Introduction
UK entrepreneurs are increasingly looking east. Rising costs, corporation tax changes, and a search for new growth markets have pushed many SMEs to consider the UAE as a base for expansion. Ras Al Khaimah is emerging as a serious alternative to Dubai, offering lower setup costs without sacrificing access to the wider Gulf market.
Many UK businesses struggle with the basics: which free zone fits their activity, what licensing actually involves, and how UAE compliance interacts with obligations back home. Get these wrong and you lose time and money.
This guide covers RAKEZ's structure, licensing options, the formation process, realistic costs, and the UK-specific tax and compliance points that often get overlooked when businesses focus purely on the UAE side.
Key Takeaways
- Secure 100% foreign ownership, no personal income tax, and 4,000+ eligible activities via RAKEZ
- Form a new FZ-LLC or register a branch of your existing UK company
- Budget from about AED 6,000 for setup, with visas and facilities adding cost
- Keep Companies House and HMRC duties in force alongside UAE compliance
Why RAKEZ Is a Strong Choice for UK Businesses Expanding to the UAE
RAKEZ was formed in 2017 through the merger of the Ras Al Khaimah Investment Authority and Ras Al Khaimah Free Trade Zone. That consolidation matters practically: UK founders deal with one regulator, one licensing system, and one point of contact rather than juggling multiple authorities.
Cost is the other draw—especially for a UK SME testing the UAE market before committing serious capital.
Strategic Advantages for UK-Based Companies
- Affordable packages: RAKEZ comparison materials put an all-inclusive licence-plus-visa package at around AED 16,500 per year, below many Dubai and Abu Dhabi alternatives
- Logistics reach: Close to major shipping routes and about 90 minutes from Dubai, practical for re-export or regional distribution
- Preserving trading history: Register a branch of your existing UK entity instead of a new company, keeping contracts and track record intact
Uptake figures support why UK firms are looking hard at RAKEZ. The free zone recorded 8,506 new company registrations in H1 2025, a 43% jump from 5,933 in the same period the year before, according to RAKEZ's own H1 2025 announcement.
By the end of 2025, RAKEZ reported nearly 19,000 new companies for the year, a 44% increase, taking its total community past 40,000 businesses.
Licences and Legal Structures Relevant to UK Companies
RAKEZ issues several licence types, each suited to different UK business models:
| Licence Type | Best Suited For |
|---|---|
| Commercial | Trading firms, importers/exporters |
| Service/Professional | Consultancies, advisory firms |
| Industrial | Manufacturers, packagers |
| E-commerce | Online retail brands |
One rule catches many UK founders off guard: commercial and service activities cannot sit on the same licence. A UK consultancy that also wants to trade goods needs two separate licences, not one combined entity.
Choosing Your Structure
FZ-LLC is the standard route for a new UK-owned entity. Key points:
- Maximum 50 shareholders
- Minimum share capital of AED 10,000, with shares valued at AED 1,000 each
- Creates a distinct legal entity, separate from the UK parent
Branch of a Foreign Company suits UK businesses that want a RAKEZ presence without spinning up a new legal entity. The branch simply extends the UK parent, meaning:
- No separate legal identity
- The UK parent retains full liability for the branch's activities
- The branch must carry out activities matching (or related to) the parent's own
Additional approvals apply if you work in a regulated field. Legal consultancy, auditing, and investment advisory fall under RAKEZ's DNFBP (Designated Non-Financial Business and Profession) rules. All shareholders must sign extra documentation before the licence is issued.
Step-by-Step RAKEZ Company Formation Process for UK Businesses
- Define your business activity and licence type. UAE banks scrutinise licensed activity closely when approving accounts, so this choice affects banking later.
- Choose your legal structure. A new FZ-LLC gives you a clean UAE entity; a branch preserves your UK company's trading history and existing contracts.
- Reserve your trade name. RAKEZ requires three name options submitted together, and the approved name is held for a maximum of two months from the pro-forma invoice date.
