RAKEZ Company Formation, Ras Al Khaimah Economic Zone

Overview

What is RAKEZ?

The Ras Al Khaimah Economic Zone (RAKEZ) was formed through the merger of the RAK Free Trade Zone and the RAK Investment Authority, consolidating two well-established economic zones into a single unified authority to create one of the UAE's most comprehensive free zone offerings. Today, RAKEZ is home to over 14,000 businesses spanning an extraordinary breadth of sectors: manufacturing, industrial production, logistics, professional services, e-commerce, media, education, and the creative industries.

RAKEZ's key differentiator in the UAE free zone landscape is its combination of genuine sector diversity, physical infrastructure breadth, and highly competitive pricing. Unlike Dubai free zones such as DMCC or DIFC, which carry premium cost structures, RAKEZ provides full UAE free zone status, 100% foreign ownership, 0% personal income tax, and — for Qualifying Free Zone Persons — 0% corporate tax on qualifying income, at a cost point that makes it accessible to SMEs, start-ups, and individual entrepreneurs as well as larger corporate groups. The UAE's federal corporate tax (9% on non-qualifying income, effective June 2023) applies to all free zone entities and should be considered in structuring decisions.

For businesses requiring physical operational facilities, warehouses, manufacturing units, industrial land, or office space, RAKEZ provides a unique range of purpose-built zones. The zone is strategically located with proximity to Ras Al Khaimah's deepwater port and international airport, facilitating import/export operations and logistics businesses with direct access to sea and air freight infrastructure.

Aurevya guides clients through activity selection, zone allocation, RAKEZ application, facility arrangement, visa processing, and bank account opening, ensuring a seamless journey from initial enquiry to an operational UAE free zone business.

14,000+

Businesses in RAKEZ

Over 14,000 member businesses across manufacturing, industrial, services, media, e-commerce, and professional services sectors.

50+

Business Activities Permitted

RAKEZ covers over 50 broad activity categories, enabling a wide range of trading, service, industrial, and specialist business operations.

100%

Foreign Ownership Permitted

Full foreign ownership of RAKEZ entities with no UAE national shareholder requirement, aligned with the UAE's broader free zone ownership framework.

Key Features

Why Choose RAKEZ?

RAKEZ stands apart from other UAE free zones through its combination of physical infrastructure diversity, sector breadth, and highly competitive cost structures, making it the natural choice for businesses where operational cost efficiency is a priority.

01

Industrial and Manufacturing Zones

RAKEZ provides dedicated industrial zones with purpose-built factories, warehouses, and manufacturing units, available on short-term and long-term lease arrangements. Industrial land is also available for clients requiring bespoke facility development.

02

Warehousing and Logistics Facilities

RAKEZ's warehousing clusters, located in proximity to RAK port and RAK International Airport, provide cost-effective distribution, storage, and re-export facilities for trading and logistics businesses operating in the GCC and wider MENA region.

03

E-Commerce Business Packages

RAKEZ offers tailored licence packages for e-commerce businesses, including digital retailing, online marketplaces, and drop-shipping operations, at entry-level cost points accessible to individual entrepreneurs and small businesses entering the UAE market.

04

Media and Creative Cluster

RAKEZ's media zone provides a dedicated environment for media production companies, broadcasting businesses, publishing houses, creative agencies, and digital content producers, with purpose-built studio facilities and a community of creative industry businesses.

05

Professional Services Cluster

A broad range of professional services activities are licenced within RAKEZ, including consultancy, engineering, legal services, HR, IT, and financial advisory, providing a cost-competitive alternative to Dubai free zones for service-sector businesses.

06

Flexible Flexi-Desk Packages

For businesses that do not require dedicated office space, RAKEZ offers flexi-desk solutions with shared workspace access, providing a UAE business address and visa quota at a cost that is among the lowest available in any UAE free zone.

Process

How It Works

RAKEZ incorporation follows a clear, structured process, from activity and zone selection through to trade licence issuance, facility arrangement, and visa allocation, typically completing within 2–3 weeks for standard applications.

1

Activity and Zone Selection

We advise on the appropriate RAKEZ business activity and the most suitable physical zone, choosing between the business, industrial, academic, or media zones based on your operational model, facility requirements, and budget parameters.

2

Business Plan and RAKEZ Application

We prepare the RAKEZ application, including entity name reservation, shareholder and director KYC documentation, business description, and payment of initial fees. For manufacturing or industrial activities, a supporting business plan or activity description may be required.

