Starting a business is exciting, but paperwork can often take the fun out of it. If you’re planning to set up your company in the UAE, Ras Al Khaimah is one of the most business-friendly and cost-effective emirates to begin with.
Whether you’re a first-time entrepreneur or expanding an existing venture, understanding how to get a RAK trade license is the first and most important step. From choosing the right business activity to getting approvals from the authorities, the process can feel confusing at first. That’s where this guide comes in.
Quick Summary:
- A Ras Al Khaimah trade license allows you to legally start and run a business in RAK.
- You can choose from commercial, professional, industrial, tourism, or e-commerce licenses.
- The process includes selecting a business activity, submitting documents, and getting approvals.
- Trade license cost typically starts from around AED 14,000*, depending on your setup.
Here, we break down everything you need to know about obtaining a Ras Al Khaimah trade license in a clear, simple, and stress-free way, so you can focus on building your business with confidence.
What is a Trade License in RAK?
A trade license in RAK is an official permit that allows you to legally start and run a business in Ras Al Khaimah. Simply put, it’s the document that gives your business the green light to operate under UAE law. Whether you’re planning to trade goods, offer services, or set up a commercial venture, you’ll need a Ras Al Khaimah trade license before you begin.
This Ras Al Khaimah business license outlines the activities your company is permitted to carry out and ensures your business complies with local regulations. It also helps you open a corporate bank account, apply for visas, sign contracts, and build trust with clients and partners.
Known for its cost-effective setup options and business-friendly policies, RAK makes the licensing process simple and accessible, especially for startups and small businesses.
A RAK trade license is the foundation of your business in Ras Al Khaimah, making sure everything you do is legal, recognised, and ready to grow.
Why Do You Need a Trade License in Ras Al Khaimah?
A trade license in Ras Al Khaimah is not just a legal formality; it’s what makes your business officially recognised and trusted in the UAE. If you plan to operate in RAK, obtaining the right license is essential for smooth, lawful operations.
Here’s why a Ras Al Khaimah trade license is important:
- It makes your business legal: Without a valid RAK trade license, you cannot legally trade, offer services, or sign business contracts in Ras Al Khaimah.
- It allows you to open a corporate bank account: Banks in the UAE require a valid Ras Al Khaimah business license to open and maintain a business bank account.
- It helps you get residence visas: A trade license is required to apply for an investor, partner, or employee visa in RAK.
- It builds trust and credibility: Clients, suppliers, and partners prefer working with licensed businesses. A valid license demonstrates that your company complies with local laws.
- It defines your business activities: Your license clearly states what your business is allowed to do, helping you avoid penalties or compliance issues.
- It supports business growth: With a proper Ras Al Khaimah trade license, you can expand operations, lease office space, and enter government or corporate contracts.
In simple terms, a trade license is the backbone of your business in Ras Al Khaimah, it protects your company, enables growth, and ensures you operate with confidence and compliance.
Types of Trade Licenses in Ras Al Khaimah
When setting up a business in Ras Al Khaimah, choosing the right trade license is one of the most important steps. Each Ras Al Khaimah trade license is issued based on the nature of your business activity. Here are the main types of trade licenses available in Ras Al Khaimah:
Commercial Trade License
This license is for businesses involved in buying and selling goods. If you plan to trade products locally or internationally, such as electronics, clothing, food items, or general merchandise, you’ll need a commercial Ras Al Khaimah business license.
Professional Trade License
A professional license is meant for individuals or companies offering services based on skills, expertise, or knowledge. This includes consultants, designers, marketing agencies, IT services, freelancers, and trainers. It’s ideal if your business doesn’t involve physical trading.
Industrial Trade License
If your business involves manufacturing, production, or industrial activities, this is the right option. It covers factories, packaging units, and processing businesses. An industrial RAK trade license often requires additional approvals related to safety and environmental regulations.
Tourism Trade License
This license is designed for businesses operating in the travel and tourism sector, such as travel agencies, tour operators, and hospitality-related services. Given RAK’s growing tourism sector, this Ras Al Khaimah trade license is popular among tourism entrepreneurs.
E-commerce Trade License
For businesses selling products or services online, an e-commerce license is required. Whether you run an online store, digital marketplace, or social media-based business, this RAK trade license allows you to operate legally in the digital space.
Choosing the correct Ras Al Khaimah business license ensures your business runs smoothly and stays compliant with local laws. The right license not only protects your company but also supports future growth and expansion in Ras Al Khaimah.
