Ras Al Khaimah (RAK), one of the seven emirates of the UAE, has steadily emerged as a leading destination for entrepreneurs and investors looking for a cost-effective and business-friendly setup. The RAK Free Zone, officially known as RAKEZ (Ras Al Khaimah Economic Zone), is particularly attractive due to its affordability, simplified setup process, and strategic location.
Whether you’re a solo entrepreneur, SME, or international investor, this guide outlines the step-by-step process of company formation Ras Al Khaimah 2025, including legal requirements, available business structures, and practical tips.
Why Choose RAK Free Zone?
RAKEZ offers a range of benefits that make it a preferred option for company formation in the UAE:
- 100% foreign ownership
- No corporate or income tax (subject to UAE corporate tax rules from 2023, with exemptions available)
- Affordable license packages
- No currency restrictions
- Access to local and international markets
- Fast-track visa and residency options
- Flexibility for both virtual offices and physical warehouses
It’s an ideal setup for startups, consultants, digital businesses, trading firms, and light manufacturing.
Step-by-Step Process to Form a Company in RAK Free Zone
Step 1: Define Your Business Activity
Your first step is to identify your business activity or activities. RAKEZ offers licenses across several sectors:
- Commercial (trading)
- Industrial
- Service
- E-commerce
- Media and Education
- Consultancy
You can choose a single activity or apply for a license that covers multiple related activities, depending on your business needs.
Step 2: Choose the Right Business Structure
RAKEZ offers several company structures based on your ownership and operational plans:
- FZE (Free Zone Establishment) – Single shareholder (individual or corporate)
- FZC (Free Zone Company) – 2 to 50 shareholders
- Branch – For existing companies wanting a RAK presence
Choosing the right entity affects your legal obligations and scalability. Most startups and solo founders prefer an FZE for simplicity.
Step 3: Select Your Facility Type
RAKEZ offers flexible office and workspace options, including:
- Flexi desks (shared spaces)
- Standard offices
- Executive offices
- Warehouses and industrial land (for manufacturing or logistics businesses)
If you’re running a consultancy or online business, a flexi desk setup is usually sufficient. If you plan to import/export or manufacture, you’ll need a warehouse or land lease.
Step 4: Prepare Documentation
Depending on your structure and shareholders, the required documents may vary slightly, but generally include:
For individuals:
- Passport copies of shareholders and managers
- Passport-size photographs
- Visa copy (if already in the UAE)
- Business plan (optional but recommended)
For corporate shareholders:
- Certificate of incorporation
- Memorandum and Articles of Association
- Board resolution to establish the new company
- Power of attorney
All documents must be in English or legally translated and may need notarization or attestation depending on origin.
Step 5: Submit Application and Pay Fees
Submit your application through the RAKEZ portal or via an authorized business consultant. Once submitted, pay the relevant fees which typically include:
- License fee (depends on activity)
- Registration fee
- Office/facility lease
- Visa processing (if required)
In 2025, RAKEZ continues to offer low-cost packages starting from AED 5,500 for zero visa packages, with additional pricing for office space and employee visas.
Step 6: Receive Approvals and Legal Documents
Once the application is reviewed and approved, you’ll receive:
- Certificate of incorporation
- Trade license
- Memorandum of Association (MOA)
- Lease agreement (if applicable)
At this point, your company is legally established and ready to operate.
Step 7: Apply for Visas (If Needed)
If you need a UAE residency visa, RAKEZ allows you to apply for:
- Investor/partner visa
- Employee visa
- Dependent/family visas
Each visa typically includes medical testing, Emirates ID processing, and entry permits. A flexi desk setup allows up to 2 visas, while offices and warehouses offer more capacity.
Step 8: Open a Corporate Bank Account
Once your license and company documents are issued, you can open a corporate bank account in the UAE. Common banking partners include:
- Emirates NBD
- RAKBANK
- Mashreq
- ADCB
- WIO or digital banks
Bank requirements vary, but you’ll generally need your trade license, MOA, passport copies, visa, and proof of business activity (like invoices or contracts).
Timeline for RAK Free Zone Company Formation
The entire setup can be completed in as little as 2 to 5 working days, depending on the completeness of your documentation and whether you’re applying remotely or in person.
Key Considerations for 2025
- UAE corporate tax: Effective from June 2023, companies earning over AED 375,000 annually are subject to 9% corporate tax. However, RAKEZ Free Zone entities may qualify for exemption, depending on activity and compliance.
- Economic Substance Regulations (ESR): If your business falls under “relevant activities,” you must meet ESR compliance.
- Ultimate Beneficial Owner (UBO) disclosure: Required for all entities as part of transparency regulations.
Final Thoughts
RAK Free Zone continues to be one of the most cost-effective and efficient options for company formation in the UAE in 2025. Whether you’re a digital entrepreneur, global trader, or manufacturing business, RAKEZ offers the flexibility, infrastructure, and regulatory support to launch and grow successfully.
By following the above steps and staying informed of the latest regulations, you can set up a business that not only thrives locally but also connects globally.
FAQs
1. Can I form a RAK Free Zone company without visiting the UAE?
Yes, RAKEZ allows remote company formation through authorized agents. Some documents may need to be notarized or attested.
2. Do I need a local sponsor for RAK Free Zone?
No. You can own 100% of your business as a foreign national without a local partner.
3. What’s the minimum capital requirement?
RAKEZ does not enforce a minimum capital requirement for most license types unless your activity specifically requires it.
4. Can I operate in Dubai with a RAK Free Zone license?
You can trade internationally and within free zones. To offer services or products directly in mainland Dubai, you’ll need a local distributor or a dual license arrangement.