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Company formation · Complete guide

How to set up a company in Ras Al Khaimah

Five jurisdictions, one emirate. RAKEZ, RAK ICC, Innovation City, Maritime City and mainland compared on cost, ownership, visas, market access and timeline — written for founders who want the numbers, not the brochure.

InsideRAK Newsroom Updated 12 September 2026 14 min read
5
Zones to choose from
AED 6,900
Setup from
5–7 days
Typical licence time
100%
Foreign ownership
The short answer
  • Ras Al Khaimah offers five routes: RAKEZ (free zone), RAK ICC (offshore), Innovation City (tech and Web3), RAK Maritime City (shipping and logistics) and RAK mainland via the DED.
  • All five permit 100% foreign ownership. None levies personal income tax. Corporate tax applies at 9% above AED 375,000 of profit, with qualifying free-zone income potentially at 0%.
  • Setup starts at AED 6,900 for a RAK ICC offshore entity and AED 12,900 for a RAKEZ free-zone licence. Mainland starts at AED 16,500.
  • Licence issuance runs two to four days offshore and five to ten days across the free zones and mainland. Banking is the long pole at two to six weeks.
  • Only a mainland licence sells directly into the UAE market and qualifies for government tenders. Free-zone firms reach mainland customers through a distributor or dual licence.

The five routes into Ras Al Khaimah

Most emirates give founders one meaningful choice: free zone or mainland. Ras Al Khaimah gives five, and picking the wrong one is expensive to undo — jurisdictions are not amendable into each other, so a mismatch means re-registering from scratch.

Zone Built for Setup from
RAKEZ Trading, services and industry. The all-rounder, 50+ sectors. AED 12,900
RAK ICC Holding companies, SPVs and foundations. No UAE market activity. AED 6,900
Innovation City Web3, digital assets, AI, gaming, robotics and healthtech. AED 14,500
RAK Maritime City Shipping, marine services and logistics, with port access. AED 15,900
RAK Mainland (DED) Selling directly across the UAE and bidding for tenders. AED 16,500

Ownership is the one thing that does not vary: all five permit 100% foreign ownership with no local partner. What varies is market access, visa capacity, physical-presence requirements and speed.

The one-line rule
If you invoice international clients, start with RAKEZ. If you hold assets rather than trade, start with RAK ICC. If you must sell into the UAE market, only mainland does it directly.

Historically each authority ran its own counter, its own forms and its own fee schedule, which is why founders shopped agents zone by zone. That has changed: RAKEFZ.com operates as a single registration point across all five, matching the applicant to a jurisdiction and filing into whichever authority the answer lands on.

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What RAKEZ actually is

RAKEZ was formed in 2017 by merging RAK Free Trade Zone and the RAK Investment Authority into one authority. That consolidation is why it behaves differently from a Dubai free zone: instead of a single tower with a single activity list, RAKEZ operates industrial parks, business parks, an academic zone and a media zone under one licence regime.

The practical consequence is range. A consultancy on a flexi desk and a pipe mill on leased industrial land are both RAKEZ tenants, holding licences from the same authority under the same ownership rules. The zone crossed 50,000 registered companies in 2026, with roughly 19,000 added in 2025 alone.

Why founders choose it
RAKEZ prices below comparable Dubai free zones on both licence and facility, while sitting inside the same federal legal and banking system. For SMEs and light industry, that cost gap is the entire argument.

Licence types and what each permits

Your activity determines your licence, and your licence determines your facility options and visa allocation. Pick the activity before anything else — changing it later means amendment fees.

Licence Permits Typical use
Commercial Trading, import, export, distribution Trading companies, e-commerce, wholesale
Service Professional and consultancy services Consultancies, agencies, IT services
Industrial Manufacturing, processing, assembly Factories, food processing, steel
Educational Teaching and training delivery Institutes, training providers
Media Publishing, production, advertising Studios, publishers, agencies
E-commerce Online retail of goods and services Marketplace sellers, DTC brands

What it actually costs

The emirate's entry point is AED 6,900, but that figure belongs to RAK ICC — an offshore registry vehicle with no operating licence and no visas. The cheapest route to an actual trading licence is RAKEZ at AED 12,900. Confusing the two is the most common pricing mistake founders make.

