Business Setup in RAK Free Trade Zone (RAK FTZ).

Ras Al Khaimah Free Trade Zone Business Setup - RAK Free Zone was established in the year 2000 to propel the economic and industrial growth of the emirate of Ras Al Khaimah. During the last one and half decades, RAK Free Zone has established its position as a highly progressive and investor friendly free zone in United Arab Emirates and in the region.

The cost effectiveness, most modern infrastructure, hi-tech facilities, investor friendly environment and high quality customer support service helped RAK Free Zone to reiterate its position as a global business hub and investment destination.

More than 8600 companies belonging to more than 50 industries from 100 countries across the world has established their business in RAK FTZ by choice. Low cost of living and better connectivity to other emirates and rest of the world are always an attraction for investors to setup their business in RAK Free Zone. An international airport and five ports add to the logistics strength of Ras Al Khaimah. Moreover, Dubai International Airport is only one hour drive away from RAK Free Zone.     

Benefits of Setting up a Business in Ras Al Khaimah Free Trade Zone (RAK FTZ).

Investors from different parts of the world register their company in Ras Al Khaimah Free Zone, because of the following advantages:

100 percentage foreign ownership

Complete tax exemption – corporate/personal income tax

No restrictions on capital and profit repatriation

Superior business set-up and support services

Quick UAE visa issuance

Wide choice of office and infrastructure facilities to setup business

Modern communication facilities

Strategic location and logistic support

Specialized Free Zone Parks in RAK FTZ

In order cater to the specific needs of different business sectors, RAK Free Zone has developed the following specialized Free Zone Parks:

Business Park – for corporate and business offices

Technology Park – for trading and light manufacturing

Industry Park – for industrial and heavy manufacturing

Academic Zone – for educational institutions   

Legal Forms of Business

RAK Free Trade Zone permits the following legal forms to setup a business within the Free Zone:

Free Zone Establishment (FZE) – suitable for a new business with a single owner.

Free Zone Company (FZCo) – suitable for a new business entity with two to five shareholders.

Branch of a Local Company – a one year old UAE based company can setup a branch.

Branch of a Foreign Company – a one year old company registered outside UAE can setup a branch.   

Types of Business Licenses

Each business should obtain a “License” to carry out business within RAK Free Trade Zone. The type of license is dictated by the activity of the business. RAK FTZ issues the following types of licenses:

Commercial License – suitable for trading and commercial activities. License holder can import, export, store and distribute goods specified in the license.

General trading license offers much wider scope – the license holder can deal in wide variety of items or goods except restricted goods or those items which requires special approval to trade.

Consultancy or Service License – entitles license holder to offer professional services like Management Consultancies and other services.

Industrial License – are intended for industrial and manufacturing business. This license allows the licensee to import raw materials as well as to manufacture, process, package and export finished goods.

Educational License – allows to start any training or learning institution, as well as education related consultancy.   

Facilities in RAK FTZ

Ras Al Khaimah Free Trade Zoe offers the following office/warehouse/industrial facilities:

Flexi Office or Flexi Desk – ideal for small business looking to start within limited budget. These shared work stations (flexi desk) and office (flexi office) are mostly located in the Business Park in the Free Zone. Commercial or Consultancy licensee can operate from flexi offices/flexi desks. Only partner/investor and manager are eligible for visas. Clients can book facilities for additional hours at a nominal cost.

Standard Offices – this facility is suitable for medium business looking to establish their business in a cost effective way. Private and furnished offices with two work stations and chairs are available. Eligible to apply for UAE residence visa. Commercial, General Trading and Consultancy licensees are permitted to operate from Standard offices in Ras Al Khaimah Free Zone.

Executive Offices – these are fully serviced offices with access to corporate business center service, office management service, cleaning services and parking facilities. Executive offices are private unfurnished offices with 6.5 sq.m to 65 sq.m area. Free cleaning services are available for offices up to 25 sq. m area. Commercial, General Trading and Consultancy business can operate from executive offices in RAK FTZ.

Shell & Core Offices – undeveloped office facilities of various sizes, which can be customized as per individual business requirements. Suitable for Commercial, General Trading and Consultancy activities. Offices ranging between 120 to 170 sq. m. areas are available.

Warehouses – designed to meet industrial requirements for light manufacturing, storage of goods and general assembling purposes. These warehouses are available for a whole year or limited time. All types of licensee can operate from warehouses. This facility is available at different size and power capacity.

Industrial Land – suitable for industrial, logistics and service industry purposes. Plots of 1000 sq. m. and above are available for short or long term lease. The investors have the flexibility to construct facility according to the requirements of business, subject to approval from RAK Free Zone Authority.

Mr. Baiju Masoodu is a Free Zone Business Set-up Consultant. Our ‘corporate service firm’ can advise and assist you to set-up a business in RAK Free Trade Zone and other Free Zones in Dubai and UAE. For a free consultation & cost estimate, call me on: +971 50 214 1476 or mail me at:



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