We had an excellent experience working with this company for our ADGM company setup in Abu Dhabi.
Read more — Nikhil Nadanga's review on GoogleCompany Setup · UAE Free Zones
UAE Free Zone Company Formation
Set up in one of the UAE’s 40+ free zones — 100% foreign ownership, 0% Corporate Tax on qualifying income, and a regulator built around your sector.
Each free zone is licensed by its own authority and clustered around a sector — commodities at DMCC, finance at DIFC, logistics at JAFZA, cost-led SMEs at IFZA, Ajman and RAKEZ. Choosing the right one — on regulator, cost, visa quota and activity — matters more than the headline price. Avyanco matches your business model to the right zone and handles licence, bank, visas and tax.
- ✓ 100% ownership
- ✓ 0% on qualifying income
- ✓ 40+ zones covered
In brief:a UAE free zone company is licensed by a dedicated authority rather than the emirate’s Department of Economy — giving 100% foreign ownership, full profit repatriation and 0% Corporate Tax on qualifying income as a Qualifying Free Zone Person. There are 40+ zones, each built for a sector. Avyanco picks the right zone for your activity and delivers the licence, corporate bank account, visas and Corporate Tax / VAT registration on one engagement — professional fees and government charges shown separately.
Reviewed by Ishan Naruka, Head of Growth · Free Zones & Expansion · Updated August 2026
Proven Impact
Trusted by Founders, Family Offices, and Global Enterprises.
11,500+
Businesses formed
Mainland · Free Zone · Offshore
45+
Free Zones
RAKEZ · IFZA · DMCC · DIFC · KEZAD
21+
Years' experience
Partner-led firm, founded 2020
4.8★
Client rating
735 verified Google reviews
Why a UAE free zone
A free zone is a self-contained economic district with its own regulator, licensing portal and customs treatment. Every zone permits 100% foreign ownership — it predates the 2021 mainland reform — with no foreign-exchange controls and full repatriation of profit and capital. Combined with the Qualifying Free Zone Person regime (0% Corporate Tax on qualifying income), it remains the cleanest founder-controlled structure for export, services, IP-heavy and B2B businesses.
Free zones are the natural fit when most revenue is international or business-to-business. If you need to sell directly to UAE consumers across the mainland or bid for government work, a mainland licence may fit better — we compare both against your actual model before you commit.
Choose your free zone
The most active UAE zones by sector — each links to its own guide with costs, activities, visa quota and setup steps.
DMCCCommodities, gold, crypto & Web3.View zone →IFZACost-efficient Dubai SME licence.View zone →Meydan Free ZoneCentral Dubai · 2,500+ activities.View zone →JAFZALogistics, port & re-export.View zone →DIFCRegulated financial services.View zone →DAFZAAviation, tech & logistics.View zone →RAKEZIndustrial & multi-sector, low cost.View zone →SHAMSSharjah media & creative.View zone →SPC Free ZoneSharjah publishing · high visa quota.View zone →Ajman Free ZoneAmong the lowest-cost UAE licences.View zone →Dubai SouthLogistics & aviation (DWC).View zone →ADGMAbu Dhabi common-law finance.View zone →
Free zone licence categories
Each zone publishes its own activity list, but the categories cluster into three families. The category drives office requirements and any additional regulator approvals.
- Trading & Commercial — general trading, import/export and re-export, e-commerce, wholesale and specialist commodity trading.
- Service & Professional — consultancy, media and creative, IT and software, freelancers, and accounting/tax/legal advisory.
- Industrial & Specialised — manufacturing, assembly and packaging, training institutes, and regulated activities such as financial services (DIFC, ADGM) and healthcare.
Most zones allow several related activities on one licence, and offer FZ LLC (multiple shareholders), FZE (single owner) or a branch of an existing company as the legal form.
Not sure which zone fits your activity?
Tell us what you do and who you sell to — we’ll shortlist the right zones, free.
0% Corporate Tax — the QFZP regime
A free zone company can pay 0% Corporate Tax on qualifying income as a Qualifying Free Zone Person under Cabinet Decision No. 100 of 2023, with the qualifying-activity list set by Ministerial Decision No. 265 of 2023. It is not automatic: you must keep adequate substance in the zone, derive qualifying income, comply with transfer pricing, hold audited financial statements, and keep non-qualifying revenue within the de-minimis limit (the lower of 5% of revenue or AED 5 million). Breach any condition and the standard 9% applies to all income for that and the next four years.
We assess whether your revenue genuinely qualifies before you elect. Read the full guide: Qualifying Free Zone Person, and see Corporate Tax & VAT.
How a free zone company is formed
Each zone runs its own portal, but the sequence is broadly the same:
- Choose the zone — match the activity to the regulator and sector focus.
- Pick the structure — FZ LLC, FZE or a branch of an existing parent.
- Reserve the trade name — subject to UAE naming rules.
- Apply for the licence — submit the activity and documents for initial approval.
- Secure office & approvals — flexi-desk, office or warehouse; extra clearance for regulated activities.
- Receive the licence — then open the bank account and apply for investor and staff visas.
Most setups complete in five to ten working days once documents are ready. See the full business setup guide.
Free zone cost
There is no single “free zone price”. The lowest-cost routes — Ajman Free Zone, RAKEZ and SHAMS — start well below a premium financial-district setup in DIFC or ADGM, and your visa count, office solution and activity mix move the figure further. Each zone’s cost guide has the itemised government “from” cost with a downloadable fact sheet.
Compare every zone on the packages & pricing page, read the business setup cost guide, or get an instant estimate with the cost calculator.
