Unlocking Affordable Success: RAK Free Zone Company Setup Cost

In this blog, we’ll break down the RAK Free Zone company setup cost and explore why it’s known for its affordability. Suppose you want to establish a business in the United Arab Emirates (UAE). In that case, the Ras Al Khaimah (RAK) Free Zone offers an attractive solution for budget-conscious entrepreneurs and investors.

What is RAK?

RAK, short for Ras Al Khaimah, is an emirate in the United Arab Emirates (UAE). It’s known for its focus on diversifying its economy beyond oil wealth. This has led to a strong presence in the manufacturing, tourism, and real estate industries.

RAK established the Ras Al Khaimah Economic Zone (or RAKEZ) to further its economic goals. Formed by merging two existing free zones, RAKEZ has become one of the largest in the UAE.

These free zones are designated areas offering significant benefits to foreign businesses, such as full ownership and tax exemptions. RAKEZ’s convenient location near the RAK Airport and a seaport makes it a prime spot for companies involved in trade and logistics.

Specialized Zones within RAKEZ

RAKEZ is divided into six field-specific zones, each designed to cater to different business needs:

• Al Ghail Industrial Zone: Ideal for huge industrial operations.
• Al Hamra Industrial Zone: Supports all types of manufacturing sectors.
• RAKEZ Academic Zone: A hub for international educational institutions and related services.
• Al Hulaila Industrial Zone: Designed for major heavy industry players.
• Al Nakheel Business Zone: Features premium business centres catering to freelancers and SMEs.
• Al Hamra Business Zone: Provides a comprehensive business environment with commercial, industrial, logistics, residential, and entertainment facilities.

Overview of All RAK Free Zone company setup cost

Establishing a company within the Ras Al Khaimah (RAK) Free Zone is an affordable way to start your company in the UAE. But it’s essential to know the various costs associated with it.

Here’s a brief outline of the significant expenses you’ll probably face:

• License: The cost of a license for RAKEZ will vary based on the type of business you plan to pursue and the license you choose.
• Resident Visa (if required): If you intend to reside and work in the UAE, you may have to get a visa to be a resident. The visa cost will be contingent on factors such as the country of your citizenship and how many dependents you’re sponsoring.
• Company Renewal: Your business license and related visas must be renewed regularly, typically annually.
• Corporate Amendments: If you are required to change your business, like changing your address, company activities, or name, costs could be involved.
• Business Liquidation: If you decide to liquidate your RAKEZ company, there will be specific procedures and costs during the liquidation process.

This is an overview of the possible costs. Consider using our cost calculator for an accurate estimate of your specific costs. 

Ras Al Khaimah free zone license cost

In RAK, RAKEZ offers a variety of licenses to suit diverse business needs. Here’s the list:

• Commercial
• Services
• Industrial
• Media
• Educational
• Individual/Professional
• E-Commerce
• General Trading
• Business Invest
• Freelance Permit

RAKEZ is committed to making business setup cost-effective. Basic packages start at a reasonable 5,499 AED for zero-visa companies with a one-year contract. They also frequently offer promotions and discounts for additional savings.

RAKEZ actively supports women entrepreneurs with its BusinessWomen package, offering discounts on any license and activity. If you’re looking for long-term savings, consider a three-year package – you’ll benefit from a 25% discount, and all resident visas under your company will be free.

Here’s a quick cost breakdown of the license packages:

• Zero-visa Commercial/Services/Media/E-Commerce/Education package: 5,499 AED
• One visa Individual/Professional package: 13,000 AED
• 1 visa Commercial/Services/Media/E-Commerce/Education package: 13,500 AED

As a special bonus, the one visa starter package lets you combine a General Trading license with a free E-Commerce license.

RAK Resident Visas

RAK offers flexible resident visa options to accommodate businesses of various sizes. Package go from zero to four visas. Companies with more extensive facilities, such as warehouses, can often obtain additional visas to meet staffing needs.