How to Get a Trade License in Ras Al Khaimah?
Setting up a business in Ras Al Khaimah is known to be smooth and entrepreneur friendly. If you’re planning to apply for a Ras Al Khaimah trade license, here’s a more detailed, yet easy-to-follow breakdown of the process, so you know exactly what happens at each stage.
Step 1: Clearly Define Your Business Activity
Begin by finalising what your business will do. Whether it’s trading goods, offering professional services, running an online store, or manufacturing products, your activity will decide the type of business license in Ras Al Khaimah you need. Choosing the right activity from the start helps avoid delays later.
Step 2: Choose the Right Jurisdiction
You’ll need to decide where to set up your company: on the mainland, in a free zone, or offshore. Each jurisdiction comes with its own advantages in terms of ownership structure, office requirements, and visa options. This decision plays a key role in the structure of your RAK trade license.
Related Insight: How to Get a Visa Through RAS Al Khaimah Free Zone
Step 3: Finalise and Reserve Your Company Name
Select a business name that reflects your brand and follows UAE naming guidelines. Once approved, this name becomes legally registered and is used across all documents related to your Ras Al Khaimah trade license.
Step 4: Prepare and Submit the Required Documents
At this stage, you’ll submit essential documents, such as shareholder passport copies, visa details (if applicable), and application forms. Accurate documentation ensures your business license in Ras Al Khaimah moves forward without unnecessary back-and-forth.
Step 5: Arrange Your Business Location
Depending on your business type, you may need a physical office, warehouse, or a flexi-desk facility. The chosen address will be officially linked to your RAK trade license and is required for compliance purposes.
Step 6: Obtain Additional Approvals (If required)
Some business activities may need extra approvals from relevant authorities before your Ras Al Khaimah trade license is issued. This is common for industrial, tourism, or regulated professional activities.
Step 7: Pay the License Fees and Get Your Trade License
Once all approvals are in place, you’ll pay the applicable government fees. After payment, your RAK trade license is issued, officially allowing your business to operate in Ras Al Khaimah.
Step 8: Complete Post-License Setup
After receiving your business license in Ras Al Khaimah, you can move ahead with opening a corporate bank account, applying for investor or employee visas, and setting up your day-to-day operations.
Applying for a Ras Al Khaimah trade license doesn’t have to be complicated. With proper planning and documentation, the process is straightforward and efficient. Once your RAK trade license is issued, you’re all set to grow your business with confidence in Ras Al Khaimah.
Documents Required to Get a Trade License in Ras Al Khaimah
Applying for a Ras Al Khaimah trade license is a straightforward process, as long as your documents are in place. Whether you’re a startup, freelancer, or established business, meeting the RAK trade license requirements helps avoid delays and back-and-forth approvals. Below are the documents required for a RAK trade license:
- Passport Copies of Shareholders
- Passport-Size Photographs
- Visa Copy (If Applicable)
- Emirates ID (For UAE Residents)
- Business Activity Details
- Trade Name Reservation Certificate
- Memorandum of Association (MOA)
- No Objection Certificate (NOC) (If required)
- Office Address or Lease Agreement
Pro tip: Document requirements can slightly vary depending on the business activity, legal structure, or whether you’re applying on the mainland or in a free zone. Preparing your paperwork in advance makes the Rak trade license process smooth and stress-free.
Cost of Trade License in Ras Al Khaimah
The cost of Ras Al Khaimah trade license typically ranges from AED 14,000* to AED 22,000*. However, the final cost of your RAK trade license can vary depending on several factors, such as the type of business activity, the number of visas required, office space or warehouse needs, and whether you choose a mainland or free zone setup.
Since every business has different requirements, the exact Ras Al Khaimah trade license cost may differ from one company to another. To get a clear and accurate breakdown customised to your business, it’s best to speak with our experienced Dubiz business setup expert, who can guide you through the process and help you choose the most cost-effective option.
How to renew your Trade License in Ras Al Khaimah?
Renewing your RAK trade license is a simple process if you follow the right steps and apply on time. Here’s a breakdown to help you renew your Ras Al Khaimah trade license without stress.
Step 1: Check Your License Expiry Date
Start by checking the expiry date of your Ras Al Khaimah business license. It’s best to begin the renewal process at least 30 days before expiry to avoid late penalties or disruptions to your business operations.
