Establishing a business in the UAE remains a coveted goal for numerous international entrepreneurs, majorly due to the allure of complete foreign ownership, a favourable tax environment, and an access point to global markets. Yet, the making of such a venture is often hindered by the exorbitant operational costs that characterize downtown Dubai, thus, posing a challenge to startups and small to medium, sized enterprises.
Enter the Ras Al Khaimah Economic Zone (RAKEZ Free Zone).
Located just an hour’s drive from Dubai, RAKEZ has established itself as one of the leading and most cost-effective investment hubs in the region. It offers the perfect balance of affordability, world-class infrastructure, and business-friendly regulations.
While RAKEZ offers a streamlined path to market, navigating government documentation, choosing the correct activity codes, and managing visa applications still require precision. This is where specialized guidance is invaluable. At Emifast, we specialize in simplifying this process, ensuring your journey to becoming one of the successful rakez free zone companies is smooth and error-free.
Why Choose RAKEZ? Key Benefits for Entrepreneurs
RAKEZ is more than just a budget option; it is a strategic choice for businesses looking to optimize their operations in the UAE.
Strategic Location and Logistics
Situated in Ras Al Khaimah, RAKEZ provides excellent connectivity. You gain access to growing markets across the Middle East, Africa, and Asia, supported by proximity to major seaports and international airports, facilitating easy import and export activities.
100% Foreign Ownership & Tax Advantages
Like all premier free zones, a rakez free zone company setup grants you 100% foreign ownership of your business. Business owners also enjoy a 0% personal income tax rate. Although the UAE has established a Federal Corporate Tax, a significant number of free zone companies continue to be granted tax exemptions, provided they fulfill the necessary qualifying conditions.
Cost-Effective Solutions vs. Other Emirates
For a large chunk of business owners, this is what pulls them in first. Setting up a business, renewing a license, renting an office, and even general living costs in Ras Al Khaimah are way cheaper than in Dubai or Abu Dhabi. So, you get to make the most of your returns.
World-Class Facilities
Whether you are a freelancer needing a simple “Flexi-desk” to meet residency requirements or a manufacturer requiring industrial land or warehousing, RAKEZ offers customizable real estate solutions to match your business stage.
Understanding RAKEZ License Types
To operate legally, you must select the license that matches your primary business activity. RAKEZ offers several categories:
Commercial License
Ideal for businesses involved in trading services. This permits the import, export, distribution, or consolidation of specific goods defined in your license.
Professional / Service License
Designed for service providers, consultants, artisans, and freelancers. This covers activities like management consultancy, marketing, IT services, and design.
Industrial License
For companies involved in manufacturing, processing, packaging, or assembling products. RAKEZ is particularly strong in attracting industrial clientele due to its infrastructure.
E-commerce License
Tailored for entrepreneurs who wish to trade goods and services via online platforms, tapping into the booming regional digital economy.
Step-by-Step: The RAKEZ Company Formation Process
Setting up a company in RAKEZ is streamlined when you know the steps. Here is the typical journey for rakez free zone company formation:
- Consultation & Activity Selection: Define your exact business activities to determine the correct license type. Emifast helps you select the precise activity codes to ensure compliance and avoid future issues.
- Trade Name Reservation: Select 3 potential options for your company name. These are submitted to the RAKEZ authorities for approval to ensure they are not already in use or violate naming conventions.
- Initial Document Submission: Provide the necessary documentation, which typically includes passport copies of shareholders, visa details (if applicable), and sometimes a brief business plan.
- Payments & Legal Signing: Once your initial application is approved, you will need to pay the license and lease fees. You will also sign the legal formation documents (Memorandum of Association) and lease agreement (e.g., for your Flexi-desk).
- License Issuance: Upon payment confirmation, RAKEZ will issue your electronic trade license, certificate of incorporation, and lease agreement. Your company is now legally existing.
- Establishment Card Application: Before you can apply for any visas, your company needs an immigration file, known as the Establishment Card. This is applied for immediately after license issuance.
- Visa & Bank Account Processing: With the Establishment Card in place, you can begin the rakez free zone visa application process for shareholders and employees. Simultaneously, you can initiate the process of opening a corporate bank account.
Navigating RAKEZ Visas and Immigration
Securing UAE residency is a key benefit of company formation. RAKEZ facilitates this process efficiently.
Investor Visa vs. Employee Visa
Company owners typically apply for an Investor or Partner visa, which usually has a 3-year validity. Staff hired by the company are issued Employee visas, which are typically valid for 2 years.
The Visa Application Cycle
The process generally involves applying for an entry permit (if outside the UAE), performing a medical fitness test and biometrics upon arrival, and finally, having the residency visa stamped in the passport and receiving the Emirates ID.
Sponsoring Dependents
Once you have your own RAKEZ residence visa, you are eligible to act as a sponsor for your immediate family members (spouse and children), allowing them to reside with you in the UAE.
Frequently Asked Questions (FAQs)
How much does a RAKEZ free zone license cost?
The cost varies significantly based on the package. A basic freelancer permit can start from around AED 6,000, while a company license eligible for visa allocations typically starts from AED 13,000 per year. Keep in mind these figures often exclude third-party immigration and medical fees.
Can I live in Dubai with a RAKEZ visa?
Yes, absolutely. A UAE residency visa issued through RAKEZ allows you to live and rent property anywhere in the UAE, including Dubai or Abu Dhabi. You are not restricted to residing in Ras Al Khaimah.
Do I need a physical office in RAKEZ?
You do not necessarily need a dedicated private office. RAKEZ offers affordable “Flexi-desk” or co-working packages that satisfy the minimum physical presence requirement for licensure, keeping overheads low for startups.
How long does RAKEZ company formation take?
Once all documents are submitted correctly and payments are cleared, the electronic trade license is often issued within 3 to 5 working days. The subsequent visa process, including medicals and Emirates ID, typically takes an additional 2-3 weeks.
Can a RAKEZ free zone company trade on the UAE mainland?
Generally, free zone companies are restricted to trading within the free zone or internationally. To trade goods directly with the UAE mainland market, you typically need to work with a local mainland distributor or establishing a mainland branch of your free zone company.