Free Zone Company Setup in the UAE — 100% ownership, from AED 4,888
A UAE free zone company gives you 100% foreign ownership, 0% corporate tax on qualifying income and a fast, largely remote setup — the most popular route for foreigners starting a business in the UAE. Here’s how free zone company formation works, what it costs in 2026, and how to pick the right zone.
What this guide covers
Quick summary
- Who it suits: consultants, e-commerce, traders, agencies and holding companies serving international or B2B clients.
- Cost: from around AED 4,888 for a zero-visa licence; most founders land between AED 12,000 and AED 20,000 in year one with a visa.
- Ownership: 100% foreign ownership in every free zone, no local partner.
- Tax: 0% corporate tax on qualifying income (conditions apply); 9% on non-qualifying income.
- Timeline: licences are often issued in 3–5 working days, mostly remotely.
What a UAE free zone company is
A free zone company is registered inside one of the UAE’s 45-plus economic zones rather than with a mainland authority. Each zone runs its own registrar, issues its own licences, and sets its own packages. The trade-off is easy to grasp: you get 100% foreign ownership, a fast and largely remote setup, and strong tax advantages, in exchange for trading mainly within the zone and internationally rather than selling directly into the UAE mainland market.
For most consultants, e-commerce sellers, traders and holding companies, that trade-off makes sense — which is why the free zone route is the most popular way for foreigners to start a business in the UAE.
The benefits of a free zone setup
- 100% foreign ownership. No local sponsor or partner — you own the company outright.
- 0% corporate tax on qualifying income. Free zone companies can access the 0% rate if they keep adequate substance and meet the conditions; other income is taxed at the standard 9%.
- Low entry cost. Packages start from around AED 4,888, well below a mainland setup.
- Fast, remote formation. Many zones issue a licence in 3–5 working days, and most of the process can be done without being in the UAE.
- Full profit repatriation. Move capital and profits home freely, with no currency restrictions.
- Simple compliance. Lighter paperwork than mainland, and a flexi-desk usually satisfies the office requirement.
Choosing the right free zone
The zone you pick shapes your cost, your banking reputation and your permitted activities. These are the ones founders ask about most — each has its own guide.
| Free zone | Best for | Setup from |
|---|---|---|
| IFZA | Startups, consultants, e-commerce | AED 12,900 |
| DMCC | Commodities, trading, premium banking | AED 20,000 |
| RAKEZ | Budget SMEs, light industry | AED 11,500 |
| JAFZA | Logistics, import/export, industry | On request |
| DIFC | Financial services, funds, fintech | Premium |
Free zone setup cost in 2026
Your all-in first-year cost depends on the zone, the number of visas and your activities. A zero-visa licence in an affordable zone can start near AED 4,888; add a visa and an establishment card and most founders land between AED 12,000 and AED 20,000. Premium zones such as DMCC and DIFC sit higher because of their facilities and reputation. Compare them side by side with our cost calculator.
How free zone company formation works
The path is short and mostly digital. Aurum manages every step.
Choose your zone, activity & licence
We match your business model to the right zone and licence type — trading, service, consultancy or industrial.
Reserve your trade name
We submit your preferred name for approval against the zone’s naming rules.
Prepare & file documents
For an individual shareholder this is light: passport and photo, plus Emirates ID if you’re a UAE resident.
Licence issued
The zone issues your trade licence and incorporation documents electronically.
Visas & Emirates ID
We arrange your establishment card, entry permit, medical, Emirates ID and stamping.
Corporate bank account
We prepare your application and introduce you to banks that fit your profile.
Free zone vs mainland
If your customers are mostly overseas or other UAE businesses, a free zone is usually the smarter, cheaper choice. If you need to sell directly to UAE consumers, open a retail shop or bid for government contracts, look at mainland setup instead. Our mainland vs free zone guide breaks the decision down in full.
Official sources
- UAE Ministry of Economy
- Federal Tax Authority — Corporate Tax
- Individual free zone authorities (IFZA, DMCC, RAKEZ, JAFZA, DIFC)
Free zone business setup FAQs
How much does a free zone company cost in the UAE?
Packages start from around AED 4,888 for a zero-visa licence in an affordable zone. With one visa and an establishment card, most founders spend between AED 12,000 and AED 20,000 in the first year. Premium zones like DMCC and DIFC cost more.
Can I own 100% of a free zone company?
Yes. Every UAE free zone allows 100% foreign ownership — there is no local sponsor or partner requirement.
Do free zone companies pay tax?
A free zone company can access the 0% corporate tax rate on qualifying income if it keeps adequate substance and meets the conditions. Income that does not qualify is taxed at the standard 9%. There is no personal income tax.
Can a free zone company trade in the UAE mainland?
It trades within its zone, across other free zones and internationally, and can sell online across the UAE. To sell directly into the mainland retail market you typically work through a distributor or add a mainland presence.
Do I need to visit the UAE to set up?
Usually not for the licence — most free zone formation is remote. You generally only visit for the medical test, Emirates ID biometrics and, in some cases, bank account opening.
Which free zone is cheapest?
Zones such as IFZA, RAKEZ and Meydan are among the most cost-effective. The best-value choice depends on your activities, visa needs and banking plans — we advise on fit, not just sticker price.
Ready to take action?
Whether you're ready to start or still comparing options, we'll give you a straight answer.
