You probably know that the Ras Al Khaimah free zone license cost is one of the most affordable in the UAE free zone, making it the smart choice for your business. Here is everything you should know about the costs and fees to keep your budget on track.
What Is a Ras Al Khaimah Free Zone License?
A Ras Al Khaimah Free Zone license is an official permit issued by the Ras Al Khaimah Economic Zone (RAKEZ) Authority, allowing individuals or companies to legally operate a business within the designated free zone area of Ras Al Khaimah, UAE. This license is a fundamental requirement for starting any commercial, industrial, service, or professional activity in the free zone.
What’s Included in the Ras Al Khaimah Free Zone License Package?
A Ras Al Khaimah Free Zone (RAKEZ) license package offers a comprehensive set of features and services designed to support a wide range of business activities and company sizes. Here’s what you can expect to be included in a typical RAKEZ license package:
1. Business License Type
- You can choose from multiple license types tailored to your business activity: Commercial, General Trading, Industrial, Service, Consultancy, Media, E-commerce, Educational, Professional, and Freelancer Permit.
- Some packages allow you to combine activities, such as General Trading and E-commerce, under a single license.
2. Workspace Solutions
- Packages range from flexi-desks (shared workspaces), dedicated desks, and executive offices, to warehouses and industrial units.
- The chosen workspace determines your visa eligibility and overall package cost. For example, a flexi-desk is suitable for startups and freelancers, while executive offices and warehouses cater to larger or industrial businesses.
3. Visa Eligibility
- Each package includes a set quota of UAE residence visas for owners, employees, and dependents. The number of visas depends on the workspace and package selected (e.g., zero-visa, 1-visa, 2-visa, up to 6 visas or more).
4. Company Registration and Setup
- Fast-track online company registration through the RAKEZ portal, with minimal paperwork and no need for physical visits for most activities.
- Assistance with legal documentation, Memorandum of Association, and business plan submission where required.
5. Bank Account Opening Support
- Guidance and support for opening a UAE corporate bank account, including provision of necessary documentation and introductions to banking partners.
6. Tax and Financial Benefits
- 100% foreign ownership with no need for a local partner.
- Full repatriation of profits and capital with no currency restrictions.
- Exemption from import and export duties, and one of the lowest corporate tax rates in the UAE (9% for profits above AED 375,000).
7. Additional Services
- Access to business support services, such as accounting, auditing, and PRO services.
- Optional add-ons like document attestation, Chamber of Commerce registration, and establishment card issuance.
- Special packages for women entrepreneurs with discounted rates.
8. Facility and Infrastructure Access
- Use of meeting rooms, business lounges, and shared facilities depending on your package.
- Availability of ready-to-use warehouses, industrial land, and staff accommodation for manufacturing or logistics businesses.
9. Dual License Option
- RAKEZ offers a dual license, enabling you to combine free zone and mainland activities under one entity, expanding your operational flexibility.
10. Ongoing Support and Renewal
- Dedicated customer service for license renewals, amendments, and compliance requirements.
- Access to promotional offers and discounted renewal rates during certain periods.
Types of Licenses Offered in RAK Free Zones
Ras Al Khaimah Free Zone offers many options for business licenses, allowing you to start a variety of business activities within the free zones, especially under the Ras Al Khaimah Economic Free Zone. Each RAK free zone visa cost varies according to the activity and approvals needed, as well as other factors.
These are some of the types of licenses you can get:
1. Commercial License:
You should get this license if your business is trading, including importing and exporting goods. The Ras Al Khaimah trade license cost is among the lowest in the UAE, making it ideal for businesses involved in international trade.
2. Service License:
Professional business activities, are based on providing services or consultancy in various industries, such as HR, Business consultancy, and accounting, web design services.
3. Industrial License:
For manufacturing activities, such as food processing and packaging services.
4. Media License:
For Media-related activities such as advertising and film production.
5. Educational License:
For educational and training services, such as institutes and language schools.
There are other types of licenses, E-commerce, freelance permit, and general trading, These licenses are according to their activity.
