Business Setup in Ras Al Khaimah
Last updated: November 2026
RAKEZ free zone companies are licensed by the Ras Al Khaimah Economic Zone (RAKEZ), a RAK Government authority that also sets up non-free zone entities. Facilities range from flexi desks in the Al Nakheel and Al Hamra business zones to land in the Al Ghail, Al Hamra and Al Hulaila industrial zones.
We act as company formation agents for foreign founders setting up with RAKEZ. We cover the route choice, facility booking, application, visa pre-approvals, the FTA registration and the RAKEZ bank letter. Where a RAK DED licence is involved, we confirm the ownership position for your activity before quoting.
| Quick facts | Value |
|---|---|
| Local company form | Free zone company (FZE or FZC; FZ-LLC in RAKEZ's capital rules), equivalent of an LLC / private limited company |
| Non-free zone forms | Individual establishment, single person LLC, LLC, branch |
| Minimum share capital (free zone) | AED 10,000 in shares of AED 1,000; AED 150,000 for industrial activities; none for branches |
| Foreign ownership, free zone | 100% |
| Foreign ownership, RAK DED licences | Set per activity; the RAKEZ FAQ says commercial and industrial licences need a UAE national with at least 51% |
| Manager | One UAE-resident manager |
| Facilities | Flexi desk to land; a facility lease is mandatory |
| Owner visas | Investor visa for a sole shareholder, partner visa for several, after pre-approval |
| Corporate tax | Nil on the first AED 375,000, then 9%; QFZP income can qualify for 0% |
| Licence term | Usually one year, some three; strike-off after six months unrenewed |
Why Ras Al Khaimah: Zones, Land and Industry
RAKEZ puts free zone and non-free zone setups under one authority. Five points stand out:
- Industrial space: the Al Ghail, Al Hamra and Al Hulaila industrial zones, with facilities up to land plots.
- A tax fit for industry: manufacturing, processing and logistics are Qualifying Activities for the 0% QFZP rate.
- Office options too: the Al Nakheel and Al Hamra business zones and an Academic Zone, with a flexi desk as the smallest unit.
- A mainland door: non-free zone entities, which hold a RAK DED licence and follow its ownership rules for the activity.
- One owner is enough in the free zone: an FZE has a single shareholder, a person or a company.
The federal portal also lists Innovation City as a Ras Al Khaimah free zone. Our UAE company formation overview explains the federal framework, and business setup in Dubai weighs the mainland, free zone and offshore routes.
RAKEZ Free Zone or RAK Mainland: Choosing the Route
Where your customers sit decides the route. According to the federal portal's free zone guide, selling directly into the mainland is generally off limits without mainland licences, which through RAKEZ means a non-free zone entity.
| Point | RAKEZ free zone entity | Non-free zone entity |
|---|---|---|
| Licences | RAKEZ free zone licence | RAKEZ setup plus a RAK DED licence |
| Legal forms | FZE, FZC, branch | Individual establishment, single person LLC, LLC, branch |
| Foreign ownership | 100% | Depends on the activity; confirmed per case |
| Main market | Free zone and international customers | UAE mainland customers |
| 0% QFZP regime | Available if every condition is met | Not available to mainland companies |
| Emiratisation | Free zone employers are outside it | Binds mainland employers |
Ownership is where the two routes part. Ownership rules for RAK DED licences depend on the activity, and we confirm them case by case before anything is filed. RAKEZ's own FAQ still states that non-free zone commercial and industrial licences need a UAE national partner with at least 51%. The same applies to a mainland branch of a free zone company. A RAKEZ free zone company can be wholly foreign owned, the norm across UAE free zones.
Legal Forms, Capital and Licences at RAKEZ
RAKEZ sets up two kinds of entity: free zone and non-free zone. Offshore companies in Ras Al Khaimah are a separate regime: they register with the RAK International Corporate Centre (RAK ICC) under its Business Companies Regulations 2018. Our UAE offshore company guide covers RAK ICC and JAFZA Offshore.
Free zone entities
RAKEZ registers a free zone company as an FZE, whose single shareholder may be a person or a company, or as an FZC. It also registers branches of UAE and foreign companies, which have no legal personality of their own and need no share capital. Each RAKEZ entity needs one UAE-resident manager.
What does FZ-LLC mean?
FZ-LLC stands for Free Zone Limited Liability Company. It is a company incorporated inside a UAE free zone whose owners risk only the capital they contribute, the free zone counterpart of the mainland LLC. RAKEZ's FAQ uses the term when it sets minimum capital at AED 10,000, divided into shares of AED 1,000.
Non-free zone entities and RAK DED
Outside the free zone, RAKEZ sets up individual establishments, single person LLCs, LLCs and branches, each with a RAK DED licence as well. The single person LLC is what Federal Decree-Law No. 32 of 2021 calls a Sole Proprietorship with Limited Liability. For a foreign founder, ownership of each follows the RAK DED rules for the activity, set out above. A non-UAE national seeking a non-free zone professional licence must appoint a UAE national as local service agent.
