Set up a free zone company in one of the UAE's 40+ special economic zones — 100% foreign ownership, 0% corporate tax on qualifying income, and a regulator built around your sector.
A UAE free zone is a self-contained economic district licensed by a dedicated authority rather than the local Department of Economic Development. There are 40+ such zones across the seven emirates, each built around a specific sector, offering 100% foreign ownership, profit and capital repatriation, and 0% corporate tax on qualifying income under the Qualifying Free Zone Person regime.
A UAE free zone is a self-contained economic district licensed by a dedicated authority rather than the local Department of Economic Development. Each zone is built around a specific sector or use-case — commodities at DMCC, financial services at DIFC, logistics at JAFZA, media at SHAMS, deep-tech at SRTIP, low-cost SMEs at Ajman Free Zone — and offers full foreign ownership, profit and capital repatriation, and a 0% corporate-tax rate on qualifying income under the Federal Tax Authority's Qualifying Free Zone Person regime.
The right zone depends on your business activity, your customers and how often you'll need to invoice the UAE local market. Free zone companies are ideal when most revenue is international or B2B-within-zone; for mainland trade or government contracting, a mainland licence is the better route. Avyanco matches the business model to the right zone, regulator and licence — not the easiest one to file.
UAE Free Zones are sector-specific economic enclaves with their own commercial-companies law, customs treatment, and regulatory framework — operating in parallel to the federal UAE mainland regime. There are 40+ Free Zones spread across the seven emirates. The combination of QFZP eligibility (0% Corporate Tax on Qualifying Income), 100% foreign ownership from day one, full profit repatriation, and sector-clustered ecosystems makes Free Zones the default structure for export-oriented, IP-heavy, services, and trading businesses.
Qualifying Free Zone Persons can elect 0% Corporate Tax on Qualifying Income under Cabinet Decision 100/2023 — alongside the standard 9% above AED 375,000. Qualifying Income covers a specific list of activities under Ministerial Decision 265/2023 — Avyanco scopes which activities and revenue streams qualify before election.
Every UAE Free Zone has always permitted 100% foreign ownership — predating the 2021 mainland reform. Combined with the QFZP regime, Free Zones remain the cleanest founder-controlled structure.
Each Free Zone has a sector focus — DMCC (commodities, Web3), JAFZA (logistics, port), DIFC (regulated finance), DAFZA (aviation), KEZAD (heavy industry), SRTIP (deep-tech R&D), SHAMS (media), and 30+ more. Choosing the right Free Zone aligns the operating ecosystem with the business model.
Certain Free Zones — JAFZA, DMCC, DAFZA, KEZAD, specific RAKEZ industrial parks — carry Designated Zone status under Cabinet Decision 59/2017. Goods movements between Designated Zones, or Designated-Zone-to-export, can fall outside the scope of UAE VAT.
UAE Free Zones permit unrestricted repatriation of profits and capital, no foreign-exchange controls, and no restrictions on currency holdings. Important for international groups consolidating UAE-sourced earnings into parent jurisdictions.
Most UAE Free Zones support digital licence issuance, flexi-desk/smart-office configurations, and streamlined visa sponsorship. Initial setup typically faster and lighter-touch than mainland equivalents — especially for solo founders and seed-stage ventures.
Each free zone publishes its own activity list, but the licence categories cluster around three families. The right category drives ownership rules, office requirements and any additional regulator approvals.
For trading, distribution, re-export, retail and online commerce. The most common licence category across free zones — covers physical and digital goods.
For consultancy, advisory and creative services. Allows full foreign ownership and is the default route for service-led founders.
For manufacturing, processing and regulated specialist activities. Issued by the zone in coordination with the relevant sector authority.
Three legal forms are recognised across UAE free zones. The right one depends on shareholder count and whether the entity is standalone or an extension of an existing group.
Multi-shareholder structure with limited liability. Shareholders are exposed only up to their share of capital — the standard form for partnerships and joint ventures.
Single-owner vehicle. Gives the owner full control of the company while retaining limited liability. Common for solo founders and holding-company setups.
Branch office of a UAE or foreign parent. Operates under the parent's name and is suited to international groups establishing a regulated UAE presence.
Each zone runs its own licensing portal, but the sequence is broadly the same across all 40+ free zones.
Match the business activity to a zone whose regulator and sector focus fit. DMCC for commodities, DIFC for financial services, IFZA or Ajman for cost-led SMEs, RAKEZ for industrial activities, and so on.
FZ LLC for multiple shareholders, FZE for a single owner, or a branch for an existing parent entity. The structure determines liability and capital exposure.
Submit and reserve the company name with the zone authority. UAE-wide naming rules apply — no offensive terms, religious references or duplicates of existing entities.
