Cost of Setting Up a Company in RAK Free Zone: Complete Price Breakdown (2026)
The cost of setting up a company in RAK free zone is one of the lowest in the UAE, making it best for global entrepreneurs, SMEs and startups. In 2026, entrepreneurs can start their business with a lower budget of AED 5500 to 15000. However, larger setups can cost around AED 50,000+ based on office space, visas and activity.
1) What is the cost of setting up a company in the RAK free zone? (license, registration, visa, office)
The total cost of setting up a company in RAK freezone comprises the following components:
- License fee will cost around AED 5,000 to 12,000 annually based on activity.
- Registration and government fees will cost around AED 1,500 to 3,000 one time.
- Visa cost per visa will charge AED 2,500 to 5,000.
- Flexi-desk or office space will charge around AED 2,000 to 20,000+ depending on business size.
Note: Basic setup will charge around AED 12,000 to 18,000 including one Visa and flexi desk.
2) Cost of setting up a company in RAK free zone by business activity (trading, service, industrial)
Different licenses are responsible for impacting the setup pricing.
- Service or consultancy business activity cost at RAK free zone is around AED 7500 to 13000.
- The trading license cost AED 10,000 to 16,000.
- Industrial license costs around AED 5,000 to 15,000+.
Note: General Trading is highly expensive because of broader permissions.
Get to learn about RAK tax free setup
3) Cost of setting up a company in RAK free zone by company size (solo, SME, corporate)
The cost of setting up a company in the RAK freezone also determines a diverse expense depending on the company’s size. It rises from solo founder and reaches a premium cost to a level of corporate setup.
- Based on solo founders the company size cost around AED 12000 to 18000.
- For SMEs with a visa size of 2 to 4, it will cost around AED 20,000 to 35,000.
- Corporate setup with features like office space and 5+ visas, the total cost will be around AED 30,000 to 50,000+.
4) Cheapest vs premium setup options
Cheapest vs premium cost of setting up a company in RAK free zone highlights the difference in cost due to the key facilities that can align with the best of your business type.
| Setup Type | Cost (AED) | Key Facilities |
| Cheapest (0 Visa) | 5,500–10,000 | License, registration, no office, no visa, basic operations |
| Basic (1 Visa) | 12,000–18,000 | License, 1 visa, flexi desk, business address, limited meeting access |
| SME Setup | 20,000–35,000 | Multiple visas, shared office, admin support, meeting rooms |
| Premium | 30,000–50,000+ | Private office, high visa quota, full operations, scalability |
Also get the setup cost comparison with other free zones with RAK free zone.
5) First-year vs renewal cost of setting up a company in RAK free zone
The best part about the cost of setting up a company in RAK freezone is that the cost of renewal is less than the first year set up cost.
- In the first year, the setup cost includes setup + visa + registration and sum up as AED 12,000 to 20,000.
- On the other hand, the renewable cost comprises only license + office + visa renewal summing up the total cost under AED 8,000 to 15,000
6) Real budget scenarios (low, medium, high)
However, if you look into the real budget scenario, it comes with three categories starting from low to medium and medium to high budget plan.
- At AED 12,000, solo with low budget plan and no office setup is provided in RAK freezone.
- The medium budget offer within AED 20,000 to 30,000 with small team setup.
- The high budget plan offers full office setup + staff support under AED 40,000 to 50,000
Note: Major cost drivers include business activity, office space and Visa.
7) Hidden & optional cost of setting up a company in RAK free zone
Learning the cost of setting up a company in RAK freezone and missing out understanding hidden and optional costs is what many investors are doing today. Here is a quick breakdown of what many investors are missing:
- Bank account assistance.
- PRO or document processing.
- VAT Registration and compliance.
- Office utilities and deposits.
- Medical test and Emirates ID.
Note: These can add AED 2,000 to 10,000 extra depending on setup.
Conclusion:
The cost of setting up a company in the RAK free zone is highly flexible. One can start lean at a cost of AED 12,000 or scale to a full business setup if one has the budget of above AED 50,000+. The key is selecting the right license, office solution and visa package depending on your specific business goal.
Looking for a business consultant to make a flexible budget – Let’s connect with us!
Frequently Asked Questions (FAQs)
What is the all-inclusive cost of setting up a company in RAK freezone in 2026?
The cost will be AED 12,000 to 20,000 depending on package selection and business activity and it will also include license cost, registration, one visa, basic compliance and flexi desk.
How does business activity impact the cost of setting up a company in RAK freezone?
Service licenses are cheapest while industrial and trading licenses cost more because of approvals, broader operational permissions and facility requirements that increases the total set up cost.
What cost factors increase with the visa quota in the RAK free zone?
Higher visa quota demands higher lease fees, additional immigration cause and larger office space that makes visa linked scaling one of the biggest cost drivers.
Is it possible to upgrade a low-cost setup later without high penalties?
Yes, RAKEZ allows license upgrades, office expansion and Visa addition but you must pay the difference in license category, office rent and visa location
What recurring compliance cost should be considered after setup?
Annual cost comprises office lease, license renewal, visa renewal, VAT filing, audit and bookkeeping. The total cost will lead to AED 8,000 to 20,000+ annually in terms of business scale.
