The short answer
A free zone company in Dubai is a company licensed by one of the emirate's free zone authorities, such as IFZA, Meydan Free Zone or DMCC, rather than by the mainland Department of Economy and Tourism. Foreign founders can own it fully, and most of the setup can be done from abroad.
It can trade abroad and with other free zone companies from day one. Selling directly to customers in mainland Dubai needs a distributor, a mainland branch or a Dubai permit.
Our one-visa package costs AED 23,136 at Meydan or AED 23,436 at IFZA, including the licence, one residence visa, the medical test and the Emirates ID. You need to be in the UAE for the medical test and biometrics.
What is a free zone company in Dubai?
A free zone is an economic zone with its own authority, rules and company register, and in Dubai each zone licenses companies itself. The UAE government portal gives the same four steps for every zone: choose the sector and zone, choose the legal entity, reserve a trade name, and apply online to the free zone authority.
The UAE government states that free zone companies can be fully owned by foreign investors. That is the main reason founders abroad pick a free zone over the mainland: there is no local shareholder to appoint, and the licence, the office address and visa sponsorship all sit with one authority.
The trade-off is scope. Your licence covers the activities you list, inside the free zone and outside the UAE. If most of your customers will be in mainland Dubai, read the mainland section below before you choose, or compare both routes in our guide to setting up a business in Dubai.
FZE or FZCO: which legal entity do you need?
Decide the structure before you apply. The UAE government portal lists both as standard free zone entities.
Free Zone Establishment (FZE)
Traditionally the name for a free zone company with a single shareholder, which can be a person or a company.
- One shareholder
- Limited liability: the company, not you personally, carries its debts
- Suits solo consultants, freelancers moving to a company and holding structures
Free Zone Company (FZ Co. or FZCO)
Traditionally a free zone company with two or more shareholders. Some Dubai zones, IFZA among them, now register every limited liability company as an FZCO, whatever the number of shareholders.
- One or more shareholders, as the zone's rules allow
- Limited liability for each shareholder
- Suits partners in different countries and companies that plan to bring in an investor
The entity type does not decide how many visas you get. The visa quota depends on your package and the office or desk you lease, and each zone sets its own rules.
Which Dubai free zone suits your activity?
Dubai has many free zones, each leaning towards certain sectors. For a founder abroad the choice is usually between a broad, lower-cost zone (IFZA or Meydan) and a specialist zone (DMCC for commodities, Dubai Internet City or Dubai Silicon Oasis for technology). For zones in the other emirates, see our UAE free zone licence guide.
| Free zone | Authority or operator | Typical activities | Office options | Our package price |
|---|---|---|---|---|
| IFZA | International Free Zone Authority, Dubai Silicon Oasis | Consultancy, services, e-commerce and general trading; commercial and professional activities can share one licence | Flexi desk (in our packages) or an office in the IFZA Business Park | AED 12,900 with no visa, AED 23,436 with one visa |
| Meydan Free Zone | Meydan Free Zone | A wide list of over 2,500 activities, with up to three activity groups on one licence; fully digital process | Flexi desk (in our packages) | AED 12,500 with no visa, AED 23,136 with one visa |
| DMCC | Dubai Multi Commodities Centre, Jumeirah Lakes Towers | Commodities such as precious stones and metals, agri-products and energy, plus trading and digital assets | Flexible desks and offices in JLT | Written quote on request |
| Dubai Internet City | TECOM Group | Technology, software and digital businesses | Coworking, in5 startup centres and offices | Written quote on request |
| Dubai Silicon Oasis | Dubai Integrated Economic Zones Authority | Technology, innovation and light industry | Coworking, offices, warehouses and light industrial units | Written quote on request |
| DAFZ, JAFZA and Dubai South (DWC) | Each zone's own authority | Logistics, warehousing, trading in physical goods and industry | Warehouses, land and larger offices | Written quote on request |
Our approved price sheet covers IFZA and Meydan only. For any other zone we send an itemised written quote on WhatsApp instead of a range we cannot stand behind.
IFZA
IFZA is based at Dubai Digital Park in Dubai Silicon Oasis. It issues commercial, professional and general trading licences and registers branches of foreign companies doing the parent's activity. Because commercial and professional activities can share one licence, it suits a consultant who also sells a product.
Meydan Free Zone
Meydan Free Zone describes itself as fully digital, with every process and payment handled remotely, which helps when you apply from Mumbai, Lahore or London. On our sheet its licence costs slightly less than IFZA's.
DMCC
DMCC is built around commodities and digital assets. It costs more than IFZA or Meydan, and DMCC says its setup process takes around 10 working days. Our page on the DMCC trade licence covers it in detail.
