The short answer
The UAE has more than 40 Free Zones, more than 20 of them in Dubai. In a Free Zone, foreigners can own 100% of a company, get residence visas and work with clients worldwide, usually with just a flexi-desk. Some zones are general (IFZA, Meydan, RAKEZ), others are built for one sector (media, technology, logistics, finance). The right zone depends on your activity, visas, clients, address and budget.
What a free zone is, and why founders use them
- 100% foreign ownership: no local partner.
- Fast, mostly online setup: often a licence within days.
- Residence visas for you, partners and staff.
- A flexi-desk instead of a costly office for small teams.
- 0% corporate tax on qualifying income for companies that qualify.
- Full repatriation of profits and capital.
The trade-off: a Free Zone company sells mainly to companies in the UAE and to clients abroad. A shop or restaurant needs the mainland.
Free zones in Dubai: the main ones
Dubai has general zones open to almost any activity, and specialist zones built around one sector:
| Free zone | Best known for |
|---|---|
| IFZA (International Free Zone Authority) | Consulting, services, trading, holding |
| Meydan Free Zone | Wide activity mix, fully digital setup |
| Jebel Ali Free Zone (JAFZA) | Logistics, trading, manufacturing, next to Jebel Ali port |
| Dubai Airport Free Zone (DAFZA) | Trading, logistics, technology near Dubai International Airport |
| Dubai Silicon Oasis (DSO) | Technology and electronics |
| Dubai Internet City | Technology and software companies |
| Dubai Media City and Dubai Studio City | Media, advertising, production |
| Dubai Knowledge Park | Education and training |
| Dubai Healthcare City | Healthcare and wellness |
| Dubai Design District (d3) | Design, fashion and creative businesses |
| Dubai CommerCity | E-commerce |
| Dubai South | Aviation, logistics and e-commerce near Al Maktoum Airport |
| Dubai World Trade Centre (DWTC) | Events, trading and services in central Dubai |
| DMCC | Commodities and trading; a large, premium zone |
| Dubai International Financial Centre (DIFC) | Banking, finance, insurance and law |
Specialist zones often require your activity to fit their sector, and can cost more. For most consultants, agencies, online businesses and traders, a general zone is simpler.
Free zones in the other emirates
| Free zone | Emirate | Best known for |
|---|---|---|
| RAKEZ | Ras Al Khaimah | Low-cost packages, trading, industry |
| Ajman Free Zone | Ajman | Small companies and trading |
| SPC Free Zone and Shams | Sharjah | Media, publishing and creative businesses |
| SAIF Zone and Hamriyah Free Zone | Sharjah | Logistics, trading and industry |
| Fujairah Creative City | Fujairah | Media and creative freelancers |
| Umm Al Quwain Free Trade Zone | Umm Al Quwain | Small companies and trading |
| ADGM, KEZAD, Masdar City, twofour54 | Abu Dhabi | Finance, industry, clean tech, media |
A company in another emirate doesn't stop you living in Dubai: the residence visa is valid across the UAE.
The three Free Zones most of our clients choose
IFZA (Dubai)
- A Dubai address
- 827 activities, 3 included
- Licence usually in 3–4 working days
- Flexi-desk up to 3 visas
Meydan (Dubai)
- Fully digital setup
- 2,500+ activities, 3 groups included
- Up to 50 shareholders
- Mainland route with approval
RAKEZ (Ras Al Khaimah)
- One of the lowest-cost options
- Up to 10 activities on Pro
- Visa fees bundled
- Warehouses and industrial land
Already know your IFZA activities? Search all 827.
How to choose your free zone
- Your activity. Not every zone offers every activity, and specialist zones only accept their sector. Some activities need outside approval.
- Your visas. How many people need a residence visa now and in two years? Flexi-desks only cover a few visas.
- Your clients. Clients abroad and UAE companies: any zone. Consumers in the UAE or a shop: mainland.
- Your address. Do clients or partners expect a Dubai address, or is another emirate fine?
- Partners and activities. Some zones include more activities and shareholders in the base licence.
- Your bank. Banks look at your activity, ownership and source of funds, not only at the zone.
Free zone company types
| Type | What it is |
|---|---|
| FZE / FZCO / FZ-LLC | A new limited liability company in the Free Zone. Zones use different names: some use FZE for one shareholder and FZC or FZCO for several; others use one name for all. |
| Branch | A branch of a company you already own in the UAE or abroad, with the same name. |
| Freelance permit | For an individual in an eligible profession, in zones that offer it. See freelance visa. |
For most founders it is a new limited liability company: your personal assets are separate from the company's debts.
How to set up in a free zone, step by step
- Choose the zone and activities that fit your business, visas and budget.
- Reserve the company name. Most zones expect a name that fits your activity.
- Send your documents online: passport copy, photo and proof of address for each shareholder; company documents if a company is a shareholder.
- Sign electronically and pay the zone.
- Receive your licence and company documents, often within days.
- Get your establishment card and visas: entry permit or status change, medical test, biometrics, Emirates ID.
- Open your bank account and register for corporate tax.
With us, step 1 happens on a free call and step 3 in our online application. We book the medical test and biometrics for you.
Which free zone is the cheapest?
For many small companies, a zone outside Dubai such as RAKEZ is one of the lowest-cost options, and you can still live in Dubai. But the cheapest licence is not always the cheapest company: extra activities, extra shareholders, visas and the office can change the total a lot. That is why we compare the real first-year total for your plan, not the starting price.
Free zone or mainland?
| Free zone | Mainland | |
|---|---|---|
| Licensed by | The Free Zone authority | The emirate's economic department |
| Office | Flexi-desk for small teams | Registered premises |
| Clients | Worldwide and UAE companies | Anyone in the UAE, shops, government |
| Ownership | 100% foreign | 100% for most activities |
| Best for | Consulting, online, tech, trading with companies | Retail, restaurants, local services |
More: Free Zone company setup · mainland company formation · trade licence types.
Corporate tax and VAT in free zones
Every Free Zone company must register for corporate tax. A Qualifying Free Zone Person pays 0% on qualifying income, if it meets every condition, including real substance in the UAE and audited financial statements. Other taxable income is taxed at 9% above AED 375,000. VAT rules are the same as on the mainland. See corporate tax and VAT registration, or let us keep your accounts.