RAK Innovation City is a Ras Al Khaimah free zone for tech and digital businesses. In 2026, RAK Innovation City Free Zone Setup licences start from AED 6,600 a year (Idea package, no visa) and go up to AED 22,550 (Growth package, dedicated desk). Foreign founders can own 100% of the company, apply online and typically receive a licence in 5–10 working days.
If you build software, AI products, games or blockchain tools, the RAK Innovation City Free Zone setup is one of the most focused ways to enter the UAE market. You get a UAE trade licence, full foreign ownership and an online application, at an entry price that is lower than many better-known free zones. This guide explains what the zone is, which activities it supports, who is eligible, what a licence really costs and how company formation works, so you can decide with confidence.
What Is RAK Innovation City Free Zone?
RAK Innovation City is Ras Al Khaimah’s technology-focused free zone. It was previously known as RAK Digital Assets Oasis (RAK DAO), so you may still see both names online. The zone is built for digital-first companies and describes itself as the world’s first AI-powered free zone, with applications and licensing handled through a digital platform.
A company registered here receives a Ras Al Khaimah trade licence and a registered address at Innovation HQ. Founders also get access to a partner ecosystem that includes banks, legal and compliance firms, and blockchain and cloud infrastructure providers.
Why Choose RAK Innovation City for Company Setup?
- 100% foreign ownership: No local sponsor or UAE partner is required.
- Low entry cost: Packages start from AED 6,600 a year, well below what many Dubai free zones ask for a comparable licence.
- Fast licensing: The zone quotes 5–10 working days once your documents are complete.
- Remote incorporation: You can complete company formation online without travelling. A UAE visit is only needed later for steps such as visa biometrics or bank onboarding.
- Multiple activities per licence: Most packages include up to 10 standard or custom activities.
- Residency options: Every package except Idea includes a UAE residence visa allocation.
- Rak Golden Visa: A long term visa of Ras Al Khaima
Business Activities Allowed in RAK Innovation City
One of the biggest reasons entrepreneurs consider an RAK Innovation City company setup is its focus on emerging technology activities.
The free zone currently highlights sectors including:
1. Artificial Intelligence
AI companies can develop and commercialise solutions involving machine learning, intelligent automation, data analytics, computer vision, natural language applications and enterprise AI.
2. Web3 and Blockchain
Innovation City supports businesses working on decentralised applications, blockchain infrastructure, digital identity, digital assets and related Web3 technologies.
3. Gaming and Interactive Media
Gaming studios, publishers, interactive entertainment companies and businesses developing immersive digital experiences can establish operations within the technology-focused ecosystem.
4. Robotics
The zone supports robotics and physical AI businesses working on autonomous systems, industrial licensed activities automation, logistics, healthcare technology and smart infrastructure.
5. Digital Health
Technology companies developing digital healthcare, diagnostics, wellness and patient-care solutions can explore relevant activities.
6. Creator Economy
Businesses building creator platforms, digital content tools and monetisation technologies are also among the sectors highlighted by Innovation City.
7. Transportation Technology
This includes technology businesses developing smart mobility, logistics, fleet-management and transportation solutions.
8. Cybersecurity
Cybersecurity companies developing solutions for protecting data, systems and digital infrastructure can select relevant approved activities.
9. Education Technology
EdTech businesses can develop learning platforms, training technologies and digital education solutions.
10. Climate and Resource Technology
Innovation City also highlights sustainable technology businesses working on energy, resource management and environmental innovation.
The authority states that its ecosystem covers 200+ technology activities, while a separate 2026 Innovation City announcement refers to more than 1,500 approved activities across its broader ecosystem.
Regulated Activities Need Extra Approval: Some activities, such as regulated financial or virtual-asset services, need separate approval from the relevant UAE regulator, for example the Capital Market Authority. The free zone states that these activities cannot begin until the full licence or approval is in place. Choosing the wrong activity is a common cause of delays, so map your business model to the correct activity code before you apply.
Who Is Eligible? RAK Innovation City Setup Requirements
Individual investors and corporate entities from most countries can apply, provided the business fits the zone’s technology and digital scope. The RAK Innovation City setup requirements are as follows.
Individual Shareholders
- Valid passport copy
- Proof of address (utility bill, bank statement or tenancy contract)
- Emirates ID and UAE visa, if you already live in the UAE
- A business plan
- Source of wealth documents for investments above USD 250,000
Corporate Shareholders
- Certificate of incorporation and Memorandum and Articles of Association
- Board or shareholder resolution
- Certificate of incumbency or good standing, issued within the last three months
- Ultimate beneficial owner (UBO) declaration with passport copies and address proof
All documents must be valid, current and attested according to the country where they were issued. The free zone may request additional documents during review.
Legal Structures Available
- Company limited by shares: the most common option for startups and SMEs, with limited liability for shareholders.
- Company limited by guarantee: designed for non-profits, associations and social enterprises.
- Branch: lets an existing foreign company operate in the zone while keeping its parent structure.
