Business Setup in a Free Zone in UAE by Avyanco
A business setup in a free zone gives the designed UAE company structure around your business activities, budget and ownership requirements. Most zones provide you with 100% foreign ownership and licensing options for technology, trading, ecommerce and other approved activities.
- 11,500+ businesses set up
- DET licence #909402
- 40+ free zones covered
What a free Zone Company Gives You, and Where it Falls Short
A free zone company provides you with the practical structure for international trading, professional services and digital business. It provides the following benefits to your business setup in a free zone
What a free Zone Company Gives You
- Foreign ownership: Most authorities allow full foreign ownership.
- Profit repatriation: Capital and profits can be transferred, subject to applicable banking regulations and laws.
- International trade: Eligible businesses are allowed to engage in international trade, including import, export and re-export of goods under relevant customs rules.
- Residence visas: Eligible companies are eligible for the investor and employee visas within their approved quota.
- Tax benefits: Qualifying businesses may access 0% Corporate Tax on qualifying income, subject to applicable conditions.
This structure may not fit all businesses.
- Some government contracts, direct retail operations and activities requiring dedicated premises may require a different license or additional approvals.Dubai Mainland →JAFZA →DIFC →DMCC →
- Visa availability may also depend on your office arrangement.
- Avyanco assesses your business model and customer locations and recommends the right route for setting up a company in Dubai.
A UAE structure built around your business
Talk to Avyanco to compare the authorities, select the right legal structure and prepare the application. We assess your visa requirements, tax obligations, office options and renewal costs before committing.
Timeline: 5 to 10 working days for simple applications; timing may depend on the activity approvals, authority, documents and shareholder structure
Watch: what a UAE free zone is, in 35 seconds
Company formation in Free Zone Areas: FZE, FZCO or Branch?
Free Zone Establishment (FZE)
Suitable for a single shareholder.
- Your legal form of business determines the documentation, ownership and business responsibilities. We confirm your eligibility on the basis of the authority's rules.
- Share capital requirements vary by legal form and authority, so we confirm the applicable requirements before applying for company formation in a Free Zone in the UAE.
Free Zone Company (FZCO or FZ-LLC)
Suitable for multiple shareholders, subject to authority rules.
- Your legal form of business determines the documentation, ownership and business responsibilities. We confirm your eligibility on the basis of the authority's rules.
- Share capital requirements vary by legal form and authority, so we confirm the applicable requirements before applying for company formation in a Free Zone in the UAE.
Branch of an Existing Company
Suitable for an eligible UAE or foreign company that wants to operate through a registered branch without creating a separate subsidiary.
- Your legal form of business determines the documentation, ownership and business responsibilities. We confirm your eligibility on the basis of the authority's rules.
- Share capital requirements vary by legal form and authority, so we confirm the applicable requirements before applying for company formation in a Free Zone in the UAE.
Commercial
Distribution, trading, and eligible import-export activities.
- Your trade license should cover the activities that your company performs
- Some activities require external approval, including education and healthcare services. We confirm the permitted activity codes and documentation before submission.
Service or professional
Marketing, IT, consulting, and other approved services.
- Your trade license should cover the activities that your company performs
- Some activities require external approval, including education and healthcare services. We confirm the permitted activity codes and documentation before submission.
Industrial
Production and manufacturing activities that require the relevant approvals.
- Your trade license should cover the activities that your company performs
- Some activities require external approval, including education and healthcare services. We confirm the permitted activity codes and documentation before submission.
E-commerce
Eligible online trading activities.
- Your trade license should cover the activities that your company performs
- Some activities require external approval, including education and healthcare services. We confirm the permitted activity codes and documentation before submission.
Matching your Activity to the Right Zone
No single zone aligns with your business activity. It may depend on four factors, such as approved business activity, budget, number of visas required and where your suppliers, clients or team are based. The given table helps you to compare the most popular zones
| Zone | Emirate | Suits | Visa Range | Zone page | Cost page |
|---|---|---|---|---|---|
| DMCC | Dubai | Trading, commodities, professional services | Premium Dubai option. AED 50,000 minimum share capital for an FZCO | DMCC Free Zone | DMCC cost breakdown |
| IFZA | Dubai | SMEs, e-commerce and consultants | Zero-visa license from about AED 12,900* | IFZA Free Zone | IFZA cost breakdown |
| Meydan | Dubai | Freelancers, small teams and consultants | Standard license from AED 12,500* | Meydan Free Zone | Meydan cost breakdown |
| RAKEZ | Ras Al Khaimah | Manufacturing, cost-conscious SMEs and trading | Value-focused northern-emirate option | RAKEZ Free Zone | RAKEZ cost breakdown |
| SHAMS | Sharjah | Media, creative and service businesses | Entry packages from about AED 5,760* | SHAMS Free Zone | SHAMS cost breakdown |
| SPC | Sharjah | Startups, trading, consultancy and e-commerce | Zero-visa package from AED 5,750*. One-visa package from AED 13,175* | SPC Free Zone | SPC cost breakdown |
| JAFZA | Dubai | Logistics, industrial business and trading | Premium logistics and warehouse option | JAFZA Free Zone | |
| ADGM | Abu Dhabi | Financial services, funds and holding companies | Structured for regulated financial activities | ADGM Free Zone | ADGM cost breakdown |
| DIFC | Dubai | Banking, fintech, insurance, and professional services | Structured for regulated financial activities | DIFC Free Zone | DIFC cost breakdown |
Example: A UK consultant who requires 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 license starts at AED 12,500* before visa and office additions.
