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MIRR ASIA · RAKEZ · Mainland (DED) · RAK ICC
Ras Al Khaimah Company Formation & Visa Guide
Ras Al Khaimah offers three distinct routes — the RAKEZ free zone, the mainland Department of Economic Development, and the RAK ICC offshore registry. This guide covers jurisdiction trade-offs, company types, tax, licence and visa fees, and the post-incorporation checklist.
Overview · 01
Jurisdiction Overview & Pros/Cons
In RAK, there are three main pillars: RAKEZ, RAK ICC, and the Ras Al Khaimah Department of Economic Development (Mainland).
RAKEZ (Free Zone)
- Pros: 1-year licence structure, cost-effective packages, warehouse/factory infrastructure, and if you qualify as a QFZP you may benefit from a 0% corporate tax band.
- Pros: Portal 360 enables remote applications and some packages require no physical visit.
- Cons: For trading and physical distribution into mainland UAE, you must consider mainland import rules and customs.
- Cons: Depending on activity codes (NA) and external approvals (education, media, etc.), extra procedures and fees may arise.
- Cons: Some banks apply strict substance-based KYC for Free Zone entities.
Best for: trade, services, light industry, manufacturing; SMEs/mid-sized firms needing warehouse, factory or office options.
Mainland (DED)
- Pros: Can do onshore business across the UAE; easier access to government and large B2B projects.
- Pros: Fewer activity restrictions and a broad choice of legal forms.
- Cons: Standard 9% corporate tax applies (no Free Zone QFZP 0% regime).
- Cons: For some activities, approvals from MOHRE and other local departments are required, making procedures more layered.
Best for: onshore distribution/retail, field services, and companies targeting government tenders and local contracts.
RAK ICC (Offshore / International Company)
- Pros: Simple to set up and maintain, low ongoing costs; suitable for asset holding, outbound investments and holding companies.
- Pros: With the Premium/Global Product you can combine a RAK ICC holding company with a RAKEZ subsidiary to secure visa routes.
- Cons: On its own it cannot conduct UAE onshore business or sponsor visas (as a rule).
- Cons: To open bank accounts and defend tax substance, you need a well-structured operational setup.
Best for: cross-border transactions, shareholding, IP, SPV structures and as a holding layer combined with a RAKEZ subsidiary.
Reference · 02
Key Terms
- RAKEZRas Al Khaimah Economic Zone
- RAK ICCRas Al Khaimah International Corporate Centre
- Ras Al Khaimah Department of Economic Development (Mainland)Local DED mainland licences
- QFZPQualifying Free Zone Person
- Portal 360RAKEZ's online one-stop admin portal
- MOHREMinistry of Human Resources & Emiratisation
- KYC (Know-Your-Customer)Substance-based bank checks
- RAK ICC Premium/Global ProductRAK ICC holding + RAKEZ subsidiary
- OFC (Operation Fitness Certificate)Warehouse / custom-built facility safety
Structures · 03
Company Types by Pillar
| Pillar | Legal forms |
|---|---|
| RAKEZ (Free Zone) | FZE (Free Zone Establishment: single-shareholder limited liability company) FZC (Free Zone Company: limited liability company with 2–50 shareholders) Branch (of a UAE or foreign parent company; no separate share capital — an extension of the parent) PJSC/PLC (public-style structures as per RAKEZ Companies Regulations, subject to special requirements) |
| Mainland (DED) | LLC (Limited Liability Company — typically allows one or multiple shareholders; latest Emiratisation and ownership rules may vary by activity) Branch / Representative Office (of a foreign or UAE company) Sole Establishment (sole proprietor structure; many professional licences are classified as 'Professional') |
| RAK ICC | Company Limited by Shares Company Limited by Guarantee Unlimited Company Restricted Purposes Company Segregated Portfolio Company (SPC) — assets and liabilities are ring-fenced between portfolios Foundation — civil-law style foundation used for asset protection and succession planning |
Books, accounting and audit must comply with RAKEZ regulations (Accounts & Audit). A standalone RAK ICC cannot sponsor visas — if you need visas, consider combining it with a RAKEZ subsidiary.
Tax · 04
Tax Structure
- Corporate Tax (CT): Standard rate 9%. However, QFZPs may enjoy 0% on their Qualifying Income.
- VAT: Standard rate 5% (registration thresholds and zero-rated/exempt supplies depend on activity and transaction type).