Published zone prices cover the licence and the facility. They do not cover visas, medicals, Emirates ID, attestation, bank-account opening, agent fees or the 5% VAT on services. Budget separately — visas commonly add AED 4,000 to 8,000 each in the first year, and agent fees run from roughly AED 2,900 for filing-only support to AED 12,000 for multi-entity structuring.

RAKEZ facility tiers

Facility Indicative annual Visa allocation
Flexi desk, zero visa from AED 12,900 None
Flexi desk with visas from AED 15,500 1–2
Shared office from AED 19,900 2–3
Standard office from AED 28,000 4+ by area
Warehouse from AED 45,000 By area and activity
Industrial land Quoted per sqm By facility

Treat every figure as indicative. Zones run promotional packages, and pricing varies with activity, shareholder count and whether you use a registered agent. A written quote from the authority or a licensed agent is the only binding number.

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Free zone or mainland?

This is the decision founders get wrong most often. A free-zone licence is right if your customers are outside the UAE, or inside the UAE but reachable through a distributor. It is wrong if you need to invoice UAE mainland clients directly at scale.

RAKEZ free zone RAK mainland
Ownership 100% foreign 100% foreign for most activities
Mainland trade Via distributor or branch Direct
Government tenders Generally restricted Eligible
Office requirement Flexi desk acceptable Physical premises usually required
Cost Lower entry Higher entry, fewer trade limits

The process, step by step

The sequence below holds across all five jurisdictions. What changes is which authority receives the file and how long it sits there.

  1. 1 Choose your business activity Select from your chosen authority's activity list — RAKEZ, Innovation City, Maritime City or the DED. This sets your licence type, permitted operations and facility options, and it is the hardest thing to change later. RAK ICC skips this step: an offshore vehicle holds rather than trades. Same day
  2. 2 Choose a legal structure Free Zone LLC, branch of a foreign or UAE company, or individual establishment in the free zones; an LLC or sole establishment on the mainland; a company, foundation or SPV at RAK ICC. Shareholder count affects both cost and document load. Same day
  3. 3 Reserve a trade name Submit up to three options. Names cannot reference religion, governance or unrelated activity, and abbreviations of personal names are refused. 1–2 days
  4. 4 Select a facility package Flexi desk, shared office, standard office, warehouse or land. Your visa allocation is a function of this choice, not of your licence alone. Same day
  5. 5 Submit documents and pay Passport copies for every shareholder and manager, application form, shareholder resolution, and proof of address. Corporate shareholders need attested constitutional documents. 1–2 days
  6. 6 Receive licence and establishment card RAKEZ issues the trade licence, certificate of incorporation and establishment card. Visa processing starts only after the card is issued. 3–5 days
  7. 7 Open a corporate bank account Budget two to six weeks. Banks want a clear activity narrative, evidence of operations and, increasingly, a UAE-resident signatory. 2–6 weeks
  8. 8 Register for corporate tax and VAT Corporate tax registration is mandatory regardless of profit. VAT registration is required above AED 375,000 of taxable turnover. Post-licence
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Documents you will need

  • Passport copy for every shareholder, director and manager, valid six months or more.
  • Passport-size photograph against a white background for each individual.
  • Completed RAKEZ application form with activity and trade name preferences.
  • Shareholder resolution appointing the manager, signed by all shareholders.
  • Proof of residential address — a utility bill or bank statement under three months old.
  • For corporate shareholders: attested memorandum, certificate of incorporation and board resolution.
  • No-objection certificate from a current UAE sponsor, where the applicant already holds a UAE residence visa.

After the licence: what founders underestimate

Banking is the real timeline

Licence issuance is fast. Banking is not. Compliance teams assess the activity, the jurisdiction of your clients and the substance of your operation. Founders who arrive with a thin narrative and no UAE-resident signatory routinely wait months or get declined.