Dubai Internet City and Dubai Silicon Oasis
Both suit software and hardware founders who want a technology address and may later need real space, from coworking to light industrial units. If you are starting a software or IT services firm, our guide to registering an IT company in Dubai compares them with IFZA and Meydan. For a marketing or social media agency, see our guide to starting a marketing agency in a Dubai free zone.
Other Dubai free zones
Dubai Airport Freezone (DAFZ), Jebel Ali Free Zone (JAFZA) and Dubai South (DWC) suit companies that move physical goods or need warehouses or land. Most founders abroad with a service or online business do not need them.
Can a free zone company do business in mainland Dubai?
Yes, but not directly by default. The UAE government portal says that to sell goods or services locally, a free zone company must either work through a licensed mainland distributor or set up a mainland branch or company, and that direct mainland sales generally need mainland licences or approvals.
Dubai has opened more routes since 2025. Executive Council Resolution No. (11) of 2025 lets the Department of Economy and Tourism authorise a free zone company to work in the emirate through a branch licence or a permit, if it keeps separate financial records for that work. In October 2025 Dubai launched the Free Zone Mainland Operating Permit, starting with non-regulated activities such as technology, consultancy, design, professional services and trading.
Check your activity before you plan on mainland revenue, because mainland income can also change your corporate tax position.
| Route | What it allows | Who issues it | Good to know |
|---|---|---|---|
| Mainland distributor or agent | Your goods or services reach mainland customers through a licensed mainland company | A contract between the two companies | No extra licence for you; the distributor invoices the mainland customer |
| Free Zone Mainland Operating Permit | Eligible non-regulated activities in mainland Dubai, including domestic trading and government tenders | Dubai Business Registration and Licensing Corporation, through the Invest in Dubai platform | Announced in October 2025 at a government fee of AED 5,000 for six months, renewable |
| Branch licence in Dubai | A licensed branch of your free zone company working in the emirate | Department of Economy and Tourism | Separate financial records for the mainland work are required |
| Separate mainland company | Full mainland trading under its own licence | Department of Economy and Tourism | A separate setup that our free zone price sheet does not cover; ask for a written quote |
Which Dubai freezone licence types can you get?
The licence type follows your activities. Dubai free zones mainly issue these six, and some combine more than one type on a single licence.
Commercial licence
Buying, selling, importing and exporting goods, including e-commerce.
General trading licence
A wider commercial licence for trading many unrelated product lines.
Professional licence
Services based on your skills, such as IT services, marketing, design or accounting.
Consultancy licence
Business, management or financial advice; some zones file it under professional.
Service licence
Repair, cleaning, technical or maintenance services.
Industrial licence
Manufacturing, assembly or processing, usually in zones with warehouses or industrial units.
Not sure which licence your activity needs? Send it to us on WhatsApp.
How many visas come with a free zone company?
A free zone company can sponsor UAE residence visas for its owners and staff, and owners can then sponsor their family. The number of visas, the visa quota, is set by the zone and depends on your package and the office or desk you lease. A flexi desk usually carries a small quota.
Our Basic package has no visa, for founders who want a company without UAE residency. Standard, Premium and Gold each include one residence visa, with the establishment card and visa allocation it needs.
Under UAE rules, a sponsored residence visa runs for one, two or three years depending on its type and sponsor. Applicants aged 18 and over need a medical test, a security check and an Emirates ID, so plan a short stay. A resident who lives outside the UAE for more than 180 days in a row loses the visa automatically, which matters if you run the company from abroad.
For family sponsorship and the other visa routes, see our guide to the Dubai residence visa through your own company.
Dubai free zone company formation from abroad, step by step
The usual order for a one-visa setup at IFZA or Meydan. Times are typical, not promised: they depend on the authority, your file and appointment availability. The documents and the registration steps themselves are set out in our guide to company registration in Dubai, step by step.
| Step | What happens | Where you need to be | Typical time |
|---|---|---|---|
| 1. Choose activity, zone and package | Activities, shareholders and visa count | Anywhere | Your decision |
| 2. Name and initial approval | The zone checks the name and activities | Anywhere, online | Usually a few working days |
| 3. Sign and pay | E-signature of the application and payment of the licence fee | Anywhere, online | Usually the same week |
| 4. Licence and company documents | Trade licence, registration certificate, MOA and share register | Anywhere | Typically a few days to about two weeks, depending on the zone |
| 5. Establishment card and visa allocation | The company registers with immigration to sponsor visas | Anywhere | Usually a few working days |
| 6. Entry permit or status change | An entry permit to travel, or a status change if you are already in the UAE | Abroad, then the UAE | Usually a few working days |
| 7. Medical test and biometrics | Medical fitness test and Emirates ID fingerprints | In the UAE | Normal biometrics appointments are generally 5 to 7 days away, subject to availability |
| 8. Residence visa and Emirates ID | The visa is issued and the Emirates ID card follows | In the UAE, or abroad once the card is ready | Typically a few working days after the medical and biometrics |
| 9. Bank accounts | Business and personal accounts | Often in the UAE for a local bank | Varies with each bank's checks; often several weeks |
Many founders plan one trip of about a week to ten days for the medical test, biometrics and bank meetings.