A trading company importing goods through Jebel Ali may require JAFZA or DMCC instead, because customs processes, warehouse access, and activity coverage vary by zone.
Free Zone or Mainland, and the New Route to the Dubai Mainland
The right structure may depend on where you trade, the activities you conduct and the premises your business requires. Below is full mainland vs free zone comparison
| Factor | RouteFree zone | RouteMainland |
|---|---|---|
| Ownership | Most zones permit 100% foreign ownership | 100% foreign ownership available for many activities |
| UAE-wide trading | Historically restricted. Dubai offers a DET route | Trade across the UAE, subject to licensing |
| Office | Flexi desk or office package required | Office/ejari requirements vary by activity and authority |
| Visas | Quota associated with office/package | Quota based on office size and authority rules |
| Corporate Tax | 0% on qualifying income if QFZP conditions are fulfilled, otherwise 9% | 9% above the AED 375,000 taxable-income threshold |
| Cost | Lower entry packages are available, especially in Sharjah | Cost increases once office, approvals and local requirements are included |
Dubai Executive Council Resolution No. 11 of 2025 allows eligible companies to conduct the approved mainland activities. The mentioned fees are AED 10,000* annually for a branch license and AED 5,000* for a temporary permit of up to 6 months. You should confirm current fees and eligibility with Dubai DET. DIFC financial entities are excluded from the relevant framework. Many mainland incomes may require a Corporate Tax review. Our team explained the requirements for mainland company formation.
Company Formation in Free Zone: Six Steps from First Call to License
The process for company setup in a free zone starts with selecting a business model and ends with registration and operational requirements relevant to your company.
- 1
Confirm the Activity
We review your products, services, target audiences and regulatory requirements for company formation in a free zone.
- 2
Select the Authority
We compare the legal forms, jurisdictions, office options, visa quotas and fees.
- 3
Reserve the Company Name
The authority verifies the proposed business name against naming rules and availability.
- 4
Obtain Initial Approval
We prepare the application and submit the information for obtaining the initial approvals.
- 5
Submit Documents and Payment
Submit the Shareholder documents, declarations and corporate papers and make the applicable payment fees.
- 6
Receive the License and Plan Operations
We coordinate the establishment card, registration, eligible residence visas and next steps for a corporate bank account.
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.
“We had an excellent experience working with this company for our ADGM company setup in Abu Dhabi.”
“I have been dealing with Akshta for more than a year now and she has been very professional.”
“In so far as the emigration process can ever be made easy, Avyanco achieves exactly this.”
“I've used the services of Avyanco twice over the past 3 years for visa processing, and they have never failed to impress me.”
“We are very satisfied with Avyanco's support for Nanasu Realty — especially across AML compliance, accounting, and company setup.”
“I had an excellent experience with Avyanco Business Setup Consultancy for both my company formation and family dependent visa process in the UAE.”
How Avyanco Handles Your Free Zone Setup
Avyanco helps you compare the jurisdictions on the basis of the actual requirements rather than selecting the package based on price only. Our team reviews the business activity, shareholder structure, visa needs, office arrangements and recurring expenses. Then, we coordinate the application process for business setup in a free zone and explain the approvals and documents required by the authorities. Our support includes:
- Business activity reviewed
- Visa needs and office arrangements
- Recurring expenses explained
Zones & documents
- Compare the eligible zones and legal structures
- Prepare and coordinate the incorporation documents
Visa & banking
- Review visa and establishment card requirements
- Assist with the bank account preparation
Tax & compliance
- Identify the Corporate Tax registration and compliance requirements
Documents to Prepare
As an expert business setup company in the UAE, we provide you with a document checklist required to start a business in UAE. The essential documents required may depend on whether the shareholder is an individual or an existing company. Additional paperwork may be requested for specific nationalities or regulated activities.