Substance and economic presence

A flexi desk is a legitimate facility, but it does not create substance on its own. If your structure claims qualifying free-zone income at 0% corporate tax, expect to demonstrate real activity, adequate staff and actual expenditure in the zone.

Renewals

Licences renew annually, and the renewal price is not always the promotional first-year price. Ask for the renewal figure in writing before you commit — this is the single most common unpleasant surprise in year two.

RAKEZ, RAKICC and RAK DAO

Three RAK authorities are routinely confused. RAKEZ issues operating licences for companies doing business from the emirate. RAKICC registers international corporate structures and holding companies, with no operating licence attached. RAK DAO serves digital-asset and Web3 entities under its own framework. Choosing the wrong one means re-registering, not amending.

Rule of thumb
If you will invoice customers and hire staff, you want RAKEZ. If you are holding shares, IP or property through a vehicle, you want RAKICC.

RAKEZ setup: frequently asked

How much does it cost to set up a company in Ras Al Khaimah?

Setup starts at AED 6,900 for a RAK ICC offshore entity, AED 12,900 for a RAKEZ free-zone licence, AED 14,500 in Innovation City, AED 15,900 in Maritime City and AED 16,500 on the mainland. Those are zone fees before agent fees, visas and VAT.

How long does company formation in RAK take?

Two to four days for a RAK ICC offshore entity, five to seven days for RAKEZ and Innovation City, and seven to ten days for Maritime City and mainland. Visas add one to three weeks; banking is the long pole at two to six weeks.

Which RAK zone should I choose?

RAKEZ for trading and services, RAK ICC for holding and succession structures, Innovation City for Web3 and AI, Maritime City for shipping and logistics, and mainland if you must sell directly into the UAE market or bid for government tenders.

Can a foreigner own 100% of a RAKEZ company?

Yes. Free-zone entities in RAKEZ permit full foreign ownership with no local partner requirement.

Is RAKEZ cheaper than Dubai free zones?

Generally yes, on both licence and facility cost. That gap is the main reason industrial operators and cost-sensitive SMEs choose Ras Al Khaimah over Dubai.

Can a RAKEZ company trade inside the UAE mainland?

Not directly. A free-zone company reaches mainland customers through a local distributor, a commercial agent, or a separately licensed mainland branch.

What is the difference between RAKEZ and RAKICC?

RAKEZ issues operating licences for companies doing business from Ras Al Khaimah. RAKICC registers international corporate structures and holding companies, which carry no operating licence.

Does a RAKEZ company pay corporate tax?

UAE corporate tax applies at 9% on profit above AED 375,000. Qualifying free-zone income may be taxed at 0%, but only where genuine substance and activity requirements are met. Registration is mandatory regardless of profit.

Do I need to be in the UAE to register?

No. Formation can be completed remotely, though medicals and Emirates ID biometrics for residence visas require a visit.

Sources and official references
RAKEZ — official activity list and package pricing ↗ UAE Federal Tax Authority — corporate tax guidance for free zone persons ↗ RAK International Corporate Centre — registry overview ↗ InsideRAK RAKEZ desk — licence and registration coverage ↗

InsideRAK is an independent publisher and is not affiliated with RAKEZ, RAK ICC or the Government of Ras Al Khaimah. RAKEFZ.com is a licensed company-formation agent, not a government authority. Figures are indicative and change with package and activity — confirm current pricing before committing.

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The RAKEZ desk

Guides and live coverage All RAKEZ →
Zone guide RAKEZ licence types explained Commercial, service, industrial, educational and media. Zone guide RAK ICC holding structures When a registry vehicle beats an operating licence. Zone guide Innovation City for Web3 and AI The digital-economy framework and who qualifies. Zone guide RAK Maritime City Port access, marine licensing and industrial plots. Zone guide RAK mainland via the DED Direct UAE market access and tender eligibility. Explainer Corporate tax for free zone firms Qualifying income and the substance test. Explainer Opening a UAE corporate account What compliance teams actually ask for. Explainer Family offices and foundations in RAK Succession, SPVs and confidential ownership.