Setup costs · Ras Al Khaimah Economic Zone
What a RAKEZ licence actually costs in 2026
RAKEZ is the cheapest of the well-known UAE free zones, and the advertised packages make it look cheaper still. The headline figure normally buys a licence and a desk allocation. It does not buy the establishment card, and it does not buy a visa. This page separates the licence fee from the cost of actually trading, and shows where the rest of the money goes.
The short answer
| What you are setting up | Realistic first-year total |
|---|---|
| Licence only, no visa, flexi-desk | AED 10,000 – 12,000 |
| Licence + establishment card + 1 visa | AED 16,000 – 18,000 |
| Licence + establishment card + 3 visas | AED 22,000 – 27,000 |
Indicative 2026 ranges built from public setup-agency pricing. Packages, promotions and included visa quotas change frequently, and industrial licences sit above these figures. Always request a current written quote from RAKEZ or an authorised agent before committing.
Where the money actually goes
| Component | Indicative cost | When |
|---|---|---|
| Commercial or service licence | from AED 10,000/yr | Annual |
| Flexi-desk / shared desk | Usually included | Annual |
| Establishment card | AED 2,000 – 3,000 | Before any visa |
| Residence visa, all-in | AED 3,000 – 4,000 each | Per visa, renewable |
| Medical test + Emirates ID | AED 700 – 1,200 each | Per visa holder |
| Mandatory health insurance | Varies by plan and age | Per person, annual |
| Security deposit (where required) | AED 2,000 – 5,000 per visa | Refundable, held |
The visa question
Visa cost is the main reason two RAKEZ quotes for the same business differ by thousands of dirhams. Each residence visa carries the application and stamping fee, the medical test, the Emirates ID, and health insurance that is mandatory and priced per person per year. Beyond that, the package you buy carries a visa quota, and going past it means upgrading the facility rather than simply paying for another visa. If you expect to hire in year one, buy the quota you need at the start. Upgrading later is more expensive than buying it correctly the first time.
Year two costs more than year one
First-year RAKEZ pricing is frequently promotional. Renewal drops the new-customer discount, so the year-two licence and facility can be higher than the number that persuaded you to sign. Visa renewals fall due on their own cycle, health insurance renews annually, and an FZE or FZCO structure may require an audit, which runs roughly AED 3,000 to 8,000 a year for a small company. Ask for the year-two price in writing before you commit to year one.
There is also cash that is not a fee at all. UAE business banks commonly require a minimum balance somewhere between AED 10,000 and 50,000. It stays yours, but it is working capital you cannot spend.
RAKEZ against the Dubai zones
| Zone | Licence (from) | Realistic 1-visa total |
|---|---|---|
| RAKEZ, Ras Al Khaimah | AED 10,000/yr | ~AED 16,000 – 18,000 |
| IFZA, Dubai | AED 12,500/yr | ~AED 30,000 – 38,000 |
| DMCC, Dubai (JLT) | AED 20,000 – 34,000/yr | ~AED 35,000+ |
The gap is real, and it widens for warehousing and industrial space, where RAK land and utility costs are well below Dubai. What you give up is proximity: if your clients, your bank and your staff are all in Dubai, a northern-emirates licence adds travel and some friction with landlords and banks who see fewer RAK companies. The full setup cost comparison covers all six zones side by side.
Cheaper setup does not mean lower tax
This is the assumption worth killing early. Corporate tax in the UAE is federal. The 9% rate, the AED 375,000 zero band, Small Business Relief and every QFZP condition apply identically in Ras Al Khaimah and in Dubai. Choosing RAKEZ saves you money on the licence, the desk and the warehouse. It changes nothing about what you owe.
One cost decision does touch tax, though. A flexi-desk is fine if you intend to operate under the ordinary regime with the AED 375,000 band and Small Business Relief. It is unlikely to support a Qualifying Free Zone Person claim, because adequate substance means real premises and people proportionate to the business. Decide the tax position first, then buy the facility that matches it. See RAKEZ corporate tax for the full analysis, or run the 60-second QFZP checker.
Before you sign
Ask any agent for four things in writing: the year-two renewal price, the establishment card fee stated separately, the visa quota attached to the package, and whether a refundable deposit is held. Those four answers explain most of the difference between quotes. Verify the licence side directly with RAKEZ and the general business-setup rules at u.ae rather than relying on a reseller's summary.
General information, not tax or legal advice. Fees are indicative and change often. Confirm current pricing with RAKEZ or an authorised agent, and confirm tax treatment with a licensed UAE tax agent.
Common questions
How much does a RAKEZ licence cost?
Indicative 2026 pricing starts around AED 10,000 per year for a basic commercial or service licence with a flexi-desk included. Industrial licences and licences listing several activities cost more. The licence fee alone is not the cost of trading, because it excludes the establishment card and any visa.
What is the total cost to set up a company in RAK free zone?
Roughly AED 16,000 to 18,000 for a one-visa company once licence, establishment card, visa, medical and Emirates ID are added together. A licence with no visa can land near AED 10,000 to 12,000, and three visas typically pushes the first year to AED 22,000 to 27,000.
How much is a RAKEZ visa?
Budget AED 3,000 to 4,000 all-in per residence visa, plus roughly AED 700 to 1,200 for the medical test and Emirates ID. Mandatory health insurance is separate and priced per person per year.
Is RAKEZ cheaper than Dubai free zones?
Yes, materially. A comparable one-visa setup runs around AED 16,000 to 18,000 in RAKEZ against roughly AED 30,000 to 38,000 in IFZA and AED 35,000 or more in DMCC. The gap is wider again for warehousing and industrial space.
Does a RAKEZ package include an office?
Most entry packages include a flexi-desk or shared desk rather than a private office. That is enough to hold the licence and issue visas, but a flexi-desk is unlikely to support a Qualifying Free Zone Person claim.
Does a cheaper RAKEZ licence mean lower corporate tax?
No. Corporate tax is federal and identical across every emirate. RAKEZ competes on operating costs, not on tax.