Choose the licence category that fits the activity and submit the application with the required documents. Zone authorities issue initial approval before the formal licence.
Lease a compliant office, co-working desk or warehouse in the zone, depending on the package. Regulated activities (financial, healthcare, education) need additional sector clearance.
The zone authority issues the trade licence. The company can then open a corporate bank account, apply for investor and employee visas and begin operations.
The standard documentation set is consistent across zones. Corporate shareholders and regulated activities require additional documents on top of the individual-shareholder list below.
Free zones offer a focused mix of tax, ownership and operational benefits that suit international and B2B-led businesses.
UAE Free Zone Persons are taxable persons under Federal Decree-Law 47/2022 — but with access to the Qualifying Free Zone Person (QFZP) regime under Cabinet Decision 100/2023, allowing 0% Corporate Tax on Qualifying Income. The election is not automatic — eligibility, substance, and qualifying-activity scope all need to be evidenced.
Free Zone entities can elect QFZP status: 0% on Qualifying Income (specific activity list under Ministerial Decision 265/2023) and 9% on Non-Qualifying Income above AED 375,000. The list covers manufacturing, distribution from Designated Zones, qualifying intellectual-property income, holding shares, qualifying headquarters services, and several other categories.
Standard UAE VAT applies to Free Zone Persons. Some — not all — Free Zones carry Designated Zone status under Cabinet Decision 59/2017, providing VAT-efficient goods-movement treatment. Designated Zone status is zone-specific (sometimes business-park-specific within a zone) — verify per case before relying on it.
Sources & official references: 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 + amendments (Designated Zones) · FTA (Federal Tax Authority) published guides
Each free zone is engineered for a sector. The right fit depends on the licence you need, the regulator you'll deal with and the network you want around you.
Avyanco runs free-zone formation engagements end-to-end across every UAE zone — from picking the right regulator and licence to handing over a banked, visa-ready entity registered for Corporate Tax and VAT.
We match your activity to the right zone — comparing regulator, cost base, visa quota and sector fit, not just the easiest one to file.
Holding structures and share splits designed for UAE Corporate Tax efficiency and long-term flexibility.
Application, MoA drafting and zone-specific paperwork handled by a team that knows each authority's requirements.
Introductions to UAE banks active across free zones, plus the documentation file the bank's onboarding will ask for.
Investor, partner and employee visas processed end-to-end alongside Emirates ID and medicals.
FTA registrations for Corporate Tax (including QFZP positioning where it applies) and VAT, plus ongoing filings.
Five partner-level advisors covering every leg of a UAE free zone setup — formation, tax, growth and operations.
Three things that come up in every conversation about why clients stay with us after the licence is issued.
Live engagements across every major UAE free zone means we know the quirks of each regulator — pricing, visa quota, banking acceptance, activity scope — without guessing.
Zone selection, licence, MoA, office, bank, visa and tax registration — handled by one team on one engagement letter.
We structure for the Qualifying Free Zone Person regime where it applies and flag the activities that won't qualify — clear-eyed, not best-case.
Fourteen of the UAE's most active free zones, grouped by emirate. Each one specialises in a different industry — pick the regulator and ecosystem that fits your business.
Dubai Multi Commodities Centre. Global hub for commodities trade — gold, diamonds, tea and crypto.
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International Free Zone Authority. Dubai's most cost-efficient route for service and trading businesses.
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Jebel Ali Free Zone. The UAE's oldest and largest free zone — logistics, manufacturing and re-export hub.
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Dubai Airport Free Zone. Premium hub for aviation, tech and high-value trade beside DXB Terminal 1.
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Dubai International Financial Centre. Common-law jurisdiction and the region's leading financial hub.
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Meydan Free Zone. Prestigious Dubai address with fast set-up for SMEs and e-commerce founders.
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DUQE on the QE2. Free zone aboard the historic ocean liner in Port Rashid — hospitality and lifestyle focus.
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Dubai South (DWC). Aerotropolis around Al Maktoum Airport — logistics, aviation, e-commerce and trade.
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Dubai Internet City. The UAE's original technology cluster — software, IT, telecoms and digital media, since 2000.
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Dubai Media City. The region's media district — broadcast, production, advertising, PR and publishing, since 2001.
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Dubai Silicon Oasis. Integrated tech park with the Dtec incubator — software, electronics, IoT and a live-work community.
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Dubai Healthcare City. The region's DHCA-regulated medical free zone — clinics, hospitals, pharma and health-tech.
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Dubai Design District. The region's creative quarter — design, fashion, architecture and luxury brands, since 2013.