Step 2: Clear Any Outstanding Fines or Dues
Before renewing your Rak trade license, make sure there are:
- No pending fines
- No unpaid government fees
- No compliance issues
Any outstanding amount must be cleared before the renewal proceeds.
Step 3: Prepare the Required Documents
Although documents may vary slightly, you’ll generally need:
- Copy of your existing Ras Al Khaimah trade license
- Passport copies of shareholders
- Valid tenancy contract (if applicable)
- External approvals (only if your activity requires them)
Step 4: Apply for Trade License Renewal
You can submit your Ras Al Khaimah trade license renewal application:
- Online via the relevant RAK authority portal, or
- Through a registered business setup consultant
Make sure all details are accurate to avoid delays.
Step 5: Pay the Renewal Fees
Once the application is approved, you’ll need to pay the renewal fees for your Ras Al Khaimah business license. The cost depends on:
- Business activity
- License type
- Number of visas
- Office or facility requirements
Step 6: Receive Your Renewed Trade License
After payment, your renewed RAK trade license is issued, usually within a few working days. You’ll receive the updated license copy, allowing you to continue operating legally in Ras Al Khaimah.
Documents Required to Renew RAK Trade License
To renew your RAK trade license, you only need a few essential documents. These are the basic requirements applicable to most businesses renewing their Ras Al Khaimah trade license or Ras Al Khaimah business license:
- Copy of the existing trade license
- Passport copies of shareholders/partners
- Valid residency visa and Emirates ID (if applicable)
- Tenancy contract or office lease agreement (if required)
- Renewal application form submitted to the relevant RAK authority
Note: Depending on your business activity, authorities may request additional approvals, but the documents above are the minimum required in most cases.
Start Your RAK Business Journey with Dubiz by Your Side
Getting a RAK trade license doesn’t have to feel complicated or overwhelming. From understanding the Ras Al Khaimah trade license requirements to choosing the right activity, estimating the cost of a Ras Al Khaimah trade license, and completing renewals on time, Ras Al Khaimah offers a smooth, business-friendly environment for entrepreneurs at every stage.
Whether you’re applying for a Ras Al Khaimah trade license for the first time or renewing your existing Ras Al Khaimah business license, the key is getting the process right from the start. A valid business license in Ras Al Khaimah not only keeps you compliant but also helps you grow confidently, open bank accounts, apply for visas, and build credibility in the UAE market.
At Dubiz, we simplify everything related to business setup, from documentation and approvals to cost optimisation, so you can focus on building your business while we handle the formalities of your Rak trade license.
📞 Call: +971 56 369 5485
💬 WhatsApp: +971563695485
📧 Email: info@dubiz.co
Frequently Aksed Questions (FAQs)
1. What is a Ras Al Khaimah trade license?
A Ras Al Khaimah trade license is an official permit that allows you to legally operate a business in RAK. It defines your business activities and ensures compliance with UAE laws.
2. Who can apply for a RAK trade license?
Anyone can apply, including UAE residents, non-residents, expats, entrepreneurs, and foreign investors, as long as the business activity is permitted in Ras Al Khaimah.
3. How long does it take to get a trade license in Ras Al Khaimah?
In most cases, a RAK trade license can be issued within 3 to 7 working days, provided all documents and approvals are in place.
4. What are the main types of trade licenses in Ras Al Khaimah?
The main types include:
1. Commercial trade license
2. Professional trade license
3. Industrial trade license
4. Tourism trade license
5. E-commerce trade license
5. What is the minimum cost of a Ras Al Khaimah trade license?
The cost usually starts at around AED 14,000* and can increase depending on your business activity, visas, office space, and jurisdiction.
6. Can I get a Ras Al Khaimah trade license without an office?
Yes. Many free zones in RAK offer flexi-desk or virtual office options, especially for startups, freelancers, and e-commerce businesses.
7. Do I need a local sponsor to start a business in RAK?
No. Many Ras Al Khaimah mainland and free zone licenses allow 100% foreign ownership, depending on the business activity.
8. Is it possible to apply for a RAK trade license online?
Yes. The application process can be completed online or through an authorised business setup consultant.
9. Can I apply for visas with a Ras Al Khaimah trade license?
Yes. Once your RAK trade license is issued, you can apply for investor, partner, and employee visas, based on your license package.
10. What documents are required to get a trade license in Ras Al Khaimah?
Commonly required documents include passport copies, photographs, business activity details, trade name reservation, MOA, and office address proof (if applicable).
