Visas follow the emirate
A residence visa lets you live in any emirate, but some visa procedures are tied to the emirate of registration. Driving from Dubai to Ras Al Khaimah once every two years is bearable; once a month is not.
Company Registration in the UAE and Abroad
The UAE has more than 40 free zones, and nearly every one promises “fast and affordable”. The differences show up later — in the visa quota, how banks view you, audits and working with the mainland. Below are the criteria we use to choose a zone, and a comparison of the most popular options.
In short
The UAE has over 40 free zones: we shortlist 2–3 of them against 10 criteria and compare the cost of ownership over three years — with visas, audit and the bank, not the package price. Registration in the chosen zone takes 5–10 working days.
Checked 4 November 2026 · Kermen Tserenkeeva
Cost of a mistake
5 periods without 0%
Breach the qualifying free zone person conditions at any point, and the 0% is lost from the start of that tax period and for the next four.
How to avoid itChoosing a zone by package price is like choosing an apartment by the first month’s rent. What you need to compare is the cost of ownership over three years and how the bank views the zone.
Packages can’t be compared directly
One package already includes the establishment card and insurance; another doesn’t. One zone requires an annual audit; in another, your activity falls into a separate group and needs a separate licence.
Changing zones means a near-new company
Moving a year later means a new company, transferring visas and a fresh bank review. That is why we plan three years ahead: headcount, mainland clients, a warehouse, tax status.
The bank looks at the combination
Banks view the “zone + activity + owners’ nationality” combination differently. These are not public rules but shifting practice — which is why registration and banking sit within one team at our firm.
0% depends on substance
The Qualifying Free Zone Person rules are the same in every zone, except for distribution of goods, which requires a designated zone. And substance is easier to prove with an office and employees than on a flexi-desk.
Expert tip
Before paying for a package, ask the zone or your consultant for a three-year estimate including visas, renewals and audit — and ask why any item is missing from it.
Kermen TserenkeevaSenior Lawyer · Company registrationBenefits
Zone finder
Tick what you need, and the zones that don’t fit will fade out. A zone’s profile rarely changes, but packages and fees change often, so we check current terms for your activity before you choose.
Trading, including commodities; service and technology companies; virtual asset projects
Consulting, services, trading, small teams
Consultants, e-commerce, media, online services
Logistics, aviation, technology, trade, corporate regional offices
Import and export, distribution, manufacturing, logistics
Manufacturing, industry, trading, small businesses
Media, creative industries, freelancers, e-commerce, consulting
Financial firms, funds, family offices, holdings and SPVs
Financial firms, funds, family offices, holdings and SPVs
How to choose
We go through this list with every client. The first three criteria usually rule out most of the options.
Each zone has its own list. Check not the name but the exact wording of the code and the group it belongs to: that determines whether one licence will be enough.
The quota is tied to the office solution. Count your people for 12–18 months ahead and check which package allows that and what moving up to the next one costs.
The “zone + activity + owners’ nationality” combination affects your account more than it seems. Don’t ask “do banks open accounts in this zone” — ask “do they open accounts for companies with this activity”.
If a significant share of your sales is on the mainland, check how the zone handles it: a distributor, a branch or a DET permit. The DET route is open only to companies in Dubai zones, except DIFC financial firms, and mainland income is generally non-qualifying for the 0% rate.
If your model fits qualifying income, choose a zone where substance and an audit are realistic; for distribution of goods, the zone must also be a designated one. If not, don’t overpay for “tax” arguments.
Some zones require audited financial statements at every renewal; others don’t. For a Qualifying Free Zone Person, an audit is always mandatory. Build it into your annual budget.
Flexi-desk, office, warehouse, manufacturing, proximity to a port or airport. If the zone doesn’t offer the infrastructure you need, you will have to rent it separately.
Where you and your employees will live. Some visa procedures are tied to the emirate of registration: driving from Dubai to Ras Al Khaimah once every two years is bearable; once a month is not.
Compare registration, renewal, establishment card, visas, audit and office over three years. The cheapest first-year package often turns out to be expensive in year two.
Whether you can add an activity, a shareholder or visas, or change offices, without a new company. The stricter the rules, the more costly a mistake becomes as you grow.
Taxes
The 0% rate is the same in every free zone, but not every company gets it. For trading goods, it also matters whether the zone is designated: VAT and 0% on distribution depend on it.
