GOFIRM

Company Registration in the UAE and Abroad

Free Zone Company Registration in the UAE

A free zone is the fastest way to get a UAE company with 100% ownership, visas and a clear tax regime. There are more than 40 zones, and they differ a lot. The right one is the zone that fits your business three years from now, not the cheapest one this month.

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from 5 working days
Licence
100%
Ownership
40+
Zones to choose from
0 or 9%
Corporate tax

In short

A UAE free zone company gives 100% ownership and a licence from 5 working days; there are over 40 zones. 0% applies only to qualifying income and only if the conditions are met, otherwise 9% on profit above AED 375,000; FTA registration is due within 3 months.

Checked 4 November 2026 · Kermen Tserenkeeva

Cost of a mistake

9% instead of 0%

Consulting and IT services for foreign clients are usually not qualifying income — a free zone company pays 9% on profits above AED 375,000.

How to avoid it

How free zones really work

A free zone gives you 100% ownership and a fast start, but limits work with the mainland, and by no means every company gets the 0% rate.

  • Registration takes days, not months

    Many zones issue a licence within a few days or up to two weeks, and part of the process is online. Profits and capital can be repatriated freely.

  • The package sets the visa quota

    Zones sell packages: licence, office solution, visas. A solves the address question but limits the quota; a larger team needs a dedicated office.

  • The mainland — through intermediaries

    With foreign clients and other free zones — freely. With the mainland — through a distributor, a branch or, in Dubai, a permit for free zone companies.

  • 0% is not for everyone

    Only a gets the 0% rate: substance, qualifying income, an audit, and non-qualifying revenue no higher than 5% or AED 5 million, whichever is lower. Otherwise — 9% above AED 375,000.

Expert tip

Before you pay for a package, we check two things: whether the visa quota will last a year and a half, and whether a bank will open an account for a company with this activity in this zone.
Kermen TserenkeevaKermen TserenkeevaSenior Lawyer · Company registration

Who it suits

Who it suits — and when to choose something else

A good fit if

  1. 01Your clients are abroad or in other free zones: consulting, IT, marketing, trading, online services.
  2. 02You need a company quickly and with minimal presence: an address, one to three visas, a bank account.
  3. 03Your income can count as qualifying — manufacturing, trading in goods, logistics, holding shares — and you are prepared for an audit and real substance to get 0%.
  4. 04You need a warehouse or production site near a port or airport — in JAFZA, DAFZA, RAKEZ or KEZAD.
  5. 05Your industry has a specialised zone: commodities trading, media, finance, education.
  6. 06You are relocating to the UAE and need a residence visa through your own company.

Consider something else if

  1. 01Your main clients are individuals and companies on the mainland, and you need a shop or on-site work.Mainland
  2. 02Your main revenue comes from government contracts and work for state-owned companies: in Dubai, a free zone company needs a DET permit to bid in tenders, and it is renewed every six months.Mainland
  3. 03You need neither visas nor an office in the UAE, only to hold assets.Offshore
  4. 04Regulated financial services — asset management, brokerage, payment services — belong in DIFC, ADGM or with the relevant regulator, not in a regular zone.

Mainland clients

How to sell to mainland clients lawfully

Three routes — from a contract with a local partner to a branch licence. The DET permit and licences are issued under Dubai Executive Council Resolution No. 11 of 2025 — only to companies in Dubai’s zones, excluding DIFC financial companies; in other emirates, their own authorities issue licences and permits. Fees as of October 2026.

Distributor

You sell to a mainland-licensed company, which resells to clients in its own name

Who the client contracts with

The distributor

What to obtain

A contract with the distributor; your licence stays as it is

Term and fee

No fee; the distributor’s margin is set by contract

Tax on this revenue

0% for a Qualifying Free Zone Person if the activity is on the list: manufacturing, commodities trading, distribution from a to a reseller; otherwise this revenue counts towards the 5% / AED 5 million limit — and within it is also taxed at 0%

Who it suits

Trading in goods when you have a mainland partner

DET permit

Free Zone Mainland Operating Permit — no separate legal entity

Who the client contracts with

Your free zone company

What to obtain

An online permit; requires a

Term and fee

6 months, AED 5,000; renewal costs the same

Tax on this revenue

9% on this revenue; accounted for separately

Who it suits

Initially, non-regulated activities: IT, consulting, design, professional services, trading; you can take part in Dubai government procurement

Branch under a DET licence

Not a separate legal entity: an office in Dubai or operating from the zone itself

Who the client contracts with

Your company: the branch is not a separate legal entity

What to obtain

A DET licence approved by your zone; for regulated activities, also by the relevant authority

Term and fee

One year; a branch operating from the zone — AED 10,000 a year, a branch in Dubai — at DET rates

Tax on this revenue

A branch in Dubai — 9%, not counted towards the 5% / AED 5 million limit; a branch operating from the zone — depends on the setup, we calculate it before launch

Who it suits

Ongoing work on the Dubai mainland, including regulated activities

Benefits

What you get

A fast start

Many zones issue a licence in 5–10 working days, and the application is filed online. You only need to come for the visa and, as a rule, for the bank.

