Business setup
Free zone company formation in the UAE, in the zone that fits your business.
The UAE has more than forty free zones, each with its own activities, costs and rules. We compare the realistic options for your business, then form the company and look after the audit and tax filings the zone and the FTA expect afterwards.
- Foreign ownership
- 100%
- Corporate tax on qualifying income
- 0%
- To a licence in many zones
- Days
Overview
Not all free zones are the same.
A free zone company is licensed by the zone authority, not the Department of Economy. It can trade inside the zone and internationally, own its shares outright, repatriate profits freely and import into the zone without customs duty. Selling to mainland customers usually goes through a distributor or a mainland branch.
The differences are in the detail: which activities are allowed, how many visas a package includes, whether a physical office is needed, how banks view the zone, and whether the authority asks for an audit every year. Choosing on price alone is the most common mistake we see.
- FZE, FZCO and FZ-LLC structures
- Flexi-desk, office and warehouse options
- Visa packages matched to your team
- Audit and tax compliance after setup
Benefits
What a free zone company gives you.
The reasons most international founders start here.
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Full ownership
Own 100% of the shares with no local partner or agent.
-
0% on qualifying income
A Qualifying Free Zone Person pays no corporate tax on qualifying income, subject to conditions.
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Lower entry cost
Flexi-desk packages remove the need for a full office lease in the first years.
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Fast setup
Many zones issue a licence within days, often without the founder being in the UAE.
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Customs benefits
Goods can be imported into, stored in and re-exported from the zone without customs duty.
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Profit repatriation
No restrictions on sending capital and profits abroad.
Good to know
The conditions behind the 0% rate.
The free zone tax benefit is real, but it has to be earned every year.
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Adequate substance
Core income-generating activities, staff and assets must be in the free zone.
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Qualifying income only
Income from excluded activities or from mainland customers can fall outside the 0% rate.
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Audited statements
A Qualifying Free Zone Person must have audited financial statements, whatever its size.
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Transfer pricing
Dealings with related parties must be at arm’s length and documented.
The process
Free zone setup in four steps.
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Zone comparison
Two or three zones compared on activity, visas, cost, banking and audit rules.
Day 1 to 2 -
Application
Name reservation, application form and shareholder documents submitted to the authority.
Day 3 -
Licence issued
Memorandum signed, often electronically, lease or flexi-desk agreement, licence released.
Week 1 to 2 -
Visas, bank and tax
Establishment card, visas, bank account, and corporate tax registration with the FTA.
Week 2 to 6
Getting started
Documents for a free zone licence.
Most zones accept scanned copies for the application.
- Passport copies of shareholders, directors and the manager
- Passport-size photo with a white background
- UAE entry stamp or visa page, if in the country
- Proof of residential address, such as a utility bill
- Short business plan, where the zone asks for one
- For corporate shareholders: attested incorporation documents and a board resolution
Free zone company FAQ
Questions about a free zone company.
Have a question about your own company? An advisor replies the same working day.
Ask on WhatsApp
Which free zone is best in the UAE?
It depends on the activity, the visas you need, your budget and your bank. DMCC suits commodities and larger trading firms, JAFZA and Hamriyah suit logistics and industry, and zones such as IFZA, Meydan, SHAMS and SPC suit consultancies and small trading companies. We compare the options for your case.
Can a free zone company do business on the mainland?
It can sell to mainland customers through a distributor or agent, by opening a mainland branch, or under specific permits some zones offer. Direct retail or contracting on the mainland needs a mainland licence.
Do free zone companies pay corporate tax?
They must register and file a return. A company that meets the Qualifying Free Zone Person conditions pays 0% on qualifying income and 9% on other income. A company that fails the conditions pays the standard rates.
Do free zone companies need an audit?
Many authorities require audited financial statements at renewal, and the corporate tax rules require them for every Qualifying Free Zone Person. We form the company and carry out the audit, so nothing is missed.
Can I set up a free zone company without visiting the UAE?
In many zones, yes. The application and memorandum can be completed remotely. You will need to visit for the residence visa and usually for the bank account.
Free consultation
Tell us about the business. We will suggest the right structure.
Send a few details and an advisor will call you back within one working day with next steps and a fixed quote. No obligation.
- Call+971 52 202 3984
- WhatsAppChat with an advisor
- Emailadvisor@ashfordmc.com
- OfficeAl Shafar Investment Building 121, Al Quoz Industrial Area 1, Dubai
- HoursSaturday to Thursday, 9:00 AM to 6:00 PM