Free Zone Company Setup in Dubai & UAE: FZCO, FZE, FZ-LLC

Free zone company setup in Dubai means registering with a zone authority, such as DMCC, JAFZA, IFZA or Meydan, under that zone's own regulations. Free zone companies are treated as outside the UAE mainland jurisdiction, and 100% foreign ownership is the norm.

We choose the zone and the legal form with you, reserve the trade name and file the application with your KYC pack. Then we coordinate the lease or flexi desk, the immigration card, visas, corporate tax registration and a bank introduction. Every quote is written per case.

Quick facts	Value
Local company form	Free zone company (FZCO, FZE or FZ-LLC), equivalent of an LLC / private limited company
Foreign ownership	100%, within each zone's activity list
Shareholders	One or more at DMCC, DSO and DAFZ; 2 to 50 for a JAFZA FZCO
Minimum capital	None at JAFZA or in the DMCC Regulations; DIEZ zones: see Minimum share capital
Corporate tax	QFZP: 0% on Qualifying Income, 9% on other income; others: 0% up to AED 375,000, 9% above
VAT	5%; registration above AED 375,000 of taxable supplies and imports in 12 months
Customs duty	0% on goods brought into the zone
Licence timing	Within 14 working days after approval (u.ae)
Visas	Through the zone; the quota depends on the package or office
Mainland sales	Through a mainland distributor, branch or company; in Dubai, a DET licence or permit

Why Choose a Free Zone Company in the UAE

One authority, the zone, registers the company, issues the licence and processes work permits and residence visas. Goods brought into a free zone pay no customs duty until they enter the mainland, where duty is generally 5% of the CIF value. For the wider picture, see company formation in the UAE.

The limits sit in each zone's activity list. Some activities need a regulator first: media the National Media Authority or an emirate media body, food ADAFSA or a municipality, finance the DFSA or the FSRA.

What is a free zone in Dubai?

A free zone in Dubai is an area whose own authority licenses and registers companies under its own regulations. A company registered there holds the zone's licence and is considered outside the UAE mainland jurisdiction. Zones can even exclude the federal Commercial Companies Law, as Meydan does in Regulation 2.3.

Free Zone Legal Forms: FZE, FZCO and FZ-LLC

Forms differ by zone and by whether the shareholders are individuals or companies. Dubai Silicon Oasis (DSO) and Dubai Airport Freezone (DAFZ) belong to the Dubai Integrated Economic Zones Authority (DIEZA), so we call them the DIEZ zones.

What do FZE, FZCO and FZ-LLC mean?

FZE stands for Free Zone Establishment, a company with one shareholder, still used at JAFZA, RAKEZ and Ajman Free Zone. FZCO stands for Free Zone Company, the form registered by IFZA, JAFZA and the DIEZ zones; RAKEZ and Ajman write FZC. FZ-LLC is the free zone limited liability company (LLC) of the Dubai Development Authority zones and Masdar City Free Zone.

FZE and FZCO

An FZE has one shareholder, an individual or a company. The DIEZA Regulations 2023 ended the form in the DIEZ zones, where existing FZEs are treated as FZCOs. Agent sites often say an FZCO needs two shareholders. That is JAFZA's rule (2 to 50), and SPC Free Zone's FZC-LLC also needs two or more. DMCC (Art. 25.2) and the DIEZ zones (Reg. 16.1) allow a single shareholder. A DIEZ FZCO needs a natural-person director and a UAE-resident Manager (Regs. 39.2 and 48.3).

FZ-LLC and other zone forms

The Dubai Development Authority (DDA) registers FZ-LLCs with 1 to 75 shareholders. DMCC registers a DMCC Company or Branch, Dubai South the DWC-LLC and Meydan an LLC. DIFC offers Private, Public, Recognised (foreign) and Prescribed (SPV) Companies plus foundations. Branches have no separate legal personality. JAFZA also registers Offshore Companies, covered under offshore company formation in the UAE.

