Free zone company formation in the UAE

There are 40+ free zones across the UAE, and the UAE Embassy in Washington, DC lists 46. Each has its own authority, activity list and rules, so the total matters less than finding the few that accept your activity and offer the visa and premises options you need. We shortlist those for you.

Only with authorisation from DET. Executive Council Resolution No. 11 of 2025 gives three routes: a branch outside the free zone, a branch licensed from the free zone, or a temporary permit for listed activities. Branch licenses run for one year and can be renewed, and the temporary permit lasts up to six months. Trading without one is not allowed.

Look first at where your customers are. If most are on the Dubai mainland, a mainland company licensed by DET is usually simpler. If they are mostly abroad or inside the zone, or your activity fits a sector-focused zone, a free zone can suit you well. We compare both for your activity before you commit.

It depends on the zone and the premises option you choose, so there is no single number. Each zone sets its own visa allocation, often linked to the type of workspace you take. Residence visas are then issued after medical tests and Emirates ID registration, with decisions made by the immigration authorities. We check the allocation for every shortlisted zone.

Each free zone sets its own fees, so the cost depends on the zone, your activity, the premises option and the number of visas. Government and zone fees are paid at cost. Our service fee is quoted separately in writing before we start, so you can compare the full cost of each shortlisted zone side by side.

Yes. Invest in Dubai, the government's investment portal, promotes Dubai's free zones for full foreign ownership, so you don't need a UAE national shareholder. Each zone's regulations still set the company types it registers, who can be a shareholder and which activities it accepts. If a company will be a shareholder, its incorporation documents must be attested for UAE use before the zone accepts them.

Source: Invest in Dubai: Dubai free zones for full foreign ownership

Not automatically. A free zone company that meets the conditions for a Qualifying Free Zone Person pays 0% corporate tax on qualifying income and 9% on taxable income that isn't qualifying. The conditions include carrying out its core income-generating activities in the zone, and the UAE government portal notes that incentives depend on not operating on the mainland. Free zone companies still register with the Federal Tax Authority (FTA), which decides how the rules apply.

Source: FTA: corporate tax guide on free zone persons

The difference is the number of shareholders. In Jebel Ali Free Zone (JAFZA), a Free Zone Establishment (FZE) is a limited liability company with a single shareholder, while a Free Zone Company (FZCO) has between 2 and 50 shareholders. Shareholders can be individuals or companies, and in both cases liability is limited to the capital paid. Other zones use their own company types and limits, so we check your chosen zone's rules.

Source: JAFZA: how to set up an FZCO company

At the time of writing, the UAE government portal says free zone license approval through a zone authority's online application takes up to 14 working days. Your own timeline also depends on the zone, any pre-approval your activity needs from another regulator, and how quickly passport copies and attested corporate documents are ready. Once you choose a zone, we map each stage and tell you where waiting is likely.

Source: u.ae: starting a business in a free zone

Start with your activity, then narrow the list by visas, premises and customers. Check that the zone lists your exact activity, compare its workspace options and the visas each allows, and look at the yearly renewal costs, not just the first year. Think about where most customers will be, because mainland work needs DET authorisation. Each of the 40+ zones has its own regulations, so we compare a shortlist side by side.

Source: UAE Embassy in Washington, DC: UAE free zones