Bank account opening is subject to the bank's KYC, compliance review and final approval.
What documents are required?
Each zone has its own checklist, but almost every Dubai zone and bank asks for these. Have clear colour scans ready.
Passport copy
For every shareholder and manager, with plenty of validity left. If you are in the UAE, add your current visa or entry stamp.
Passport photograph
A recent photograph on a white background for each shareholder and visa applicant.
Business plan or activity description
What the company will do and where its customers are. Banks also ask for expected turnover and supplier and customer countries.
Proof of address
A recent utility bill or bank statement showing your home address abroad.
Approvals for regulated activities
Some activities, such as financial services, education or healthcare, need a regulator's approval before the licence is issued.
Additional documents
A company shareholder needs its incorporation certificate, articles and a board resolution, usually legalised. Some zones and banks ask for a CV or proof of the source of funds.
Notes for your home country
- India
- Indian residents investing abroad have to follow India's overseas investment rules, usually through their bank. Ask your bank or a chartered accountant before you send money for share capital or fees.
- Pakistan
- Pakistani residents should check the rules for sending money abroad for an investment with their bank before paying fees or capital.
- UK, US and Europe
- Documents for a company shareholder may need an apostille or legalisation. Your home tax position does not end when you form a UAE company, so speak to a tax adviser at home.
What does a Dubai free zone company cost in year one and year two?
These are the only fixed prices we publish: the approved IFZA and Meydan packages. Each zone is a separate package, so read one column; the two are never added together.
Year one: package prices
| Package | What it includes | IFZA | Meydan |
|---|---|---|---|
| Basic, no visa | Licence, MOA, flexi-office address, registration certificate and share register. Professional fee AED 0 on promotion (regular AED 1,000). | AED 12,900 about USD 3,510 | AED 12,500 about USD 3,400 |
| Standard, one visa | Basic plus one residence visa, medical, Emirates ID and free corporate tax registration. | AED 23,436 about USD 6,380 | AED 23,136 about USD 6,300 |
Premium, Gold, extra visas and the line-by-line breakdown are on our Dubai free zone company setup cost page.
- Professional service fees are promotional and may change; we confirm the current figure in writing before you pay.
- Bank account opening is subject to the bank's KYC, compliance review and final approval.
- USD figures are indicative, at the fixed rate of AED 3.6725 per US dollar published by the Central Bank of the UAE, rounded to the nearest 10.
Year two and after
Our sheet has no single renewal price, because it depends on the zone, your office and when your visa falls due. Plan for:
- Licence renewal: the free zone authority's fee each year. We do not charge our professional service fee on licence renewals; the authority fees still apply.
- Establishment card and office or flexi desk, where billed separately.
- Visa renewal when the visa expires, with a new medical test and Emirates ID.
- A corporate tax return every year, plus audited financial statements if you claim the 0% free zone rate.
- Bookkeeping, and any minimum balance or monthly fee your bank sets.
For a line-by-line estimate for your activity and visa count, try the Dubai free zone cost calculator or ask us for a written renewal quote.
Do free zone companies pay corporate tax?
UAE corporate tax applies to financial years starting on or after 1 June 2023, free zone companies included. Every free zone person must register with the Federal Tax Authority (FTA) and file a return within nine months of the end of each tax period.
A Qualifying Free Zone Person pays 0% on its qualifying income and 9% on its other taxable income. It does not get the 0% band on the first AED 375,000 that other businesses use, so its non-qualifying income is taxed at 9% from the first dirham. The FTA lists these conditions for qualifying status:
- keep adequate substance in the free zone
- earn qualifying income
- not elect to be taxed at the standard rate
- follow the arm's length principle and keep transfer pricing documentation
- keep audited financial statements
- keep non-qualifying revenue below the lower of AED 5 million or 5% of total revenue
Whether income qualifies depends on your activity and customers, so take tax advice before signing mainland contracts. Our one-visa packages include corporate tax registration. Your home country may still tax you.