Business Setup in RAKEZ Free Zone: Expenses, Setup Process & Profitability in the UAE

In 2024, RAKEZ Free Zone witnessed a significant surge in entrepreneurial activity, with thousands of businesses establishing their presence within its jurisdiction.

This uptick emphasizes the growing appeal of RAKEZ as a prime destination for Business Setup in UAE. For aspiring entrepreneurs eyeing the UAE market, understanding the intricacies of Business Setup in RAKEZ is important.

This guide delves into the costs, procedures, and profitability prospects associated with establishing a business in RAKEZ Free Zone.

What is RAKEZ Free Zone?

Ras Al Khaimah Economic Zone (RAKEZ) is one of the UAE’s most dynamic free zones, catering to a diverse range of industries and business activities.

Strategically located in the emirate of Ras Al Khaimah, RAKEZ offers a cost-effective and business-friendly environment for startups, SMEs, and large corporations.

With its streamlined setup process, world-class infrastructure, and flexible workspace solutions, RAKEZ has become a preferred destination for investors looking to tap into the UAE’s thriving economy.

What Are the Benefits of Setting Up in RAKEZ?

Business Setup in RAKEZ Free Zone comes with numerous advantages, making it an attractive choice for entrepreneurs and investors. Here’s why RAKEZ stands out:

• 100% Foreign Ownership: Investors have full control of their business with no local sponsorship required.
• Cost-Effective Business Setup: RAKEZ offers some of the most competitive business setup costs in the UAE.
• Wide Range of Business Activities: From trading and manufacturing to consultancy and e-commerce, RAKEZ supports various industries.
• No Corporate or Personal Income Tax: Businesses enjoy tax exemptions, boosting profitability.
• Full Repatriation of Profits: Entrepreneurs can remit 100% of their profits back to their home country.
• Easy Business Setup Process: RAKEZ is known for its fast and efficient company registration procedures.
• Flexible Office and Warehouse Solutions: Businesses can choose from virtual offices, flexi-desks, private offices, and industrial facilities.

How Much Does It Cost to Business Setup in RAKEZ Free Zone?

Embarking on a business venture in RAKEZ is not just about having a vision; it requires a clear understanding of the financial commitments involved. RAKEZ offers a spectrum of packages tailored to diverse business needs:

1. 1. Free Zone VIP Company Incorporation – Starts from AED 5,499
      . 1-Year Trade License
      . Free Lease Agreement

1. 1. Free Zone VIP Company Incorporation with UAE Residency – Starts from AED 11,999
      . 1-Year Trade Licence
      . 2-Year UAE Investor Visa
      . Medical & Emirates ID
      . Status Change
      . Establishment Card
      . Free Lease Agreement

1. 1. Free Zone VVIP Dubai Incorporation with UAE Residency – Starts from AED 23,999
      . 1-Year Premium Dubai Trade License
      . 2-Year Premium Dubai Investor Visa
      . Medical & Emirates ID
      . Status Change
      . Establishment Card
      . Free Lease Agreement

Beyond these base costs, additional expenses such as office space rental, registration fees, and other operational costs should be factored into your budget. RAKEZ provides flexible payment plans, making it accessible for startups and SMEs.

How to Open a Company in RAKEZ Free Zone?

Company Setup in RAKEZ is a structured process designed to be both efficient and transparent. Here’s a step-by-step guide to help you navigate the process:

1. Choose Your Business Activity

RAKEZ accommodates a wide range of activities, including trading, manufacturing, consultancy, e-commerce, and more. It’s essential to select an activity that aligns with your business objectives.

2. Select the Appropriate License Type

Your license type will depend on your business activity. RAKEZ offers various licenses, such as:

• Commercial License – Suitable for trading businesses.
• Industrial License – Required for manufacturing and production.
• Service License – Ideal for consultancy and professional services.
• General Trading License – Best for businesses dealing in multiple products across various sectors.

3. Determine Your Company Structure

Decide on the legal form of your company, whether it’s a:

• Free Zone Establishment (FZE): A single-owner company.
• Free Zone Company (FZC): A multi-shareholder entity.
• Branch Office: An extension of an existing company.

4. Register Your Trade Name

Your company name should be unique and comply with RAKEZ’s naming guidelines. Conduct a name search and get approval before proceeding.

5. Apply for Initial Approval

Submit the necessary documents, including passport copies, visa copies, and a business plan (if required), to obtain preliminary approval.

6. Lease Office Space

RAKEZ provides various office solutions, such as:

• Flexi-desks: Ideal for freelancers and small businesses.
• Shared Offices: Suitable for startups and remote teams.
• Private Offices: Fully furnished offices for established businesses.

7. Obtain Licenses and Approvals

Once all formalities are complete, your business license will be issued, allowing you to commence operations in RAKEZ.

Which Is the Cheapest Free Zone in the UAE?

While RAKEZ offers competitive packages, (Sharjah Media City) SHAMS Free Zone is one of the most budget-friendly in the UAE, with setup costs starting from AED 5,750. SHAMS provides several advantages:

• Low-cost licensing options: Making it ideal for startups.
• No physical office requirement: Allowing businesses to operate remotely.
• 100% foreign ownership: Enabling complete control over the business.
• Wide range of business activities: Covering media, IT, consultancy, and trading sectors.
• Easy business setup process: With minimal paperwork and fast approvals.

What Is the Most Profitable Business in the UAE?

The UAE’s dynamic economy offers numerous opportunities across various sectors. Some of the most profitable businesses include:

• Renewable Energy: Solar Power and recycling businesses are gaining traction.
• Financial Services and Fintech: Digital payments, blockchain solutions, and financial consultancy are in demand.
• Logistics: The UAE’s strategic location makes logistics a booming industry.
• Tourism and Hospitality: Travel agencies, luxury accommodations, and event management businesses thrive.
• Real Estate Development: Continuous infrastructural growth ensures profitability in this sector.

How to Get Dubai Citizenship?

Acquiring UAE citizenship is a selective process, primarily reserved for individuals who contribute significantly to the country. The UAE Government offers citizenship through nomination by Rulers’ and Crown Princes’ Courts, Executive Councils, and the Cabinet. Eligible candidates include:

• Investors and entrepreneurs who make substantial economic contributions.
• Scientists and professionals with exceptional expertise.
• Individuals with proven achievements in culture and the arts.

For most expatriates, the UAE Golden Visa provides long-term residency without the need for citizenship.

Business Business in RAKEZ Free Zone

RAKEZ Free Zone is a top-tier choice for entrepreneurs looking to set up a business in the UAE. At G12, We offer a true partnership in all your business endeavors. From paperwork to strategic guidance, we ensure your journey in the UAE is seamless and successful. Get in touch with us today and take the first step toward building your dream business in RAKEZ Free Zone!