type of business activity you plan to engage in and the corresponding license type significantly impact the setup costs. Larger businesses may need more space, which can result in higher rental or leasing costs. The cost of each license type varies, with certain activities requiring additional approvals or permits.

2. Office Space Requirements

The cost of office space is another crucial factor. RAK Free Zone offers flexible office solutions ranging from desk space in a shared facility to private offices and warehouses. It is important for businesses to carefully assess these factors and plan their budget accordingly to ensure a smooth and cost-effective setup process in RAK Free Zone. Companies can also opt for virtual offices to reduce initial expenses.

3. Registration and Licensing Fees

Every business in RAK Free Zone must pay registration and licensing fees. These fees cover the cost of processing your business license and registration. One of the main factors that impact the setup cost is the type of business activity that the company intends to carry out.

4. Visa and Immigration Costs

If you plan to hire employees or require visas for yourself and your family members, you’ll need to consider visa and immigration costs. Whether it is a single individual or a group of employees, the cost will vary accordingly. The more individuals involved, the higher the setup cost is likely to be. Moreover, the nationality of the individuals applying for visas can also affect the cost. The number of visas required and the type of visa (investor visa, employment visa, etc.) will affect the setup cost.

5. Corporate Services and Legal Fees

Engaging corporate services such as company formation agents, legal advisors, and business consultants is common in RAK Free Zone. It is important to consider the reputation and experience of the legal service provider, as well as the level of support and guidance they can offer throughout the setup process. The fees for these services vary based on the complexity of your business structure and specific requirements.

6. Infrastructure and Utilities

Infrastructure costs, including utilities such as electricity, water, and internet, should be considered. RAK Free Zone provides modern infrastructure, but the cost of utilities can vary based on your office size and consumption. One of the primary factors is the size and complexity of the infrastructure required.

7. Customs Duties and Import/Export Fees

For businesses involved in import/export activities, customs duties and import/export fees are additional considerations. It is important for businesses looking to establish a presence in RAK Free Zone to carefully consider these factors and plan accordingly to ensure a smooth and cost-effective setup process.

8. Annual Renewal and Maintenance Costs

Beyond the initial setup, businesses must budget for annual renewal fees, maintenance costs, and any additional permits or inspections required. Businesses looking for prime locations with better facilities may incur higher setup costs compared to those opting for less developed areas.

Everything You Need to Know About Setting Up a RAK Free Zone?

Ras Al Khaimah (RAK) has emerged as a prominent business hub in the UAE, offering a strategic location, robust infrastructure, and numerous business advantages. Setting up a business in the Arak Free Zone provides companies with a range of advantages, including tax exemptions, customs duty waivers, and simplified administrative procedures. Here’s everything you need to know about this process:

Why Choose Free Zone Company Registration in RAK?

  1. 100% Foreign Ownership: One of the most attractive aspects of setting up a free zone company in RAK is that foreign investors can retain full ownership of their businesses.
  2. Tax Benefits: Companies registered in RAK Free Trade Zone enjoy zero corporate and income taxes for 50 years, making it a highly tax-efficient option.
  3. Strategic Location: RAK’s proximity to Dubai and other key markets in the Middle East, Europe, and Asia provides easy access to a vast consumer base.
  4. Ease of Doing Business: The business-friendly environment in RAK, coupled with streamlined processes for company registration and operations, makes it straightforward to start and manage a business.

What are the Requirements for Free Zone Company Registration in RAK?

  1. Choose a Business Activity: Select the type of business activity you wish to conduct in RAK. The free zone supports a wide range of sectors, including industrial, commercial, and service-oriented businesses.
  2. Legal Structure: Decide on the legal structure of your company, such as a Free Zone Establishment (FZE) for a single shareholder or a Free Zone Company (FZC) for multiple shareholders.
  3. Company Name Approval: Propose a unique name for your company and obtain approval from the RAK Free Trade Zone Authority.
  4. Documentation: Prepare the necessary documents, including your passport copy, business plan, and shareholder details. Non-resident shareholders must also provide proof of address.
  5. Office Space: Arrange for office space within the free zone. RAK offers flexible options, from flexi-desks to large offices, catering to businesses of all sizes.
  6. License Application: Submit your application for a business license with the required documents and pay the applicable fees.
  7. Bank Account: Open a corporate bank account in a local bank approved by the free zone authority.

Creative Business Solution offers a comprehensive package for entrepreneurs looking to establish their business in the RAK Free Zone. With our expertise and experience in setting up businesses in this thriving economic hub, we provide a hassle-free solution that covers all aspects of the setup process. From company registration to obtaining necessary permits and licenses, we handle everything to ensure a smooth and efficient setup for your business.

RAK Free Zone Setup Cost:-

The RAK Free Zone Setup Cost is a comprehensive package that offers businesses a hassle-free and cost-effective solution to establish their presence in the Ras Al Khaimah Free Trade Zone Cost, and this package includes all the necessary services and support required to set up a company in this thriving business hub in the United Arab Emirates. With its comprehensive range of services and support, businesses can enjoy a seamless company formation process and access to world-class facilities and resources.