RAK Freezone Company Formation - CB Solutions

1. RAK FREEZONE COMPANY FORMATION LEGAL SERVICES RAK Freezone Company Formation: A Complete Guide for Entrepreneurs in 2025 The United Arab Emirates (UAE) has become one of the world’s most attractive destinations for entrepreneurs, startups, and global businesses. Among its many thriving business hubs, Ras Al Khaimah (RAK) Freezone stands out as a strategic choice for investors who want affordability, flexibility, and access to global markets. If you are planning to expand or launch a business in the UAE, understanding the process of RAK Freezone company formation is crucial. In this detailed guide, we’ll explore everything you need to know in 2025—from benefits and business activities to costs, setup steps, and licensing. Why Choose RAK Freezone for Company Formation? RAK Freezone is one of the fastest-growing free zones in the UAE. Established in 2000, it has quickly gained popularity because of its investor-friendly policies, cost-effective packages, and streamlined setup process. Here are some of the top reasons entrepreneurs choose it in 2025: 1. Strategic Location Ras Al Khaimah is located just 45 minutes from Dubai, giving businesses easy access to global trade routes via airports and seaports. This makes it ideal for logistics, trading, and import- export companies. 2. A?ordable Business Setup

2. Compared to Dubai and Abu Dhabi free zones, RAK offers much lower setup and renewal costs. This affordability makes it attractive for startups, SMEs, and solo entrepreneurs. 3. 100% Foreign Ownership Entrepreneurs can enjoy full ownership of their businesses without needing a local sponsor. 4. Tax Benefits RAK Freezone companies enjoy 0% personal and corporate income tax, along with no customs duties for re-exports. 5. Flexible Business Activities Over 1,500 business activities are permitted, covering trading, consulting, media, education, e-commerce, and industrial ventures. 6. Ease of Doing Business The free zone offers a fully digitalized process for licensing, visas, and renewals, saving entrepreneurs time and effort. Types of Licenses Available in RAK Freezone Choosing the right license is one of the most important steps in the company formation process. In 2025, RAK Freezone offers several options: 1.  Commercial License – For businesses engaged in trading, import-export, or general commerce. Service License – For professionals offering consultancy, education, IT, or other services. E-Commerce License – For online businesses selling products or services digitally. Industrial License – For manufacturing, packaging, and light industrial activities. Educational License – For training institutes, learning centers, and educational consultancies. 2.  3.  4.  5.  Company Structures in RAK Freezone RAK Freezone provides flexibility in choosing the legal structure of your company, depending on your business model and ownership preferences: Free Zone Establishment (FZE) – A single shareholder entity. Free Zone Company (FZC) – A company with 2 to 50 shareholders. Branch Office – An extension of an existing UAE or foreign company. This flexibility makes it possible for both individuals and large corporations to set up in RAK with ease.

3. Step-by-Step Process of RAK Freezone Company Formation in 2025 Setting up a company in RAK Freezone is straightforward. Here’s a step-by-step breakdown: Step 1: Choose Your Business Activity Select the type of activity you want to conduct, as this determines the license type you’ll need. Step 2: Select a Legal Structure Decide whether you want to establish an FZE, FZC, or a branch office. Step 3: Choose a Company Name Your trade name must comply with UAE naming guidelines—no offensive words, religious references, or names of global organizations without approval. Step 4: Apply for Initial Approval Submit your application with the required documents such as passport copies, business plan, and proof of address. Step 5: Lease an Office Space or Flexi Desk RAK Freezone offers a range of office solutions—from flexi desks for startups to warehouses for industrial companies. Step 6: Obtain Your Business License Once approved, you will receive your trade license, which legally allows you to operate in the free zone. Step 7: Apply for Visas Depending on your office package, you can apply for UAE residency visas for yourself, employees, and dependents. Step 8: Open a Bank Account Finally, open a UAE corporate bank account to manage your business transactions. Documents Required for RAK Freezone Company Formation The documentation is simple compared to other jurisdictions. Typically, you’ll need: Passport copy of shareholders and directors

4. Passport-size photographs Proof of residence (utility bill or tenancy contract) Business plan (depending on activity) Memorandum and Articles of Association (for FZC) Costs of RAK Freezone Company Formation in 2025 The cost of setting up a company in RAK Freezone depends on the license type, number of visas, and office space requirements. On average: Basic license + flexi desk: Starting from AED 11,000 to AED 15,000 annually. Trading license with 1 visa quota: Around AED 16,000 – AED 20,000. Industrial or large office package: AED 25,000 and above. Compared to other UAE free zones, RAK remains one of the most cost-effective solutions for entrepreneurs in 2025. Benefits of RAK Freezone Company Formation in 2025 By choosing RAK Freezone, entrepreneurs unlock multiple advantages: Low-cost setup and renewals Full ownership & profit repatriation No restrictions on foreign currency Quick and hassle-free incorporation Access to UAE’s growing economy Networking opportunities with global businesses Ideal Business Activities for Entrepreneurs in 2025 With evolving trends in the global economy, certain industries are especially thriving in RAK Freezone: E-Commerce & Online Trading Consultancy Services (IT, Education, Marketing) Import-Export & Logistics Manufacturing & Packaging Digital Media & Content Creation Healthcare & Wellness Services Entrepreneurs in these sectors can leverage RAK’s cost efficiency and global reach for growth. RAK Freezone vs. Other UAE Free Zones

5. Feature RAK Freezone Dubai Free Zones Abu Dhabi Free Zones Setup Cost Low High Moderate Business Activities Wide range Wide range Moderate Location Advantage Close to Dubai Within Dubai Capital access Licensing Flexibility High High Moderate Investor-Friendly Packages Excellent Premium pricing Good For budget-conscious entrepreneurs, RAK Freezone offers unmatched value without compromising on global opportunities. Future Outlook: Why 2025 is the Best Time to Invest in RAK Freezone With the UAE’s economy continuing to expand, 2025 is shaping up to be a promising year for new businesses. The government’s focus on diversifying industries beyond oil—into technology, green energy, healthcare, and digital services—makes RAK Freezone a hub for innovation. Additionally, with global supply chains shifting, RAK’s strategic location near major shipping lanes positions it as a gateway for international trade. Conclusion RAK Freezone company formation in 2025 is an excellent opportunity for entrepreneurs who want affordability, flexibility, and access to global markets. With simple setup processes, cost- effective licensing, and a wide variety of business activities, RAK Freezone continues to attract ambitious entrepreneurs worldwide. Store Location Rakez Amenity Center Tower1 10 floor, Office No.2C, Al Jazeerah Al Hamra, Ras Al Khaimah Phone Number +971 528925307, +971 507062723 Email us info@cbsolutions.ae