- Personal income tax: No personal income tax (at UAE federal level).
- Customs: Imports into mainland usually incur 5% customs duty on CIF value (with exceptions such as 50% on alcohol, 100% on tobacco, etc.).
Your tax profile depends heavily on the business model (counterparties, source of income, and substance). Accessing the 0% Free Zone regime requires meeting the full QFZP conditions; otherwise the standard 9% rate applies.
Process · 05
Company Incorporation Process (Summary)
RAKEZ
- 1Select activities → decide legal form (FZE/FZC/Branch).
- 2Reserve trade name.
- 3Choose facilities (flexi desk/shared desk, serviced office, warehouse/factory, land, etc.).
- 4Upload documents (passport, photo, etc.) and pay fees via Portal 360.
- 5Receive licence (for some Instant Licence packages this can be immediate).
- 6If visas are required, obtain the Establishment Card and then start the visa process.
For education, media, manufacturing and similar sectors, additional external approvals and safety permits (such as OFC) may be required.
Mainland (DED)
- 1Choose legal form and activities, reserve trade name.
- 2Obtain initial approval and submit documents.
- 3Sign lease (tenancy) and obtain any external approvals.
- 4Pay government fees and receive the licence.
RAK ICC
- 1Submit incorporation documents via a Registered Agent.
- 2Receive offshore IBC certificate of incorporation.
- 3Operate mainly outside the UAE (or through a combined structure with a RAKEZ subsidiary).
A standalone RAK ICC cannot conduct UAE onshore business or sponsor visas. If visas are needed, establish a RAKEZ subsidiary in parallel.
Costs · 06
Common Licence Types & Government Fees (Illustrative)
- RAKEZ licence types
- Commercial
- General Trading
- E-Commerce
- Individual / Professional
- Industrial
- Educational
- Media
- Mainland (DED) licence types
- Commercial
- Professional
- Industrial
- Tourism, etc.
| Jurisdiction | Item | Official amount / notes | Remarks |
|---|---|---|---|
| RAKEZ | Instant Licence promotion | AED 6,000 | No-visit, simplified package (for limited activities) |
| RAKEZ | Visa-inclusive set (e.g. Business Set-up Package) | AED 16,500 / year | Annual package; details vary by activity and facility type |
| Mainland (DED) | Standard economic licence (new/renewal) | Category-based AED 10,000 / 5,000 / 2,500 / 1,000 / 400 | As per RAK DED fee schedules (by activity/category) |
※ RAKEZ publishes package pricing (subject to change by campaign and activity). Actual quotations depend on activity mix and facility choice. Mainland fees follow the DED tariff, but further external approvals and lease-related costs may apply.
Visas · 07
Visa Application — Steps, Timing, Validity & Fees
Timing · validity · entry rules
- Processing time (typical): Entry Permit ~3 working days + ID/Residence ~5 working days → around 8 working days in total.
- Validity: Standard Free Zone visas are typically 2 years.
- Entry/exit rule: Most standard residence visas become invalid if the holder stays outside the UAE for more than 180 consecutive days (exceptions exist, e.g. Golden Visa).
- ※ From 1 January 2025, health insurance is mandatory for all new and renewed RAKEZ residence visas.
| Jurisdiction | Item | Amount (official) | Notes |
|---|---|---|---|
| RAKEZ | Investor/Partner visa (new package) | AED 4,520 | Express/fast-track options possible; extra cost for in-country applications |
| RAKEZ | Employee visa (new package) | AED 3,800 | Usually ~8 working days in total (3 + 5) |
| RAKEZ | Visa renewal package (employee) | AED 3,500 | Requires being in the UAE during renewal |
| RAKEZ | Standard 2-year residence visa (varies by status) | In-country AED 685 / Out-of-country AED 1,070 | Exact fee depends on combination of status change and issuance |
| RAKEZ | Non-Sponsored ID Card | 3 months AED 650 ~ 2 years AED 2,600 | For employees sponsored by parents/spouse |
| ICP (EHS) | Medical Fitness | AED 260–360 | Varies by category of occupation |
| ICP | Emirates ID issuance/renewal | For residents, AED 100 per year + service fee | 2-year ID = AED 200 (+ service/express charges) |
※ The above are representative values based on official portals/e-Services. Actual totals will differ depending on in-country vs out-of-country application, fast-track options, health insurance and additional external approvals.
