RAKEZ vs RAK ICC: which RAK company do you need?
RAK offers two very different things, and they are easy to mix up. RAKEZ is an operational free zone for running a real business. RAK ICC is an offshore registry for holding and structuring. Pick the wrong one and you could end up unable to trade or get a visa, so this is the first thing to settle.
RAKEZ
Ras Al Khaimah Economic Zone. An operational free zone.
WHO IT IS FOR
Active businesses that trade, hire and need UAE residence visas.
YOU CAN
Trade, invoice across the UAE, sponsor visas, and take offices or warehouses.
RESIDENCY
Yes. RAKEZ companies sponsor UAE residence visas.
BEST FOR
Consultants, traders, e-commerce, and industrial or warehouse businesses.
RAK ICC
RAK International Corporate Centre. An offshore registry.
WHO IT IS FOR
Holding companies and international structures that do not trade in the UAE.
YOU CAN
Hold assets and shares, own UAE property, and structure internationally.
RESIDENCY
No. RAK ICC companies cannot sponsor visas or give residency.
BEST FOR
Asset protection and holding structures. See our offshore page for the detail.
Why choose RAKEZ
RAKEZ is home to more than 40,000 companies, and the appeal is simple: a full UAE free zone at the lowest entry cost in the country.
Lowest entry cost
Licences start from around AED 6,000 all in, among the cheapest of any major UAE free zone.
Industrial and warehouse
RAKEZ offers warehouses and land for manufacturing, which most digital-only Dubai zones cannot.
Fast setup
Registration is digital, and some licences are issued within 24 hours.
Ownership and visas
100% foreign ownership, UAE residence visas for you and your team, and full profit repatriation.
Sell across the UAE
A RAKEZ company can invoice clients anywhere in the UAE, not only within the free zone.
A large, known zone
With 40,000 companies from over 100 countries, RAKEZ is a recognised name, not an obscure one.
RAK vs Dubai: what you really save
The reason to choose RAK is cost. A RAKEZ licence with one visa comes in around AED 14,000 all in, against roughly AED 12,500 to 20,000 for a comparable Dubai free zone, and the gap widens over time. Across five years, a RAKEZ licence runs about AED 40,000 to 75,000, where the Dubai equivalent runs AED 62,500 to 175,000. That is a saving of AED 20,000 to 100,000 for the same legal result.
- RAKEZ zero-visa from about AED 6,000
- RAKEZ with 1 visa about AED 14,000
- Each extra visa about AED 4,000
- -year RAKEZ: about AED 40,000 to 75,000
- 5-year Dubai zone: AED 62,500 to 175,000
- Saving over 5 years: AED 20,000 to 100,000
The honest trade-off is location. RAK is about 45 to 60 minutes from Dubai, so plan for the drive if you meet clients there often, and a RAK address carries less prestige than a Dubai one. For most B2B, online, e-commerce, consulting and trading businesses, though, a RAK address is perfectly acceptable to clients, and the saving is real.
PRICINGTIERTABLE
Is RAK the right choice for you?
RAK wins on cost and on industrial space. Dubai wins on address and proximity. Here is a straight read on which side you fall.
RAK fits if you
Cost and capability matter more than a Dubai postcode.
Want the lowest UAE setup cost for a real, trading business
Run a B2B, online, e-commerce, consulting or trading firm where a RAK address is fine
Need warehouse, land or industrial space, not just a desk
Want a holding or offshore vehicle through RAK ICC
Are happy being about an hour from Dubai
Look at a Dubai zone if you
A Dubai address or location is worth the extra cost to you.
Need a Dubai address for client or investor credibility
Visit Dubai often and the hour’s drive would be a drag
Want a premium or commodity ecosystem, where DMCC fits
Run regulated finance or fintech, where DIFC is built for you
Prefer a Dubai budget zone like IFZA or Meydan for the postcode
Not sure whether the saving is worth the distance? We will compare RAK against a Dubai zone on the real all-in numbers for your business.
Set up your RAK company with Riz & Mona Consultancy
Riz & Mona Consultancy sets up both RAKEZ free zone and RAK ICC offshore companies for UK founders. We help you pick the right RAK vehicle, handle the licence, visas and banking, and show you the real all-in cost upfront. Most of it runs remotely, in UK hours, and if a Dubai zone or an offshore route would serve you better, we will say so. UK-based, with more than 15 years on the ground in the UAE.
- RAKEZ and RAK ICC
- Real all-in pricing
- Honest zone advice
- Set up from the UK
Frequently Asked Questions (FAQs)
The legal form you choose affects ownership rules, liability, banking, and visa eligibility. These are the structures we most often recommend to international founders.
What is RAKEZ?
RAKEZ, the Ras Al Khaimah Economic Zone, is the single free zone authority for Ras Al Khaimah, formed in 2017 from the merger of two earlier zones. It is home to more than 40,000 companies and is known for very low setup costs and industrial space.
What is the difference between RAKEZ and RAK ICC?
RAKEZ is an operational free zone for running a real business, with trade licences, visas and residency. RAK ICC is an offshore registry for holding companies and international structures, with no UAE trade, no visas and no residency. Most founders want RAKEZ.
How much does it cost to set up in RAK?
A RAKEZ licence starts from around AED 6,000 for a zero-visa company, and about AED 14,000 all in with one visa. Each extra visa adds roughly AED 4,000, and industrial units start from around AED 20,000.
Is RAK cheaper than Dubai?
Yes, noticeably. A comparable licence costs less than in a Dubai free zone, and over five years a RAKEZ company runs about AED 40,000 to 75,000 against AED 62,500 to 175,000 in Dubai, saving AED 20,000 to 100,000.
Can a RAK company trade in the UAE?
A RAKEZ company can invoice clients anywhere in the UAE. Selling goods to mainland customers can involve a 5% import duty, and services to mainland clients are usually treated as non-qualifying income for tax. RAK ICC companies cannot trade in the UAE at all.
Can I get a UAE visa with a RAK company?
With RAKEZ, yes. A RAKEZ company sponsors residence visas for you, your team and your family, with the number tied to your package and workspace. RAK ICC, being offshore, does not offer visas or residency.
How far is RAK from Dubai?
Ras Al Khaimah is about 45 to 60 minutes from central Dubai, and roughly 30 minutes from Sharjah. If you rarely need to be in Dubai in person, the distance matters little.
Does a RAK address look credible to clients?
For most B2B, online, e-commerce, consulting and trading businesses, yes. A RAKEZ address is a recognised UAE free zone address and is accepted by clients and banks. If you specifically need a Dubai postcode, a Dubai zone may suit you better.
Can I do manufacturing or warehousing in RAK?
Yes. RAKEZ offers warehouses and land for manufacturing and light industry, which is one of its main advantages over digital-only free zones. Industrial packages start from around AED 20,000.
Do RAK companies pay tax?
RAKEZ companies fall under UAE corporate tax. Qualifying free zone income can be taxed at 0%, while non-qualifying income, including most mainland services, is taxed at 9% above AED 375,000. Our accounting team confirms where you stand.
Can I set up a RAK company from the UK?
Yes. Both RAKEZ and RAK ICC can be set up remotely from the UK, in UK hours. For RAKEZ you usually only travel for the visa medical and Emirates ID stage, which we arrange around you.
What is RAK ICC used for?
RAK ICC is used for holding companies, asset protection and international structuring. It cannot trade in the UAE or sponsor visas, but it can own UAE property and hold shares in other companies. Our offshore page explains it in full.
Start your RAK company setup today
Book a free 30-minute consultation, or estimate your cost with our calculator. We will help you pick RAKEZ or RAK ICC.