Share capital and activities
Industrial activities raise the RAKEZ minimum to AED 150,000. The activity comes from RAKEZ's own list and also drives the facility and any sector approval. Our minimum share capital by country table sets the AED 10,000 floor against other jurisdictions.
How to Register with RAKEZ: Step by Step
RAKEZ sets its own order: package, application and documents, then the licence, registration set and bank letter, then visas. We add the federal registrations. For free zone entities, RAKEZ itself keeps the company register.
- We check the route and the activity: free zone or non-free zone, the activity against RAKEZ's list and, for a RAK DED licence, the ownership position.
- You pick the package and facility; the lease is mandatory, from a flexi desk in a business zone to land in an industrial zone.
- We lodge the KYC documents, the capital details and any sector approval with RAKEZ.
- RAKEZ issues the licence together with the registration set and the bank letter.
- Investors, partners and managers go through RAKEZ visa pre-approval before their visa applications.
- We register the company for corporate tax on EmaraTax and set up its beneficial owner register.
Documents for a RAKEZ Application
The table shows the core free zone file that JAFZA and DMCC publish; RAKEZ confirms its own list, and a regulated activity adds its own papers.
| Document | Who provides it |
|---|---|
| Passport copy | Every shareholder, manager and visa applicant |
| Proof of residential address | Each individual shareholder |
| KYC forms and beneficial owner declarations | The company, listing each beneficial owner (a stake or voting share of 25% and above) |
| Business plan | The applicant, if the activity requires it |
| Sponsor's no-objection letter | Applicants who already hold a UAE residence visa |
| Parent company papers: incorporation certificate, attested constitution, board resolution | Each corporate shareholder, attested through the UAE embassy of its home country |
| Facility lease | The company, since RAKEZ makes a lease mandatory |
Timing and Our RAKEZ Package
Timing depends on the activity check and any regulator, so we date the plan once we have reviewed your file.
Then the federal clocks run. The Federal Tax Authority wants the corporate tax registration filed in the first three months after incorporation, and the beneficial owner register must be in place within 60 days. Once taxable supplies pass AED 375,000, VAT registration is compulsory; between AED 187,500 and that figure it is optional.
Our RAKEZ package runs from the route check and facility booking to the licence, visa pre-approvals and federal registrations. For the years after setup, our accounting and tax compliance team keeps the books, files VAT returns and lines up the RAKEZ audit. What drives the total, and why share capital is not a fee, is answered in the FAQ below.
Corporate Tax, VAT and Customs in Ras Al Khaimah
Ras Al Khaimah applies the federal corporate tax, which charges nothing on the first AED 375,000 of taxable income and 9% (rate applicable in 2026) on the rest. The rest of the picture for a RAK company:
| Tax | Rule for a RAK company |
|---|---|
| Qualifying Free Zone Person | 0% on qualifying income; manufacturing, processing and logistics are Qualifying Activities |
| De minimis | Non-qualifying revenue within the lower of 5% of revenue and AED 5,000,000 |
| Mainland branch of a free zone company | Taxed at 9% as a domestic permanent establishment, outside the de minimis test |
| Small Business Relief | Revenue of AED 3 million or less in this and every earlier period: the company may elect to be treated as having no taxable income, for tax periods ending on or before 31 December 2029 (Ministerial Decision No. 131 of 2026); not for QFZPs or multinational group members |
| VAT | 5%; Designated Zone relief covers certain goods only, and services are taxed normally |
| Customs | Duty-free inside the zone; usually 5% of the CIF value on entry to the mainland |
| Withholding tax | 0% |
| R&D tax credit | Non-refundable, 15% to 50% by tier, for tax periods from 1 January 2026 |
| Pillar Two | 15% domestic minimum top-up tax for groups with revenue of EUR 750 million or more |
The QFZP regime rewards substance: core income-generating activities in the zone, backed by enough assets, qualified full-time employees and operating expenditure (Cabinet Decision No. 100 of 2023, Art. 8). A manufacturer with its plant and workforce in a RAKEZ industrial zone fits that test.
Failing any condition ends QFZP status from the start of that tax period and for the next four (Ministerial Decision No. 229 of 2025, Art. 5(2)). The FTA's Free Zone Persons guide lists every condition, and our UAE free zone comparison shows how other zones fit.
RAKEZ Visas for Owners, Managers and Staff
Owner visas follow the shareholding. A sole shareholder applies for the investor visa, and the owners of a company with several shareholders apply for partner visas. Each investor, partner and manager needs RAKEZ pre-approval first.
Staff numbers depend on the package and facility, so a flexi desk supports a smaller team than a larger office or a plot. Emirates ID biometrics and the medical test take place in the UAE, so each applicant has to be in the country for them.
Is there a RAKEZ freelance visa?
At RAKEZ the visa comes from a licence, so the real question is which licence. For one person, the confirmed route is a free zone FZE with a single shareholder, who applies for the investor visa. Freelance permits are a licence category of their own, explained in our UAE trade licence guide; we check what RAKEZ offers for your activity before quoting.
