Free Zone · Dubai & UAE

Business Setup in a Free Zone in the UAE by Avyanco

A free zone gives your company a UAE structure designed around your business activities, budget and ownership requirements. Most zones offer 100% foreign ownership and licences for technology, trading, e-commerce and other approved activities.

  • 11,500+ businesses set up
  • DET licence #909402
  • 40+ free zones covered
100%Foreign ownership in most zones
AED 12,500*Licence package from, per year
5 to 10Working days for simple applications
0%Corporate Tax for QFZP*
Fit check

Is a free zone right for your business?

A free zone suits international trading, professional services and digital business. It does not fit every model, so we check your customers and activity before recommending a route.

A free zone is a great fit if you…

  • Want full foreign ownership, which most authorities allow
  • Want to repatriate capital and profits, subject to applicable banking rules and laws
  • Trade internationally: import, export and re-export under the relevant customs rules
  • Need investor and employee residence visas within your approved quota
  • Want 0% Corporate Tax on qualifying income as a Qualifying Free Zone Person

Consider another route if you…

Overview

A UAE structure built around your business

Talk to Avyanco to compare the authorities, choose the right legal structure and prepare the application. We assess your visa requirements, tax obligations, office options and renewal costs before you commit.

Each zone is licensed by its own authority and clustered around a sector: commodities at DMCC, finance at DIFC, logistics at JAFZA, and cost-led SMEs at IFZA, Ajman and RAKEZ. Choosing on regulator, cost, visa quota and activity matters more than the headline price.

Watch: what a UAE free zone is, in 35 seconds

40+ free zonesAcross all seven emirates
Best known forInternational trade, services and digital business
Why a free zone

Six reasons founders choose a UAE free zone

Full ownership, international trade, residence visas and a 0% tax route, all built around the regulator for your sector.

01 · OWNERSHIP

Own 100% of your company

Most free zone authorities allow full foreign ownership across eligible activities.

TechnologySERVICE
TradingCOMMERCIAL
E-commerceCOMMERCIAL
= 1 free zone licence100% OWNED
02 · PROFITS

Profit repatriation

Capital and profits can be transferred, subject to applicable banking regulations and laws.

03 · TAX
0%

Corporate Tax on qualifying income

For a Qualifying Free Zone Person that meets every condition. Other income is taxed at 9%.

04 · VISAS

Residence visas

Investor and employee visas for eligible companies, within the approved quota.

05 · TRADE

International trade

Eligible businesses can import, export and re-export goods under the relevant customs rules.

06 · ZONE CHOICE

A regulator built around your sector

Each zone has its own rules, fees, visa quota and activity list, so the right zone depends on what you do and who you sell to.

Licences & structures

Licence type and legal structure

LIC-01

Commercial

For distribution, trading and eligible import-export activities. Your licence should cover every activity the company performs.

Best forTraders
CoversImport and export
ApprovalsActivity based
  • General trading
  • Import, export and re-export
  • Wholesale distribution
  • Specialist commodity trading
Choose a zone

Match your activity to the right zone

No single zone fits every business. The choice depends on four factors: your approved activity, your budget, the number of visas you need, and where your suppliers, clients or team are based.

Popular UAE free zones compared by emirate, suitable activities and cost range
ZoneEmirateSuitsVisa and cost rangeGuides
DMCCDubaiTrading, commodities, professional servicesPremium Dubai option. AED 50,000 minimum share capital for an FZCO
IFZADubaiSMEs, e-commerce and consultantsZero-visa licence from about AED 12,900*
MeydanDubaiFreelancers, small teams and consultantsStandard licence from AED 12,500*
RAKEZRas Al KhaimahManufacturing, cost-conscious SMEs and tradingValue-focused northern-emirate option
SHAMSSharjahMedia, creative and service businessesEntry packages from about AED 5,760*
SPCSharjahStartups, trading, consultancy and e-commerceZero-visa package from AED 5,750*. One-visa package from AED 13,175*
JAFZADubaiLogistics, industrial business and tradingPremium logistics and warehouse option
ADGMAbu DhabiFinancial services, funds and holding companiesStructured for regulated financial activities
DIFCDubaiBanking, fintech, insurance and professional servicesStructured for regulated financial activities

Example: a UK consultant who needs one visa and works remotely may compare SPC, SHAMS, IFZA and Meydan. SPC publishes a one-visa package from AED 13,175*, and Meydan's standard licence starts at AED 12,500* before visa and office additions.

Example: a trading company importing goods through Jebel Ali may need JAFZA or DMCC instead, because customs processes, warehouse access and activity coverage vary by zone.

Compare

Free zone or mainland, and the new route to Dubai mainland

The right structure depends on where you trade, the activities you conduct and the premises your business requires.

