Dubai Free Zone Specialists

Business Setup in Dubai Free Zone

100% foreign ownership, fast licensing, and a 0% corporate tax route on qualifying income — set up in the right Dubai free zone with a team that handles the licence, visas, and banking end to end.

100%

Foreign ownership

0%

Tax on qualifying income

40+

UAE free zones covered

3–7

Days to licence

What Is a Free Zone Business Setup?

A free zone is a designated economic area with its own licensing authority and commercial rules. Register there and you own your company outright — no local partner, no sponsor — while operating under a regulator built around international business.

Each of the UAE’s 40+ free zones specialises: commodities, logistics, media, technology, finance. Choosing the right one decides your licence cost, your banking prospects, and which activities you’re permitted to run.

Corporate Tax Services

The three free zone structures

FZE — Free Zone Establishment

One shareholder, individual or corporate. The simplest structure for solo founders and single-owner ventures.

FZCO / FZ-LLC — Free Zone Company

Two or more shareholders — individuals, companies, or a mix. Built for partnerships and multi-founder businesses.

Branch Office

An extension of an existing parent company rather than a new legal entity. For UAE or foreign companies expanding into a free zone.

Benefits of Free Zone Company Formation in Dubai

Why most international founders entering the UAE start in a free zone.

100% Foreign Ownership

Own your company outright. No Emirati partner or service agent required, and no shareholding compromise.

0% Corporate Tax on Qualifying Income

Qualifying Free Zone Persons keep a 0% rate on qualifying income — provided substance and audit rules are met.

Full Profit Repatriation

Move capital and profits out in full, with no currency restrictions and no withholding tax on dividends.

Fast, Predictable Licensing

Most free zone licences are issued in 3–7 working days once documents are clean and approvals are in.

Residence Visas for You and Your Team

Visa quotas scale with your package and office type, covering founders, staff, and dependants.

Ready-Built Infrastructure

Flexi-desks, serviced offices, warehousing, and sector ecosystems — without negotiating a commercial lease.

Who Should Set Up in a Dubai Free Zone?

Business Consulting Blogs

A free zone is the right fit when your revenue comes from outside the UAE mainland, or from other free zone companies. It suits you if you are:

Free Zone Licence Types

Your licence defines what you may legally do — and it must match your activity before you apply.

Commercial Licence

Trading, import, export, distribution, and general merchandise activities.

Service / Professional Licence

Consultancy, marketing, IT, design, and other professional services.

Industrial Licence

Light manufacturing, assembly, processing, and packaging operations.

E-Commerce Licence

Online retail and marketplace selling, with warehousing and fulfilment options.

Best Free Zones in Dubai (and Who Each Suits)

There is no single best free zone — only the best one for your activity, budget, and banking needs.

Business Setup in IFZA

IFZA

Budget-friendly, fast, and remote-friendly. Popular with consultants, trading companies, and e-commerce sellers.

DMCC FREE ZONE

DMCC

Premium and bank-friendly with a strong ecosystem. Ideal for commodities, trading, and professional services.

JAFZA FREE ZONE

JAFZA

Port-adjacent and built for scale — the go-to for logistics, industrial, and large-scale trading operations.

DAFZA FREE ZONE

DAFZA

Airport proximity and premium credibility. Suits global trading firms and aviation-linked businesses.

RAKEZ FREE ZONE

RAKEZ

Cost-effective and scalable across trading, service, and industrial businesses.

SHAMS FREE ZONE

SHAMS / SPC

Economical media, publishing, and e-commerce hubs roughly an hour from Dubai.

AJMAN FREE ZONE

Ajman Free Zone

Among the most cost-competitive options in the UAE for startups and light industry — a practical choice when budget is the deciding factor and you don't need a Dubai address on the licence.

Step-by-Step: How to Set Up a Free Zone Company in Dubai

Six stages from choosing a zone to holding a licence, a visa, and an open bank account.

Step 01 — Choose your free zone and activity

Match the zone to your activity, budget, and office needs — not to whichever package looks cheapest on the homepage.

Step 02 — Reserve your trade name

Submit up to three name options. They must follow the authority's naming rules and end with your legal form (FZE, FZCO).

Step 03 — Apply for initial approval

The authority screens your shareholders and activity, then issues initial approval to proceed.

Step 04 — Sign documents and pay fees

Execute the incorporation documents, MOA or board resolutions, and settle the registration and licence fees.

Step 05 — Secure your office or flexi-desk

Your lease or flexi-desk agreement determines your visa quota, so it is chosen alongside the package, not after.

Step 06 — Collect your licence, then visas and banking

Licence and establishment card are issued, followed by residence visas, Emirates ID, and corporate bank account opening.

Required Documents & Eligibility

For individual shareholders

For corporate shareholders

Eligibility is straightforward: there is no minimum age beyond 18, no nationality restriction, and no requirement to be resident in the UAE before you apply. Attestation is the usual bottleneck for corporate shareholders — start it early.

Cost of Free Zone Setup in 2026

Indicative 2026 ranges. Your actual figure depends on the zone, activity, visa count, and office type.

Registration / Setup Fee

One-time, paid to the free zone authority.

AED 3,500 – 10,000

Trade Licence Fee

Annual. Varies by activity and by zone.

AED 10,000 – 15,000+

Establishment Card

Annual. Required before you can sponsor visas.

AED 1,000 – 2,500

Flexi-Desk / Office

Often the largest single line in the budget.

AED 5,000 – 15,000 (flexi) · 20,000+ (dedicated)

Residence Visa (all-in)

Entry permit, medical, Emirates ID, and stamping.

AED 3,750 – 5,000 per person

Name Reservation & Initial Approval

One-time, paid at the start of the application.

