Key Highlights

• RAKEZ registered 8,506 new companies in H1 2025, a 43% year-on-year surge.
• Entrepreneurs can obtain the Biz Starter license for just AED 6,000 and receive it within 24 hours.
• All structures offer 100% foreign ownership with visa quotas tied to flexible office options.
• RAKEZ supports 1,000+ business activities across 50 industries while maintaining some of the UAE’s lowest setup costs.

RAKEZ (Ras Al Khaimah Economic Zone) stands out as one of the UAE’s most dynamic business destinations. 

With impressive 23% growth in new registrations during Q1 2025 and over 35,000 companies now calling it home, RAKEZ offers an unbeatable combination of affordability, speed, and comprehensive support for entrepreneurs.

Continue reading this article if you want to set up your business in RAKEZ. 

Why RAKEZ is the Smart Choice 

You’re looking at the UAE’s fastest-growing economic zone. RAKEZ welcomed 8,506 new companies in just the first half of 2025, representing a remarkable 43% increase from the previous year. This surge reflects growing confidence among international investors and entrepreneurs.

What makes RAKEZ particularly attractive is its strategic positioning. Located just one hour from Dubai, you get access to major regional markets while enjoying significantly lower setup and operational costs. The free zone connects you to Europe, Asia, and Africa through excellent infrastructure and connectivity.

RAKEZ now supports over 50 industries with more than 3,000 business activities available. Whether you’re in trading, services, manufacturing, or emerging sectors like e-commerce and technology, there’s space for your venture to thrive.

RAKEZ Business License Types: Complete Guide

Understanding the right license type is crucial for your success. Each license comes with specific permissions and requirements.

1. Commercial License

Your gateway to international trade. This license covers import, export, and distribution activities across multiple product categories. You can select up to 5 business activities under a single commercial license, giving you flexibility to diversify your operations.

The commercial license works perfectly for trading companies, distributors, and businesses focused on buying and selling goods. You’ll need minimal capital requirements, and the setup process typically takes just 24-48 hours.

2. Service License

Designed for professional services and consultancy businesses. This license is ideal if you’re offering IT services, marketing consulting, business advisory, or any knowledge-based service.

Service-oriented businesses made up 38% of new registrations in 2025, making this RAKEZ’s most popular license category. The flexibility and low overhead make it perfect for startups and solo entrepreneurs.

3. Industrial License

For manufacturing, assembly, and production activities. This license requires mandatory warehouse leasing and employing at least 10 workers. However, it opens doors to RAKEZ’s industrial zones with specialized infrastructure.

Industrial license holders enjoy exemption from customs duties on machinery, equipment, and raw materials. The setup cost starts around AED 18,000, plus warehouse rental fees.

4. E-commerce License

Specifically crafted for online businesses and digital platforms. This license supports companies operating over the internet, including online retailers, digital marketers, and e-commerce platforms.

With e-commerce being a major growth sector, this license ensures compliance while providing the credibility needed for online operations.

5. Educational License

For training centers, educational institutions, and vocational training providers. This covers everything from teaching and training to comprehensive educational services.

The educational license supports the UAE’s knowledge economy goals and comes with specific compliance requirements for academic activities.

6. Media License

Covers content creation, digital marketing, publishing, and broadcasting activities. Perfect for media houses, advertising agencies, and content creators looking to establish their presence.

This license has gained popularity as digital content and marketing services continue to expand across the region.

7. Freelancer Permit

Designed for individual professionals in media, IT, and education sectors. This permit offers flexible working arrangements for independent contractors and consultants.

RAKEZ Business Structures: Choosing Your Entity Type

Your business structure determines ownership limits, liability, and operational flexibility.

1. Free Zone Establishment (FZE)

Perfect for single owners. FZE allows complete foreign ownership with one shareholder maintaining full control over business decisions, profits, and expansion strategies.

This structure works well for solo entrepreneurs or family businesses where one person wants complete authority.

