RAKEZ Free Zone Business Setup: A Complete Guide for Entrepreneurs in the UAE

Find out how to start and grow your company in Rakez Free Zone with step-by-step setup guidance, benefits of setting up in the Rakez Free Zone, and licensing options.

Introduction: RAKEZ Free Zone Business Setup

RAKEZ (Ras Al Khaimah Economic Zone), One of the finest business enclaves in the UAE, strategically located in Ras Al Khaimah, it provides access to markets across the Middle East, Africa, Europe, and Asia.

RAKEZ hosts over 18,000 companies from 100+ different countries, thus providing an outstanding environment for both upcoming businesses and existing ones to flourish.

The cost of operations is low for investors, assisted by a simple setup process and a good modernized infrastructure.

RAKEZ is very favorable if a businessperson is a foreign investor or is considering getting into any business with a low cost.

Why Choose RAKEZ Free Zone for Your Business?

Being set up in RAKEZ Free Zone means operating under the ideals of flexibility, affordability, and opportunity.

Here is why it has been the choice of thousands every year:

• 100% foreign ownership with unrestricted profit repatriation
• 0% personal and corporate income taxes
• More than 50 customizable facilities, variously including warehouses, offices, and land plots
• In close proximity with 5 seaports and RAK International Airport
• Over 50 business sectors supported

More so, RAKEZ has specialized assistance for startups, and large corporations, thus making setting up and growing more seamless.

RAKEZ Free Zone Licenses Types

RAKEZ offers several types of licenses, depending on the activity envisaged:

• Commercial License: For the purpose of buying, selling, distributing, and importing/exporting goods.
• Service License: For any services provided by professionals such as consultants, legal advisors, IT services, etc.
• Industrial License: For the purpose of processing and packing within the manufacturing industry.
• Freelancer License: This license is meant for a sole practice, including artists, designers, writers, and developers.

Each license type allows several different activities to be undertaken and may be combined to widen the business scope.

The Process of Establishment for a Business at RAKEZ in Key Steps

The process of starting your business in RAKEZ is quick and also hassle-free. This is a brief stepwise guide:

1. Identify the Business Activity and License Type
   A – Know your business sector and take the appropriate license.
2. Reserve a Trade Name
   A – Choose a unique name according to UAE naming standards.
3. Submit Required Documents
   Required documents usually include:
   A – Passport copies of shareholders
   B – Application form
   C – Business plan (for specific activities)
4. Select a Facility
   A – Choose flexi-desk, standard office, warehouse, or land.
5. Pay the Fees
   A – Charges include registration, license, and facility.
6. Receive Business License
   A – After approval, the license will be issued within 2 to 7 working days.

RAKEZ’s business setup advisors provide you with all guidance during the complete process so that you can have a hassle-free experience.

Cost Overview: What to Expect When Setting Up in RAKEZ

RAKEZ is also known for its cost friendly packages that suit different kinds of businesses.

This is what you will have found with RAKEZ:

• Company registration-from AED 600 to AED 1,500
• License fees: AED 5,000 to AED 15,000 per annum depending on the type and activities.
• Office Options:
  1) Flexi-desks from AED 4,000 annually
  2) Standard offices from AED 9,000 annually
  3) Warehouses starting from AED 20/m²
• Budgeting Tips:
  1) Shared or flexi-desk facilities are the best option for you if you’re a start-up or freelancer.
  2) RAKEZ offers multi-year packages and discounts that go up to 25% while it is still on.

Industries Flourishing in RAKEZ Free Zone

RAKEZ is home to so many different industries in which some of the thriving industries include:

• Manufacturing: RAKEZ proudly hosts more than 600 manufacturing companies from metals to food processing.
• E-commerce: This sector thrives with ready logistics and digital support.
• Media & Creative: Here are videographers, artists, and content creators thriving with freelance permits.
• Education & Training: Those professional courses offering institutions grow rapidly.
• Consultancy & Professional Services: More than 30% of the new businesses fall under this category.

Common Mistakes to Avoid During Company Setup

By making the setting simple, there are some common pitfalls that new entrepreneurs should avoid:

• Wrong Type of License:
  A – Always keep your license in line with the planned activity to avoid potential hiccups related to its legality.
• Not making the budget realistically:
  A – Do account for back-end expenses like visa charges, establishment cards, amendments, and renewals.
• Inadequate Infrastructure
  A – A warehouse may sound tempting but it may not serve your business purposes.
• Missing Document Details:
  A – With errors in passport name or any trade name, it may take days to completion.

Mainland vs. RAKEZ Free Zone: Which Is Best for You?

The advantages of both zones are appealing, although RAKEZ shines in:

• Speed of setup: Licensing is able to be completed in RAKEZ in less than 7 days.
• Startup costs: Packages for the free zone can cost 30-40 percent less than those in other jurisdictions.
• Office flexibility: From virtual desks to extensive industrial lands.

For tax exemptions, international trade, and no hassle on ownership, RAKEZ would be a perfect fit.

Final Thoughts

RAKEZ Free Zone attracts entrepreneurs from all over the world because of:

• Reasonably priced launch packages
• Fast and easy registration process
• Multispectral support

With over 18,000 businesses operating with rapid infrastructure development, RAKEZ has proven to be a reliable Launchpad for success in the UAE.

In case you plan to enter the UAE market or scale up an existing entity, RAKEZ offers tools, support, and an environment to make your business vision a reality.