- Select a facility. Flexi-desks work for lean UK founder teams starting small; offices or warehouses suit businesses needing more visas or physical space.
- Submit your application with UK-specific documentation. This typically includes incorporation documents, board resolutions, and a certificate of good standing for corporate shareholders — attested where UAE authorities require it.
- Pay fees and receive your licence. Once issued, you can proceed to visa processing and bank account applications.
VJM Global's teams handle entity formation across both the UK and UAE, so getting the legal structure right at step 2 avoids costly restructuring later.
Costs, Visas, and Banking Considerations for UK Investors
Typical starting costs:
- Basic instant licence packages start from around AED 6,000
- Mid-tier SME packages, including a licence and one visa, run closer to AED 16,500 annually
- Costs climb with additional visas, larger facilities, and extra approvals
Visa Quotas Tied to Facility Choice
A flexi-desk allows only one visa under RAKEZ rules. UK founder teams planning to relocate more than one person, or bring in staff, need a standard office to unlock a higher visa quota.
Banking Considerations
RAKEZ maintains partnerships with several UAE banks, including RAKBANK and Mashreq. UK company documentation often triggers extra compliance checks during account opening. Banks typically scrutinise:
- Beneficial ownership
- Trading history
- Nature of your licensed activity
Build extra time into your plan for this stage; it rarely moves as quickly as licence issuance itself.
UK-Specific Compliance: What Changes When You Operate From the UK
Setting up in RAKEZ doesn't switch off your UK obligations. A few things UK directors need to keep in view:
- Permanent establishment risk: A UAE branch or subsidiary that creates a dependent-agent PE in the UK needs HMRC Corporation Tax registration within three months of becoming liable
- Director residency: UK tax residency is assessed each year under the Statutory Residence Test, wherever the new company operates
- Ongoing UK filings: Your UK entity still owes Companies House annual accounts and a Confirmation Statement, plus HMRC its Corporation Tax Return, even with a parallel RAKEZ branch
Dual-track compliance is where deadlines slip: the RAKEZ entity sits alongside UK duties, it does not replace them.
VJM Global's UK service line covers the filings that often run in parallel with a RAKEZ setup:
- Companies House accounts and Confirmation Statements
- HMRC Corporation Tax registration and CT600 submissions
- VAT registration and PAYE payroll administration
Paired with UAE-side accounting, tax registration and compliance support, UK businesses can keep both jurisdictions' deadlines in view without dropping either track.
Frequently Asked Questions
How much does it cost to set up a RAK Free Zone business in the UAE?
Packages start around AED 6,000, though mid-tier SME packages with a visa included run closer to AED 16,500 annually. Final cost depends on your activity, chosen facility, and number of visas required.
How much does a RAK mainland licence cost?
Mainland licences are issued by the RAK Department of Economic Development, not RAKEZ. Fees typically range from AED 400 to AED 10,000 by category, plus approval and printing fees—a separate process from RAKEZ free zone licensing.
Is RAKEZ in Dubai?
No. RAKEZ is located in Ras Al Khaimah, roughly 90 minutes to two hours' drive from Dubai. Companies formed under RAKEZ can still operate and trade across the wider UAE.
Can a UK company open a branch in RAKEZ instead of forming a new company?
Yes, through the Branch of a Foreign Company structure. This requires corporate documents from the UK parent, including a certificate of good standing, board resolutions, and identification for the appointed manager.
Do I need to visit the UAE in person to set up a RAKEZ company as a UK resident?
Much of the process, including document submission, can be completed remotely through RAKEZ's Portal 360 platform. Visa stamping, however, typically requires an in-person visit to the UAE.
How long does it take for a UK business to get a RAKEZ licence and visa?
Licence issuance can happen quickly once documents are approved, sometimes within a day or two for straightforward activities. Visa processing adds further time, often a few weeks depending on Emirates ID and medical formalities.
