A free zone company is registered inside one of Dubai's designated economic zones, each with its own authority, licence list and package pricing. Free zones were built to attract foreign investment, so they offer full foreign ownership, a fast and predictable process, and bundled packages that combine the licence, a desk and a visa allocation into one price.
The trade off is scope. A free zone licence is designed for business conducted with customers outside the UAE, inside the same zone, or through a distributor. If most of your revenue will come from selling directly to UAE mainland customers, that structure adds a step later, which is why the jurisdiction decision should follow your customers rather than the headline price.
Each free zone is a separate jurisdiction with its own registrar, rules and licence categories. Dubai has more than 30, including IFZA, Meydan, DMCC, DAFZA, JAFZA, Dubai South, DIFC and Dubai Internet City, and each one leans towards particular sectors: commodities, media, technology, logistics, finance or general trading.
Free zone companies benefit from full foreign ownership and no personal income tax. They fall under the 9% corporate tax regime, though a qualifying free zone person may access a 0% rate on qualifying income where the substance and transaction conditions are met. Most zones accept a flexi desk rather than a full office, which is what keeps the entry cost low.
No local partner and no local service agent. The company is yours outright from day one.
Many zones issue a licence within a few working days once documents are complete, because everything sits with one authority.
Licence, desk and visa allocation are bundled, so your first year cost is known up front with fewer moving parts.
Most zones satisfy the office requirement with a shared desk, which removes the largest fixed cost of a mainland setup.
No personal income tax, and a qualifying free zone person may access a 0% corporate tax rate on qualifying income.
Choosing the zone that matches your sector puts you next to your customers, suppliers and the regulator that understands your activity.
| Factor | Mainland | Free zone |
|---|---|---|
| Selling to UAE mainland | Via distributor or branch | Direct |
| Foreign ownership | 100% | Up to 100% on most activities |
| Office requirement | Flexi desk accepted | Physical office with Ejari |
| Setup speed | Days | Slightly longer |
| Entry cost | Lower | Higher |
| Visa quota | Fixed by package | Scales with office size |
Zones group activities into a handful of licence categories. Most businesses fall into one of these.
Free zone packages start lower than mainland because the desk replaces a leased office. What moves the price is the zone itself, the number of activities on the licence and the number of visas in the package. A zero visa package is the cheapest entry point, and each visa added increases both the package tier and the per person processing cost.
What makes up the cost
We match your activity, budget and visa needs to the zones that actually fit, rather than defaulting to whichever pays the largest commission.
We submit your preferred names to the authority and clear the one that passes their naming rules.
We prepare the application, activity selection and shareholder documents and file them with the free zone registrar.
The authority issues initial approval, then package and government fees are settled.
Your trade licence, incorporation certificate and flexi desk or office lease are issued together.
We process the establishment card, then residence visas including medical, Emirates ID and passport stamping.
We prepare a bank ready file, match you to suitable banks and support you through compliance to a live account.
We advise on the structure that fits your activity and customers rather than the package that is easiest to sell. You get a fixed quote with government fees itemised separately, a dedicated advisor from first call to licence, and the same team afterwards for visas, banking, accounting and renewals.
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Since 11 February 2026 the UAE charges a flat AED 50 for every day you stay beyond your permitted date, on tourist, visit and residence visas alike. Enter your dates to see the total.
Indicative only. Fines are confirmed by the ICP or GDRFA when you pay. Settle via ICP Smart Services, the GDRFA Dubai portal or UAE Pass.
Need help fixing your status?Your end of service benefit is based on your last basic salary, not your total package. You need at least one year of service to qualify.
Based on your last basic salary only, excluding housing, transport and other allowances. Since February 2022 resigning and being terminated pay the same gratuity.
Talk to us about payrollVAT is 5 percent, and registration is mandatory once your taxable turnover passes AED 375,000. Corporate tax is 9 percent on profit above AED 375,000, and 0 percent below it.
VAT is 5 percent and registration is mandatory above AED 375,000 of taxable turnover (voluntary from AED 187,500). Corporate tax is 9 percent on profit above AED 375,000.
Get your tax handledThe right jurisdiction depends on where your customers are, whether you need an office, and if you want to bid for government work. Answer five quick questions.
The Golden Visa gives 10 year renewable residence without a local sponsor. Pick the route that best describes you to see the usual threshold.
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