Who should set up a business in Ras Al Khaimah?
Ras Al Khaimah (RAK) suits founders who want a low-cost UAE licence, traders and manufacturers who need warehouses or industrial land, and tech start-ups. Four main authorities license or register companies here: the RAK Department of Economic Development (RAK DED) for the mainland, the Ras Al Khaimah Economic Zone (RAKEZ), Innovation City (formerly RAK DAO) and the RAK International Corporate Centre (RAK ICC). In the first half of 2026, 967 new establishments joined the Ras Al Khaimah Chamber of Commerce and Industry, Gulf News reported.
RAK is a good fit for:
- Consultants, agencies, IT and e-commerce founders who need one licence and one visa at a low yearly cost.
- Traders and manufacturers. RAKEZ runs industrial zones at Al Ghail, Al Hamra and Al Hulaila, and leases warehouses and land.
- Founders in AI, Web3, gaming, robotics or health tech, who can use Innovation City's tech packages.
- Families and groups that need a holding company for shares, property or intellectual property, through RAK ICC.
A free zone licence is a weaker fit if most sales go to mainland customers: a RAKEZ free zone company sells outside the zone only through a licensed agent, distributor or parent company. If clients expect a Dubai address, read our guide to business setup in Dubai.
Which authority and route should you choose?
Choose RAK DED to trade directly with UAE customers, RAKEZ or Innovation City for low cost and full foreign ownership, and RAK ICC only for holding structures.
| Authority | What it licenses | Typical users | Our guide |
|---|---|---|---|
| RAK DED | Mainland commercial, professional and industrial licences | Trading, contracting and services sold to UAE customers | Mainland vs free zone |
| RAKEZ | Free zone and non-free zone companies, Freelancer Permits | SMEs, traders, manufacturers, e-commerce, education | RAKEZ guide |
| Innovation City (formerly RAK DAO) | Tech free zone companies | AI, Web3, gaming, robotics, health tech | This page |
| RAK ICC | International business companies | Holding companies, asset ownership, international trade | Offshore guide |
| Question | RAK DED mainland | RAKEZ free zone | Innovation City | RAK ICC |
|---|---|---|---|---|
| Sell directly to UAE customers | Yes | Only through an agent, distributor or parent company | Free zone rules apply; confirm for your activity | No; UAE activity needs a RAKEZ subsidiary |
| Office | Physical premises with a rental agreement | Lease required, from coworking upwards | Shared or dedicated desk in the package | Registered agent's office address |
| Residence visas | Within a quota set by MoHRE | Set by package or facility | 0 to 4, by package | None of its own; possible through a RAKEZ subsidiary |
| Lowest published price | Quoted by activity | AED 6,000 | AED 6,600 | AED 3,250 registry fee |
RAKEZ vs RAK DAO (Innovation City)
RAKEZ is the general-purpose zone, while Innovation City is RAK's specialist tech zone. The Ras Al Khaimah Digital Assets Oasis (RAK DAO) now operates as Innovation City, and rakdao.com redirects to innovationcity.com. Its focus has widened from digital assets to AI, Web3, gaming, robotics and health tech.
- Choose RAKEZ for trading, manufacturing, services, e-commerce, education or freelancing, or if you need a warehouse.
- Choose Innovation City if your activity is among its 200+ technology activities and you want a desk and banking introductions in one package.
- Innovation City is a commercial free zone. It says any activity within the Capital Market Authority's mandate needs that authority's licence or approval first.
How much does business setup in Ras Al Khaimah cost in 2026?
Business setup in Ras Al Khaimah starts at AED 6,000 a year for a RAKEZ licence without a visa. With one residence visa, RAKEZ publishes AED 12,000 (Instant Licence Lite) and AED 14,000 (all-inclusive), and Innovation City's Seed package costs AED 13,200. These are the authorities' published prices, checked on 22 October 2026.
| Item | Published price (AED) | What it covers |
|---|---|---|
| RAKEZ Instant Licence, Basic | 6,000 | One shareholder, one activity, coworking access, no visa |
| RAKEZ Instant Licence, Lite | 12,000 | Up to 5 shareholders and 5 activities, coworking, 1 residence visa |
| RAKEZ Biz Starter | 6,000 | For UAE-based founders: up to 50 shareholders and 10 activities, coworking, no visa |
| RAKEZ Freelancer Permit | From 6,100 | Permit for media, education, IT and analyst professionals, eligible for a residence visa |
| RAKEZ all-inclusive package | 14,000 | Licence, one residence visa, up to 10 activities, coworking |
| Extra visas on that package | 4,000 each | Up to 3 more visas |
| RAKEZ investor or partner visa, standard rate | 4,620 | For licences without an included visa; AED 985 more if you are inside the UAE; VAT extra |
| Innovation City Idea | 6,600 | No visa, 10 activities, shared desk |
| Innovation City Seed | 13,200 | One visa (capped at one), shared desk |
| Innovation City Startup | 15,400 | One visa included (cap of four), shared desk |
| Innovation City Growth | 22,550 | One visa included (cap of four), dedicated desk |
| Innovation City extra visa | 4,400 each | Entry permit, medical, biometrics and stamping |
| RAK ICC incorporation, 1 year | 3,250 | Registry fee only; the registered agent's fee is extra |
| RAK ICC renewal, 1 year | 3,950 | Registry fee only |
| RAK DED mainland licence | Quoted by activity | Depends on activity, legal form and premises |
Costs the headline prices leave out:
- Health insurance from an immigration-approved provider, needed for each RAKEZ residence visa.
