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Free zone company setup in Dubai

Dozens of free zone authorities, each with its own licence menu, visa quota, office formats and audit rules. The right zone is the one that matches your activity, your headcount plan and your bank — not the one with the lowest advertised price.
3–7 working days

Typical issuance for standard activities

100% foreign ownership

In every UAE free zone

Flexi-desk included

In most entry-level packages

How a free zone works

An independent authority inside the UAE

A free zone is a designated area with its own registrar, its own licensing rules and its own commercial court in some cases. You incorporate with the zone rather than with the Department of Economy and Tourism, and the zone issues the licence, the establishment card and the visa allocation.

Full foreign ownership

No local partner and no service agent, in every zone, for every activity the zone licenses. Shares can be held by individuals or by foreign corporate entities.

Office bundled in

Entry packages include a flexi-desk or shared workstation, which removes the largest fixed cost of a mainland setup and shortens the timeline considerably.

Fast, largely digital

Several zones now incorporate entirely online. Documents are signed digitally, and the licence is issued as a PDF within days rather than weeks.

Customs advantages

Goods held in a designated zone are outside UAE customs territory. Duty applies only when stock is released into the mainland, which is valuable for re-export traders.
Choosing well

Six questions that decide the zone

01

What exactly will you sell?

Zones license different activity catalogues. DMCC is strong on commodities, DIFC on financial services, Dubai Internet City on technology. A mismatch means either a refusal or a licence that does not cover what you actually do.
02

How many visas in eighteen months?

Quotas are set by package and office format. Buying for today and upgrading in six months is almost always more expensive than buying one tier up now.
03

Will you hold physical stock?

If you need warehousing, customs access or a yard, JAFZA, Dubai South and DAFZA change the arithmetic. If you never touch goods, paying for that infrastructure is money burned.
04

Who is your bank?

Banks are not neutral about free zones. Some zones open accounts easily; others attract extra compliance scrutiny. We match the zone to the bank most likely to accept your nationality mix and activity.
05

Does the zone require an audit?

Several zones demand audited financial statements before renewal. That is an annual cost of roughly AED 5,000–15,000 that rarely appears in a headline comparison.
06

Do you want qualifying free zone status?

If the 0% corporate tax rate on qualifying income matters to you, substance and audit requirements should shape the zone and office decision from day one, not year two.
Cost

What to budget for a free zone company

ConfigurationIndicative first year (AED)What it includes
Zero-visa licence, budget zone12,500 – 16,000Licence, registration, flexi-desk. No immigration file.
One-visa licence, budget zone20,000 – 26,000Adds establishment card, immigration card and one residence visa.
Two to three visas, mid-tier zone28,000 – 42,000Larger package, dedicated desk or small office.
Premium zone, small office45,000 – 75,000DMCC-tier registration, physical office, higher visa allocation.
Regulated / financial services zone90,000 – 250,000+DIFC or ADGM style, regulatory application and capital requirements.

Add roughly AED 4,000–5,500 per additional residence visa and, where the zone requires it, AED 5,000–15,000 a year for a statutory audit. These are planning figures, not quotes.

Questions

Free zone questions, answered plainly

On headline licence price, Meydan Free Zone and IFZA sit at the affordable end, with zero-visa packages commonly quoted from around AED 12,500–13,000 for the first year. But headline price is a poor guide. What matters is the fully loaded cost: how many activities you can hold on one licence, what each additional visa costs, whether the zone charges separately for the establishment card, and whether it demands audited accounts at renewal. A zone that is AED 2,000 cheaper on the licence and AED 1,500 more expensive per visa is the wrong choice for a three-person team.

Not automatically. Free zone companies are within the scope of UAE corporate tax and must register with the Federal Tax Authority like everyone else. A 0% rate on qualifying income is available to a Qualifying Free Zone Person, but only where the company maintains adequate substance in the zone, earns qualifying income as defined by the Cabinet decisions, stays within the de minimis threshold for non-qualifying revenue, and prepares audited financial statements. Miss any of those and the standard 9% applies above AED 375,000. See corporate tax registration.

Yes. Each free zone package carries a visa quota — commonly zero, one, two, three or six. You cannot exceed it without upgrading the package or the office format, so it is worth buying for the team you expect in eighteen months rather than the team you have today. Upgrading mid-term is possible but usually costs more than buying the right tier at the outset.

Most zones bundle a flexi-desk or shared workstation into the licence fee, which satisfies the registration requirement. Dedicated offices are optional at the entry level and mandatory only beyond certain visa counts or for regulated activities. Note that free zone flexi-desks do not automatically satisfy the substance test for tax purposes, and some banks look closely at whether an address is genuinely used.

For goods, no — selling into the mainland means importing through a distributor or paying customs duty at the border. For services, many free zone companies invoice mainland clients routinely, and several zones explicitly permit it for defined activities, but this is not a blanket permission and it varies by zone and activity. If a large share of your revenue will come from mainland UAE customers, tell us on the first call; it changes the recommendation.

Free consultation

Let us shortlist three zones for your business

Send us your activity, your visa plan and your target customers. We come back with three named zones, an itemised cost for each, and the reason we ranked them that way.

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