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Business Setup

How to set up a business in RAKEZ

A practical, step-by-step guide to registering a company in the Ras Al Khaimah Economic Zone: licence types, documents, timelines, costs and how Innovation City differs.

40,000+
Companies hosted
10
Licence categories
100%
Foreign ownership
What is RAKEZ?

The Ras Al Khaimah Economic Zone (RAKEZ) is the emirate's main business-setup authority, created in 2017 from the merger of RAK Free Trade Zone and RAK Investment Authority. It licences and supports companies across free-zone and non-free-zone structures, covering more than 1,000 approved business activities.

RAKEZ is positioned as a cost-competitive alternative to Dubai and Abu Dhabi free zones, with 100% foreign ownership, no local sponsor requirement, and a single-window approach to licensing, visa processing and facility leasing.

For the latest RAKEZ news — licence updates, delegations and partnerships — see our RAKEZ hub or the RAKEZ news stream.

RAKEZ at a glance

Established2017
Licence categories10
Approved activities1,000+
Companies40,000+
Cost vs Dubai20–30% lower
See the investor briefing →
Setup steps

1. Choose your activity and licence type

Match your business activity to one of RAKEZ's ten licence categories. Free-zone entities suit international trade and 100% foreign ownership; non-free-zone entities suit mainland-market operations.

2. Pick a facility package

Options range from flexi-desk and shared-office licences to leased warehouses, light industrial units and land plots. The package affects visa quotas and total first-year cost.

3. Reserve a company name

Names must comply with UAE naming rules: no religious or political references, no confusingly similar names to existing entities, and no unlicensed professional terms.

4. Submit documents and sign the application

Founders typically submit passport copies, proof of address, a business plan and signed application forms. RAKEZ then reviews and issues an initial approval.

5. Pay fees and receive your digital licence

Once approved, pay the licence and facility fees. RAKEZ issues a digital licence with a QR code, enabling bank account opening, contract signing and visa processing.

6. Register for tax and open a bank account

Register with the Federal Tax Authority for a Tax Registration Number and open a corporate bank account. Even 0% taxable entities must file annual returns where required.

Innovation City vs RAKEZ

Innovation City (formerly RAK Digital Assets Oasis) is a separate, AI-powered free zone. It markets 2–3 day licensing for qualifying founders in AI, Web3, gaming, robotics and healthtech.

RAKEZ

Broad multi-sector free zone with industrial, trading, services and consultancy licences. Best for general business, manufacturing and logistics.

Innovation City

AI-native free zone for technology and digital-asset startups. Faster licensing and sector-specific community programming.

How they overlap

Both operate under the RAK economic ecosystem and often co-host delegations and events. A company must choose one jurisdiction for its licence.

Which to choose

Choose RAKEZ for general trading, industry or consulting. Choose Innovation City for AI, Web3, gaming or healthtech with fast launch needs.

FAQ

What is RAKEZ? +

RAKEZ is the Ras Al Khaimah Economic Zone, formed in 2017 from the merger of RAK Free Trade Zone and RAK Investment Authority. It licenses and regulates companies across free-zone and non-free-zone jurisdictions.

How long does RAKEZ setup take? +

Standard RAKEZ approvals usually complete in a few business days. Innovation City advertises 2–3 day licensing for qualifying applications.

Can foreigners own 100%? +

Yes. RAKEZ companies are 100% foreign-owned with no local sponsor required.

What documents are required? +

Typical documents include passport copies for shareholders and managers, proof of address, a business plan, and signed RAKEZ application forms. Requirements vary by licence type.

Is Innovation City part of RAKEZ? +

No. Innovation City is a separate AI-focused free zone. It operates alongside RAKEZ and targets AI, Web3, gaming, robotics and healthtech founders.

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