Minimum share capital

JAFZA sets no minimum, only capital suited to the activities, and Meydan prescribes none. The DMCC Regulations set no figure but let the Registrar fix one (Art. 26.2), and a DIFC Private Company has no minimum (Art. 35(2)). The DIEZA Regulations we reviewed set AED 1 for an FZCO (Reg. 23.2) and AED 250,000 for a PLC, 25% paid up. We confirm the current figure with the zone. See minimum share capital by country.

Dubai and UAE Free Zones Compared

Zone	Emirate	Focus (zone's own description)	Legal forms	Office options
DMCC	Dubai	Commodities, AI, e-commerce, maritime; 1,000+ activities	DMCC Company, branch	Office in JLT: flexi desk, serviced office or dedicated space
IFZA	Dubai	Commercial and professional licences	FZCO	Confirmed at quote
Meydan Free Zone	Dubai	Over 2,500 activities	LLC, branch	Flexi desk included
Dubai Airport Freezone (DAFZ)	Dubai	Airport zone (sectors confirmed at quote)	FZCO, PLC, branch	Confirmed at quote
JAFZA	Dubai	Logistics, FMCG, retail and e-commerce, petrochemicals, automotive, manufacturing	FZE, FZCO, PLC, branch, Offshore Company	Lease at setup
Dubai Silicon Oasis (DSO)	Dubai	Mobility, AI, robotics, cybersecurity, professional services	FZCO, PLC, branch	Offices, co-working, light industrial units
Dubai South	Dubai	Logistics and aerospace	DWC-LLC, freelancer licence	Confirmed at quote
DIFC	Dubai	Financial firms; family offices, holdings, SPVs, fintech	Private, Public, Recognised and Prescribed Companies	Confirmed at quote
DDA zones	Dubai	Internet City, Media City, Design District and others	FZ-LLC, branch	Confirmed at quote
Dubai CommerCity	Dubai	Digital commerce only	Not stated by the zone	Smart desks and offices
ADGM, KEZAD, twofour54, Masdar City	Abu Dhabi	Financial centre; trade and industry; media; life sciences, AI, energy	ADGM: company limited by shares, LLP, LP, foundation	Emirate guide
SPC, SAIF Zone, Hamriyah, SHAMS, SRTIP	Sharjah	Publishing; airport zone; oil and gas, maritime; media; R&D	SHAMS: LLC, branch	Emirate guide
Ajman Free Zone, Ajman Media City, Ajman NuVentures Centre	Ajman	Food, automotive, construction, education; media; broad list	Ajman Free Zone: FZE, FZC, branch	Emirate guide
RAKEZ	Ras Al Khaimah	Industrial; free zone and non-free zone entities	FZE, FZC (FZ-LLC in its capital rules), branch	Emirate guide
UAQ Free Trade Zone	Umm Al Quwain	Commercial, industrial, service licences	Not stated by the zone	Confirmed at quote
Fujairah Free Zone, Fujairah Creative City	Fujairah	Creative City: media and creative	Not stated by the zones	Confirmed at quote

DMCC (Dubai Multi Commodities Centre)

DMCC's Company Regulations of 10 October 2024 make a Secretary and a Manager mandatory (Arts. 56 and 57.1) and set no director cap. Office size in Jumeirah Lakes Towers (JLT) sets the visa allowance.

IFZA (International Free Zone Authority)

IFZA is headquartered in Dubai Silicon Oasis and incorporates FZCOs, not FZ-LLCs. Applications go through its Professional Partners, and no physical presence is needed to incorporate.

Meydan Free Zone

Meydan Free Zone operates under Dubai Law No. 5 of 2009 and its 2022 Regulations. It includes a flexi desk, makes visas optional and publishes licence times of 60 minutes (Fawri) or 24 hours. Each company needs a director and a general manager (Reg. 28.1).

Dubai Airport Freezone (DAFZ or DAFZA)

DIEZA has run Dubai Airport Freezone since 1 January 2022 under Dubai Law No. 16 of 2021. New companies are FZCOs, PLCs or branches, although DAFZ's download page still shows FZE names.

