When setting up a company in the UAE, especially in Ras Al Khaimah (RAK), you’ll encounter three main jurisdiction options: RAK Free Zone, RAK ICC (International Corporate Centre), and the Mainland. Each has unique advantages depending on your business goals, structure, and operational needs.

If you're exploring company registration in RAK Free Zone UAE, understanding the differences between these options is key to making the right decision.

This blog breaks down each setup option, highlights their pros and cons, and helps you decide which jurisdiction is best for your business.

What Are the Three Main Business Jurisdictions in RAK?

1. RAK Free Zone (RAKEZ)

The RAK Free Zone, also known as RAKEZ (Ras Al Khaimah Economic Zone), offers a flexible and affordable setup for entrepreneurs and SMEs.

Key Features:

• 100% foreign ownership

• No import/export duties

• No currency restrictions

• Cost-effective license packages

• Access to modern warehouses, offices, and flexi-desks

• Ability to apply for UAE residency visas

Best For:

• Startups

• eCommerce businesses

• Service providers

• Manufacturing and logistics companies

2. RAK ICC (Offshore Company)

RAK ICC is Ras Al Khaimah’s offshore jurisdiction. These companies are not allowed to operate within the UAE but are ideal for holding assets, international trade, and tax planning.

Key Features:

• No corporate tax (unless UAE-sourced income)

• No minimum capital requirements

• 100% foreign ownership

• Confidentiality and privacy

• No office space requirement

• Suitable for holding shares, owning real estate (in some zones), and global structuring

Best For:

• Asset protection

• International holding companies

• SPVs (Special Purpose Vehicles)

• Wealth management and estate planning

3. Mainland (DED Ras Al Khaimah)

Mainland companies are licensed by the Department of Economic Development (DED) and can do business across the UAE without restrictions.

Key Features:

• Full access to UAE market

• 100% foreign ownership allowed in most sectors

• Can work with government entities and take on local projects

• Must lease physical office space

• Subject to VAT and corporate tax regulations

Best For:

• Retail or commercial businesses

• Companies needing to operate directly within the UAE

• Businesses planning to hire locally or serve government clients

Detailed Comparison: RAK Free Zone vs RAK ICC vs Mainland

Choosing the Right Jurisdiction: Use Cases

Use Case 1: You’re an International Entrepreneur Running a Global Business

Recommended Setup: RAK ICC
You don’t need to sell or operate in the UAE. Your focus is asset protection, global banking, and holding international investments. RAK ICC offers tax benefits, confidentiality, and minimal regulatory burdens.

Use Case 2: You’re Launching a Service or eCommerce Business from Abroad

Recommended Setup: RAK Free Zone
You need a business license, visa, and possibly a warehouse or flexi-desk. RAKEZ allows you to operate cost-effectively, benefit from UAE banking, and get residency visas for you and your team.

Use Case 3: You Want to Operate in the Local UAE Market

Recommended Setup: Mainland
You plan to open a shop, clinic, or service business that caters directly to UAE residents. A mainland company gives you full operational access across the country, with the ability to serve government clients and bid on local contracts.

Pros and Cons

RAK Free Zone

Pros:

• Affordable setup

• Visa availability

• Suitable for most startups

• Limited paperwork

Cons:

• Cannot trade directly in mainland UAE

• Bank account opening may be more complex for flexi-desk setups

RAK ICC

Pros:

• Maximum privacy and confidentiality

• No UAE taxes (on non-UAE income)

• No office or staff required

• Easy to manage remotely

Cons:

• Cannot issue visas

• Cannot trade or operate in the UAE

• May face banking challenges without local presence

Mainland

Pros:

• Full access to the UAE market

• Work with local clients and government

• Stronger credibility for local businesses

Cons:

• Higher setup and maintenance costs

• Office lease required

• Full tax compliance required

Key Considerations Before Choosing

1. Your Target Market
   If you're targeting UAE residents or businesses, a mainland company is your best option. For global operations or holding assets, RAK ICC or a free zone company makes more sense.

2. Your Budget
   RAK ICC has the lowest recurring costs. Free zones are affordable for most startups, while mainland setups tend to be more expensive due to office requirements and compliance obligations.

3. Visa Requirements
   If you need a UAE residence visa, RAK Free Zone or mainland is essential. RAK ICC does not provide visa eligibility on its own.

4. Compliance and Tax
   Mainland companies and some free zone entities must comply with UAE tax laws. Offshore companies like RAK ICC are largely exempt unless generating UAE-sourced income.

FAQs

1. Can a RAK ICC company own property in the UAE?
Yes, under certain conditions, RAK ICC companies can own real estate in designated areas in Dubai, depending on approvals and structure.

2. Can I upgrade from RAK ICC to a Free Zone or Mainland license later?
Not directly. However, you can form a new company under RAKEZ or DED while keeping your RAK ICC entity as a holding or investment vehicle.

3. Which option is best for eCommerce?
The RAK Free Zone is ideal for eCommerce businesses, especially if you sell internationally or need warehousing and logistics support.

Final Thoughts

Each jurisdiction—RAK Free Zone, RAK ICC, and Mainland—offers unique advantages. The right choice depends on your business goals, market access needs, and operational requirements.

• Choose RAK ICC if your focus is international structure, holding, or asset protection.

• Choose RAK Free Zone if you want an affordable, visa-friendly setup with access to UAE infrastructure.

• Choose Mainland if you need unrestricted access to UAE clients and local business operations.