3

Trade Licence Issuance

Upon RAKEZ approval, the Certificate of Incorporation and Trade Licence are issued. The licence confirms the permitted activities and is renewable annually. At this stage, the company is legally incorporated and authorised to commence permitted activities.

4

Facility Selection

We assist in identifying and arranging the appropriate facility, flexi-desk, serviced office, warehouse, factory unit, or industrial land, depending on the business model and visa quota requirements. RAKEZ provides facility lease agreements directly with member companies.

5

Visa Allocation and Bank Account Opening

We process UAE residence visa applications for the founder, directors, and employees based on the allocated visa quota. We also facilitate corporate bank account introductions, an increasingly important step given the UAE banking environment, particularly for new businesses and non-resident founders.

Requirements

Requirements and Costs

Entity Requirements

Share capital varies by activity, most professional and trading activities require AED 150,000 or equivalent; industrial activities may differ
Registered office or facility within RAKEZ required (flexi-desk to industrial land)
At least one shareholder and one director (can be the same individual)
Annual trade licence renewal required
Some activities require additional approvals from UAE federal authorities
Annual accounts may be required for larger entities or regulated activities

Documentation and Timeline

Certified passport copies for all shareholders, directors, and UBOs
Proof of residential address (dated within 3 months)
For corporate shareholders: certificate of incorporation, memorandum and articles, and attested corporate documents
Activity-specific documentation for regulated or specialist activities
Typical timeline: 2–3 weeks from submission of complete documentation
Bank account: 4–10 weeks depending on bank and business profile

FAQ

Frequently Asked Questions

What is the difference between RAKEZ and RAK ICC?

RAKEZ is an operational free zone for businesses requiring a physical presence in the UAE, with offices, warehouses, factories, and residence visas for employees. RAK ICC is an international offshore jurisdiction for holding companies and investment vehicles with no UAE operational presence required. RAKEZ companies can employ staff, rent facilities, and carry on commercial activities within the free zone; RAK ICC IBCs cannot do business within the UAE and have no physical footprint. The two are often used together, with a RAK ICC IBC as the holding parent of a RAKEZ operational subsidiary.

Can a RAKEZ company carry out business in mainland UAE?

RAKEZ companies can sell goods and services to mainland UAE clients under certain conditions, typically involving a mainland distributor or a specific approval from RAKEZ. Like all UAE free zone companies, RAKEZ entities cannot directly conduct activities on the mainland without a mainland licence or a distribution arrangement with a mainland-licensed entity. For businesses primarily serving UAE mainland customers, a mainland LLC company may be more appropriate.

What activities are permitted in RAKEZ?

RAKEZ covers a broad spectrum of activities including general trading, specific commodity trading, manufacturing, industrial production, professional consultancy services, IT and technology, media production, e-commerce, education, healthcare consultancy, logistics, and many others. RAKEZ periodically updates its permitted activity list. Multiple activities can be listed on a single licence. Some activities may require additional approval from UAE federal regulators (e.g., healthcare, financial services, or food production).

How long does the process take?

For straightforward professional services or trading activities, RAKEZ incorporation typically takes 2–3 weeks from submission of complete documentation. Industrial or manufacturing activities requiring facility arrangements may take slightly longer due to facility availability and fit-out requirements. Bank account opening is a separate process and typically takes a further 4–10 weeks depending on the institution and the nature of the business activity.

What types of facilities are available in RAKEZ?

RAKEZ offers the UAE's broadest range of facility options within a single free zone authority. Options include flexi-desk and virtual office packages (starting from very competitive annual fees), serviced offices and dedicated office suites, warehouses of varying sizes, factory units, cold storage facilities, industrial plots and land, and purpose-built media studios. This breadth of facility types makes RAKEZ uniquely suited to businesses across the entire spectrum from digital service providers to large-scale manufacturers.

Can I get UAE residency visas through RAKEZ?

Yes. RAKEZ member companies can sponsor UAE residence visas for the founding director/shareholder and employees based on the allocated visa quota. The visa quota is determined by the facility type, flexi-desks typically allow 1–3 visas; dedicated office and warehouse facilities allow proportionally more. Visa holders can sponsor dependant visas for spouse and children. UAE residency visas are typically issued for 2–3 years and are renewable subject to continued employment with the sponsoring entity.

Related Services

A Multi-Sector Free Zone for Operational Businesses in the UAE