100% ownership and free profit repatriation

No local partners and no restrictions on repatriating capital and dividends.

An office to match your needs

From a flexi-desk to an office, warehouse or industrial plot. You can change the format as you grow — usually within the same zone.

0% on qualifying income

With Qualifying Free Zone Person status — 0% on income from manufacturing, commodities trading, logistics, holding shares, transactions with free zone companies and several other categories.

An industry-focused environment

Zones specialise: commodities trading, media, logistics, technology, finance. A specialised zone means the right activity catalogue, the right infrastructure and a story the bank understands.

Visas for you and your team

The company sponsors residence visas for the owner and employees within its quota, and as a resident you can sponsor visas for your family.

Corporate tax

Will your company get 0%?

The rules are the same for all free zones; for 0% on distributing goods, the zone must also be designated. Qualifying Free Zone Person status is not obtained by application — it applies as long as all the conditions are met. If they are not, the company pays the standard rates. Rules as of October 2026.

Corporate Tax Law, Arts. 3 and 18; Ministerial Decision No. 229 of 2025

Transactions with free zone companies

What it gives: 0% on this profit

Condition: the buyer is a free zone company that uses the goods or services itself and is not obliged to pass them on

Does not cover: banking and insurance, except reinsurance; leasing and financing; real estate, except commercial property in the zone

Listed activities

What it gives: 0% with corporate clients anywhere

Condition: manufacturing and processing of goods, trading in , holding shares, logistics, distribution from a to resellers, headquarters and treasury services to related companies — and other listed activities

Does not cover: services not on the list — consulting, IT, marketing — to clients outside free zones

Other revenue

What it gives: 0% — within the limit it is treated as qualifying income; exceed the limit and the status is lost

Condition: no more than the lower of 5% of total revenue or AED 5 million per tax period

Does not cover: a mainland branch’s profit — it is taxed at 9% separately and does not count towards the limit

Status conditions

What it gives: 0% on qualifying income

Condition: real substance in the zone — assets, full-time staff and expenses; audited financial statements at any revenue level; related-party transactions at arm’s length and documented

Does not cover: standard-regime benefits — 0% up to AED 375,000, Small Business Relief, tax groups, transfer of losses

If any condition is not met in even one period, the status is lost from the start of that period and for the next four: throughout that time the company pays the standard rates.

Let’s discuss the details

Will your package give you enough visas?

A quota shortfall is a common reason for moving to another zone a year later. Tell us how many people need visas over the next year and a half, and we’ll find office options in two or three zones.

Process

8 steps from the first conversation to the result

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 8

We handle it · 4Needed from you · 2Authority · 2
  1. You describe the business, clients and team. We match the activity against zone catalogues, calculate the visa quota and the cost of ownership over two to three years, and check how banks view the setup. The result is two or three options.

Documents

What to prepare — for an individual founder and for a company

Mark what you already have: the list of missing items goes to your manager with one click.

Information

Documents

Ready

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The UAE accepts a foreign company’s documents only after the full legalisation chain — an apostille won’t do. It usually takes 2–6 weeks; UAE MOFA attestation costs AED 2,000 per commercial document, indicative as of October 2026.

Timing and budget

What makes up the budget

Package prices on zone websites can’t be compared directly: some already include the establishment card and a visa, others don’t. We calculate the cost of ownership over two to three years — including visas, renewals and audit.