- RAKEZ E-Channel registration, if your package excludes it: AED 2,200 plus a refundable AED 5,050 deposit, then AED 1,200 a year, per RAKEZ's FAQ.
- Mainland hiring. MoHRE requires a bank guarantee of AED 3,000 for each registered employee.
One older RAKEZ page still quotes AED 16,500 for the all-inclusive package, while the current offer page says AED 14,000. Ask for a written, itemised quote before you pay.
Which licence types and business activities are available?
Your activity decides the licence. RAK DED issues mainland commercial, professional and industrial licences, and RAKEZ offers licence options for more than 3,000 business activities.
- RAKEZ free zone: Commercial, General Trading, E-commerce, Service, Industrial, Media, Educational and Individual/Professional licences, plus the Freelancer Permit.
- RAKEZ non-free zone: Industrial, Commercial and Professional licences. These entities need a RAK DED licence as well as the RAKEZ licence.
- RAKEZ Dual License: a free zone licence plus a branch licence, so one business can operate on the mainland and in free zones.
- Innovation City: standard activities such as accounting, IT consultancy and software development, plus over 200 custom technology activities. Most packages include up to 10.
- RAK ICC: company limited by shares, company limited by guarantee, restricted purposes company, segregated portfolio company and unlimited company. Each activity beyond three costs AED 550.
Regulated activities need the relevant authority's approval first. A clinic, for example, needs Ministry of Health and Prevention approval before RAKEZ adds the activity.
Visas, Emirates ID and office rules
Your visa count depends on your package or office. RAKEZ's Instant Licence Lite and all-inclusive packages include one visa, the all-inclusive package allows three more on a coworking desk, and Innovation City packages allow up to four. A RAK ICC company has no visa quota of its own; RAK ICC's Premium Product adds a RAKEZ subsidiary that can sponsor visas.
RAKEZ issues an e-visa valid for 60 days. You then enter the UAE, take the medical fitness test and give biometrics, which first-time applicants do in Ras Al Khaimah.
RAKEZ's stated time is 3 working days on its VIP route and 6 on the standard route, subject to immigration approval. To keep the visa valid, re-enter the UAE within 180 days of leaving. See our investor visa guide.
Mainland companies follow the federal labour route. The company opens a file with the Ministry of Human Resources and Emiratisation (MoHRE), gets an establishment card and hires within a quota MoHRE sets. Each work permit is valid for 60 days.
Office rules by route:
- RAKEZ requires every company to lease a facility, from coworking and serviced offices to warehouses and land.
- Innovation City includes a shared desk in its Idea, Seed and Startup packages and a dedicated desk in Growth.
- Mainland businesses need a physical address and a rental agreement that meets RAK DED and municipal rules.
- A RAK ICC company uses its registered agent's office address.
Ownership, legal forms and share capital
Foreign investors can own 100% of a free zone company in RAK. Since 2021, federal law has also allowed 100% foreign ownership of most mainland companies and dropped the local service agent rule for foreign branches. Activities of strategic impact, such as defence, telecoms, banking and insurance, can still carry limits, so confirm the rule for your activity before you apply.
| Route | Legal forms | Shareholders | Capital rules |
|---|---|---|---|
| RAKEZ free zone | FZ-LLC; branch of a UAE or foreign company | 1 to 50 | AED 10,000 for most activities, AED 150,000 for industrial; branches need none |
| RAKEZ non-free zone | Individual establishment, single person LLC, LLC | LLC: 2 to 50 | Confirm with RAKEZ for your activity |
| Innovation City | Company limited by shares, company limited by guarantee, branch | Several allowed on most packages | Not stated on its website |
| RAK ICC | Company limited by shares and four other company types | 1 to 50 | Shares in any currency; no bearer shares |
A RAKEZ company has one manager, who must be an individual living in the UAE.
Since the 2021 Commercial Companies Law amendments, the federal position is 100% foreign ownership for most mainland activities. Some older RAKEZ FAQ answers still mention a 51% UAE partner for non-free zone licences, so confirm the terms for your activity in writing.