JAFZA (Jebel Ali Free Zone)

JAFZA hosts more than 11,000 businesses under its Companies Implementing Regulations 2016. It also registers companies for Dubai Industrial Park, Dubai Auto Zone, Dubai Textile City and Dubai Gold and Diamond Park.

DIFC company setup

DIFC is a financial free zone under Federal Law No. 8 of 2004, where federal civil and commercial laws do not apply (Art. 3(2)). A Private Company may have up to 50 shareholders and needs at least one natural-person director (Arts. 27 and 66). A secretary is optional (Art. 81(4)).

Dubai Silicon Oasis and Dubai South

Dubai Silicon Oasis issues service, trade and industrial licences. Dubai South registers the DWC-LLC and offers a freelancer licence.

Umm Al Quwain and Fujairah free zones

The Umm Al Quwain Free Trade Zone issues commercial, industrial and service licences. Fujairah's zones include Fujairah Free Zone and Fujairah Creative City, for media and creative businesses.

Best Free Zone in Dubai and the UAE by Business Type

We do not rank zones; the right one depends on your activity, visas and tax position. By each zone's published focus:

Commodities: DMCC. Trading qualifying commodities is a Qualifying Activity unless 51% or more of revenue is distribution or logistics (MD 229, Art. 2(3)(c)).
Trading and distribution: JAFZA, Dubai South, KEZAD and Hamriyah. Distribution qualifies only in or from a Designated Zone.
Consulting and services: broad-list zones such as Meydan, IFZA, DMCC and SPC. Consulting for clients outside free zones is not a Qualifying Activity.
E-commerce: Dubai CommerCity and JAFZA. Sales to individuals are an Excluded Activity.
Media: the DDA media zones, twofour54, SHAMS, Ajman Media City and Fujairah Creative City.
Holding and SPVs: DIFC, ADGM, DMCC, and JAFZA Offshore (an offshore company, not a free zone licence).
Industrial and logistics: JAFZA, KEZAD, Hamriyah, RAKEZ and UAQ FTZ.
Technology: Dubai Silicon Oasis, Dubai Internet City, SRTIP and Masdar City.

Free Zone Company Setup in Dubai: Step by Step

Business setup in a Dubai free zone runs through the zone as registrar. As your formation agent, we file each step with it until the company is on its register; the u.ae free zone guide sets out the same sequence.

Zone and activity. The zone's activity list decides what the licence covers; regulated activities need approval first.
Legal form. FZCO, FZE, FZ-LLC, a zone-specific company or a branch, depending on the zone and the shareholders.
Trade name. It must include the legal form and may not use religious names or names of authorities.
Online application. DMCC uses online pre-approval and an e-licence, JAFZA an online registration of interest.
Licence. Issued within 14 working days after approval (u.ae). Dubai companies also receive a Dubai Unified Licence (DUL) number as DET rolls it out, an identifier rather than a trading licence.
Lease, immigration card and visas. Visa applicants attend the medical test and Emirates ID biometrics in the UAE.
Tax and bank. Corporate tax registration within three months of incorporation (FTA Decision No. 3 of 2024), the bank account, and VAT registration once the threshold is passed.

Required Documents

JAFZA and DMCC publish the core list:

Passports (JAFZA: valid for six months)
KYC and beneficial owner (UBO) forms
A business plan
Proof of address and a bank reference or capital deposit confirmation (DMCC)
A sponsor's no-objection letter for shareholders living in the UAE

Corporate shareholders add a certificate of incorporation, a notarised and attested constitution and a board resolution. JAFZA wants a foreign parent's documents attested at the UAE embassy.

Timeline and What Our Package Covers

Published licence times run from 60 minutes at Meydan to about 10 working days at DMCC and 3 to 14 business days at JAFZA. The lease, visas, tax registration and bank account follow. Our package covers every step above, from the zone shortlist to the bank introduction.

What decides the total for a free zone company?

Five choices decide the total: the licence type, the number of activities, the visa count, the office or desk and any sector approval. We quote each case in writing.

