FREE ZONE SETUP · RAS AL KHAIMAH · 2027

RAK Free Zone (RAKEZ) Package Comparison: Flexi Desk vs Office Space

Which RAKEZ option fits your visas, substance needs, banking, budget, and growth plans

Ras Al Khaimah has become one of the most talked-about alternatives to Dubai for company setup, mainly because its free zone, RAKEZ, offers a wide range of licenses and facilities at competitive entry costs. For many founders, the first real decision is not the license activity but the facility: do you take a flexi desk or a proper office?

The choice looks like a pure cost question, but it also affects how many visas you can sponsor, how easily you can open a bank account, whether your company can demonstrate real presence in the free zone for Corporate Tax purposes, and how painful it is to upgrade later. Picking the cheapest option can be the most expensive decision if it blocks your plans.

Below we compare the two in practical terms. If you are weighing RAKEZ against other zones, our business setup team can compare options against your activity, tax position, and staffing plans.

1. Flexi Desk vs Office Space at a Glance

2. What Is a RAKEZ Flexi Desk?

• A license package with a flexible or shared desk arrangement instead of a private office
• Gives your company a registered address in the free zone for licensing purposes
• Suited to businesses that work mostly remotely, on client sites, or online
• Usually includes limited access to shared facilities, depending on the package
• Normally allows only a small number of visas, if any, depending on the package terms

3. What Is a RAKEZ Office Space Package?

• A license package that includes a leased office unit or dedicated workspace in a RAKEZ location
• Suited to businesses that have staff, meet clients, or need to show a genuine operating base
• Visa allocation is typically linked to the size of the space and the package
• Offers room to scale, with the option to move to larger space within the zone
• Comes with a tenancy and lease obligations that should be read carefully

4. Side-by-Side Comparison Table

Factor	Flexi Desk	Office Space
Entry cost	Lowest	Higher
Workspace	Shared or flexible	Dedicated and private
Visa allocation	Limited	Larger, usually linked to space
Physical presence	Light	Stronger
Meeting clients	Limited, may use shared meeting facilities	Your own space for client meetings
Bank account perception	Some banks ask for more proof of operations	Generally easier to show a real base
Scalability	Upgrade needed as the team grows	Room to grow, subject to unit size
Lease commitment	Light	Tenancy contract and terms apply
Best for	Freelancers, consultants, online and light-asset businesses	Teams, client-facing and operating businesses

5. Visas and Team Size

• Visa allocation depends on the package and, for office packages, usually on the size of the space
• A flexi desk may only support a small number of visas, so a growing team can outgrow it quickly
• Count owners, managers, and planned hires before choosing, not just your current headcount
• Check what happens if you exceed the quota: you may need to upgrade the package or lease more space

For a wider look at visa options when setting up a company, see our guide to business setup in the UAE.

6. Corporate Tax, Substance and Banking

Area	Why the facility choice matters
Corporate Tax	A free zone company can only access the 0% rate on qualifying income if it meets Qualifying Free Zone Person conditions, which include having adequate substance in the zone
Substance	A flexi desk may be harder to defend as adequate substance if you have employees, decisions, and activity that need to be in the zone
Banking	Banks assess whether the business is real; a physical office and clear operations help the account opening process
Audit	Qualifying free zone entities need audited financial statements regardless of the package

7. Cost Drivers to Compare

• License fee for your chosen activity
• Facility cost: flexi desk fee or office rent and any deposit
• Establishment card and visa costs, including medical, Emirates ID, and processing
• Renewal costs and any increase after the first year
• Bank account, accounting, audit, and Corporate Tax compliance costs
• Cost of upgrading or moving later if your needs change

Budget the full first year, not just the license price. Our business plan development services in Dubai guide explains how to model these costs, and our accounting and bookkeeping services team can set up your books from day one.

8. Who Should Choose Which

• Choose a flexi desk if you are a solo founder or small consultancy, work mostly online or at client sites, need minimal visas, and want the lowest commitment
• Choose an office space if you have or plan a team, meet clients, handle goods or equipment, need more visas, or want a stronger base for banking and tax substance
• Start flexi and upgrade later if you are testing a business model, as long as you confirm how upgrading works and what it costs
• Compare other zones if you need access to mainland customers; see our guide on how ADGM differs from mainland UAE for how free zone and mainland structures compare in general

9. How to Choose: Step by Step

10. Common Mistakes

• Choosing a flexi desk purely on price, then finding the visa quota is too small
• Assuming the free zone address automatically meets Corporate Tax substance conditions
• Ignoring how banks assess a business with no physical office
• Not reading the lease terms, deposit, and renewal conditions for office space
• Comparing only the first-year license price and ignoring renewals and compliance costs
• Choosing RAKEZ without checking whether your customers require a mainland license

Frequently Asked Questions