How to Get an Industrial License in RAKEZ

Strategic Advantages & Duty Exemptions

Unlike standard commercial activities, setting up an industrial facility within this zone unlocks key fiscal incentives designed to streamline supply chain overheads:

• Customs Duty Exemptions: RAKEZ free zone entities may benefit from 100% customs duty exemption on goods imported into the free zone, including machinery, equipment, raw materials, and finished products, provided they are intended for use within the free zone or for re-export. Goods moved from the free zone into the UAE mainland may still be subject to customs duty and related procedures.
• Capital Flexibility: Investors face zero mandatory proof-of-funds or upfront paid-up capital deposit requirements during the licensing phase.
• Logistical Proximity: Industry-specific clustering provides immediate arterial connections to major shipping lanes via Saqr Port.

Top Industrial Zones in Ras Al Khaimah

Selecting the correct operational zone impacts your logistics, storage capabilities, and proximity to shipping hubs. RAKEZ segments industrial manufacturing into three primary geographical zones:

Step-by-Step Application & Licensing Sequence

To establish a legal manufacturing entity, companies must navigate cross-departmental clearances between RAKEZ and federal environmental regulators.

1.Document Preparation & Business Blueprint:Prerequisite.

Compile your detailed business plan alongside specialized technical files: a comprehensive manufacturing plant layout/blueprint, an operational flowchart tracking raw material transformation, and a granular machinery asset list.

2.Initial Approval and Company Registration

Submit your company formation application form along with investor passport copies and entry stamps to RAKEZ authorities to secure initial name reservation and activity validation.

3.Mandatory Warehouse Site Allocation

An industrial license strictly mandates the leasing of a physical warehouse or plot tailored to your utility consumption needs (power load in kW, drainage, and ventilation). Industrial operators should also plan the required workforce, visa allocation, and labour accommodation based on the facility size and activity type.

4.External Regulatory & Environmental Clearances:

Secure mandatory compliance approvals from local authorities: RAK Environment Protection & Development Authority (RAK EPDA) for emissions/waste, RAK Municipality, and Civil Defence for fire safety and building safety codes.

5.Final License Issuance & Customs Code Activation:

Upon Technical Support Service (TSS) and Health, Safety & Environment (HSE) site confirmation, RAKEZ issues the final Industrial License. You can then register for your customs code and proceed with staff residency visa processing.

Fee Structure & Initial Setup Cost Projections

While baseline company registration, administrative allocations, and core licensing fees typically start around AED 18,000, industrial setups carry variable operational variables. Total initial capital outlays must account for raw material storage permits, corporate tax registration compliance, employee visa allocations, and zone-specific power infrastructure hookups.

Key Strategic Checks Before Setting Up a RAKEZ Industrial Company

Before applying for a RAKEZ industrial license, investors should review a few commercial, tax, and operational factors that can affect the success of the setup.

1. Mainland Market Access Through RAKEZ Dual License

A standard RAKEZ free zone company is mainly designed for free zone and international trade. If the manufacturer wants to sell directly in the UAE mainland, a RAKEZ Dual License may be useful. This allows eligible businesses to operate with a RAKEZ free zone license and a Ras Al Khaimah DED branch license, helping them access mainland customers without forming a separate mainland LLC.

However, manufacturers should still check customs, VAT, and product-specific import rules before moving finished goods from the free zone into the UAE mainland.

2. Corporate Tax and QFZP Compliance

Manufacturing and processing activities may qualify for the UAE’s 0% Corporate Tax rate under the Qualifying Free Zone Person framework, provided the company meets the required conditions. These include adequate substance in the free zone, audited financial statements, qualifying income, and compliance with transfer pricing rules.

RAKEZ industrial companies should also monitor non-qualifying income carefully, especially if they sell to mainland clients or conduct activities outside the qualifying scope.