Free Zone Tax: When the 0% Rate Applies

An ordinary taxable person pays 0% corporate tax up to AED 375,000 and 9% (rate applicable in 2026) above. Small Business Relief lets a company whose revenue has never exceeded AED 3 million elect to be treated as having no taxable income; QFZPs and multinational group members are excluded. The relief covers tax periods ending on or before 31 December 2029 (Ministerial Decision No. 131 of 2026).

A QFZP pays 0% on Qualifying Income and 9% on other taxable income. Withholding tax is 0%. VAT at 5% applies in free zones too: Designated Zones can take only certain goods transactions outside VAT, and services are taxed normally. Compare corporate tax rates by country.

Who qualifies as a QFZP?

Article 18(1) of the Corporate Tax Law and Article 5(1) of Ministerial Decision No. 229 of 2025 set six conditions:

Adequate substance in the free zone
Qualifying Income
No election into the standard regime
Transfer pricing compliance
Non-qualifying revenue within the de minimis limit
Audited financial statements

Substance means core income-generating activities in a free zone or Designated Zone, with adequate assets, qualified full-time staff and spending (Cabinet Decision No. 100 of 2023, Art. 8). Non-qualifying revenue may not exceed 5% of revenue or AED 5,000,000, whichever is lower. A breach ends QFZP status for that tax period and the next four (MD 229, Arts. 3 and 5(2)).

Qualifying and Excluded Activities

Qualifying Income is income from other Free Zone Persons who are the beneficial recipients, except from Excluded Activities. Income from anyone else counts only for Qualifying Activities (Cabinet Decision No. 100 of 2023, Art. 3). Ministerial Decision No. 229 of 2025, retroactive to 1 June 2023, lists the Qualifying Activities:

Manufacturing and processing
Trading qualifying commodities, including carbon credits
Holding shares for 12 months or more
Shipping, logistics and aircraft financing
Reinsurance, and regulated fund and wealth management
Headquarter services to related parties; treasury services to related parties or for own account
Distribution in or from a Designated Zone

Excluded Activities include transactions with natural persons, with narrow exceptions, plus banking, insurance, finance, leasing and most immovable property (Art. 2(2)).

Selling to the UAE Mainland from a Free Zone

A free zone company sells into the mainland through a licensed mainland distributor, branch or company. The u.ae guide to running a free zone business says direct mainland sales are generally not permitted without mainland licences.

Dubai's Executive Council Resolution No. 11 of 2025, issued on 3 March 2025, adds a route for free zone establishments other than DIFC financial firms (Art. 2). The Department of Economy and Tourism (DET) may grant (Arts. 4, 7 and 9):

A branch licence in Dubai
A branch licence operated from the free zone, valid for one year and renewable
A permit for listed activities, for up to six months

The zone must approve, the mainland business keeps separate accounts (Art. 3(b)) and staff keep their free zone privileges (Art. 8). Branch income is Domestic Permanent Establishment income, taxed at 9% and outside the de minimis test, while QFZP status survives for the rest.

Since October 2025, Dubai Unified Licence holders can also apply for a Free Zone Mainland Operating Permit. Other bridges: Meydan's no-objection certificate with DET approval, SRTIP's Dual Licensing Option, KEZAD's Domestic Economic Zone facilities and DSO's Business Operation Permit in its Administrative Zone. RAKEZ also offers non-free zone entities, whose ownership rules we confirm per activity. With mostly mainland customers, compare Dubai mainland company formation; our guide to business setup in Dubai sets mainland, free zone and offshore side by side.

Free Zone Visas and Work Permits

Work permits and residence visas come through the zone, and the quota depends on the package or office. At DMCC a standard flexi desk is eligible for three visas and a special flexi desk for one; SHAMS advertises up to 50 per licence. Employment follows zone rules and Federal Decree-Law No. 33 of 2021, with separate laws in DIFC (DIFC Law No. 2 of 2019) and ADGM.

Banking for Free Zone Companies

The Dubai Business Registration and Licensing Corporation says the Dubai Unified Licence cut average business account opening from 65 days to five, with seven participating banks (November 2025). Activity mix matters. Meydan warns that general trading mixed with unrelated activities may cause complications at banks. See our bank account opening service.

