- Ownership
- 100% foreign
- Licence time
- 3–7 working days
- Office
- Flexi-desk accepted
- Indicative from
- AED 5,750
What is a free zone company?
A free zone is a business area with its own licensing authority and rules. The UAE has more than 40 of them, many built around an industry: commodities, media, technology, logistics or general trading. A company registered in a free zone is licensed by that authority, not by the Department of Economy and Tourism (DET) that licenses mainland companies.
For most international founders, consultants and online businesses, a free zone is the fastest and lowest-cost way to get a UAE trade licence, a residence visa and a corporate bank account.
Benefits of a free zone company
- 100% foreign ownership, with no local partner required.
- Fast setup. Many free zones issue a licence within a week once documents are complete.
- Low running costs. A flexi-desk or shared desk satisfies most authorities.
- Residence visas for you, your partners, staff and family.
- Full repatriation of capital and profits.
- Favourable tax treatment. Qualifying income may be taxed at 0% (see tax below).
Is a free zone right for your business?
A good fit if your customers are mostly outside the UAE, you sell online, you offer consulting or professional services, you trade internationally, or you mainly need a UAE base and residency.
Think twice if you plan to open a shop, restaurant or showroom, sell directly to UAE consumers, or bid for government contracts. Those usually need a mainland company.
Not sure? Our setup finder asks three questions and suggests a route, or compare all three on our comparison table.
Popular free zones
The right free zone depends on your activity, budget and how many visas you need. These are among the ones founders ask us about most:
| Free zone | Emirate | Often chosen for |
|---|---|---|
| DMCC | Dubai | Commodities, trading and a large business community |
| IFZA | Dubai | Cost-effective licences across many activities |
| Meydan Free Zone | Dubai | Fully digital setup and a Dubai address |
| Dubai Silicon Oasis | Dubai | Technology and software companies |
| RAKEZ | Ras Al Khaimah | Lower costs, industrial and commercial activities |
| SHAMS | Sharjah | Media, creative businesses and freelancers |
How to set up a free zone company: 6 steps
- Choose your activity and free zoneWe match your business activities to the authorities that allow them, and compare costs and visa quotas.
- Reserve a trade nameYour company name must follow UAE naming rules. We check availability and reserve it.
- Submit your applicationWe prepare the forms, shareholder details and Memorandum of Association for e-signature.
- Receive initial approval and pay feesThe authority reviews your application and issues an invoice for the licence.
- Get your licence and establishment cardYour company now legally exists and can apply for visas.
- Visas and bank accountEntry permit, medical test, Emirates ID, then your corporate bank account application.
Documents you'll need
- Passport copy for every shareholder and manager
- A recent passport-size photo
- UAE visa or entry stamp, if you're already in the country
- Proof of residential address (for example a utility bill)
- A short description of your business activities
- For corporate shareholders: certificate of incorporation, board resolution and other company documents, attested
How much does a free zone company cost?
Costs vary by free zone, activity, visa count and office type. As a guide:
| Item | Indicative cost |
|---|---|
| Licence and registration (no visa) | from AED 5,750 |
| Each residence visa (entry permit, medical, Emirates ID) | about AED 3,750 |
| Flexi-desk | included in many packages |
| Corporate bank account assistance | AED 1,500 |
For a full breakdown, read our guide to business setup costs in Dubai or try the cost estimator. Your written quote lists every government fee separately.
Visas through a free zone company
Your visa quota depends on the free zone and your office size. A flexi-desk usually covers a small team; a dedicated office allows more. Each visa requires an entry permit (or status change if you're already in the UAE), a medical test and Emirates ID biometrics. Once you hold a residence visa, you can sponsor your spouse and children.
Corporate tax and VAT
Every UAE company, including free zone companies, must register for corporate tax. The standard rate is 9% on taxable profit above AED 375,000. A Qualifying Free Zone Person can pay 0% on qualifying income if it meets conditions such as having adequate substance in the free zone and keeping audited financial statements. VAT registration is mandatory once taxable supplies exceed AED 375,000 a year.
Read more in our corporate tax and VAT guide for new companies.
Free zone FAQs
Can a free zone company trade in mainland Dubai?
Not directly with consumers. A free zone company trades within its zone and internationally. To sell onshore you usually work through a UAE distributor, or add a mainland branch or licence.
Do I need to live in the UAE to own a free zone company?
No. Many free zones let you set up remotely with e-signatures. You only need to be in the UAE if you apply for a residence visa, for the medical test and Emirates ID biometrics.
How many visas can a free zone company get?
The visa quota depends on the free zone and the size of your office. A flexi-desk typically allows a small number of visas; larger offices allow more.
Do free zone companies pay corporate tax?
Every free zone company must register for UAE corporate tax. A Qualifying Free Zone Person can pay 0% on qualifying income if it meets the conditions; other income is taxed at 9% above AED 375,000.
This guide is general information, not legal or tax advice. Rules and fees change, so your written quote confirms current requirements.
