Business setup in Ras Al Khaimah
Ras Al Khaimah has three registries that cover most company needs outside Dubai: RAKEZ for operating companies, RAK ICC for offshore holding companies, and Innovation City (formerly RAK DAO) for Web3 and digital-asset businesses. The emirate is about an hour’s drive north of Dubai.
Ras Al Khaimah offers foreign founders three registries: RAKEZ for operating companies, RAK ICC for offshore holding companies (from ~AED 8,000), and Innovation City (formerly RAK DAO) for Web3 and digital-asset structures (packages from AED 6,600). RAKEZ licences start at AED 6,000 without a visa. A package with one visa costs AED 12,000, and the AED 14,000 All-Inclusive package adds room for up to three more visas at AED 4,000 each. The main reason to choose RAK is cost; the address is less well known than a Dubai one.
- RAKEZ packages: Basic AED 6,000 without a visa, Lite AED 12,000 with one visa, All-Inclusive AED 14,000 with one visa plus up to three more at AED 4,000 each. RAKEZ lists more than 3,000 activities.
- RAK ICC is an offshore registry that allows companies to move in and out by continuation, often used as the holding company above a RAKEZ company.
- Innovation City (formerly RAK DAO) licenses Web3, token and DAO projects. Opening a bank account is the hardest part for these businesses.
- A RAK address does not change federal tax: corporate tax at 0% up to AED 375,000 and 9% above, QFZP 0% on qualifying income, and 5% VAT above the threshold apply as elsewhere in the UAE.
- RAKEZ entry licences cost about half of Dubai entry licences such as Meydan’s AED 12,500. In return you get a less recognised address and, often, a longer bank onboarding.
Registries in Ras Al Khaimah: RAKEZ, RAK ICC and Innovation City
RAKEZ is the operating free zone. It issues trading, service and industrial licences, runs industrial parks for manufacturing, and lists more than 3,000 activities. Its entry package, the Basic instant licence, costs AED 6,000 for one activity with co‑working access and no visa. RAK ICC is the offshore registry for holding structures: companies can move in from abroad and out again by continuation, and they cannot sponsor visas or trade in the UAE. A RAK ICC company is incorporated through a registered agent approved by the registry; the details are on our offshore page. Innovation City (formerly RAK DAO, the Digital Assets Oasis) licenses AI, Web3, gaming and other technology companies, including token and DAO projects that general free zones do not usually cover. Regulated crypto and virtual-asset activities, such as an exchange, custody or a public token offering, need a full licence or approval from the federal Capital Market Authority (CMA) first, as Innovation City itself states.
The table below summarises the three options; the reference figures follow under it.
| Registry | Suits | Residence visas | From |
|---|---|---|---|
| RAKEZ | Operating company: trading, services, manufacturing | From 1 visa in the Lite and All-Inclusive packages | AED 6,000 (Basic, no visa) |
| RAK ICC | Offshore holding, IP, redomiciliation in and out | None (holding company) | ~AED 8,000 (estimate) |
| Innovation City (formerly RAK DAO) | Token, DAO and Web3 structures | Depends on the package | AED 6,600 |
RAKEZ packages and visas
For small teams, the question is usually how many visas you need and what office space comes with them. In many zones, extra visas require a larger office. RAKEZ publishes packages that include a workspace: the Lite package at AED 12,000 includes one residence visa, and the All-Inclusive package at AED 14,000 includes one visa, a shared workstation and up to ten activities, with up to three more visas at AED 4,000 each. A team of up to four people can therefore be covered without a separate office lease. The Basic licence at AED 6,000 does not include a visa.
Each visa you use still goes through the standard federal steps: the establishment card, medical test and Emirates ID, the Wage Protection System once you employ staff, and end-of-service gratuity from the first day of employment. These rules apply across the UAE; see our visas overview before you plan your headcount.
Who a Ras Al Khaimah company suits
RAK suits small teams that need a few visas at a known package price, manufacturers looking for industrial land, holding structures with more than one company, and Web3 founders who want an authority set up for their type of project.
It suits less well when a Dubai address helps you win business, for example in luxury retail, client-facing advisory work, or regulated finance that needs a DIFC or ADGM entity. In those cases the higher cost buys something concrete. Compare the options in mainland vs free zone, or see the zone-by-zone figures in the Free Zone Index.
Combining RAKEZ and RAK ICC
A common structure is an operating company in RAKEZ, which holds the visas and trades, owned by a holding company in RAK ICC, which holds the assets. Having both companies in the same emirate makes attestation, renewals and the paperwork between the two entities simpler.
Corporate tax and VAT for a RAK company
A RAK address does not exempt you from federal tax. Corporate tax is 0% on taxable income up to AED 375,000 and 9% above it, as everywhere in the UAE. A RAKEZ company that qualifies as a Qualifying Free Zone Person pays 0% on qualifying income and 9% on all other taxable income, with no AED 375,000 band. It needs real substance in the zone, audited accounts, and non-qualifying revenue that does not exceed the lower of AED 5 million or 5% of total revenue. Small Business Relief can be elected if revenue is AED 3 million or less in each tax period, for tax periods ending on or before 31 December 2029.
VAT is federal too: registration is mandatory once taxable supplies and imports exceed AED 375,000 over the past 12 months, and voluntary from AED 187,500. E‑invoicing becomes mandatory on 1 January 2027 for businesses with revenue of AED 50 million or more and on 1 July 2027 for smaller businesses. Estimate your setup costs in the setup cost calculator and read how the 0% rate works in our guide on who still pays 0%.
Banking with a RAK company
The drawbacks are a less recognised address and, often, a longer bank onboarding than for a well-known Dubai zone. RAKEZ companies open accounts in the usual way, but expect the standard questions on source of funds and substance, and allow realistic time for the account.
If a UAE bank account is central to your plan, prepare for it from the start with our bank account guide.
How we set up a RAK company
We quote every line before you sign. We match the registry to the use (RAKEZ for operations and visas, RAK ICC for holding, Innovation City for token structures), file once, and keep the books from the first month to the standard an audit requires, so that a 0% position is backed by records. The RAKEZ page and the Innovation City page in the Index carry the current figures.
Ras Al Khaimah licence fees
Frequently asked questions
How many visas can a RAKEZ company get?
What is Innovation City, and is it the same as RAK DAO?
Can I combine RAKEZ and RAK ICC?
Does a RAK company pay UAE corporate tax?
Do I need to register for VAT in RAK?
How much cheaper is RAK than Dubai?
This is general information on UAE rules. It is not legal, tax or immigration advice for your situation. Rules and government fees change; we confirm the position for your facts in writing before you act.