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Dubai Science Park. The region's first science-focused free zone — pharma, life sciences and energy, with fitted labs.
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Dubai Knowledge Park. The region's home for training, HR and professional development (formerly Knowledge Village).
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Dubai Outsource City. The region's dedicated outsourcing and BPO free zone — call centres, shared services and back-office operations.
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Dubai Studio City. The region's purpose-built free zone for film, TV, broadcast and production, with sound stages and back-lots, since 2005.
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Dubai International Academic City. The region's largest higher-education hub — universities, colleges and branch campuses, since 2006.
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Dubai World Trade Centre free zone. Dubai's landmark events and exhibitions district, with an early virtual-assets regulatory framework.
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Dubai CommerCity. The Middle East and North Africa's first dedicated e-commerce free zone, with integrated fulfilment — a DAFZA + wasl joint venture.
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Dubai Cars & Automotive Zone. Dubai's dedicated automotive trade and re-export zone within the DP World ecosystem, since 2000.
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Expo City Dubai. The sustainability- and innovation-led legacy of Expo 2020 — a free zone for future-economy businesses, since 2022.
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Sharjah Media City. Built for media, creative and digital businesses with light-touch licensing.
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Sharjah Research, Tech & Innovation Park. Home to deep-tech, sustainability and applied-research firms.
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Sharjah Publishing City. The region's dedicated free zone for publishing, printing and e-commerce.
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Hamriyah Free Zone. One of the UAE's largest industrial free zones, built around a deep-water port — manufacturing, oil & gas, maritime and logistics.
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Sharjah Healthcare City. A free medical zone managed by the Sharjah Health Authority — clinics, hospitals, diagnostics and wellness.
Read moreSAIF Zone. One of the UAE's oldest and largest free zones, beside Sharjah International Airport — light industry, logistics, warehousing and trading.
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Ras Al Khaimah Economic Zone. Multi-sector zone with strong industrial, materials and SME ecosystems.
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RAK Digital Assets Oasis. The UAE's first free zone built for Web3, digital assets and DAO structures.
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Ajman Free Zone Authority. One of the UAE's most affordable free zones with quick turnaround.
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Umm Al Quwain Free Trade Zone. One of the UAE's longest-running, most cost-efficient free zones for SMEs and traders.
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RAK Maritime City. A Ras Al Khaimah free zone and international port — shipbuilding, tank storage, heavy industry and port-based trade.
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Ajman NuVentures Centre. A fully digital free zone for freelancers, digital nomads and SMEs — fast, online setup.
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Khalifa Economic Zones Abu Dhabi. Integrated industrial, logistics and trade zone on the Gulf coast.
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Abu Dhabi Global Market. Common-law financial centre — funds, family offices, SPVs and fintech.
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Masdar City. Abu Dhabi's sustainability & cleantech hub — renewables, AI, space and R&D.
Read moretwofour54. Abu Dhabi's media & creative free zone — broadcast, production, gaming and digital content, regulated by the Creative Media Authority.
Read moreAbu Dhabi Airports Free Zone. Aviation, aerospace, MRO and air cargo beside the capital's airports, with hangars and warehousing on site.
Read moreIndustrial City of Abu Dhabi. A ~40 km² manufacturing hub in Musaffah, operated by the KEZAD Group (AD Ports) — metals, oil & gas, food and logistics.
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Fujairah Free Zone. The UAE's east-coast gateway on the Gulf of Oman, beside the Port of Fujairah — trading, logistics and light industry.
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Fujairah Creative City. A flexible media and creative free zone for freelancers and content businesses — often without a physical-office requirement.
Read moreA short slice of recent feedback from owners who set up their UAE free zone companies through Avyanco.
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 GoogleI'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 GoogleI 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 GoogleWe had an excellent experience working with this company for our ADGM company setup in Abu Dhabi.
Read more — Nikhil Nadanga's review on GoogleI have been dealing with Akshta for more than a year now and she has been very professional.
Read more — Sherif Ayub's review on GoogleIn so far as the emigration process can ever be made easy, Avyanco achieves exactly this.
Read more — Sheru George's review on GoogleCommon questions about UAE free zone company formation, licensing and tax.
Content verified against the live Avyanco site and publicly available UAE free zone framework sources as of June 2026. Avyanco Business Consultancy LLC 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 and Corporate Tax positions evolve. Always confirm the current rules for your specific activity directly with the chosen zone's authority and the Federal Tax Authority before acting on any fact on this page.
Tell us what you need and a senior advisor will respond within one business day — no obligation.
Speak to an Avyanco partner about the zone, licence and structure that fits your business — whether you're entering the UAE for the first time or adding a free zone arm to an existing presence.
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