Free zone versus mainland company: ownership, trading, office, visas, tax and cost
FactorRouteFree zoneRouteMainland
OwnershipMost zones permit 100% foreign ownership100% foreign ownership available for many activities
UAE-wide tradingHistorically restricted. Dubai offers a DET routeTrade across the UAE, subject to licensing
OfficeFlexi desk or office package requiredOffice and Ejari requirements vary by activity and authority
VisasQuota linked to the office or packageQuota based on office size and authority rules
Corporate Tax0% on qualifying income if QFZP conditions are met, otherwise 9%9% above the AED 375,000 taxable-income threshold
CostLower entry packages are available, especially in SharjahCost rises once office, approvals and local requirements are included
Next stepStart with a free zone →Mainland guide →

Under Dubai Executive Council Resolution No. 11 of 2025, eligible companies can conduct approved mainland activities. The fees mentioned are AED 10,000* a year for a branch licence and AED 5,000* for a temporary permit of up to 6 months. Confirm current fees and eligibility with Dubai DET; DIFC financial entities are excluded from the framework. Mainland income may also need a Corporate Tax review. Read our guide to mainland company formation.

Setup process

Six steps from first call to licence

The process starts with selecting a business model and ends with the registration and operating requirements that apply to your company.

  1. 1

    Confirm the activity

    We review your products, services, target audiences and regulatory requirements.

  2. 2

    Select the authority

    We compare legal forms, jurisdictions, office options, visa quotas and fees.

  3. 3

    Reserve the company name

    The authority checks the proposed name against naming rules and availability.

  4. 4

    Obtain initial approval

    We prepare the application and submit the information for initial approvals.

  5. 5

    Submit documents and payment

    Shareholder documents, declarations and corporate papers go in, and the applicable fees are paid.

  6. 6

    Receive the licence

    We coordinate the establishment card, registration, eligible residence visas and next steps for a corporate bank account.

Many applications are handled remotelyImmigration and banking procedures may need extra steps, and timing depends on the authority and activity approvals.
Visa and bank account supportWe coordinate residence visas and prepare your documents for the corporate bank account.
Why Avyanco

One partner-led team, start to finish

Licence, bank account, visas and tax handled by one named advisor, with government fees and our fee always shown separately.

11,500+Businesses formedMainland · Free Zone · Offshore
45+Free ZonesRAKEZ · IFZA · DMCC · DIFC · KEZAD
21+Years' advisory experiencePartner-led firm, founded 2020
4.8★Client rating745 verified Google reviews
Client stories
“We had an excellent experience working with this company for our ADGM company setup in Abu Dhabi.”
Nikhil NadangaGoogle review · May 2026
What's included

What we handle for your free zone setup

We compare jurisdictions on your actual requirements, not on package price alone. Government charges and our professional fee are always shown separately.

Avyanco graphic reading One team, start to finish for UAE free zone setup, over a crowd in front of Dubai towers
Fixed, itemised feesGovernment charges and our professional fee are shown separately and in writing, so you know the full cost before you commit.
  • Government fees shown separately
  • Professional fee quoted in writing
  • One named advisor from start to finish

Licensing & legal

  • Zone and legal structure comparison
  • Activity mapping and permitted codes
  • Company name reservation
  • Incorporation documents prepared and coordinated

Banking & residency

  • Visa and establishment card review
  • Residence visa coordination
  • Corporate bank account preparation
  • Registration and next steps

Tax & compliance

  • Corporate Tax registration requirements
  • QFZP eligibility assessment
  • VAT guidance when thresholds are met
  • Audited financial statements for QFZPs
Documents

A short, clear document list

The documents depend on whether the shareholder is an individual or an existing company. Additional paperwork may be requested for specific nationalities or regulated activities.

6 documents
  • Passport copyEvery shareholder
  • Recent photograph
  • Proof of residential address
  • CV, business profile or NOCIf requested
  • Proposed company name and activity detailsCompany
  • Visa or entry detailsWhere applicable
Avyanco checklist of documents needed for UAE free zone company setup, for individual and corporate shareholders
We review before we fileDocuments are checked against the authority's rules
Attestation guidanceForeign corporate documents may need attestation or legalisation, and we guide each step
Costs & tax

Transparent cost. Clear tax position.

Licence costs depend on the legal form, authority, activity, office option and number of visas. Compare whole packages: some zones bundle the licence, visa allocation and establishment card, and others charge them separately.

Example: one founder, one visa, flexi desk

Meydan, first-year costs in AED. *Indicative, subject to change

Meydan one-visa package (licence, visa allocation, flexi desk)AED 14,350*
Establishment cardAED 2,000*
Investor visa processingAED 4,000*
Medical and Emirates IDAED 2,250*
Avyanco professional feeQuoted separately
Estimated first-year totalAED 22,600*
See the full Meydan cost breakdown →
UAE Corporate Tax0% / 9%

0% on qualifying income for a Qualifying Free Zone Person that meets every condition. Non-qualifying income is taxed at 9%. Companies outside the QFZP regime pay 0% on taxable income up to AED 375,000 and 9% above it.

QFZP rules explained →
UAE VAT5%

Registration is mandatory when taxable supplies and imports exceed AED 375,000.

