The United Arab Emirates (UAE) has long been one of the most attractive destinations for entrepreneurs and investors seeking a business-friendly environment. Among its many jurisdictions, Ras Al Khaimah (RAK) Free Zone has emerged as a top choice for startups, SMEs, and international businesses. With its strategic location, investor-friendly policies, and competitive pricing, RAK Free Zone offers one of the most cost-effective company formation solutions in the UAE.
If you’re planning to launch your business in 2025, understanding the RAK Free Zone company formation cost is essential. In this guide, we’ll break down the expenses, benefits, setup process, and everything you need to know before making your move.
Why Choose RAK Free Zone in 2025?
Before diving into costs, it’s important to understand why RAK Free Zone continues to attract investors worldwide:
Strategic Location: Situated near Dubai, with access to major shipping routes and airports.
Affordable Setup: One of the most budget-friendly free zones in the UAE.
Tax Benefits: 0% corporate and personal income tax.
Full Foreign Ownership: 100% ownership without a local sponsor.
Range of Business Activities: Suitable for trading, services, consulting, industrial, and e-commerce businesses.
Ease of Setup: Quick and straightforward licensing and registration process.
RAK Free Zone Company Formation Cost in 2025
The total cost of setting up a company in RAK Free Zone depends on several factors such as the type of license, business activity, office requirements, and the number of visas required. On average, the company formation cost ranges from AED 11,000 to AED 25,000 in 2025.
Here’s a detailed breakdown:
1. Trade License Fees
The trade license is the first requirement for operating in RAK Free Zone. The cost varies depending on your business activity:
Commercial / Trading License: Starting from AED 11,000 – AED 15,000.
Service License: Starting from AED 10,000 – AED 12,000.
Industrial License: AED 15,000 – AED 20,000 (depending on warehouse or land requirements).
E-commerce License: Starting from AED 6,500 – AED 9,000 (ideal for online businesses).
2. Registration Fees
RAK Free Zone charges a one-time registration fee for company incorporation. In 2025, this cost ranges between AED 2,000 – AED 3,500 depending on the company type (FZC or FZE).
3. Office Space / Facility Costs
Every company registered in RAK Free Zone must have a physical office. The good news is that RAK offers multiple cost-effective options:
Flexi Desk (Shared Office): AED 6,000 – AED 8,000 annually.
Standard Office: AED 12,000 – AED 20,000 annually (depending on size).
Warehouses / Industrial Land: Starting from AED 20 per sqm.
For startups, the Flexi Desk is the most popular choice since it keeps costs low while fulfilling the mandatory office requirement.
4. Visa Costs
The cost of visas depends on the package you choose. Typically, one visa allocation is included in most license packages. Additional visas cost between AED 3,000 – AED 5,000 per visa, excluding medical tests and Emirates ID fees.
Investor Visa: AED 3,500 – AED 4,500.
Employee Visa: AED 4,000 – AED 5,000.
5. Other Miscellaneous Costs
Business Name Reservation: AED 500 – AED 1,000.
Document Attestation & Translation: AED 500 – AED 2,000 (if required).
Bank Account Opening: Usually free, but some banks may require a minimum deposit.
RAK Free Zone Company Formation Packages in 2025
To make it easier for investors, RAK Free Zone offers all-inclusive packages that cover license fees, registration, office space, and visas. Here are some popular packages in 2025:
Freelancer / Solo Entrepreneur Package
Cost: AED 6,500 – AED 9,000
Includes: 1 license activity, flexi desk, no visa or 1 visa option
SME Package
Cost: AED 11,000 – AED 15,000
Includes: Trade license, flexi desk, 1-2 visa allocations
E-commerce / Digital Business Package
Cost: AED 7,500 – AED 10,000
Includes: Online trading license, flexi desk, 1 visa option
Industrial / Manufacturing Package
Cost: AED 18,000 – AED 25,000
Includes: Industrial license, warehouse, 2+ visa allocations
Step-by-Step Process of Company Formation in RAK Free Zone
Here’s how you can establish your company in RAK Free Zone in 2025:
Choose Your Business Activity – Decide whether it’s trading, services, consulting, e-commerce, or industrial.
Select a License Type – Commercial, Service, E-commerce, or Industrial.
Reserve a Company Name – Must comply with UAE naming regulations.
Submit Documents – Passport copies, application form, and business plan (for some activities).
Pay Fees – License, registration, and office rental fees.
Receive License – Once approved, you will receive your company license within a few days.
Apply for Visas – Investor or employee visas depending on requirements.
Open a Corporate Bank Account – Required to operate your business legally.
Benefits of Setting Up in RAK Free Zone
Apart from affordable company formation costs, RAK Free Zone offers many advantages in 2025:
No corporate or income tax
Full repatriation of profits
No currency restrictions
Quick business setup (within 1 week)
Access to UAE residency visa
Networking opportunities within the free zone
World-class infrastructure for industries and SMEs
RAK Free Zone vs. Other UAE Free Zones
One of the main reasons entrepreneurs prefer RAK over Dubai or Abu Dhabi free zones is cost-effectiveness.
RAK Free Zone License Costs: Starting from AED 6,500 – AED 11,000
Dubai Free Zone License Costs: Starting from AED 15,000 – AED 25,000
Abu Dhabi Free Zone License Costs: Starting from AED 12,000 – AED 20,000
Clearly, RAK offers a more budget-friendly entry point while still providing access to UAE’s booming market.
Tips to Reduce Company Formation Cost in RAK Free Zone
If you’re starting on a tight budget, here are some tips to lower costs:
Choose a Flexi Desk Instead of an Office – Save on office rental costs.
Opt for an All-Inclusive Package – Packages often cost less than paying separately for license, visas, and facilities.
Start Small and Upgrade Later – Begin with fewer visa allocations and expand as your business grows.
Use E-commerce Licenses – If running an online business, e-commerce licenses are cheaper than trading licenses.
Conclusion
The RAK Free Zone company formation cost in 2025 is one of the most competitive in the UAE, making it an ideal choice for entrepreneurs, freelancers, startups, and SMEs. With packages starting as low as AED 6,500 and full-fledged setups available under AED 25,000, RAK Free Zone offers flexibility and affordability without compromising on quality or benefits.
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