What it gives: 0% corporate tax on income — from any activity except excluded ones
Condition: the buyer is a free zone company that uses the goods or services itself rather than being obliged to pass them on
Does not cover: excluded activities — banking; insurance, except reinsurance; financing and leasing, except for ships, aircraft and services to related companies; real estate transactions, except commercial property in a free zone with a free zone company; income from intellectual property, except patents and software, which have their own calculation
What it gives: 0% also on income from mainland and foreign clients
Condition: manufacturing and processing, trading in qualifying commodities, holding shares, shipping, reinsurance, regulated fund and asset management, headquarters, treasury and financing services to related companies, aircraft leasing, distribution from a designated zone, logistics
Does not cover: consulting, IT, marketing and other services not on the list — if the client is not in a free zone
What it gives: 0% — only for shipping, regulated fund and asset management, and aircraft leasing
Condition: other transactions with natural persons are an excluded activity
Does not cover: e-commerce sales to individuals, services and consulting for private clients
What it gives: 0% — within de minimis it is treated as qualifying income and the status is kept
Condition: per tax period — no more than 5% of total revenue and no more than AED 5 million
Does not cover: revenue of a mainland or foreign branch: it is left out of the de minimis calculation, and its profit is taxed at 9% unless exempt
What it gives: an obligation, not a benefit
Condition: core income-generating activities in the zone: assets, full-time employees, expenditure; audited financial statements at any revenue; arm’s-length prices and documentation for related-party transactions
Does not cover: work by contractors outside the free zone: core income-generating activities can be outsourced only to a provider in a free zone, under your supervision
What it gives: 9% — from the first dirham
Condition: profit that cannot be qualifying — from a mainland or foreign branch, real estate or non-qualifying intellectual property: a company with the status has no 0% band up to AED 375,000, so it is taxed at 9% straight away
Does not cover: companies without the status — they pay 0% on profit up to AED 375,000 and 9% above that
Neither the zone nor the licence grants the status: the company itself must meet the conditions throughout the tax period. A breach at any point, and the 0% is lost from the start of that period and for the next four.
What it gives: the zone is treated as outside the UAE for VAT; goods move between designated zones without tax
Condition: the zone is on the FTA list, fenced, under customs control and with storage rules; goods in transit are not used or altered, and transport is under customs suspension
Does not cover: services in the zone and goods consumed there follow the standard VAT rules; bringing goods from the mainland into the zone is not an export
What it gives: a qualifying activity: 0% also on sales to mainland buyers
Condition: the goods are imported into the UAE through a designated zone, and the buyer resells or processes them for sale — or is a public benefit entity
Does not cover: sales to end consumers and distribution from a free zone that is not on the FTA list
What it gives: an obligation, not a benefit
Condition: assets, employees and expenditure specifically in the designated zone, not just in any free zone; plus additional procedures set by the FTA
The status belongs to the territory, not to the zone’s brand: for RAKEZ, for example, only the industrial zones are on the FTA list. For corporate tax, a designated zone must also be a free zone under the tax law — the zone authority confirms this for your address.
Let’s discuss the details
Send us their names and a description of your business. We’ll compare the zones on visas, banking, taxes and cost of ownership, and tell you what their brochures leave out.
Process
Every step is visible in the client portal: what’s happening now and whether we need anything from you.
Steps on your side: 2 of 7
You answer our questions: activity, clients and their geography, number of visas for 12–18 months, expected turnover, bank, emirate of residence.
Step 1 of 7
You answer our questions: activity, clients and their geography, number of visas for 12–18 months, expected turnover, bank, emirate of residence.
Documents
For choosing a zone
For registration
Timing and budget
We compare zones by the cost of ownership over three years. These are the items any honest estimate should include: if one is missing, ask why.
Getting it right
Click a card to see how to do it right · 0 of 6 open
01 What people often do
Choosing a zone by the lowest package price.
02 What people often do
Registering, then discovering that banks don’t work with your activity in that zone.
03 What people often do
Choosing a zone in another emirate to save money while living in Dubai.
04 What people often do
Choosing a zone for “0% tax” when running a consulting business with foreign clients.
05 What people often do
Not asking how many activity groups fit into one licence.
06 What people often do
Taking a flexi-desk and counting on Qualifying Free Zone Person status.
FAQ
Kermen Tserenkeeva — Company registration
The cheapest first-year package doesn’t make the cheapest zone. Once a second visa, audit, renewal and a package change come in, the ranking often shifts. We compare zones by the three-year cost of ownership for your specific model.
Kermen Tserenkeeva · Company registrationDeadlines, amounts and rules are based on these sources as of the check date. Rules change: check with us before deciding.
Next step
Tell us your activity, the number of visas, where your clients are and which bank you want an account with. We’ll send a shortlist of zones with the three-year cost of ownership and explain why the rest didn’t make the cut.
Kermen TserenkeevaSenior Lawyer · Company registration
Company Registration in the UAE and Abroad