3. Entity Structure Options

Investors can usually choose from different RAKEZ legal structures depending on ownership and expansion plans:

• Free Zone Limited Liability Company for new companies with individual or corporate shareholders
• Branch of a UAE Company for existing UAE businesses expanding into RAKEZ
• Branch of a Foreign Company for overseas companies entering the UAE market
• Dual License structure for businesses that need both free zone and mainland access

4. Approved Auditor Requirement

For Corporate Tax and RAKEZ compliance, industrial companies should maintain proper accounting records and audited financial statements. If the company wants to preserve QFZP eligibility, it should work with an auditor accepted under RAKEZ requirements instead of relying on an unverified external accountant.

5. Realistic Setup Timeline

While initial company registration can be completed relatively quickly, industrial operations usually take longer because of facility allocation, environmental checks, Civil Defence approval, HSE review, TSS inspection, utility readiness, and machinery installation.

A practical expectation is:

• Initial registration: around 5–7 working days
• External approvals and facility readiness: around 4–8 weeks
• Longer timelines: possible for chemical, food, heavy fabrication, high-power, or high-risk manufacturing activities

Planning these requirements early helps avoid approval delays, unsuitable warehouse selection, power-load issues, and compliance problems after license issuance.

Documents Required for RAKEZ Industrial Company Setup

To apply for a RAKEZ industrial licence, investors must prepare both standard company formation documents and activity-specific technical documents related to the proposed manufacturing operation. The exact checklist may vary depending on the shareholder structure, business activity, facility type, and external approval requirements.

Basic Company Formation Documents

• Completed RAKEZ application for registration and licensing
• Trade name reservation details, where applicable
• Passport copies of shareholders, directors, and general manager
• UAE visa copy or UAE entry stamp for shareholders, directors, and general manager, where applicable
• Emirates ID copy for UAE residents
• No Objection Certificate, if required for UAE-resident shareholders or general manager
• Ultimate Beneficial Owner declaration form
• Passport-size photographs, if requested during application processing
• Memorandum of Association or Articles of Association, where applicable
• RAKEZ lease agreement for the selected industrial facility, warehouse, or land plot

Industrial Activity Documents

• Detailed business plan explaining the manufacturing activity, target products, production capacity, raw materials, and operational model
• Completed industrial licence application form signed by the authorised signatory
• Manufacturing plant layout or production facility blueprint
• Process flow chart showing each stage of production, assembly, processing, storage, and packaging
• Detailed list of machinery, tools, production equipment, and technical assets
• Details of raw materials, semi-finished materials, finished goods, and storage requirements
• Utility requirement details, including estimated power load, ventilation, drainage, water usage, and waste handling requirements, where applicable
• Warehouse or industrial land lease details confirming that the selected facility is suitable for the proposed activity

Additional Documents for Corporate Shareholders

If one or more shareholders are corporate entities, RAKEZ may require:

• Valid trade licence of the parent company
• Certificate of incorporation or certificate of registration
• Commercial register or company extract
• Memorandum and Articles of Association of the parent company
• Certificate of good standing or incumbency, where applicable
• Board resolution approving the establishment of the RAKEZ company and appointment of the general manager
• Power of Attorney, if a representative is appointed to act on behalf of the shareholder
• Attested and legalised corporate documents, where required

Corporate Tax and Infrastructure Planning for RAKEZ Industrial Companies

Setting up a RAKEZ industrial company is not only a licensing process. Before operations begin, investors must also plan for UAE Corporate Tax compliance, facility suitability, power capacity, environmental approvals, and Health, Safety and Environment requirements. These factors directly affect whether the business can operate smoothly and whether its income may qualify for the 0% UAE Corporate Tax rate available to eligible free zone companies.

1. Corporate Tax Planning and QFZP Compliance

A RAKEZ industrial company may be able to benefit from the 0% UAE Corporate Tax rate on Qualifying Income if it meets the conditions to be treated as a Qualifying Free Zone Person. Manufacturing and processing of goods or materials are generally recognised as qualifying activities, but the benefit is not automatic. The company must maintain the required level of substance, earn qualifying income, comply with transfer pricing rules, and maintain proper audited financial records.

Key compliance requirements include:

• The company must carry out its core income-generating activities within the free zone.
• The company must have adequate assets, qualified full-time employees, and operating expenditure in the free zone.
• The industrial activity must be supported by a real facility, such as a warehouse, production unit, or land plot.
• The company must maintain audited financial statements for Corporate Tax purposes.
• The company must comply with the UAE transfer pricing and arm’s length rules where applicable.
• Non-qualifying revenue must remain within the permitted de minimis threshold.

