Freezone Business Setup in the UAE

A freezone business setup gives you 100% ownership of your company, a trade licence in as little as 3–7 working days, and a 0% corporate tax route on qualifying income. Markef handles the whole process across all seven emirates — choosing the right free zone, filing the licence, arranging visas and Emirates ID, and opening your corporate bank account.

  • 100% foreign ownership — no local sponsor or service agent
  • 0% corporate tax on qualifying income for a Qualifying Free Zone Person
  • Trade licence issued in 3–7 working days once documents are clean
  • Full repatriation of capital and profits, with no currency restrictions
  • One team from licence to bank account — not a licence reseller
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See 2026 Costs

100%

Foreign ownership

0%

Tax on qualifying income

40+

UAE free zones covered

3–7

Days to licence

What Is a Freezone Business Setup?

A freezone business setup means registering your company inside a designated economic zone that has its own licensing authority and its own commercial rulebook, separate from the mainland Department of Economy.

The practical effect is simple. You own the company outright — there is no requirement for an Emirati partner or sponsor. You are regulated by an authority built specifically around international business, and you pay a single package fee that usually covers the licence, your registered workspace and your visa allocation together.

The UAE has more than 45 free zones spread across all seven emirates, and they are not interchangeable. Each one specialises: commodities and trading, logistics and shipping, media and creative, technology, healthcare, financial services. The zone you pick determines what activities you are permitted to run, what your licence costs, how many visas you can sponsor, and — often overlooked — how easily a UAE bank will open an account for you.

That last point is why freezone business setup in the UAE is worth planning rather than buying off a price list. The cheapest licence is a false economy if it blocks your activity or stalls your banking for three months.

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When a Freezone Business Setup Is the Right Choice

A free zone company is the right structure when your revenue comes from outside the UAE mainland — from international clients, from other free zone companies, or from goods that move through the UAE rather than being sold inside it.

A freezone business setup usually fits if you are:

  • An international trading, import or export business
  • An e-commerce seller shipping regionally or globally
  • A technology, media or creative company
  • A holding company for regional assets, shareholdings or intellectual property
  • A foreign company opening a UAE branch to serve the Gulf
  • A founder who needs a UAE residence visa and a credible corporate base quickly

If most of your invoices will go to customers physically inside the UAE mainland, or you intend to bid for government tenders, read the free zone versus mainland section below before you commit — the tax treatment is different, and it matters.

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Our Freezone Business Setup Services

Markef manages the full setup from the first structuring conversation to your first compliance filing. Each workstream below is handled in-house by our business setup, tax and PRO teams.

 

Free zone selection and structuring

Own your company outright. No Emirati partner or service agent required, and no shareholding We match the zone to your actual activity, visa requirement, office need and banking profile — then confirm your activity code is permitted before a dirham is spent. This is the step that decides whether the other five go smoothly..

Trade licence application and incorporation

Name reservation, initial approval, incorporation documents, MOA or board resolutions, and the licence application itself, filed and followed up with the authority until the trade licence and establishment card are in your hands.

Residence visas and Emirates ID

Entry permits, medical testing, biometrics, Emirates ID and visa stamping for founders, employees and dependants — including the establishment card that has to be issued before any visa can be sponsored.

Corporate bank account opening

UAE banks decline more applications than founders expect. We build a bank-ready company profile covering your business model, expected flows and source of funds, then introduce you directly to relationship managers rather than leaving you at a branch counter.

Corporate tax registration and QFZP structuring

Registration with the Federal Tax Authority, a structure designed so your Qualifying Free Zone Person position is defensible, and clean separation of qualifying from non-qualifying income from day one — not retrofitted at year end.

Accounting, audit and ongoing compliance

Bookkeeping, VAT registration and filing, audited financial statements — now mandatory for QFZP status — plus licence renewals, visa renewals, activity amendments and shareholder changes.

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How Freezone Business Setup in the UAE Works: Step by Step

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

Step 1: Choose your free zone and business activity

Match the zone to your activity, budget, visa count and office needs. Your activity must appear on that authority's approved list, and a mismatch here is the single most common cause of a rejected or re-issued licence.

Step 02 — Reserve your trade name

Submit up to three name options. Names must follow the authority's rules — no religious references, no country names, no abbreviations of personal names — and must end with your legal form, such as FZE or FZCO.

Step 03 — Apply for initial approval

The authority screens your shareholders and your chosen activity, runs its compliance checks, and issues initial approval confirming you may proceed to incorporation.

