Company Formation
Free Zone Company Formation in the UAE
A UAE free zone company is licensed by a zone authority, not the mainland regulator, and offers 100% foreign ownership with simplified setup. It trades freely inside the zone and internationally; selling to mainland customers needs a distributor, branch or dual licence.
Last reviewed · Reviewed by Mahmoud Mansour, Founder & Managing Director (lawyer in the UAE since 2006) · EH Management Consultancy LLC, Dubai
At a glance
Key facts about free Zone Company Formation
- Licensing authority
- The individual free zone authority
- Ownership
- Up to 100% foreign ownership
- Market access
- In-zone and international; mainland via distributor, branch or dual licence
- Premises
- Flexi-desk, shared or dedicated office depending on zone
- Corporate tax
- Qualifying Free Zone Persons can keep 0% on qualifying income; non-qualifying income is taxed at 9%. Other free zone companies follow the standard 0% / 9% bands
Who it is for
Is this the right service for you?
- Service providers and consultants serving international clients
- E-commerce and technology start-ups
- Importers and re-exporters
- Founders who want a fast, lower-premises setup
Process
How it works, step by step
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01
Shortlist zones by activity
Each zone permits a different list of activities and industries.
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02
Compare package terms
Check visa quota, premises type, licence validity and renewal costs.
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03
Reserve name and apply
Submit passports, activity details and the application to the zone.
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04
Sign the lease and licence agreement
Confirm premises and sign the zone’s registration documents.
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05
Receive licence and establishment card
The zone issues the licence and company documents.
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06
Start visas and banking
Apply for residency within your quota and begin bank onboarding.
Documents
What you typically need
- Passport copies of shareholders and directors
- Passport photographs
- Proposed trade names
- Business activity description
- Zone application forms
Cost
What drives the price
Fees depend on your situation, so we quote after a short consultation with no hidden extras. The main factors are:
- Zone and package selected
- Number of activities
- Visa quota and premises type
- Annual renewal
- Audit and substance requirements for the 0% tax regime
Frequently asked
Questions about free Zone Company Formation
Can a free zone company trade in the UAE mainland?
Not directly. It may serve free zone and international clients, and reach mainland customers through a local distributor, a mainland branch or a dual licence where the zone allows it.
Do free zone companies pay corporate tax?
A Qualifying Free Zone Person can apply 0% to qualifying income if it meets the conditions, including substance and audited accounts. Non-qualifying income is taxed at 9%, and exceeding the de minimis limit (the lower of 5% of revenue or AED 5 million) loses the status for five tax periods.
How do I choose between free zones?
Start with the permitted activity, then compare visa quota, premises options, licence cost and the banking reputation of each zone.
Can I set up without visiting the UAE?
Often yes. Many zones allow remote application and digital signing, but residency medical and Emirates ID biometrics usually require one visit.
Official sources
Verify it yourself
Rules and fees change. These government and regulator pages are the authoritative references behind this page.
Related services
Often needed together
Talk to an EHMC consultant
Tell us about your business and get a clear, written path with timelines and costs.