Designated Zone status: confirm with the FTA
ANNUALCorporate Tax return
QUARTERLYVAT returns
ANNUALAudited financials (QFZP)
ANNUALLicence renewal
ONGOINGUBO register

Year-one budget by company profile

Typical year-one free zone budget by company profile, in AED
Company profileTypical year-one budgetUsually includedNotes
Zero-visa company, Sharjah value zonesFrom AED 5,750 to 5,760*Licence and basic registration, visa excludedSPC and SHAMS publish entry packages at this level.
Zero-visa company, DubaiFrom AED 12,500 to 12,900*Licence and basic registration, visa excludedMeydan starts at AED 12,500*; IFZA's zero-visa licence starts around AED 12,900*.
One founder, one visaFrom about AED 13,175 to 21,000*Licence, visa allocation and, in some packages, establishment cardSPC's published one-visa package starts at AED 13,175*; Dubai one-visa packages are often higher.
Multi-visa or office-based companyFrom AED 20,000+Licence, higher visa quota and office or flexi deskCost depends on office size, activity and authority.

A one-person company should also budget for Emirates ID and medical fees, a visa status change or security deposit, audit, accounting and corporate bank account charges. These are separate from the licence cost and vary with personal circumstances, so check them before you set up.

0% Corporate Tax: how QFZP status works and how it is lost

A Qualifying Free Zone Person (QFZP) may get 0% Corporate Tax on qualifying income, subject to meeting specific conditions:

  • Earn qualifying income
  • Maintain adequate UAE substance
  • Stay within the de minimis threshold for non-qualifying revenue
  • Comply with transfer pricing rules
  • Maintain audited financial statements
  • Do not elect the standard Corporate Tax regime

The de minimis threshold is the lower of 5% of total revenue or AED 5 million. If the company fails these conditions, it loses QFZP status for that tax period and the next four, and non-qualifying income may be taxed at 9%. Every free zone company should assess Corporate Tax registration, QFZP review, filing and record-keeping, and QFZPs must prepare and maintain audited financial statements. Our corporate tax team assesses your eligibility for QFZP benefits.

FAQ

Questions founders ask about free zones

Can’t find your answer?

A senior advisor replies within one business day.

Can I set up a free zone company without visiting the UAE?

Yes. Many authorities support remote company setup in a free zone. Identity verification, immigration and banking may involve in-person procedures or additional requirements.

What does a free zone licence cost for a one-person company?

Licence costs vary with the activity, authority, office and visa requirements. Government packages start from about AED 5,750* in the lowest-cost Sharjah zones and from AED 12,500* in Dubai, before visas. A founder with one visa and a flexi desk should budget more: the Meydan example on this page totals about AED 22,600* in the first year, including the establishment card, investor visa, medical and Emirates ID. Request a quote that covers licensing, registration and renewal.

How many residence visas can a company get?

The visa quota depends on the package, authority, office arrangement and eligibility. Confirm the permitted allocation before you apply.

Do I need a physical office for a free zone setup?

Not always. Some activities qualify for flexi desks, while others need dedicated warehouses, offices or approved facilities.

How long does a corporate bank account take?

It depends on the shareholder details, due diligence, business activity and source-of-funds documents. Incorporation does not guarantee bank approval.

Is Corporate Tax or VAT registration required?

Corporate Tax obligations may apply whether or not qualifying income receives the 0% rate. VAT registration depends on the applicable thresholds and taxable turnover.

Can I move to another zone or the mainland later?

Yes, after a free zone setup you can move to another zone or the mainland. It depends on licensing approvals, cancellation procedures, restructuring requirements and tax implications.

What happens if I renew my licence late?

Late renewal leads to penalties or restrictions on company services. Confirm deadlines and outstanding fees with your authority.

Start today

Tell us your activity, and we'll shortlist your zone.

Share your shareholder details, business activity and visa requirements. We compare the suitable jurisdictions and expected costs, and quote in writing with government fees and our professional fee shown separately. No obligation.

  • The right zone for your activity, not just the cheapest
  • Itemised cost across licence, office, visas and tax
  • Bank, visa and Corporate Tax / VAT support end to end
Talk to Tanya, business setup consultantTypically replies within one business day
DET licence #909402FTA-registered tax agents11,500+ businessesFixed fee · no hidden costs

Confidential · No obligation · We never share your details

Sources: Federal Decree-Law 47/2022 (Corporate Tax) · Cabinet Decision 100/2023 (QFZP) · Ministerial Decision 265/2023 (qualifying activities) · Federal Decree-Law 8/2017 (VAT) · Cabinet Decision 59/2017 (Designated Zones) · Dubai Executive Council Resolution 11/2025 · Federal Tax Authority (tax.gov.ae). *QFZP 0% applies to qualifying income only, subject to the conditions above. *Prices shown are indicative, may change, and exclude Avyanco's professional fee, which is quoted separately.

Verification & independence: Avyanco Business Consultancy LLC is a private firm, independent of any UAE free zone authority and not affiliated with any UAE government agency. Zone rules, fees, QFZP eligibility, Designated Zone status and Corporate Tax positions are set by the relevant authorities, vary by case and change over time. This page is general guidance, not legal, tax or accounting advice. Confirm your position with the zone authority and the Federal Tax Authority, or with us, before acting.