AED 1,000 – 2,000

A note on numbers: these are indicative 2026 ranges and authority fees change. If a precise figure matters to your plan, request an exact quote for your specific activity rather than budgeting from a range.

How Long Does It Take?

Most free zone licences are issued within 3–7 working days once documents are clean. Visas and banking run on their own clock.

Days 1–2

Name reservation and initial approval submitted to the authority.

Days 3–5

Incorporation documents signed, fees settled, office or flexi-desk confirmed.

Days 5–7

Trade licence and establishment card issued by the free zone.

Weeks 2–6

Residence visas, Emirates ID, and corporate bank account opening.

Free Zone Corporate Tax & Compliance (2025–2026)

The UAE’s 0% free zone rate is not automatic. It applies only to a Qualifying Free Zone Person (QFZP) earning qualifying income. Miss a condition and the standard 9% rate applies to everything above AED 375,000.

To hold QFZP status you must maintain adequate substance in the zone, earn qualifying income, stay within the de minimis threshold for non-qualifying revenue, apply transfer pricing rules, and — from FY 2025 — file audited financial statements.

pro services Dubai

Can a Free Zone Company Operate on the Mainland?

Yes — since 2025 there are three legitimate routes. Each has different tax consequences for your QFZP position.

Open a mainland branch

Register a branch of your free zone company with the DET. It carries its own licence and can trade on the mainland directly.

Apply for a DET permit

Executive Council Resolution No. 11 of 2025 lets free zone companies operate in Dubai's mainland under permit for approved activities.

Work through a distributor

Appoint a mainland-licensed distributor or agent to handle onshore sales while your free zone entity supplies.

Important: mainland-sourced income is generally not qualifying income. Keep it separated in your accounts and watch the de minimis threshold, or you risk losing QFZP status on your entire profit.

Free Zone vs Mainland: Which Is Right for You?

The deciding question is simple: where does your revenue come from?

Free Zone

Choose this when your customers are outside the UAE mainland or are other free zone companies.

Mainland

Choose this when you sell directly to UAE consumers or businesses onshore, or bid for tenders.

Common Challenges (and How Markef Solves Them)

Choosing the wrong zone

We match the zone to your activity and banking needs, not to a sales target — so it still works twelve months on.

Bank account delays

Banks want a clear business model and a source-of-funds story. We prepare a bank-ready profile and make introductions.

Substance and tax exposure

We structure your setup so your QFZP position is defensible, and keep mainland and free zone income cleanly separated.

Document and attestation hold-ups

For corporate shareholders and branches we manage the notarisation and attestation chain so approvals don't stall.

Recent Regulatory Updates to Know

The free zone rulebook moved significantly in 2025. These are the changes that affect new setups.

Aug 2025

MD 229 & 230 of 2025 updated the free zone tax rules and broadened qualifying activities — retroactive to 1 June 2023.

From FY 2025

MD 84 of 2025 made audited financial statements mandatory for Qualifying Free Zone Persons.

Mar 2025

Executive Council Resolution No. 11 of 2025 allows free zone companies to operate on the Dubai mainland via branch or permit.

Ongoing

E-invoicing is rolling out in phases across the UAE. Confirm the current go-live date for your business before your next filing cycle.

Why Choose Markef for Your Free Zone Setup

why choose us

We are not a licence reseller. We advise on the structure first, then handle the paperwork — and we stay with you through visas, banking, and your first compliance cycle.

Frequently Asked Questions

Yes. Free zone companies have allowed full foreign ownership since long before the mainland reforms, with no local sponsor or service agent involved. You hold 100% of the shares and full control of the entity.

A realistic all-in range is AED 15,000–30,000 for a basic package with a flexi-desk and one visa, rising well beyond that for premium zones, dedicated offices, or larger visa quotas. The licence itself is rarely the largest line — office and visas usually are.

Most free zone licences are issued within 3–7 working days once your documents are complete and initial approval is granted. Residence visas add roughly two to three weeks, and bank account opening typically takes two to six weeks.

A Qualifying Free Zone Person pays 0% on qualifying income, but 9% applies to non-qualifying income above AED 375,000. QFZP status depends on adequate substance, the de minimis threshold, transfer pricing compliance, and — from FY 2025 — audited financial statements.

Yes. Executive Council Resolution No. 11 of 2025 allows free zone companies to operate on the Dubai mainland through a branch or a DET permit. Note that mainland-sourced income is generally not qualifying income for the 0% rate.

You need some form of registered workspace, but a flexi-desk or shared desk package satisfies most zones. Your visa quota is tied to the office type, so a larger team generally requires a dedicated office.

Many free zones allow full remote incorporation using notarised and attested documents plus a power of attorney. You will usually need to travel for your medical, Emirates ID biometrics, and — in most cases — the bank’s in-person onboarding.

An FZE (Free Zone Establishment) has a single shareholder. An FZCO or FZ-LLC (Free Zone Company) has two or more, and shareholders can be individuals, corporate entities, or a mix. The compliance obligations are otherwise essentially the same.

IFZA and Meydan are consistently among the most affordable Dubai options, while Ajman Free Zone, SHAMS, and RAKEZ are cheaper still outside Dubai. The cheapest licence is a false economy if the zone blocks your activity or your bank.

Yes. Your licence and establishment card let you sponsor residence visas for yourself, your staff, and your dependants. The number available depends on your package and office type, and each visa runs three to five years depending on the zone.

Start Your Dubai Free Zone Business Setup Today

Tell us your activity and target market. We’ll recommend the right free zone, give you an exact all-in cost, and handle the licence, visas, and bank account from start to finish.