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ZETUP PRO Corporate Services
Free Zone Company Formation
Free Zone Company Formation

Dubai Free Zone Company Formation — One Application, Every Free Zone

Quick Answer

Setting up a free zone company in Dubai costs from about AED 5,500 to AED 35,500 for the first-year trade licence, plus AED 2,500–4,500 per investor visa. Setup takes 2–3 weeks end-to-end and is 100% digital in most free zones. ZETUP submits applications across IFZA, Meydan, RAKEZ, DMCC, SHAMS, DAFZA, JAFZA, and DIFC — recommending the right authority for your activity, visa allocation, and budget. You pay the official free zone fees directly; our service fees are itemised and disclosed before any submission. No exclusive deals, no hidden markups.

Why a Free Zone Company

A free zone company is licensed by one of the UAE's 40+ free zone authorities — separate jurisdictions designed to make foreign business setup faster, simpler, and cheaper than the mainland route. Most founders moving to Dubai end up in a free zone, not on the mainland, because the trade-offs favour international, digital, and remote-first businesses.

  • 100% foreign ownership — no UAE national required, ever
  • Lower entry cost — licences from AED 5,500/year vs AED 25,000+ on mainland
  • 100% digital application — apply, pay, and receive your licence without setting foot in a government office
  • Faster setup — 2–3 weeks end-to-end vs 3–4+ weeks for mainland
  • Investor visa eligibility — sponsor your own residency the moment your licence is issued
  • 0% personal income tax — UAE has no personal income tax, regardless of company structure
  • 9% corporate tax with relief — Small Business Relief treats taxable income as zero up to AED 3M revenue (through end of 2026)
  • Repatriate profits freely — no restrictions on moving capital out of the UAE

Which Free Zone Is Right For You

Choosing the wrong free zone is the most expensive mistake founders make in Dubai — switching later means cancelling your visa, deregistering your company, and starting over. There is no single 'best' free zone. The right choice depends on what you sell, how many visas you need, and whether you plan to do business inside the UAE or only outside it.

We set up companies across every major free zone. The table below summarises where we typically recommend each one. Talk to us before you sign anything — our recommendation is based on your business model, not on which authority pays the highest commission. We do not have an exclusive deal with any single free zone.

Free ZoneStarting Licence FeeBest ForVisa Allocation
DIFC (Innovation Hub)from AED 5,500Fintech startups; financial services (DFSA-regulated)Tied to office space
SHAMS (Sharjah Media City)from AED 5,750Media, content creators, digital agenciesUp to 2–3 with shared workspace
RAKEZ (Ras Al Khaimah)from AED 6,000Manufacturing, light industrial, lowest-cost tradingUp to 2 flexi-desk, more with office
Meydan Free Zonefrom AED 12,500Digital-first founders, brands wanting a Dubai addressUp to 6 standard
IFZA (Dubai Silicon Oasis)from AED 12,900Solo founders, consultants, low-volume e-commerceUp to 9 (no office required)
JAFZA (Jebel Ali Port)from AED 15,000Trading, logistics, warehousing, industrialTied to leased space/warehouse
DAFZA (Dubai Airport)from AED 15,020Logistics, trading, aviation-adjacentTied to office/smart-desk
DMCC (JLT)from AED 35,484Commodities, crypto, premium brand addressUp to ~3 flexi-desk, more with office

How Much Does a Dubai Free Zone Company Cost?

First-year cost depends on the free zone, the number of visas you need, and whether you take a Flexi Desk or rent a private office. Below is a realistic breakdown for a solo founder setting up in a mid-priced free zone with one investor visa. We provide an exact, itemised quote before any submission — no estimates dressed up as final pricing.

Cost ComponentApproximate Range (AED)Notes
Free zone trade licence (1 year)5,500–35,500Direct fee paid to the free zone authority
Flexi Desk / shared workspaceIncluded in licenceRequired by law, included in most packages
Establishment card1,500–2,500Required to sponsor any visa
Investor visa (1 person)2,500–4,500Visa allocation + medical + Emirates ID + biometrics
E-channel registration1,200–2,000GDRFA digital sponsorship account
ZETUP setup service fee5,000–9,500One-time, depends on free zone and complexity
Estimated total (1 visa)21,700–52,500First-year, fully operational
Each additional visa2,500–4,500Subject to allocation cap of your licence package
Annual renewal (year 2 onwards)10,000–28,000Licence + Flexi Desk only — no setup fee

Visa Allocation Rules — How Many Visas Can You Sponsor?

