Company Formation in RAKFTZ (RAK Free Trade Zone)

Setting up a company in RAKFTZ the old way is no longer possible — and that is the first thing to understand. RAK Free Trade Zone, one of the oldest free zones in Ras Al Khaimah, was merged with the RAK Investment Authority in 2017 into a single Ras Al Khaimah Economic Zone (RAKEZ). Only RAKEZ now issues licences, and it also services every company originally set up under the RAK FTZ brand.
Content reviewed:
Serhii
Serhii
Senior Attorney at Dynasty Business Adviser
Content reviewed
Updated: 02.09.2026 Reading time: 4 minutes
Company Formation in RAKFTZ (RAK Free Trade Zone)
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Content

The name, however, lives on: old contracts, partner referrals and business directories still send investors looking for RAK FTZ. This article answers the question honestly — we explain what happened to the zone, how to register a company through its successor and what it costs under current RAKEZ tariffs.

Company Formation in RAKFTZ (RAK Free Trade Zone), image 1

Why investors choose RAKFTZ

Or rather — why investors still search for this exact name, and what they actually find:

  • RAK FTZ was historically built around trading and consulting companies — that profile carries over in full to RAKEZ
  • Companies holding legacy RAK FTZ licences keep operating: there was no forced re-registration
  • Every office and warehouse format of the former zone became part of the RAKEZ infrastructure
  • A single administration streamlined the process: one application, one portal, one set of tariffs
  • The successor’s entry conditions are more accessible than before — RAKEZ packages start from AED 6,000

Steps to register a company in RAKFTZ

Today there is only one route — through RAKEZ as the successor to RAK FTZ. It looks like this:

  1. Approach RAKEZ — the sole licensing authority for the former RAK FTZ profile
  2. Choose your activity: trading, consulting and services — the zone’s historical specialisation
  3. Choose a legal form — FZE, FZC or a branch of an existing company
  4. Submit documents and obtain initial approval through the RAKEZ portal
  5. Pay for the package, sign the incorporation documents and receive your RAKEZ licence
  6. Arrange residence visas and open a corporate bank account

Basic RAKEZ packages are processed in one to four working days, while the online Instant Licence service issues a licence in minutes. Existing former RAK FTZ companies need no separate procedure — renewals follow the standard RAKEZ schedule.

Cost of setting up a company in RAKFTZ (2026)

Separate RAK FTZ tariffs have not existed since 2017 — RAKEZ prices apply. The zone publishes its starting figures officially; everything else depends on the package configuration.

Cost item Amount, AED Comment
RAKEZ Biz Starter package (licence without visa) from 6,000 Processed in 24 hours, official offer
All-inclusive package with visaй 14 000 Licence, visa and related services
Instant Licence (online) on request Issued in under 5 minutes
Visa (per person) on request Medical test, Emirates ID, health insurance
Office or warehouse on request Former RAK FTZ formats available within RAKEZ
Renewal of a legacy RAK FTZ licence on request Under unified RAKEZ tariffs

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If you are holding a quote with “special RAK FTZ rates”, treat it as a red flag: current prices exist only at RAKEZ, and they should be checked against rakez.com.

Taxation in RAKFTZ

The tax regime is set by RAKEZ rules and federal law: 9% corporate tax on profit above AED 375,000 per year, 0% below that threshold, and 5% VAT on most transactions inside the UAE. Companies with Qualifying Free Zone Person status apply a 0% rate to qualifying income, and RAKEZ designated zone status makes meeting the criteria easier. This applies equally to “legacy” companies on RAK FTZ licences — there are no exceptions for them.

Company Formation in RAKFTZ (RAK Free Trade Zone), image 2

Who RAKFTZ suits

This material will be useful to three types of reader::

  • Owners of active companies on a RAK FTZ licence who need renewal and support through RAKEZ
  • Investors who found the zone through old referrals and now need to register through the current structure
  • Trading and consulting companies suited to the zone’s historical profile at today’s RAKEZ prices

“RAK FTZ still surfaces in old contracts and other people’s referrals — we tell the client straight away that registration and renewals have long run through RAKEZ, and that saves them weeks of correspondence”, notes the lead lawyer at Dynasty Business Adviser.

Set up your company in RAKFTZ with Dynasty Business Adviser

Dynasty Business Adviser will set up a new company through RAKEZ — the successor to RAK FTZ — or take over an existing one: licence renewal, visas, bank account and all communication with the zone administration.

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    Pricing data is accurate as of the publication date (13 July 2026) and has been verified against public sources, including rakez.com; before paying, confirm the tariffs directly with the zone administration.

    Content reviewed by
    The company's lead attorney
    An expert with over 14 years of legal practice experience, possessing a deep understanding of corporate legislation and regulatory requirements across international jurisdictions. Specializes in international tax planning, business structuring, and corporate governance, with practical experience in the business and legal environment of the countries of the GCC.
    Who will you communicate with?
    Customer Service
    Manager
    We will discuss your request and issue, find the optimal solution, and pass the project to the appropriate specialist. We will provide information about the company's services and introduce you to leading specialists within the company.
    Legal
    Consultant
    After consultation with the customer service manager, the legal consultant conducts a more in-depth analysis of your request and develops project strategy options and preliminary organization of all processes.
    Lead Company
    Lawyer
    Will coordinate with you the strategy and stages of further work and conditions. Will be responsible for coordinating the work of the legal consultant, ensuring the correct implementation of the strategy, providing individual approach, and ensuring compliance of the team's activities with legal norms.
    Project
    Manager
    Manages your project within the company, coordinates team activities, and ensures that project goals are achieved on time. Responsible for planning, executing, and monitoring assigned tasks.
    Public Relations
    Manager (PRO)
    Represents your interests in government agencies, including handling company registration and subsequent processes, obtaining additional permits, and accompanying you during visits to government agencies.
    Accounting Department
    Manager
    Will communicate directly with you regarding accounting issues, transactions, and necessary documentation. Ensures the correctness and order of your financial flows functioning.

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    Serhii Senior Attorney at Dynasty Business Adviser

    Frequently asked questions

    Does RAK Free Trade Zone still exist as a separate authority?

    No. Since 2017 RAK FTZ has been merged with the RAK Investment Authority into RAKEZ. It is RAKEZ that issues licences, renews old ones and services every resident of the former zone.

    Do I need to re-register a company that was set up in RAK FTZ?

    Usually not: active licences are serviced by RAKEZ as normal. The paperwork changes naturally at the next renewal.

    Are the conditions different for former RAK FTZ companies compared with new ones?

    No, the tariffs and rules are the same for every RAKEZ resident — inherited and newly registered alike. There is no separate “RAK FTZ line”.

    What should I do if a counterparty asks specifically for RAK FTZ documents?

    Provide the RAKEZ licence and, if needed, a letter of succession: the merger of the zones is enshrined at emirate government level, and banks and counterparties accept RAKEZ documents without question.

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