RAK ICC · 08
RAK ICC — Offshore International Business Company
Ras Al Khaimah International Incorporation Guide
Corporate and other taxes: exemption.
Summary: It is the most popular offshore corporation in the United Arab Emirates, and has considerable external status and public confidence. Business cannot be conducted in the United Arab Emirates or free trade zones, and business transactions occurring in other countries are exempt from tax. Countries that signed the OECD Financial Information Exchange Agreement.
Suitable for
International trade, overseas advisory service, international professional service, holding company, intangible asset holding, investment, joint venture, brokerage broker, overseas real estate investment, shipping business, etc.
Prohibited industries
Bank, insurance, reinsurance, fund, collective investment, trust, etc.
| Item | Detail |
|---|---|
| Equity capital | There is no minimum capital requirement, and authorized capital or the maximum number of approved shares can be set. Multiple classes of shares can be issued, and rights, privileges, restrictions, and conditions can be set per share. You can set the par value of the issuance of shares or issue shares without par, and you can freely set the currency of the par value. The minimum number of issued shares is one share, and shareholder information is not disclosed in online registration. |
| Directors | At least one natural or legal person must be registered, and non-residents can also register. Director information is not disclosed in online registration. |
| Secretary | At least one natural or legal person must be registered, and non-residents can also register. |
| Annual reporting requirements | Annual accounting books must be prepared, but not subject to government reporting. No annual reporting, tax reporting, or auditing obligations. |
RAK ICC · 09
RAK ICC — Costs & Bank Account
| Item | Amount |
|---|---|
| Incorporation cost | USD 5,000 |
| Seker bank account opening fee | USD 400 |
Opening a local bank account
- The representative must have a local visa to open a business.
- (Can be opened without a visa if the initial deposit of USD 3 million and annual sales of USD 25 million or more is available at the local bank).
- As an alternative to this, it is recommended to open a bank account in Seker in Cyprus (fixed deposit of US$10,000) or a bank account in another country.
The USD 3 million initial deposit and USD 25 million annual sales thresholds are transcribed exactly as published in the approved source. They are unusually high for an offshore IBC and are flagged for client confirmation.
RAK ICC · 10
Requirements, Documents & Procedure
- 1. A copy of the shareholder/director's passport
- 2. Original fact authentication for the passport copy of the shareholder/director
– Korean passport: English passport copy certificate (issued by the ward office) ( View sample )
– Passport from other countries: Certified True Copy or Notarial Certificate ( see sample ) - 3. Two types of documents for the most recent (within 3 months) address in English for shareholders/directors (however, the address must be the same)
– Residency in Korea: English certified copy (community center) + Scan the front/back of the driver's license ( View sample )
– Residence in another country: Utility Bill + Bank Statement (or equivalent official document) ( View sample ) - 4. Fill out the application for incorporation
*If you wish to open an account after establishment, please contact us in advance.
- 1Submit the required documents for the shareholder/director to be registered
- 2Evaluation of suitability for incorporation and customer due diligence verification
- 3Payment of establishment cost
- 4Confirmation after confirming whether the name of the corporation is possible
- 5Sign the incorporation document provided by our company and send it by international mail
- 6After receiving the documents, the establishment proceeds
- 7Incorporation completion
Next Steps · 11
Post-Incorporation Checklist & Contact
- Annual / periodic tasks
- Licence renewal (once per year).
- Visa renewals (typically every 2 years) and annual health insurance renewals.
- Bookkeeping and audit (depending on activity and regulations).
- FTA registration/filings: VAT and Corporate Tax.
- UBO registration/updates (maintaining accurate ultimate beneficial owner information).
- Warehouse/factory: manage OFC and other safety/development permits.
- Operational & regulatory points
- Banking: manage KYC and transactional substance (office, staff, contracts, invoices).
- Customs & clearance (5% standard duty on Free Zone → mainland transfers, with exceptions for certain goods).
- 180-day rule: track days abroad so that residence visas are not invalidated by 180+ consecutive days outside the UAE.
- ESR: keep records for financial periods 2019–2022 (although current filing obligations have been discontinued).
If your goal is to access the 0% Free Zone regime as a QFZP, design your substance (activities, counterparties, contracts, office and staff) from the start with that in mind.
Contact a MIRR ASIA representative
This document does not constitute legal or tax advice, and Mirr Asia accepts no liability for its use. Actual requirements and costs will vary depending on activity codes, facilities and your specific application profile.