Renewal and ongoing compliance
Every licence in RAK renews each year unless you buy a multi-year term. Plan for these obligations:
- RAKEZ: licences run for one year, with three-year options for some types. Late renewal costs AED 50 a day. Audited accounts from a RAKEZ-approved auditor are due within six months of your year end; late filing draws a AED 2,500 fine.
- Innovation City: renewal costs the same as your package, and terms of 1, 2, 3, 4, 5 or 10 years are available.
- RAK ICC: renewal costs AED 3,950 a year, with a one-month grace period. Penalties then rise from 10% to 50% of the renewal fee, and a strike-off notice follows at the start of the sixth month.
- Corporate tax: register within three months of incorporation; late registration costs AED 10,000. Tax is 0% on taxable income up to AED 375,000 and 9% above it. A Qualifying Free Zone Person pays 0% on qualifying income. File the return within 9 months of your year end.
- Small Business Relief: businesses with revenue up to AED 3 million can elect it for tax periods ending on or before 31 December 2029, under Ministerial Decision No. 131 of 2026. A Qualifying Free Zone Person cannot.
- VAT: registration is mandatory once taxable supplies and imports exceed AED 375,000, and optional above AED 187,500.
- Beneficial owners: under Cabinet Decision No. 109 of 2023, companies keep a register of anyone owning or controlling 25% or more and report changes within 15 days. RAK ICC asks for UBO changes within two weeks.
Our guides to corporate tax and VAT registration cover filing in detail.
Ras Al Khaimah compared with Dubai
RAK's published entry prices are lower than the Dubai free zone examples below, while corporate tax, VAT, visas and the Emirates ID follow the same federal rules in both emirates.
| Point | Ras Al Khaimah | Dubai |
|---|---|---|
| Mainland licensing | RAK DED | Department of Economy and Tourism (DET) |
| Free zone entry price, no visa | RAKEZ AED 6,000; Innovation City AED 6,600 | Meydan Free Zone AED 12,500; DMCC Basic Biz AED 35,484 |
| Corporate tax and VAT | 9% above AED 375,000; VAT from AED 375,000 | Same federal rules |
| Choose it when | Cost and space matter more than a Dubai address | Clients expect a Dubai address |
Read more in our guides to Dubai mainland company setup, Meydan Free Zone and DMCC.
Setting up in Ras Al Khaimah from India
Indian residents can own a RAK company, but the money must leave India under FEMA's overseas investment rules, through your bank. Plan these four things before you apply.
- Attest your documents. Indian-issued documents are first attested by the Ministry of External Affairs. The UAE Consulate General in Mumbai then offers digital attestation covering both the consulate and the UAE Ministry of Foreign Affairs. RAK ICC does not require legalisation of foreign corporate documents. See our attestation guide.
- Invest through your AD bank. Buying shares in a UAE company is overseas direct investment. You file Form FC with your designated AD bank, submit evidence of investment within six months and file an Annual Performance Report each year. Indian companies forming a RAK subsidiary use the same route. Resident individuals can invest only in an operating company outside financial services, and cannot control one with its own subsidiaries. That usually rules out controlling a RAK ICC holding company with a RAKEZ subsidiary, so check with your AD bank.
- Fund within LRS. A resident individual's investment counts towards the Liberalised Remittance Scheme limit of USD 250,000 per financial year. Pre-incorporation expenses of up to USD 100,000 per foreign entity also count towards LRS.
- Open the UAE bank account. RAKEZ issues a bank letter with your licence, and Innovation City's banking partners include RAKBANK, Ruya Bank, Wio and M Bank. Some banks ask for an in-person visit.
On tax, the UAE has concluded 137 double taxation agreements. Whether treaty relief helps you depends on where you and the company are tax resident, so take advice on Indian residence rules before you move. Our guide to business setup from India covers the full journey.
How Ofin helps with business setup in Ras Al Khaimah
Ofin's UAE desk handles RAK setups from the route decision to the bank account. Ofin Legal, founded in Mumbai in 2019, has a 4.9-star Google rating and has served 5,000+ clients.
- Compare RAK DED, RAKEZ, Innovation City and RAK ICC for your activity and visas, with an itemised quote.
- Check your activities, reserve the trade name and prepare the application and memorandum.
- Arrange document attestation in India and the UAE.
- File the licence application and handle visas, medical tests and the Emirates ID through our PRO services.
- Support your corporate bank account application.
- Register the company for corporate tax and VAT, and keep its accounts.
- Advise Indian founders on FEMA overseas investment, LRS and India-UAE tax questions.
Many licences can be issued without a UAE visit, but the residence visa needs one for the medical test and biometrics. Call or WhatsApp Ofin's UAE desk on +971 50 523 5779.