- Passport copy for every shareholder
- Recent photograph
- Proof of residential address
- CV, business profile or NOC, if requested
- Proposed company name and activity details
- Visa or entry details, where applicable
- Parent company's certificate of incorporation
- Parent company's constitutional documents
- Board resolution approving the new entity
- Certificate of good standing
- Authorized signatory's passport and authority documents
- Attestation or legalization of documents
Free Zone License Cost: What You'll Pay in Year One
The UAE free zone license costs may depend on the legal form, authority, activity, office option and number of visas. The reliable way to budget is to compare the company formation packages, because some zones bundle the license, visa allocation and establishment card, and other charges for it separately. Below is full Dubai setup cost guide
Example: One founder, one visa, flexi desk
Meydan Zone publishes a one-visa package at AED 14,350* that consists of one visa allocation, a license, and a flexi desk. Its published add-on prices permit you to estimate the additional costs to process the founder's residence visa. First-year cost in AED. *Indicative, subject to change
Qualifying Free Zone Persons may pay 0% Corporate Tax on qualifying income if all QFZP conditions are met. Non-qualifying income is taxed at 9%. Companies outside the QFZP regime are taxed at 0% on taxable income up to AED 375,000 and 9% above that threshold.
QFZP rules explained →VAT registration is mandatory when taxable supplies and imports exceed AED 375,000.
Designated Zone status: confirm with the FTATypical year-one budget by company profile
| Company profile | Typical year-one budget | What is usually included | Notes |
|---|---|---|---|
| Zero-visa company, Sharjah value zones | From AED 5,750 to 5,760* | License and basic registration, visa excluded | SPC and SHAMS publish entry packages at this level. |
| Zero-visa company, Dubai | From AED 12,500 to 12,900* | License and basic registration, visa excluded | Meydan starts at AED 12,500*; IFZA's zero-visa license starts around AED 12,900*. |
| One founder, one visa | From about AED 13,175 to 21,000* | License, visa allocation and, in some packages, establishment card | SPC's published one-visa package starts at AED 13,175*; Dubai one-visa packages are often higher. |
| Multi-visa or office-based company | From AED 20,000+ | License, higher visa quota and office or flexi desk | Cost based on office size, activity and authority. |
A one-person company must budget for the Emirates ID and medical fees, visa status change or security deposit requirement, audit, accounting and corporate bank account charges. These are separate from the license costs and vary by personal situations, so you must check them before business setup in a free zone.
0% Corporate Tax: How QFZP Status Works and How It Is Lost
A Qualifying Free Zone Person (QFZP) may get the benefit of the 0% Corporate Tax on qualifying income, subject to fulfilling specific conditions
- Earn qualifying income
- Maintain adequate UAE substance
- Fulfill the de minimis threshold for non-qualifying revenue
- Comply with transfer pricing rules
- Maintain audited financial statements
- Avoid electing the standard Corporate Tax regime
The de minimis threshold is the lower of 5% of total revenues or AED 5 million. If the company fails to meet these conditions, then it leads to losing the QFZP status for that tax period and the next four tax periods. Non-qualifying income may be taxed at 9%. The companies must assess Corporate Tax registration and QFZP review, filing and record-keeping requirements. QFZPs should also prepare and maintain audited financial statements. Avyanco reviews your business structure, income sources and compliance responsibilities. Our corporate tax advisory team assesses your eligibility for QFZP benefits.
FAQs about free zone setup
Can I set up a free zone company without visiting the UAE?+
Yes, you can set up a company without visiting the UAE. Many authorities support remote company setup in a free zone. Identity verification, immigration and banking may involve in-person procedures or additional requirements.
What is the free zone license cost for a one-person company?+
The free zone license costs may vary based on activity, authority, office and visa requirements. Request a quote that covers the licensing, registration and renewal.
How many residence visas can a company get?+
The residence visa quotas your company requires may depend on the package, authority, office arrangements and eligibility. You should confirm the permitted allocation before applying.
Do I need a physical office for business setup in a free zone?+
No, you don't always need a physical office for business setup in a free zone. Some activities qualify for flexi desks, and others may require dedicated warehouses, offices or approved facilities.
How long does a corporate bank account take?+
The corporate bank account processing may depend 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 regardless of whether qualifying income receives the 0% rate. VAT registration may depend on the applicable thresholds and taxable turnover.
Can I move to another zone or the mainland later?+
Yes, you can move to another zone or the mainland after a company setup in the free zone, based on the licensing approvals, cancellation procedures, restructuring requirements and tax implications.
What happens if I renew my license late?+
Late renewal leads to penalties or restrictions on company services. You should confirm deadlines and outstanding fees with your authority.
Guides to help you decide
Tell us your activity, and we'll shortlist your Zone.
Ready for business setup in free zone areas? Get in touch with Avyanco. Share your shareholder details, business activity, and visa requirements. We help you compare the suitable jurisdictions and expected costs.
- Share your shareholder details
- Share your business activity
- Share your visa requirements
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.