Starting a business in the UAE has always been an attractive option for entrepreneurs, but among all the emirates, Ras Al Khaimah (RAK) stands out for its affordability, flexibility, and investor-friendly ecosystem. The emirate has transformed into one of the top destinations for startups, SMEs, and global investors, thanks to its strategic location, streamlined business regulations, and cost-effective company formation process.
If you are considering establishing your company in the UAE, understanding the RAK Free Zone company setup cost is essential. In this comprehensive guide, we’ll walk you through the Top 5 things you must know about RAK Free Zone company setup cost in 2025 so you can make an informed decision.
1. License Fees: The Core of Company Setup Costs
When starting a business in the RAK Free Zone, the first thing you’ll need is a business license. The type of license you choose will largely determine your initial cost. RAK Free Zone offers several categories of licenses, including:
Commercial License – For companies engaged in trading activities.
Industrial License – For manufacturing and industrial activities.
Service License – For professionals, consultants, and service providers.
Educational License – For training institutes, schools, or learning centers.
In 2025, the license fees in RAK Free Zone generally start from around AED 11,000 to AED 15,000 annually. However, the exact cost depends on the nature of your business, number of activities selected, and whether you choose additional facilities or special approvals.
? Pro Tip: If you are just starting out, you can opt for a Flexi-desk package with a basic license. This helps reduce the overall RAK Free Zone company setup cost while still giving you the legitimacy to operate legally in the UAE.
2. Office Space and Facilities: Flexible Options to Match Your Budget
Another major component of the RAK Free Zone company setup cost is office space. The good news is that RAK offers multiple flexible options to cater to different business needs:
Flexi-Desk – A shared office desk in a business center, ideal for startups and freelancers.
Shared Office – More dedicated space at a slightly higher cost, suited for small businesses.
Private Office – A fully private office for companies with staff and confidential operations.
Warehouses & Industrial Units – Available for manufacturing and storage businesses.
The costs range widely. A Flexi-desk package may cost as low as AED 5,000–7,000 annually, while a fully furnished private office or warehouse can go well above AED 25,000 depending on the size and location.
RAK’s flexibility ensures that even budget-conscious entrepreneurs can find an affordable solution without compromising business requirements.
3. Visa Costs: Essential for Entrepreneurs and Employees
A business license alone doesn’t allow you to live and work in the UAE—you’ll also need a residence visa. The RAK Free Zone company setup cost will vary depending on the number of visas you require for yourself, your partners, and employees.
Here’s what you need to factor in:
Investor/Partner Visa – For business owners.
Employment Visa – For staff members.
Family Visa – If you plan to sponsor dependents.
The cost per visa usually ranges between AED 3,500 and AED 5,000, including medical tests, Emirates ID, and stamping. Additionally, each company package in RAK Free Zone comes with a quota of visas, depending on your office space. For example, a Flexi-desk may allow only 1–2 visas, while a private office or warehouse can support 4–10 or more.
This makes visa planning a crucial part of estimating your RAK Free Zone company setup cost in 2025.
4. Additional Approvals and Hidden Costs
When planning your setup, it’s important not to overlook additional costs that may arise. Depending on your business activity, you may require approvals from government departments or regulatory authorities. For example:
Health authority approvals for healthcare businesses.
Food control approvals for restaurants or food trading.
Environmental approvals for industrial or manufacturing activities.
Other potential hidden costs include:
Document translation and notarization.
Bank guarantee or deposits (for specific activities).
Renewal fees and late penalties (if not renewed on time).
By understanding these additional charges, you can budget more accurately and avoid surprises in your RAK Free Zone company setup cost.
5. Cost-Effective Packages and Incentives in 2025
The final thing to know is that RAK Free Zone continues to offer special packages and incentives in 2025, making it one of the most affordable options in the UAE. For instance:
Startup Packages – Tailored for entrepreneurs who want to begin with low overhead costs.
Zero Visa Packages – If you don’t need visas, you can save significantly.
Multiple-Year License Discounts – Pay for 2–3 years upfront and get reduced rates.
Women Entrepreneur Packages – Special offers to encourage female-led businesses.
These cost-saving options mean you can customize your setup to suit your financial goals. For many startups, this makes RAK Free Zone one of the best choices compared to other free zones in Dubai, Abu Dhabi, or Sharjah.
Why Choose RAK Free Zone for Business Setup?
Beyond the affordability, RAK Free Zone offers several strategic advantages:
100% foreign ownership with no need for a local sponsor.
Zero corporate or personal income tax policies.
Access to global markets via RAK’s ports, airports, and highways.
Fast and simplified registration process, often completed within a few days.
Diverse business activities covering trading, manufacturing, services, and education.
These benefits make RAK not just a cost-effective option, but also a growth-friendly environment for long-term business success.
Final Thoughts
Understanding the RAK Free Zone company setup cost is crucial for planning your business in 2025. From license fees and office space to visas and hidden expenses, every factor impacts your budget. Fortunately, with flexible packages and incentives, RAK remains one of the most affordable and attractive destinations for entrepreneurs in the UAE.
If you are ready to launch your venture, now is the perfect time to explore the opportunities RAK Free Zone has to offer.
FAQs About RAK Free Zone Company Setup Cost
Q1. How much does it cost to set up a company in RAK Free Zone in 2025?
The cost typically starts from AED 11,000 for a basic license and can go up depending on office
space, visa requirements, and business activities.
Q2. Is RAK Free Zone cheaper than Dubai Free Zone
Yes, RAK Free Zone is generally more cost-effective compared to Dubai Free Zones, making it ideal for startups and SMEs looking to save on initial setup costs.
Q3. Can I set up a company in RAK Free Zone without a physical office?
Yes, you can choose a Flexi-desk package which allows you to operate legally without needing a permanent office, keeping your setup cost low.
Q4. How many visas can I get with a RAK Free Zone license?
The number of visas depends on your office space. Flexi-desks allow 1–2 visas, while private offices and warehouses can support more.
Q5. Are there hidden costs in RAK Free Zone company setup?
While most costs are transparent, additional expenses like approvals, document processing, or late renewal fees can apply. It’s best to consult an expert before finalizing your budget.