Step 4: Sign documents and settle fees

Execute the incorporation documents, memorandum and articles, and any board resolutions, then pay the registration and licence fees. Corporate shareholders will need attested documents at this stage.

Step 5: Confirm your office or flexi-desk

Your workspace agreement determines your visa quota, so it is chosen alongside your package rather than after it. A flexi-desk satisfies most zones for small teams; larger visa counts need a dedicated office.

Step 06 — Collect your licence, then visas and banking

The trade licence and establishment card are issued, usually within 3–7 working days of complete submission. Residence visas follow over the next two to three weeks, and bank account opening typically takes a further two to six.

Free Zone Licence Types

Your licence defines what you may legally do. It has to match your real activity before you apply, not after.

Commercial Licence

Trading, import, export, distribution and general merchandise. The most widely issued licence type across UAE free zones.

Service or professional licence

Consultancy, marketing, IT, design, engineering and other professional services delivered rather than sold as goods.

Industrial Licence

Light manufacturing, assembly, processing and packaging. Requires a physical facility and usually additional environmental or municipal approvals.

E-commerce licence

Online retail and marketplace selling, with warehousing and fulfilment options attached in most logistics-focused zones.

Freelance permit

A single-person permit for individual professionals in media, tech and consulting. Cheaper than a full licence, but with a limited visa allocation and no corporate shareholding.

Where to Set Up: UAE Free Zones by Emirate

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, traders and e-commerce sellers. DMCC — premium, bank-friendly and well connected, ideal for commodities and professional services. JAFZA — port-adjacent and built for scale, the default for logistics and industrial operations. DAFZA — airport proximity and strong credibility for global trading and aviation-linked firms. Meydan — competitively priced with a Dubai address.

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 genuinely scalable across service, trading and industrial activity, with strong warehousing options and a large existing business community.

SHAMS FREE ZONE

SHAMS / SPC

economical media, publishing and e-commerce licences. Sharjah Publishing City (SPC) — low-cost licensing roughly an hour from Dubai. SAIF Zone — established trading and light industrial base.

AJMAN FREE ZONE

Ajman Free Zone

among the most cost-competitive in the country for startups and light industry. UAQ FTZ — low-cost licences with a simple process. Fujairah Free Zone — east-coast port access for shipping and re-export.

2026 UAE Guide

Cost of Freezone Business Setup in the UAE (2026)

The figures below are estimated 2026 costs. Your final investment depends on the emirate, free zone authority, business activity, visa allocation, and office requirements.

Cost Component Estimated Cost (AED) Important Notes
Name Reservation & Initial Approval AED 1,000 – 2,000 One-time government application fee.
Company Registration / Setup Fee AED 3,500 – 10,000 Paid once to the Free Zone Authority.
Trade Licence AED 10,000 – 15,000+ Annual renewal cost varies by business activity.
Establishment Card AED 1,000 – 2,500 Required before sponsoring employee or investor visas.
Office / Flexi Desk Flexi Desk: AED 5,000 – 15,000
Dedicated Office: AED 20,000+ 		Usually the largest ongoing operational expense.
Residence Visa (Per Person) AED 3,750 – 5,000 Includes entry permit, medical fitness, Emirates ID and visa stamping.
💡
Planning your budget? These are indicative market prices for 2026. The exact amount varies depending on your chosen Free Zone, licence activity, visa quota, office package, and any additional government approvals.

Realistic all-in budget: AED 15,000–30,000 for a basic package with a flexi-desk and one visa in a mid-priced zone. Northern emirates run lower; premium Dubai zones, dedicated offices and larger visa quotas run considerably higher.

Two things founders consistently underestimate. First, the licence is rarely the biggest cost — office and visas usually are. Second, these are annual costs, not one-offs, so budget for renewal from year one.

Authority fees change, and promotional packages come and go. If a precise number matters to your plan, ask for an exact quote against your specific activity rather than budgeting from a range.

Documents Required for a Freezone Business Setup

For individual shareholders

  • Passport copy, valid at least six months
  • Passport-size photograph on white background
  • Proof of address, such as a utility bill or bank statement
  • Curriculum vitae or professional profile
  • UAE entry stamp or visa page, if already in country
  • No Objection Certificate, if on a UAE employment visa

For corporate shareholders

  • Certificate of Incorporation, attested
  • Memorandum and Articles of Association
  • Board resolution approving the UAE entity
  • Certificate of Good Standing or Incumbency
  • Passport copies of all ultimate beneficial owners
  • Notarised power of attorney for the signatory

Eligibility itself is straightforward: you must be over 18, there is no nationality restriction, and you do not need to be a UAE resident before you apply. Attestation is the usual bottleneck for corporate shareholders — start that chain early, because it can add two to three weeks on its own.