2. Free Zone Company (FZC)

Accommodates 2-5 shareholders with flexible partnership arrangements. FZC enables profit-sharing agreements and collaborative decision-making structures.

Choose FZC if you’re starting with partners or planning to bring investors into your business later.

3. Branch Office

An extension of your existing local or international business. Branch offices have specific operational requirements and limitations but allow established companies to expand into the UAE market.

Step-by-Step RAKEZ Company Formation Process

The formation process is designed for speed and efficiency. Here’s exactly what you need to do.

Pre-Setup Planning

Choose your business activities carefully. You can select up to 5 activities across different sectors, providing excellent diversification opportunities. Make sure your chosen activities align with your intended license type.

Reserve your company name through RAKEZ’s online portal. Names must be unique and comply with UAE naming guidelines. Avoid religious references, offensive terms, or names already in use.

1. Application Submission

RAKEZ’s Portal 360 streamlines the entire application process. Upload all required documents, including passport copies, business plans, and any relevant certifications.

Payment processing is flexible. Choose between full payment upfront or RAKEZ’s Easy Payment Plan with installments.

2. License Approval Timeline

Standard processing takes 1-2 weeks for most license types. However, RAKEZ offers express services for urgent setups.

You can receive your business license within 24 hours using their Biz Starter Package, making it one of the fastest company formation processes in the UAE.

Post-Approval Requirements

Sign your Memorandum of Association and finalize your lease agreement. Collect all corporate documents and establish your banking relationships.

RAKEZ assists with banking support, offering guaranteed account opening services with money-back guarantees if unsuccessful.

RAKEZ Package Options: Finding Your Perfect Fit

RAKEZ offers multiple package options to match different business needs and budgets.

1. Biz Starter Package (AED 6,000)

The most budget-friendly entry option in the UAE free zone market. This package includes company setup, coworking space access, and up to 5 shareholders.

What you get:

• Business license within 24 hours
• Up to 5 business activities
• Coworking center membership
• Eligibility for bank account opening
• 100% foreign ownership
• Zero-tax environment

Ideal for: Consultants, traders, e-commerce startups, and freelancers who want minimal upfront investment.

2. Standard Business Package (AED 16,500)

RAKEZ’s comprehensive all-inclusive package covers everything you need to start operations immediately.

Features include:

• UAE residence visa included
• Professional workspace options
• Banking support services
• No hidden fees
• Transparent pricing structure

This package provides excellent value for entrepreneurs who want everything handled professionally.

3. BusinessWomen Package (AED 6,000)

Special rates for female entrepreneurs with dedicated support services and networking opportunities. This initiative supports women’s entrepreneurship in the UAE and provides access to specialized business networks.

4. Industrial Package

Designed for manufacturing and production setups with access to industrial zones, warehouse options, and specialized support for heavy industry.

Industrial packages include land lease options and customized facilities for specific manufacturing requirements.

RAKEZ Visa Requirements and Process

Understanding visa requirements ensures smooth entry and residence for you and your team.

1. Investor Visa

Available for shareholders and business owners. Processing takes approximately 8 business days after document submission.

Required documents:

• Valid passport with 6-month minimum validity
• Passport-sized photographs
• Educational certificates (attested)
• Medical fitness certificate

Age limits: Visas are processed for individuals between 18 and 65 years.

2. Employee Visa

Visa allocation depends on your office space and business activities. Larger offices qualify for more employee visas.

Processing timeline:

•  Entry permit: 3 business days
• Emirates ID and residence approval: 5 business days

Total processing cost: Approximately AED 3,800-4,800 depending on processing speed selected.

3. Dependent Visa

Family sponsorship options allow you to bring a spouse and children. Processing requires additional documentation, including marriage certificates, birth certificates, and financial proof.

4. Long-term Visa Options

RAKEZ facilitates 5-year and 10-year golden visa applications for qualifying investors. Investment thresholds and specific requirements apply based on business activity and capital investment levels.

