Ownership
Corporate Tax*
Free Zones
Timeline varies
| Structure | Shareholders | Best For |
|---|---|---|
| FZE Free Zone Establishment | 1 (individual or corporate) | Solo founders, single-owner ventures |
| FZCO / FZ-LLC Free Zone Company | 2 or more (individuals, companies, or a mix) | Partnerships, multi-founder businesses |
| Branch | N/A — extension of a parent company | Existing UAE or foreign companies expanding |
A branch is not a separate legal entity; the parent carries full liability and its documents usually need home-country notarisation, UAE embassy legalisation, MOFA attestation, and certified Arabic translation — which adds time. We'll flag that early so it doesn't surprise you mid-process.
You own your company outright — no local partner, no sponsor. Every share, decision, and dirham of profit is yours from day one.
Free zone companies can pay 0% corporate tax if they meet the Qualifying Free Zone Person conditions (explained in full below). This is conditional now, not automatic — but for a correctly structured business it remains genuinely tax-efficient.
No caps, no waiting periods. You can move capital and profits out of the UAE freely.
Companies in designated free zones are exempt from import duties, and most zones run their own customs checkpoints — a meaningful saving for import/export businesses.
Many zones let you incorporate without setting foot in the UAE. You'll typically only need to visit for your medical test, Emirates ID biometrics, and bank account opening.
Flexi-desks, serviced offices, warehouses, and industrial units are all available, and your licence package carries a visa quota for you and your team.
If your core customers are UAE mainland consumers or government bodies, the picture is more nuanced — the 2025 mainland-access rules (below) changed your options, and a mainland setup may still be the better fit.
We'll tell you honestly which side of that line you're on.
Import, export, distribution, and buying/selling of goods.
Consultancy and service-based businesses trading on expertise.
Manufacturing, processing, packaging, and production.
Online retail, dropshipping, and digital trading (offered by many zones).
Some zones also issue freelance permits and holding licences. Getting the licence category right the first time matters, because your permitted activities flow directly from it.
Eligibility is broad — there's no minimum age barrier in most zones, no requirement to be a UAE resident, and no mandatory paid-up capital in many zones. The main filters are that your chosen activity is permitted in that zone and that shareholders clear standard due-diligence checks.
| Cost component | Typical 2026 range (AED) | Notes |
|---|---|---|
| Registration / setup fee | 3,500 – 10,000 | One-time, paid to the authority |
| Trade licence fee | 10,000 – 15,000+ | Varies by activity and zone |
| Establishment card | 1,000 – 2,500 | Annual |
| Flexi-desk / office | 5,000 – 15,000 (flexi) · 20,000+ (dedicated) | Often the largest single line |
| Residence visa (all-in) | 3,750 – 5,000 per person | Entry permit + medical + Emirates ID + stamping |
| Name reservation & initial approval | 1,000 – 2,000 | One-time |
A note on numbers: these are indicative 2026 ranges. Your actual cost depends on the zone, activity, visa count, and office type — 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.
A free zone company is not automatically tax-free. Under the UAE Corporate Tax Law, a free zone entity is a taxable person. It can access the 0% rate only on its "qualifying income," and only if it meets every condition to be a Qualifying Free Zone Person (QFZP). Any income that isn't qualifying is taxed at 9%.
This is exactly the area where working with a firm that handles audit and tax — not just company registration — pays for itself. Markef structures your setup so your qualifying income, substance, and records line up with QFZP requirements from day one.
A mainland branch with a physical onshore presence.
A branch that stays based in the free zone but is authorised by the DET to operate onshore (no mainland office required) — annual fee around AED 10,000.
A temporary permit for specific activities for up to six months — fee around AED 5,000.
| Factor | Free Zone | Mainland |
|---|---|---|
| Ownership | 100% foreign | 100% foreign (most activities) |
| Local market access | Via 2025 permit/branch routes | Direct, unrestricted |
| Government tenders | Limited | Full access |
| Corporate tax | 0% on qualifying income (QFZP) | 9% above AED 375,000 |
| Setup speed & cost | Faster, often cheaper | More steps, DET approvals |
| Best for | International trade, services, holding | Local retail, services, tenders |
Yes. Full foreign ownership is the core feature of UAE free zones — no local sponsor or shareholder is required.
Budget zones start around AED 5,000–8,000 for a lean package; a typical Dubai setup runs AED 12,000–25,000; premium zones like DMCC can reach AED 50,000+. Cost depends on zone, activity, visas, and office type — ask us for an exact quote.
The trade licence takes 1–5 working days (same-day in some zones). A fully operational company with a visa and bank account takes about 4–8 weeks.
They can pay 0% on qualifying income if they meet all the Qualifying Free Zone Person conditions; non-qualifying income is taxed at 9%. All free zone companies must still register with the FTA and file a return.
Yes — since March 2025, most free zone companies can operate on the Dubai mainland through a branch or a DET permit. Mainland income is taxed at 9% and must be recorded separately.
Usually yes, but a flexi-desk satisfies the requirement in most zones — a dedicated office isn’t mandatory.
Yes. Many zones allow fully remote incorporation. You’ll typically visit only for your medical test, Emirates ID biometrics, and bank account opening.
An FZE has a single shareholder; an FZCO (or FZ-LLC) has two or more. Both can have individual or corporate shareholders.
Budget-focused zones (and nearby Sharjah/Ajman/RAK zones) offer the lowest entry cost, but “cheapest” isn’t always “right” — banking, activity fit, and renewal costs matter more over time.
Yes. Your licence package includes a visa quota based on your office type and licence — for you and eligible employees.
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