Ras Al Khaimah Free Zone license cost
RAK free zone visa costs are mainly less than other UAE free zones, and that’s why many entrepreneurs consider Ras Al Khaimah Free Zone license cost as the smartest financial investment.
Available License Types:
- Commercial License
- Service License
- Freelance Permit
- Industrial License
The overall cost of a RAK Free Zone license may vary depending on the type of business activity, scale of operations, and additional facilities such as flexi desks, executive offices, or warehouses for industrial use.
There are many advantages for your business that you will get from Ras Al Khaimah economic zone, besides Ras al Khaimah’s free zone license cost and its flexible packages.
Read Also: Ras Al Khaimah free zone company setup cost
Factors Affecting Ras Al Khaimah Free Zone License Costs
1. Type of Business Activity and License
- The specific business activity you choose is a primary cost driver. Ras Al Khaimah Free Zone (RAKEZ) offers various license types—commercial, consultancy, industrial, and trading—each with distinct requirements and fee structures. For example, a general trading license is typically more expensive than a consultancy or service license due to broader permitted activities and regulatory obligations.
- Some activities, especially those in regulated sectors (e.g., healthcare, food, education), may require additional government approvals, further increasing costs.
2. Company Formation Structure
- The legal structure—whether you are setting up a free zone company, a branch, or an international entity—significantly impacts costs. Free zone companies are generally the most cost-effective, while international company setups tend to incur higher expenses due to extra compliance and documentation requirements.
3. Office Space and Facility Requirements
- The size, type, and location of your workspace directly affect licensing costs. RAKEZ offers options ranging from flexi-desks (shared workspaces) for startups to dedicated executive offices, warehouses, or industrial units for larger operations. The more space and the higher the facility grade, the greater the associated license cost.
- Some businesses may only need a virtual office, while others require substantial physical infrastructure, which can notably increase setup and annual fees.
4. Number of Business Activities
- Including multiple business activities under one license can increase the cost, as each additional activity may require further approvals or higher-tier license packages.
5. Number of Visas Required
- The number of visas you need for employees or partners is a major factor. Packages with more visa quotas are priced higher, and each additional visa incurs processing and annual renewal fees.
6. Duration of License
- Licenses can be issued for one to three years. Opting for a multi-year license may require a higher upfront payment but often comes with discounts or cost savings over time.
7. Additional Services and Administrative Fees
- Costs such as visa processing, Chamber of Commerce registration, establishment card issuance, document attestation, and annual maintenance fees are often not included in the base license fee and should be budgeted separately.
- Optional services like business support, IT infrastructure, and virtual office facilities can add to the total cost.
8. Special Approvals and Regulatory Compliance
- Certain activities require sector-specific approvals, which may involve extra fees and longer processing times. For example, businesses in education, healthcare, or food services may need special certifications or inspections.
9. Company Size and Legal Setup
- Larger companies with more employees, higher capital requirements, or complex ownership structures will generally face higher license and operational costs.
Summary Table of Key Cost Factors
Factor |
Impact on Cost |
Business Activity/License Type |
Specialized or broad activities increase fees |
Company Formation Structure |
International/branch setups cost more than free zone firms |
Office/Facility Requirements |
Larger or specialized spaces raise costs |
Number of Activities |
More activities = higher license fees |
Visa Quota |
More visas = higher package cost |
License Duration |
Multi-year = higher upfront, possible long-term savings |
Additional Services/Fees |
Adds to total setup and renewal costs |
Special Approvals |
Sector-specific compliance raises fees |
Company Size |
Bigger companies pay more for licenses and facilities |
License Renewal Costs and Schedules
Ras Al Khaimah Free Zone license is valid for only 1 year, it should be renewed annually to remain active.
Renewal Schedule
The license duration is 1 year, in some packages, it could reach 2 or 3 years.
The renewal deadline is before the expiry date, as you will get reminders from the Ras el Khaimah economic zone. There are 30 days as a grace period, then penalties will be required.
Rak free zone license renewal fees
The renewal fees according to the type of license whether it is commercial license, service license, Industrial License, or even freelancer license.