Your free zone licence comes with a visa allocation. Most founders do not realise this is a hard cap until they try to hire their second or third employee. The cap is set by the workspace package included in your licence — and once you hit it, the only way to increase it is to lease a private office with a registered Ejari contract.

This is the single most common reason founders pay to switch free zones in year two. Plan visa allocation around your 18-month hiring forecast, not just your day-one needs.

  • You are not required to physically work from the Flexi Desk — it is a legal workspace requirement, not a daily obligation
  • You can rent an office outside the free zone if it has a valid Ejari, provided your licence permits it
  • Visa allocation is per licence, not per shareholder — adding more shareholders does not add more visas
  • A rejected visa application does not consume your allocation — but a cancelled visa does, until it clears the system
Workspace TypeTypical Visa CapApproximate Annual Cost
Flexi Desk (shared, included in licence)Up to 6 visasIncluded
Flexi Desk + extra allocation feeUp to 9–10 visasAED 2,000–4,000 extra
Private office (Ejari required)Approx. 1 visa per 9 sqm of officeAED 25,000–80,000+ /year

Step-by-Step Free Zone Formation Process

Step 1: Free Zone Selection (Day 1) — We review your business activity, target visa count, and budget, then recommend 2–3 free zones with a side-by-side cost and feature breakdown. You choose. We do not push a single authority because we are not paid by any of them.

Step 2: Activity & Name Reservation (Days 1–3) — We select the correct activity codes from the chosen free zone's list (each authority has its own list, ranging from 800 to 2,500+ activities), reserve your trade name, and submit the initial application.

Step 3: Licence Application & Payment (Days 3–7) — Once the free zone approves your structure, you sign the application digitally and pay the official free zone fee. Most free zones now process this entirely online — you never visit a counter.

Step 4: Trade Licence Issuance (Days 7–14) — The free zone issues your trade licence, MOA, share certificates, and establishment card. At this point your company legally exists.

Step 5: Visa Process (Days 14–21) — We open your e-channel account, apply for your investor visa entry permit, coordinate medical screening and biometrics, and stamp your residence visa. Emirates ID is issued in parallel.

Step 6: Bank Account Introduction (Weeks 3–6) — We introduce you to UAE banks suited to your business model and prepare the documentation pack. Bank account opening is the slowest step and is partially outside any setup partner's control — we set realistic expectations and shepherd the application.

Step 7: Corporate Tax Registration (Within 90 days) — Every UAE company, free zone or mainland, must register with the Federal Tax Authority within 90 days of licence issuance. Missing this triggers an automatic AED 10,000 fine. We complete your registration the same week your licence is issued — included in the formation service.

Documents Required

Free zone applications require less paperwork than mainland — most can be completed entirely with digital copies. We provide a personalised checklist on day one based on your nationality, activity, and chosen free zone.

  • Passport copy (valid 6+ months) for each shareholder
  • Passport-size photo on white background
  • UAE entry stamp or visa page (if currently in the UAE)
  • Brief business plan (only required for regulated activities like financial services or healthcare)
  • Proof of address from your home country (utility bill or bank statement)
  • CV or professional profile (only for activities requiring proof of experience)
  • No Objection Certificate from your current UAE sponsor (if you already hold a UAE residence visa)

Free Zone vs Mainland — Which Should You Choose?

The free zone vs mainland decision is the most important call you will make in the setup process. There is no universal answer, but there are clear rules of thumb. If you primarily sell internationally or to other free zone companies, free zone wins on cost and speed. If you need to invoice UAE consumers or government entities directly, mainland is structurally required.

FactorFree ZoneMainland (DET)
Foreign ownership100%, no exceptions100% for most activities since 2021
Sell to UAE customersIndirect (via local distributor)Direct, no restrictions
Government contractsNot eligibleEligible
Setup cost (1 year, 1 visa)AED 22,000–52,000AED 28,000–55,000
Setup time2–3 weeks3–4+ weeks
Office requirementFlexi Desk satisfies itEjari required from day one
Visa allocationCapped by licence packageBased on office size, no fixed cap
Number of activities1 free zone = 1 activity list2,000+ DET activity codes
Corporate tax9% (with 0% Qualifying Free Zone regime if criteria met)9% standard

What ZETUP's Free Zone Formation Service Includes

We are a multi-free-zone setup partner. We do not have an exclusive deal with any single authority — which means our recommendation is based only on what fits your business, not on which free zone pays the highest commission. Our service fees are disclosed upfront and itemised separately from the official free zone fees on every invoice.