RAKEZ Visa Costs (in AED):

• Investor:
  • RAK Fee: 3,850
  • Medical Checkup: 300
  • Emirates ID: 370
• Employee:
  • RAK Fee: 3,800 + 2,000 deposit (refundable)
  • Medical Checkup: 300
  • Emirates ID: 370

While health insurance isn’t mandatory for RAK company owners, you’ll need coverage for any dependents you sponsor on your visa.

RAK Company Renewal

Renewing your RAK business license is a straightforward process and cost-effective. The renewal typically costs 1,000 AED less than your initial company setup fees. You can complete the renewal online without being physically present in the UAE.

RAK requires companies to submit financial audits. This audit must be presented at the end of your designated financial year. By default, this will be in December, but you can choose a different month if it suits your business better.

RAK Business Liquidation

Liquidating your RAK company takes about 3-4 weeks. Importantly, before starting the process, make sure you’ve cancelled any visas associated with your business.

The government cost for company closure in RAK is 3,500 AED. However, keep in mind there might be additional costs depending on factors like the need for audit reports or specific clearances. For a personalized assessment of your situation, it’s advisable to consult with a liquidation specialist.

Timeline of RAK Free Zone License Setup

Security Approval (Approximately one week)

• Initial application: The process begins by submitting your company’s details and supporting documents to the RAK Free Zone. This includes information on your business operations directors, shareholders, and other members.
• Review and approval: RAK Free Zone carefully reviews your request to ensure it complies with the regulations and evaluates the potential risks associated with your business. This stage usually takes around one week.

RAK Free Zone Visit for Document Signing (One-time visit)

• Scheduling your visit: After receiving the security clearance, you can schedule an appointment with the RAK Free Zone office.
• Document verification: During your visit, the RAK Free Zone representative will examine the authenticity of your documents and verify your signature on the required documentation.
• Paying of fees: You’ll also be required to pay for the license setup and any related fees.

Company Establishment (Around three days)

• Company registration: RAK Free Zone officially registers your company in its system after your documents are signed and fees are paid.
• License issuance: Your business license, a crucial document outlining your permitted activities, is generated and issued. This process generally takes about three days.

Establishment Card Issuance (Approximately one week)

• Establishment card creation: Your Establishment Card is a document used as a RAK Free Zone to create official evidence of your business registration.
• Card delivery: The card is typically delivered within one week of your company’s establishment. You can choose between the courier delivery option or taking it in person.

Entry Permit (Approximately one week)

• Visa application: The next step for those planning to work and live in the UAE is to apply for an entry permit and a residency visa.
• Immigration approval: The immigration authorities will review your application and all supporting documents. The approval process usually takes about one week.

Medical Checkup and Emirates ID Application (1 day)

• Medical exam: You’ll have to undergo an obligatory medical exam at a regulated facility in the UAE.
• Emirates ID application: You’ll need to apply for an Emirates ID, a national identification card required for various transactions. Typically, these procedures can be completed within a single day.

Visa Stamping (Around three days)

• Passport Submission: You must show your passport to immigration officials to get your visa stamped.
• Visa issuance: Once the stamping process is completed, your passport will then be issued along with a residency visa. It typically takes three days.

How Dubai Business Zone Can Help

At Dubai Business Zone, we understand that setting up a company in the RAK Free Zone can be complex, so our tailored support ensures an effortless setup experience. 

This starts by carefully listening and understanding your unique business requirements and goals for selecting RAK. Based on that insight, we offer expert guidance in choosing an optimal license type/package combination from RAKEZ’s various offerings.

Our vast knowledge of RAK’s business environment, regulations, and best practices sets us apart. Leveraging this local expertise to navigate potential obstacles ensures your company formation journey runs smoothly and without hassles. 

Ultimately, our priority lies in saving time by managing complex administrative tasks efficiently so that you can focus on developing a core business strategy. 

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