RAK Innovation City Free Zone Setup Cost in 2026
The RAK Innovation City Free Zone setup cost depends primarily on the package, number of visas, activities and workspace requirements. Innovation City publicly lists four main business setup packages:
| Package | Starting Price/Year | Visa | Activities | Workspace |
| Idea | AED 6,600 | 0 | 10 standard/custom | Shared desk |
| Seed | AED 13,200 | 1 | Up to 5 custom/premium | Shared desk |
| Startup | AED 15,400 | 1 | 10 standard/custom | Shared desk |
| Growth | AED 22,550 | 1 | 10 standard/custom | Dedicated desk |
Note: These are the authority’s published starting prices. Premium activities, additional visas and premium office space can increase the final cost.
RAK Innovation City license cost
The RAK Innovation City license cost starts from AED 6,600 per year under the Idea package.
This package is designed for founders who do not require a UAE residence visa and includes multiple shareholders, 10 standard or custom activities and a shared desk.
For entrepreneurs who require a visa, the Seed package currently starts from AED 13,200 per year, while Startup starts from AED 15,400 and Growth from AED 22,550.
However, the headline package price should not automatically be treated as the complete cost of establishing and operating a company. Depending on the application, you may also need to account for immigration, Emirates ID, medical examination, additional visas, regulatory approvals, banking-related requirements and other government or service charges.
RAK Innovation City Visa Cost
Each package except Idea includes one residence visa. Startup and Growth allow up to four visas, while Seed is capped at one. Additional visas are an upgrade, and the exact price depends on your team size and whether applicants are inside or outside the UAE. Ask for an itemised quote that shows exactly what each visa fee covers, including medical testing and Emirates ID processing.
Costs Beyond the Package
- Additional visas, premium activities or a larger office
- Corporate bank account requirements and any bank fees
- Accounting, VAT registration and corporate tax filing
- Annual licence renewal, with multi-year pricing options available
How to Set Up a Company in RAK Innovation City
The RAK Innovation City company registration process is designed to be largely digital.
Step 1: Choose your business activity
Identify the activity that accurately reflects what your company will actually do. This is particularly important for technology businesses because some activities may have additional regulatory requirements.
Step 2: Select the company structure and package
Choose the appropriate legal entity and business package based on your shareholders, activities, workspace and visa requirements.
Step 3: Prepare your documents
Submit the required identification, corporate and compliance documents. A business plan may also be required depending on the application.
Step 4: Submit the application
Innovation City allows entrepreneurs to complete the application digitally or through its support team.
Step 5: Receive approval
The authority reviews the application, activity and compliance documentation. Standard applications may be processed within approximately 5–10 working days, subject to approval.
Step 6: Receive your licence
After approval and payment of the applicable fees, the company licence can be issued and the business can proceed with its operational requirements.
Step 7: Apply for visas and corporate banking
If required, proceed with residence visas and related immigration formalities. You can also begin the corporate bank account process, although a free zone licence does not automatically guarantee bank account approval. Banks conduct their own KYC, compliance and risk assessments.
Tax and Compliance for RAK Innovation City Companies
The UAE has no personal income tax. Corporate tax is 9% on taxable profits above AED 375,000. Free zone companies that qualify as a Qualifying Free Zone Person can benefit from a 0% rate on qualifying income, while other income is taxed at 9%. Whether your income qualifies depends on your activities and how you trade, so take tax advice before assuming the 0% rate. VAT at 5% applies if your taxable turnover passes the mandatory registration threshold.
Each year you renew the licence with an annual return and updated KYC documents where needed. Any change in ultimate beneficial owner must be reported within two weeks.
Is RAK Innovation City Right for Your Business?
It suits AI, Web3, gaming, SaaS and other digital businesses that serve international clients and want a lean UAE base. Its strengths are cost, speed and a tech-focused network.
It is less suitable if you plan to sell directly to UAE mainland customers or operate a physical premises on the mainland. That needs a separate mainland licence or a mainland distributor. Trading, industrial and general commercial businesses in Ras Al Khaimah are usually better served by the broader RAKEZ free zone.
How Shuraa Business Setup Can Help
A free zone licence is only the first step. Shuraa Business Setup guides you through activity selection, package comparison, document preparation, licence application, visas and bank account opening, so nothing is missed or filed twice. We also help you plan accounting and corporate tax from day one. Speak to our team for a written quote tailored to your business.
Frequently Asked Questions
1. How much does RAK Innovation City Free Zone setup cost in 2026?
Packages start from AED 6,600 per year for Idea (no visa), AED 13,200 for Seed, AED 15,400 for Startup and AED 22,550 for Growth. Extra visas, premium activities and office upgrades cost more.
2. How long does RAK Innovation City company formation take?
The free zone quotes 5–10 working days from submission of complete documents to licence issuance.
3. Is RAK Innovation City the same as RAK DAO?
RAK Innovation City is the current development of what was formerly known as RAK Digital Assets Oasis (RAK DAO). Its current focus is broader than digital assets and includes multiple technology and innovation sectors.
4. Can I open a corporate bank account after setting up in Innovation City?
Yes, a company can apply for a corporate bank account after incorporation. However, bank account approval is a separate process and depends on the bank’s KYC, compliance and risk assessment.