Free zone vs mainland
Free zones give 100% ownership across every activity, simpler compliance and often lower cost — but to sell directly to UAE mainland customers you generally need a distributor or a mainland branch. Mainland companies can trade UAE-wide and with government, with 100% ownership now available for most activities since the 2021 Commercial Companies Law reform. For international holding and asset protection with no UAE residency, an offshore company may be the better vehicle.
The right route comes down to who you sell to — we map free zone, mainland and offshore against your actual model in the business setup consultation.
Every UAE free zone, by emirate
Full guides for each zone — regulator, activities, visa quota, cost and setup steps.
Dubai free zones
Abu Dhabi free zones
Sharjah free zones
Northern Emirates free zones
N
Nikhil Nadanga25 May 2026
I have been dealing with Akshta for more than a year now and she has been very professional.
Read more — Sherif Ayub's review on GoogleS
Sherif Ayub24 May 2026
In so far as the emigration process can ever be made easy, Avyanco achieves exactly this.
Read more — Sheru George's review on GoogleS
Sheru George12 May 2026
I've used the services of Avyanco twice over the past 3 years for visa processing, and they have never failed to impress me.
Read more — Dominic Pinto's review on GoogleD
Dominic Pinto11 May 2026
We are very satisfied with Avyanco's support for Nanasu Realty — especially across AML compliance, accounting, and company setup.
Read more — Purushottam Mukkundi's review on GoogleP
Purushottam Mukkundi6 May 2026
I had an excellent experience with Avyanco Business Setup Consultancy for both my company formation and family dependent visa process in the UAE.
Read more — Eder Schaphauser Ziomek's review on GoogleE
Eder Schaphauser Ziomek29 April 2026
Related services & guides
Mainland and offshore alternatives, the tax position, and the tools to compare cost.
Frequently asked questions
What is a UAE free zone company?
A free zone company is a UAE entity licensed by a dedicated free zone authority rather than the emirate's Department of Economic Development. It benefits from 100% foreign ownership, profit and capital repatriation, and a sector-specific regulator built around its activity.
Can a foreign founder own 100% of a free zone company?
Yes — every UAE free zone allows full foreign ownership with no requirement for an Emirati partner. This has been the standard since free zones were first established and is one of the model's core advantages.
Are free zone companies subject to UAE Corporate Tax?
Free zone companies must register for UAE Corporate Tax. A 0% rate applies to qualifying income earned by a Qualifying Free Zone Person under Cabinet Decision No. 100 of 2023; non-qualifying income is taxed at the standard 9% above the AED 375,000 threshold. QFZP status requires adequate substance, qualifying income, transfer-pricing compliance and audited financial statements — we confirm eligibility at the planning stage.
Can a free zone company trade with the UAE mainland?
A free zone licence permits invoicing and exporting to the mainland through an authorised distributor or a UAE-mainland branch. For unrestricted direct retail or service delivery to mainland customers, a mainland licence is usually the cleaner route.
How long does free zone company formation take?
Most free zone setups complete in five to ten working days once the document set is ready. Regulated activities — financial services, healthcare, education, media broadcasting — need additional regulator approvals that can extend the timeline.
Which UAE free zone should I choose?
It depends on the activity, the regulator you want and your customer mix. DIFC and ADGM suit regulated finance; DMCC suits commodity traders; JAFZA suits logistics and re-export; IFZA, Meydan, RAKEZ, SHAMS and Ajman Free Zone suit cost-led SMEs. We recommend a specific zone after a short scoping call rather than a generic 'cheapest zone' answer.
How much does it cost to set up a free zone company?
Cost varies enormously by zone and package — the lowest-cost routes (Ajman Free Zone, RAKEZ, SHAMS) sit far below a premium financial-district setup in DIFC or ADGM, and your visa count, office solution and activity mix move the figure further. There is no single 'free zone price'. See our free zone cost guides for indicative figures, or get an instant estimate with the cost calculator.
Do free zone companies need VAT registration?
Free zone companies follow the same VAT rules as the rest of the UAE — registration is mandatory once taxable turnover exceeds AED 375,000 in a rolling 12 months. Some (not all) free zones carry Designated Zone status under Cabinet Decision No. 59 of 2017, which gives certain goods movements special VAT treatment; the registration requirement is the same.
Do free zone companies need audited accounts?
A Qualifying Free Zone Person must maintain audited financial statements to keep its 0% status, and many free zones require audited accounts for licence renewal regardless of tax status. Avyanco is a Ministry of Economy-registered audit firm and can deliver the statutory audit alongside the setup.
How does a free zone compare with a mainland company?
Free zones offer 100% ownership across every activity, simpler compliance and often lower cost, but generally need a distributor or mainland branch to sell directly to mainland customers. Mainland companies can trade UAE-wide and with government, with 100% ownership now available for most activities since the 2021 reform. The right route depends on who you sell to — we compare both against your model before you commit.
Free Consultation
Tell us your business — we will match the right free zone
Share your activity, customers and visa needs and our free-zone team will shortlist the zones that fit, with an itemised quote for the licence, office, visas and tax registration — professional fees and government charges shown separately.
- The right zone for your activity — not just the cheapest
- Itemised cost across licence, office, visas and tax
- Bank, visa and Corporate Tax / VAT handled end to end
Avyanco Business Consultancy LLC is a private firm and is independent of any UAE free zone authority — not endorsed by any zone regulator and not affiliated with any UAE government agency. Zone authorities, activity catalogues, ownership rules, Qualifying Free Zone Person eligibility, Designated Zone status and Corporate Tax positions are set by the relevant authorities, vary by case and change over time. The information on this page is general guidance only and is not legal, tax or accounting advice — confirm your specific position with the chosen zone’s authority and the Federal Tax Authority, or with us, before acting.