Corporate Tax and Compliance for UAE Free Zone Companies

The 0% free zone rate is not automatic, and this is where most misinformation sits. It applies only to a Qualifying Free Zone Person earning qualifying income. Fail a condition and the standard 9% rate applies to taxable profit above AED 375,000.

  • Register for corporate tax with the Federal Tax Authority
  • Maintain adequate substance in the zone — real staff, real premises, decisions taken in-zone
  • Earn qualifying income and stay within the de minimis threshold for non-qualifying revenue
  • Apply transfer pricing rules to all related-party transactions
  • File audited financial statements — mandatory for QFZPs from FY 2025 under MD 84 of 2025
  • Register for VAT once taxable turnover crosses AED 375,000
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Our Approach to Freezone Business Setup

We are not a licence reseller, and we do not have an exclusive arrangement with any single free zone. That matters more than it sounds, because most setup agents earn a commission from one or two authorities and recommend accordingly.

Our approach is to structure first and file second. Before any application, we look at where your revenue will actually come from, what your tax position will look like in year two, how many visas you will realistically need, and which banks are currently opening accounts for businesses like yours. Only then do we recommend a zone.

Markef has advised UAE businesses on audit, accounting and consulting since 1985, so we come at company formation from a compliance background rather than a sales one. The setup that looks cheapest in month one is frequently the one that costs the most by month eighteen — through a rejected bank application, an activity that turns out to be unlicensed, or a QFZP position that does not hold up under scrutiny.

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Corporate Tax and Compliance for UAE Free Zone Companies

The 0% free zone rate is not automatic, and this is where most misinformation sits. It applies only to a Qualifying Free Zone Person earning qualifying income. Fail a condition and the standard 9% rate applies to taxable profit above AED 375,000.

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.

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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.

  • Register for corporate tax with the FTA
  • Maintain real substance: staff, premises, decisions in-zone
  • Keep qualifying and non-qualifying income cleanly separated
  • File audited financial statements (mandatory from FY 2025)
  • Apply transfer pricing rules to all related-party dealings
  • Assess VAT registration once turnover crosses AED 375,000
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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.

Why Choose Markef for Freezone Business Setup in the UAE

  • Independent zone selection — recommendations based on your activity and banking profile, not our commission
  • Genuinely end to end — licence, establishment card, visas, Emirates ID and corporate bank account under one engagement
  • Bank-ready from the start — prepared company profiles and direct relationship manager introductions
  • Tax built in, not bolted on — corporate tax registration and QFZP structuring included in the setup, not sold separately later
  • All seven emirates — 45+ free zones covered, so we are never steering you toward the only zone we work with
  • Transparent fixed fees — quoted in full up front, with no mid-process surprises
  • Ongoing support — renewals, amendments, accounting, audit and compliance after the licence is issued
  • Four decades of UAE experience — advising businesses here since 1985, and an ACCA Approved Employer
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Frequently Asked Questions

A freezone business setup is the registration of a company inside a designated UAE economic zone that has its own licensing authority. You own 100% of the shares with no local sponsor, operate under that zone’s commercial rules, and typically receive your licence, registered workspace and visa allocation as a single package.

 

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

 

Yes. Free zone companies have permitted full foreign ownership since long before the mainland reforms. There is no local sponsor, no service agent, and no shareholding compromise.

 

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, staying within the de minimis threshold, transfer pricing compliance, and audited financial statements from FY 2025 onwards.

Yes, through a mainland branch, a DET permit under Executive Council Resolution No. 11 of 2025, or a mainland-licensed distributor. Bear in mind that mainland-sourced income is generally not qualifying income for the 0% rate, so it must be tracked separately.

Ajman Free Zone, UAQ FTZ, SHAMS and Sharjah Publishing City are consistently among the most affordable, with IFZA and Meydan the most competitive inside Dubai. The cheapest licence is poor value if the zone does not permit your activity or your bank will not open an account against it.

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

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

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

Audited financial statements are now mandatory for Qualifying Free Zone Persons from FY 2025 under MD 84 of 2025. Several zones — DMCC and JAFZA among them — also require audited accounts as a condition of licence renewal regardless of tax status.

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Tell us your activity and your target market. We will recommend the right free zone, give you an exact all-in cost with no missing lines, and handle the licence, visas, Emirates ID and bank account from start to finish.

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