Bank Account and the RAKEZ Bank Letter
RAKEZ issues a bank letter with the licence and registration set, so the bank introduction can start as soon as the licence issues. We send the letter to banks with the licence, the beneficial owner register and the KYC of the shareholders and the resident manager.
The bank makes its own decision on each account. We approach banks whose criteria fit your activity and ownership profile, and our bank account opening page sets out the process.
Audit, Renewal and Other Ongoing Duties
RAKEZ adds its own rules to the federal ones.
- Audited accounts within six months of the financial year end, signed off by a RAKEZ-approved auditor.
- Licence renewal on time: most licences run for one year, some for three, and six months without renewal leads to strike-off.
- Corporate tax return due nine months after each tax period ends, with tax records kept for seven years and transfer pricing compliance for any QFZP.
- Beneficial owners filed with the registrar within 60 days of licensing, and any change updated within 15 days (Cabinet Decision No. 109 of 2023).
- A UAE-resident contact person named to the registrar, able to disclose the beneficial owner data.
- E-invoicing: the large-company wave, revenue of AED 50 million and above, starts on 1 January 2027. Everyone else goes live on 1 July 2027, with a provider chosen by 31 March 2027.
- No economic substance filings: that regime covered financial years that ended by 31 December 2022.
We do not act as nominee for RAK companies. The register of shareholders has to show whom any nominee represents (Cabinet Decision No. 109 of 2023, Art. 10).
Forming a Ras Al Khaimah Company as a Non-Resident
Non-resident founders can own all the shares in a RAKEZ free zone company. Two residency rules remain: RAKEZ wants one UAE-resident manager, and the company names a UAE-resident contact for beneficial owner data (Cabinet Decision No. 109 of 2023, Art. 11(4)). A non-resident who takes the manager role personally needs the investor or partner visa after pre-approval; otherwise the company appoints a UAE-resident manager.
The non-free zone route adds two checks for a non-resident owner. Ownership for RAK DED licences depends on the activity and is confirmed per case. A non-UAE national taking a professional licence also needs a UAE national as local service agent.
A UAE residence visa brings an Emirates ID, which makes its holder eligible to open a bank account. We handle every filing.
Frequently Asked Questions
Is RAKEZ a free zone?
Yes, and more than that. RAKEZ (Ras Al Khaimah Economic Zone) is a RAK Government authority that licenses free zone companies and also sets up non-free zone entities, which hold a RAK DED licence too. Its areas include three industrial zones, two business zones and an Academic Zone.
How do I set up a company in RAK?
Choose between a free zone entity and a non-free zone entity, then pick the package and facility, because a lease is mandatory. Submit the KYC pack and capital details. RAKEZ then issues the licence, registration set and bank letter, and visas follow pre-approval. Tax and beneficial owner registrations complete the setup.
What determines the total for registering a company in Ras Al Khaimah?
Five choices: the route, the facility from flexi desk to land, the number of visas, the activities and any sector approval. The same logic holds anywhere in the UAE, where activity, premises and visas drive the total. Share capital is not a charge, since it remains the company's money. We send the quote once the activity is checked.
What business can I start in Ras Al Khaimah?
Industrial and logistics businesses fit RAKEZ best. Its Al Ghail, Al Hamra and Al Hulaila industrial zones offer land, and manufacturing, processing and logistics count as Qualifying Activities for the 0% free zone rate. Office-based trading and services use the business zones. A business selling to mainland customers can take the non-free zone route with a RAK DED licence, subject to the ownership rules for its activity.
Is 100% foreign ownership possible in Ras Al Khaimah?
In the RAKEZ free zone, yes: free zone companies can be 100% foreign owned. For RAK DED licences it depends on the activity. RAKEZ's own FAQ still states that non-free zone commercial and industrial licences need a UAE national partner holding at least 51%. We check this for your activity at the very start.
What is the minimum share capital at RAKEZ?
AED 10,000 for a free zone company, in shares of AED 1,000, under the RAKEZ FAQ. Industrial activities need AED 150,000, and a branch of a UAE or foreign company needs none. For non-free zone entities we confirm any capital requirement with the licence application for your case.
Which visa does a RAKEZ company owner get?
A sole shareholder gets the investor visa; in a company with several shareholders, the owners apply for partner visas. Pre-approval from RAKEZ comes first for investors, partners and managers alike. After that, each applicant completes the medical and the Emirates ID biometrics in the UAE. Staff visa numbers depend on the package and facility.
Get Started: Form Your RAKEZ Company
Describe the business and the space it needs: land, an office or just a desk. We compare the two RAKEZ routes, confirm the RAK DED ownership position where it matters and quote the right one. You can also write through our contact form.
Call +48 2222 5 2222 or email info@companyformation24.com to start.
Content prepared by Aleksandra Kowalska, Corporate Client Service. Approved by Tomasz Bielski, Managing Director.
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