Payment Plans (One-Time, Annual and Installments)
When considering a business setup in the UAE free zone, Ras Al Khaimah offers flexible payment options to suit different business needs and budgets:
-
One-time full payment:
It’s Fast and not complicated, saves you the monthly tracking, and usually comes with discounts.
-
Annual Payment:
You pay the cost once a year, which offers flexibility and is suitable for mid-range budgets.
-
Installment Plan:
Monthly or quarterly installment plans. It’s ideal for startups and small businesses.
Do License Fees Include Visas and Workspace?
Not always, it depends on the package you choose, as the basic license covers government registration, business activity approval, and issuance of the business license, but doesn’t automatically include visas or workspaces.
On the other side, some Ras el Khaimah economic zone business packages bundle the license with a workspace, such as a flexi desk, private office, or warehouse.
If your package doesn’t include visas or workshops, you will claim it separately from the license and pay extra fees. You can also choose a suitable visa package for you, depending on how many visas you need.
Choosing the Right License for Your Budget
Here is how to decide the best package for your business if you are on a budget.
- Determine your business license type: commercial, service, industrial, or freelance.
- Ask yourself:
- How many visas do you need?
- Will you set up your business in an office or not?
- Avoid choosing the cheapest package without checking visa eligibility.
- Consider the workspace cost.
- Check the renewal fees.
Hidden Costs to Watch Out For
To avoid unexpected expenses, it’s important to be aware of potential hidden costs that may not be included in your initial package.
-
Visa Processing Fees:
You should know that if your package allows you to apply for visas, then the visa processing costs may be separated unless the visa fees are bundled into the package, which costs from 3500 to 5000 per visa, and includes:
- Entry permit fees
- Medical test & Emirates ID
- Residency stamping
- Establishment card (required before issuing visas)
-
Establishment Card:
It is a necessary document to sponsor employees or apply for visas, it costs around 2000 AED.
-
Additional business activities and shareholders:
If you added business activities, it requires extra fees, as well as if you added multiple shareholders.
A step-by-step guide to Obtaining a Ras Al Khaimah Economic Zone License
Securing a business license in Ras Al Khaimah Economic Zone (RAKEZ) is a streamlined process, but it’s important to follow each step carefully to ensure a smooth setup. Here’s a professional, advanced guide to obtaining your RAKEZ license:
1. Define Your Business Activity
Select the precise business activities you wish to undertake. RAKEZ offers a wide range of activities—commercial, industrial, service, consultancy, educational, media, and more. Your chosen activity will determine the type of license and any additional approvals required.
2. Choose Your Legal Structure
Decide on the most suitable legal entity for your business. Common options include:
- Free Zone Establishment (FZE) – single shareholder
- Free Zone Company (FZC) – multiple shareholders
- Branch of an existing local or foreign company
The legal structure impacts documentation, liability, and shareholding requirements.
3. Reserve Your Company Name
Select a unique company name that complies with UAE naming conventions. Avoid names that are offensive, religious, or similar to existing brands. The name must be approved by RAKEZ before proceeding.
4. Prepare Required Documents
Gather all necessary documents, which typically include:
- Passport copies of shareholders and managers
- Visa copies and entry stamps (if applicable)
- No Objection Certificate (NOC) if you are a UAE resident
- Business plan (for certain activities)
- Memorandum & Articles of Association (for company structures)
- Tenancy contract or lease agreement (if physical space is required)
5. Select a Facility or Workspace
Choose from flexi-desks, dedicated offices, warehouses, or industrial units based on your business needs and visa requirements. The facility type affects your visa quota and total license cost.
6. Submit Application and Documents
Complete the RAKEZ application form and submit it along with your supporting documents. This can be done online via the RAKEZ portal or through an authorized business setup consultant.
7. Pay Fees
Pay the applicable license and registration fees. The total amount depends on your license type, business activity, number of visas, and facility selection.
8. Lease Agreement and Approvals
Sign the lease agreement for your chosen workspace. For certain activities, additional approvals from relevant authorities may be required before final license issuance.
9. Receive Your License
Once all documents are verified and fees paid, RAKEZ will issue your business license. This allows you to legally operate within the free zone and access all associated benefits.
