Free zone company setup
Free zones offer full foreign ownership, fast incorporation and packages that bundle licence, office and visas. The UAE has more than forty of them.
What a free zone is
A free zone is an economic area with its own licensing authority, rules and company registry. Companies formed there are licensed by the free zone rather than by the emirate's economic department.
Advantages
- 100% foreign ownership in all free zones
- Incorporation in days, often fully online
- Packages that combine licence, flexi-desk and a fixed number of visas
- Customs benefits for goods moved through zones such as JAFZA and DAFZA
- Potential 0% corporate tax on qualifying income for a Qualifying free zone person
Limitations
- Free zone companies are mainly meant to trade within their zone and internationally. Selling directly to UAE mainland customers needs a mainland distributor, a mainland branch or a specific permit, depending on the activity and emirate.
- Visa quotas depend on the package and office size.
- Some banks are cautious with low-cost free zone companies that have no visible substance.
Company types
Names vary by zone: FZE or FZ-LLC for single-shareholder or limited liability companies, FZCO for multi-shareholder companies in some Dubai zones, and branches of existing companies.
Choosing a free zone
| If you need | Consider |
|---|---|
| Low cost, flexible activities, visas | IFZA, Meydan Free Zone, SPC Free Zone, Shams |
| Commodities, trading, prestige Dubai address | DMCC |
| Financial services, common-law courts | DIFC, ADGM |
| Logistics, import and export | JAFZA, DAFZA |
| Industrial and warehousing at lower cost | RAKEZ |
See also How to choose a free zone and Best free zone in the UAE.
The process
- Choose the zone, package and activity.
- Submit the application with shareholder documents.
- Complete identity verification, in person or by video.
- Sign the incorporation documents and pay fees.
- Receive the licence, then apply for the establishment card and visas.
Common questions
Can a free zone company open a bank account?
Yes. Banks look at the business model, owners and substance more than the zone itself. See Bank account for free zone companies.
Can a free zone company own property?
Free zone companies can generally hold property in Dubai freehold areas, subject to Dubai Land Department rules for the specific zone. Check before you buy.
Can I work from home with a free zone licence?
Your licence must have a registered address in the zone, usually a flexi-desk. Where you physically work day to day is generally not restricted.
Official sources
We check our guidance against these official sources. Always confirm current fees and rules before acting.