For RAKEZ industrial companies, the de minimis threshold is especially important. Non-qualifying revenue should not exceed the lower of AED 5 million or 5% of total revenue. If the company fails to meet the QFZP conditions, it may lose QFZP treatment for that tax period and the following four tax periods.

2. Power Load and Utility Planning

Power capacity is one of the most important technical checks before leasing a RAKEZ warehouse or industrial plot. Industrial machinery, fabrication equipment, food processing lines, cooling systems, ventilation, compressors, and packaging units can require significantly higher electricity loads than a standard warehouse.

Before signing a facility lease, investors should confirm:

• The available power load of the selected warehouse or plot
• The connected power load required for machinery and equipment
• Whether the facility requires a power upgrade
• The estimated water requirement
• Ventilation, drainage, cooling, and waste-handling requirements
• Whether machinery will be installed indoors or outdoors
• Whether foundations, cranes, tanks, floor drains, or wall openings are needed

RAKEZ’s industrial facility application requires applicants to disclose the connected power load required, available power, water usage, natural gas requirements, machinery power capacity, and proposed facility modifications. For heavy industrial operations, these checks should be completed during the facility selection stage, not after the lease is signed.

3. Environmental and HSE Approval Planning

Industrial companies in RAKEZ may require environmental and operational approvals before final activity clearance or production startup. The level of review depends on the nature of the activity, materials used, waste generated, emissions, chemical storage, and overall environmental impact.

Businesses should prepare the following before applying:

• Manufacturing process description
• Process flow chart
• Facility layout showing machinery and storage areas
• List of raw materials and finished products
• List of chemicals, if applicable
• Solid waste, liquid waste, and airborne emission details
• Proposed waste treatment, reuse, recycling, or disposal methods
• Proposed air emission control systems, where applicable
• HSE policy and project-specific HSE plan
• Standard operating procedures for safety and environmental compliance
• Equipment and machinery catalogues

For activities involving chemicals, emissions, industrial waste, fuel storage, or significant environmental hazards, RAKEZ or the relevant authority may request additional environmental documentation, a third-party risk assessment, or an Environmental Impact Assessment. Restricted substances may also require approval from the Environment Protection and Development Authority before import.

4. Practical Pre-Lease Checklist

Before committing to a RAKEZ warehouse or industrial plot, investors should confirm:

• Is the selected RAKEZ facility approved for the proposed industrial activity?
• Does the available power load match the machinery requirement?
• Are water, drainage, ventilation, and waste-disposal systems suitable?
• Will the activity require EPDA, Civil Defence, Municipality, HSE, or TSS approvals?
• Are there any restricted chemicals, fuel tanks, emissions, or hazardous waste?
• Does the company have sufficient employees, equipment, and operational substance for Corporate Tax purposes?
• Will any mainland or non-qualifying income affect the QFZP de minimis threshold?
• Has the company budgeted for audits, tax registration, utility activation, fit-out, visas, and facility modifications?

Proper planning at this stage helps avoid delayed approvals, rejected facility applications, power-capacity issues, and future Corporate Tax compliance risks.

Need Help Setting Up Your RAKEZ Industrial Company?

Setting up an industrial company in RAKEZ involves more than choosing a licence. You need the right activity approval, warehouse or land allocation, technical documents, external authority clearances, visa planning, and ongoing compliance support.

GloboPrime Corporate Services assists entrepreneurs and companies with UAE business setup, PRO services, document attestation, visa support, and corporate documentation. Our team can help you prepare the required documents, coordinate the application process, and move your RAKEZ industrial company setup forward with fewer delays.

Speak with GloboPrime Corporate Services today for guided support with your RAKEZ industrial licence, company formation, and UAE compliance requirements.

Note: RAKEZ industrial licence requirements, facility rules, external approvals, compliance procedures, timelines, fees, and tax treatment are subject to change. Always confirm current details with RAKEZ official sources and a licensed consultant or tax advisor before proceeding.