10. Apply for Visas
If your package includes visas, apply for an establishment card and process residence visas for shareholders, employees, and dependents as needed. This involves entry permits, medical testing, Emirates ID, and visa stamping.
11. Open a Corporate Bank Account
With your license in hand, you can open a UAE corporate bank account. RAKEZ and setup consultants often assist with introductions and documentation.
Let Alex Zone Help You Save on RAK Free Zone License Fees
At Alex Zone, we’re committed to helping you make the smartest financial decisions for your business setup in Dubai UAE or the Ras Al Khaimah Free Zone.
- We match your business needs with the most suitable and cost-effective package.
- We connect you with exclusive Ras el Khaimah economic zone discounts and special offers.
- We provide full transparency on setup and annual renewal costs.
- We offer flexible payment plans tailored to your budget and business stage.
Get in touch with us now, and let us handle all rak-free zone license fees and guide you through every step with smart, cost-saving solutions.
How to Reduce Your RAKEZ License Costs
Reducing the cost of your Ras Al Khaimah Economic Zone (RAKEZ) license is possible with strategic planning and smart choices. Here are advanced, actionable tips to help you minimize your setup and ongoing expenses:
1. Choose the Right Company Formation Type
Opt for a free zone company structure, which is generally more affordable than setting up a branch or international company. This keeps your initial and annual costs lower while still offering full business functionality.
2. Select Cost-Effective Business Activities
Some business activities—like consulting, trading, or e-commerce—have lower licensing fees and fewer regulatory requirements compared to manufacturing or industrial activities, which often require more infrastructure and approvals. Carefully review the activity list and select those with minimal overheads.
3. Start Small and Scale Gradually
Begin with the smallest viable company size and upgrade as your business grows. For example, start with a flexi-desk or coworking space instead of a dedicated office, which significantly reduces facility costs. RAKEZ’s BizStarter and e-commerce packages are designed for affordability and scalability.
4. Bundle Services for Maximum Value
Take advantage of RAKEZ’s bundled packages that combine licensing, office space, and essential support services in one fee. This approach simplifies budgeting and reduces overall overheads compared to purchasing services separately. Bundled packages also often include value-added services like VAT registration, accounting, and compliance support.
5. Limit the Number of Visas
Only apply for the number of visas you truly need. Each additional visa increases your total cost, so assess your staffing requirements carefully and avoid unnecessary visa expenses.
6. Use Shared or Virtual Office Solutions
Opt for coworking spaces, flex desks, or virtual offices instead of renting a full office, especially if your business does not require a permanent physical presence. These options are much more budget-friendly and still meet RAKEZ requirements for company formation.
7. Look for Special Offers and Promotions
RAKEZ frequently provides promotional deals, such as discounted packages for startups, women entrepreneurs, or lifetime visa offers. Monitoring these promotions can lead to significant savings.
8. Minimize Legal and Professional Fees
Handle straightforward administrative tasks yourself where possible, and only engage consultants or legal professionals for complex matters. This reduces the cost of setup and ongoing compliance.
9. Renew On Time to Avoid Penalties
Ensure timely renewal of your license to avoid late fees and penalties, which can quickly add up and increase your annual costs.
By applying these strategies—choosing the right structure, starting small, bundling services, and taking advantage of special offers—you can significantly reduce your RAKEZ license costs while maintaining compliance and operational efficiency.
Frequently asked questions:
Does the license fee include visas and office space?
License fees don’t always include the cost of visa processing and workspace, even if the license allows you to apply for the visa, it might not include its fees.
Can I pay in installments?
Yes, Alex Zone helps you access installment plans or flexible payment options in selected packages, including monthly or quarterly payments.
How many visas can I get with my license?
You can get various visas with your business license, it depends on the license type according to your business activity, the size of your workspace, and the Ras el Khaimah economic zone approvals.
Can you help me reduce the license costs?
- Providing access to exclusive discounts and offers
- Helping you choose the most cost-effective license package
- Offering flexible payment plans
- Guiding you to avoid hidden fees
- Ensuring a smooth setup process to save time and money