  • Free zone selection consultation with side-by-side comparison of 2–3 best-fit options
  • Activity code mapping across the chosen free zone's activity list
  • Trade name reservation and trademark conflict check
  • Full application preparation, submission, and follow-up with the free zone
  • MOA, share certificate, and establishment card issuance
  • E-channel registration with GDRFA for visa sponsorship
  • Investor visa, medical, biometrics, and Emirates ID coordination
  • Corporate tax registration with the Federal Tax Authority within the 90-day window
  • Bank account introduction to 3+ UAE banks suited to your business model
  • Post-licence compliance briefing — what to file, when, and what fines to avoid
  • Dedicated WhatsApp coordinator throughout the entire setup

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الأسئلة الشائعة

Entry-level free zone licences start from about AED 5,750 per year (SHAMS, RAKEZ) up to AED 12,900 (IFZA, Meydan). Premium addresses like DMCC start around AED 35,500. Add AED 2,500–4,500 for an investor visa, AED 1,500–2,500 for the establishment card, and our service fee. Realistic first-year all-in cost for a solo founder: AED 22,000–52,000.

2–3 weeks from signed application to issued trade licence. Adding the investor visa, Emirates ID, and bank account introduction extends the full setup to 4–6 weeks. The bank account is the slowest step and largely outside any setup partner's control.

Yes, in every free zone, without exception. Free zones were designed specifically to allow 100% foreign ownership — this has been the case since the first Dubai free zone (JAFZA) opened in 1985. No UAE national sponsor is required at any stage.

It depends on your workspace package. A standard Flexi Desk (included in most licences) allows up to 6 visas. Paying an extra allocation fee can extend this to 9–10. Beyond 10, you must lease a private office with an Ejari contract — visa count is then capped at roughly 1 visa per 9 sqm of office space.

No. The Flexi Desk is a legal workspace requirement attached to your licence — you are not obligated to use it day-to-day. Most founders work from home, a coworking space, or a separate private office. You can also rent office space outside the free zone, provided it has a valid Ejari and your licence permits it.

Free zone if you sell internationally, run a digital business, or want the lowest setup cost. Mainland if you need to invoice UAE customers directly, bid on government contracts, or want maximum activity flexibility. We run a free 30-minute call to assess your specific case before you commit to either route.

All UAE companies must register for corporate tax. The standard rate is 9% on taxable income above AED 375,000. Free zone companies that meet the Qualifying Free Zone Person criteria (substance requirements, qualifying income only) can apply a 0% rate on qualifying income. Small Business Relief treats taxable income as zero for businesses with revenue under AED 3 million through end of 2026. Whether you qualify depends on your activity and substance — we coordinate the registration and refer you to a UAE-licensed tax advisor for ongoing filings.

Yes, but expect 3–8 weeks and significant due diligence — UAE banks are conservative about free zone companies, particularly for non-resident shareholders or activities like crypto, e-commerce, and consulting. We introduce you to 3+ banks that match your profile and prepare your application pack to maximise approval odds.

AED 10,000 fixed fine. The Federal Tax Authority requires every UAE company to register within 90 days of trade licence issuance. We complete your tax registration during the setup process — included, not an upsell — so the deadline is never missed.

Renewal is the licence fee plus the establishment card and visa renewals — typically AED 10,000–28,000 depending on free zone and visa count. There is no setup service fee in year two. We also handle renewals for companies who want to switch from their original setup partner.

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المنطقة الحرة

المنطقة الحرة هي ولاية قضائية خاصة في الإمارات تديرها هيئتها الخاصة، وتقدم ملكية أجنبية 100% وتأسيسًا مبسطًا للشركات وحوافز ضريبية — لكن مع قيود على التجارة المباشرة مع سوق البر الرئيسي.

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تصريح العمل الحر

تصريح العمل الحر هو رخصة تتيح للفرد العمل بشكل مستقل في الإمارات باسمه الخاص دون تأسيس شركة كاملة. تصدره عدة مناطق حرة ووزارة الموارد البشرية، ويمكن أن يدعم تأشيرة إقامة ذاتية الكفالة.

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الرخصة المزدوجة

الرخصة المزدوجة تتيح لشركة منطقة حرة أن تحمل أيضًا رخصة في البر الرئيسي عبر شراكة بين المنطقة الحرة والدائرة الاقتصادية المحلية، فتعمل في السوقين دون تأسيس كيان منفصل في البر الرئيسي.

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المكتب المرن

المكتب المرن هو مساحة عمل مشتركة أو بدوام جزئي في منطقة حرة تستوفي شرط المكتب للشركة بتكلفة منخفضة. يوفر عنوانًا تجاريًا مسجلًا، وهو أرخص خيار للمقر بالنسبة للشركات الصغيرة في المناطق الحرة.

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