  • Licence and registrationDepends onDepend on the zone, the number of activities and their groups. Some zones let you combine groups in one licence; others charge extra.WhenOn registration, then annually
  • Office solutionDepends onFlexi-desk, dedicated office, warehouse or plot. The format determines the visa quota and often how the bank views you.WhenOn registration, then annually
  • Establishment cardDepends onThe company’s immigration card — no visas can be issued without it. Included in some packages, paid separately in others.WhenAfter the licence, then annually
  • VisasDepends onEntry permit, change of status, medical test, Emirates ID, health insurance — per person. Plus a visa deposit if the zone requires one.WhenOn issuance and renewal of visas
  • External authority approvalsDepends onFor regulated activities: food, healthcare, education, media.WhenBefore licence issuance
  • Document legalisationDepends onOnly if the founder is a foreign company or some documents were issued abroad: notary, the country’s foreign ministry, the UAE embassy, then attestation by the UAE MOFA — AED 2,000 per commercial document, AED 150 per personal one; indicative as of October 2026.WhenBefore filing the application
  • Audit, bookkeeping and tax reportingDepends onIn many zones an audit is mandatory for licence renewal, and for a Qualifying Free Zone Person it always is. The corporate tax return is filed once a year, VAT returns as a rule quarterly. The cost depends on the volume of transactions.WhenAnnually and quarterly
  • Working with mainland clientsDepends onIn Dubai — a DET permit: AED 5,000 for 6 months; a licence for a branch operating from the zone — AED 10,000 a year; a branch in Dubai itself — at DET rates. Through a distributor — the distributor’s margin. Fees as of October 2026.WhenIf you sell to the mainland
  • Our servicesDepends onDepend on scope: registration, visas, bank, tax registration. Ongoing support is agreed separately.WhenBy stage

After registration

Your company’s first-year deadlines — and the cost of missing them

Counted from the company’s registration date. Tax penalties and fines relating to the beneficial ownership register, visas and the establishment card are as of October 2026; each zone sets its own fines for late licence renewal.

0123456789101112months from company registration

Day 0

Licence and establishment card

The company legally exists; we open the immigration file right away — no visas can be issued without it.

Within 3 months

Corporate tax registration application

Mandatory for everyone, including free zone companies and companies with no revenue. The deadline runs from the registration date, not from the first transaction.

If missed: AED 10,000 — regardless of profit

30 days before expiry

Licence and office solution renewal

That’s how long the office contract, the audit and data corrections usually take. Some zones let you take a licence for several years at once.

If missed: at the zone’s rates; the immigration file is blocked

Every year

  • After the financial year

    Audited financial statements

    For a Qualifying Free Zone Person — at any revenue level; in many zones — for licence renewal.

  • 9 months after the financial year-end

    Corporate tax return and payment

    Filed both at the 0% rate and under Small Business Relief.

    If missed: AED 500 a month for the first 12 months, then AED 1,000 a month

When documents expire

  • Usually every 2 years

    Visas and Emirates ID

    Medical test and biometrics; the Emirates ID expires with the visa, and a family member’s visa no later than yours.

    If missed: visa — AED 50 a day after the grace period; Emirates ID — AED 20 a day from day 31, up to AED 1,000

  • When the card expires

    Establishment card

    The card has its own validity period; it is usually renewed together with the licence. Without a valid card, visas can’t be issued or renewed.

    If missed: from day 31 — AED 100 a month, up to AED 1,000

On specific events

  • Turnover of AED 375,000 over 12 months

    VAT registration

    The rate is 5%; returns are then usually filed quarterly, within 28 days of the quarter’s end.

    If missed: AED 10,000 for late registration

  • 15 days after a change

    Beneficial ownership data

    If the owners or their shares change, we update the UBO data with the registrar, then the licence, the articles and the bank file.

    If missed: a warning, then AED 15,000 and AED 30,000

  • Before the first mainland sales

    DET permit or branch

    In Dubai — a 6-month permit or a one-year branch licence; mainland revenue is accounted for separately.

Getting it right

Common mistakes — and how to avoid them

Click a card to see how to do it right · 0 of 6 open

  1. 01 What people often do

    Choosing a zone by the cheapest package, then finding out that a flexi-desk comes with one visa and the bank won’t open an account without an office.

  2. 02 What people often do

    Listing activities broader than the real business or choosing wording that worries banks — for example, crypto-related activities or “general trading” with no specialisation.

  3. 03 What people often do

    Assuming every free zone company automatically gets 0% tax.

  4. 04 What people often do

    Skipping the audit because “turnover is small”.

  5. 05 What people often do

    Working directly with mainland clients under a free zone licence.

  6. 06 What people often do

    Not registering with the FTA because “there are no taxes in a free zone”.

FAQ

Expert answers

Kermen Tserenkeeva — Company registration

In most zones the licence takes 5 to 10 working days after a complete package is submitted. If the activity needs approval from an external authority, this can stretch to several weeks. Visas take another 2–4 weeks; a bank account from two weeks.

Kermen Tserenkeeva · Company registration

Next step

We’ll set up your company in the zone that fits your business

Describe your activity, the number of visas and where your clients are. We’ll propose two or three zones with the differences in terms, timelines and budget breakdown, then handle registration, visas and opening the bank account.

Kermen TserenkeevaKermen TserenkeevaSenior Lawyer · Company registration
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