Also Read: How to Launch a Web3 Startup in the UAE (Legally and Securely)

Office Space and Infrastructure Options

RAKEZ provides comprehensive workspace solutions for every business size and requirement.

1. Coworking Spaces

Perfect for startups and remote workers. Located in the Compass Coworking Centre, these spaces offer flexible membership plans.

Pricing ranges:

Daily memberships available

• Weekly and monthly options
• Annual costs: AED 6,000-12,000

Benefits include:

• Free meeting room usage (4 hours monthly)
• Business networking events access
• Professional business address
• High-speed internet and facilities

2. Serviced Offices

Fully furnished plug-and-play offices with shared amenities. Lease terms range from 1 to 5 years with maintenance included.

These offices provide privacy while maintaining cost efficiency through shared reception and business support services.

3. Standard Offices

Cost-effective solutions for SMEs looking to establish a professional presence. Standard offices offer:

• 24-hour security
• Business center services access
• Annual renewable lease agreements
• Dedicated workspace for teams

4. Executive Offices

Premium office solutions for growing companies requiring larger spaces and enhanced amenities. Features include:

• Customizable furniture options
• Enhanced business services
• Premium locations within RAKEZ
• Professional meeting facilities

5. Industrial Facilities

Warehouse and manufacturing spaces with logistics support. Options include:

• Land lease for custom development
• Ready-built warehouse facilities
• Distribution center access
• Specialized industrial infrastructure

Banking and Financial Services

RAKEZ’s banking support program significantly simplifies the account opening process.

1. RAKEZ Banking Support Program

Guaranteed bank account opening service with a money-back guarantee if unsuccessful. RAKEZ partners with leading UAE banks to ensure smooth account establishment.

The service includes:

• Bank selection based on business profile
• Document preparation assistance
• Application coordination
• Follow-up until completion

2. Required Banking Documents

Essential documentation includes:

• Certified company incorporation papers
• Shareholder CVs and passport copies
• 6-month personal bank statements
• Business profile and activity description
• Emirates ID of primary signatory (if applicable)

3. Banking Timeline and Process

Account activation typically takes 36-48 hours after approval. The overall process includes:

• Initial consultation and bank matching
• Document preparation and submission
• Bank meeting (virtual or in-person options)
• Account activation and setup

4. Multi-currency Account Options

International trade facilitation through multi-currency accounts. Services include:

• Foreign exchange services
• Online banking platforms
• International wire transfer capabilities
• Trade finance solutions

Cost Breakdown and Fee Structure

Understanding all costs helps you budget accurately and avoid surprises.

1. Government Fees

License registration fees vary by license type:

• Trading licenses: Starting from AED 8,000+
• Service licenses: Similar range
• Industrial licenses: Around AED 18,000+

Additional government charges:

• Emirates ID processing
• Medical examination fees
• Visa processing charges

2. RAKEZ Service Fees

Package costs are transparent:

• Biz Starter: AED 6,000
• All-Inclusive: AED 16,500
• Custom packages available based on requirements

Annual renewal fees typically match initial setup costs, providing predictable budgeting.

3. Office Space Costs

Workspace pricing varies by type:

• Coworking: AED 6,000-12,000 annually
• Private offices: AED 7,000-45,000 annually
• Commercial offices: Average AED 22,000-82,000 annually

4. Hidden Costs to Avoid

Be aware of potential additional charges:

• Third-party service provider markups
• Unnecessary add-on services
• Late renewal penalty fees
• Banking service charges beyond basic account setup

Always request complete fee breakdowns before committing to any package.

Common Challenges and How to Avoid Them

Learning from common mistakes saves time and money.