Compliance and Reporting Obligations

Obligation	Rule
Licence renewal	Before expiry (Meydan Reg. 13.1)
Audit under zone rules	DMCC: within six months (Art. 73); DDA: to the AGM within six months (Reg. 65.1); Meydan: on request
Audit under tax law	Every QFZP, and others with revenue above AED 50 million (MD 84 of 2025)
Corporate tax return	Within nine months of the end of the tax period
Beneficial owners	Cabinet Decision No. 109 of 2023; DIEZ annual declaration; DIFC UBO Regulations
E-invoicing	Revenue of AED 50 million or more: 1 January 2027; others: 1 July 2027
Economic substance	Reports covered years ending by 31 December 2022; substance is now a QFZP condition

We do not provide nominee shareholders or directors. In DIFC a nominee director must disclose the nominator within 30 days, and the company keeps a Register of Nominee Directors (UBO Regulations, Reg. 5). Our accounting and tax compliance service runs this calendar with the zone and the Federal Tax Authority.

Forming a Free Zone Company as a Non-Resident

A non-resident can own 100% of a free zone company and, at IFZA, incorporate without travelling to the UAE. Officer rules decide the rest. A DIEZ FZCO needs a UAE-resident Manager (Reg. 48.3). DMCC requires a Manager (Art. 57.1), and DDA a natural-person general manager named on the licence (Reg. 74.1). Every commercial free zone company also names to the registrar a UAE-resident natural person who can disclose its beneficial owner data (Cabinet Decision No. 109 of 2023, Art. 11(4)).

A non-resident supplies the documents listed above. A residence visa still needs a visit for the medical test and Emirates ID biometrics. Non-resident founders who want residence use the zone's visa quota, set by the package or office.

Frequently Asked Questions

What is DMCC, and is it a free zone?

Yes. DMCC stands for Dubai Multi Commodities Centre, a Dubai free zone with its own Company Regulations 2024. It covers commodities such as gold, diamonds, tea, coffee and energy, plus AI, e-commerce and maritime, across more than 1,000 activities. Every DMCC company needs an office in Jumeirah Lakes Towers.

How do I register a company in a UAE free zone?

Choose the zone and the activity, then a legal form the zone offers and a trade name. File the online application with passports, KYC and beneficial owner forms. The licence follows approval, typically within 14 working days on the federal portal's guidance, then the lease, the immigration card and the visas. Our Dubai mainland page compares the mainland route.

How many free zones are there in the UAE?

There is no official count. The government portal u.ae links to 37 free zone websites, and the Ministry of Economy and Tourism's registrar list, updated on 8 November 2026, names 31 registrars. Some cover several zones. Agent figures of 40 to 47 are not official.

Which free zone is right for a small company?

The right zone is the one whose activity list covers your business and whose office and visa options match what you need; we do not rank zones by price. Check the activity first, then the office type (flexi desk, serviced office or lease), the visa count and any sector approval. Those choices set the total, and we quote each zone on your shortlist in writing.

Is Dubai Design District a free zone?

Yes. Dubai Design District is a Dubai Development Authority zone, like Dubai Internet City and Dubai Media City; the authority was established under Law No. 1 of 2000. DDA zones register FZ-LLCs and branches, license by cluster and require a natural-person general manager named on the licence (Reg. 74.1).

What is a free zone company in the UAE?

A free zone company is registered by a free zone authority under that zone's own regulations and sits outside the UAE mainland jurisdiction. Full foreign ownership is the norm. Forms differ by zone: an FZE has one shareholder, an FZCO is registered at JAFZA, IFZA and the DIEZ zones, and an FZ-LLC in the Dubai Development Authority zones.

Get Started: Set Up Your Free Zone Company

Tell us your activity, shareholders and visa needs. We shortlist the zones that can license you, propose the legal form and send a written quote.

Call +48 2222 5 2222 or email info@companyformation24.com to start.

Content prepared by Aleksandra Kowalska, Corporate Client Service. Approved by Tomasz Bielski, Managing Director.

Free Zone Company Setup in Dubai and the UAE