1. Business Activity Selection Mistakes

Choosing incorrect activities can impact banking and operations. Always:

• Research activity codes thoroughly
• Understand licensing restrictions
• Consider future expansion plans
• Consult RAKEZ experts for guidance

2. Documentation Errors

Incomplete paperwork causes delays. Ensure:

• All documents are properly attested
• Translations are certified
• Information is consistent across documents
• Submission deadlines are met

3. Banking Challenges

Account opening rejections can delay operations. Avoid issues by:

• Providing complete documentation
• Maintaining consistent information
• Understanding bank-specific requirements
• Using RAKEZ banking support services

4. Visa Processing Problems

Visa delays affect business launch. Prevent problems by:

• Meeting medical examination requirements
• Ensuring document authentication
• Understanding compliance obligations
• Planning renewal timelines in advance

5. Office Space Issues

Inappropriate space selection affects operations. Choose wisely by:

• Matching space to business needs
• Understanding lease terms completely
• Planning for growth requirements
• Considering location accessibility

RAKEZ vs Other UAE Free Zones

Understanding competitive positioning helps you make informed decisions.

1. Cost Comparison

RAKEZ offers significant cost advantages:

• RAKEZ: Starting from AED 6,000
• DMCC: Basic license around AED 20,000-25,000
•  IFZA: Around AED 20,000 with visa
•  DIFC: Premium pricing for financial services

RAKEZ provides exceptional value while maintaining professional standards and comprehensive services.

2. Industry Focus

RAKEZ’s multi-industry approach supports over 50 sectors, offering more flexibility than specialized zones. This diversity allows:

• Business model pivoting
• Market expansion opportunities
• Cross-sector collaboration
• Reduced dependency risks

3. Location Advantages

Strategic positioning benefits:

• One hour from Dubai
• Proximity to airports and seaports
• Access to regional markets
• Lower operational costs than Dubai-based zones
• Excellent infrastructure connectivity

Frequently Asked Questions (FAQs)

1. How long does RAKEZ company setup take?

Standard setup takes 1-2 weeks, but you can get your license within 24 hours using the Biz Starter Package. Express services are available for urgent requirements.

2. Can I change my business activities later?

Yes, you can modify activities during license renewal or through amendment procedures. However, changes may require additional approvals and fees depending on the new activities selected.

3. What happens if I don’t renew my license on time?

Late renewal incurs penalty fees and may affect your business operations. RAKEZ typically provides grace periods, but maintaining current licenses is essential for continuous operations and visa validity.

4. Do I need a local sponsor in RAKEZ?

No local sponsor required. RAKEZ offers 100% foreign ownership across all business structures, giving you complete control over your company.

5. How do I handle VAT registration?

VAT registration becomes mandatory when annual turnover exceeds AED 375,000. RAKEZ provides guidance and support for VAT compliance and registration processes.

6. What happens if I violate RAKEZ rules?

Violations can result in warnings, fines, or license cancellation depending on severity. RAKEZ maintains clear compliance guidelines and provides support to ensure businesses meet all requirements.

7. Are there any hidden fees in RAKEZ packages?

RAKEZ advertises transparent pricing with “no hidden fees” policies. However, always request complete cost breakdowns, including government fees, renewal charges, and optional services.

8. Can I pay renewal fees in installments?

Yes, RAKEZ offers Easy Payment Plans allowing installment payments for setup and renewal fees. This flexibility helps manage cash flow for growing businesses.

9. How do cancellation fees work?

Cancellation procedures and fees depend on your specific agreement terms. Contact RAKEZ directly for cancellation policies and any applicable charges based on your package and circumstances.

Final Word 

RAKEZ continues to evolve as a premier business destination, offering unmatched value, speed, and support for entrepreneurs across all sectors. With transparent pricing, comprehensive services, and strategic positioning, it represents an excellent choice for your UAE business venture.

Note: Costs and fees mentioned are subject to change. Always verify current pricing with RAKEZ directly before making final decisions.

Book your Free Consultation call today with the expert of JSB Incorporation to learn more about business setup in RAKEZ.