Skip to main content
UAE free zones guide for founders abroad

Free Zones in the UAE: How to Choose the Right One From Abroad

Every emirate runs its own free zones, and each zone has its own licensing authority, activity list and visa rules. This guide shows who runs which zone, how to narrow the list to two or three from home, and what a free zone company costs, with an official source behind every government fact.

Updated October 2026 · Reviewed by Amir Aslam, founder of First Idea Consultant (founded 2015)

Ask which zone fits on WhatsApp

How many free zones are there in the UAE?

There is no single official count. The UAE government portal keeps a list of the authorities that regulate free zone activity. On the version updated 6 May 2026, that list names 37 free zones and authorities across all seven emirates: 22 in Dubai, 5 in Abu Dhabi, 3 in Sharjah, 2 each in Ajman, Ras Al Khaimah and Fujairah, and 1 in Umm Al Quwain.

The list is not complete. IFZA, one of the two Dubai zones our packages cover, is not named on it, and the Ministry of Economy and Tourism keeps its own list of company registrars in free zones, which adds Sharjah Publishing City and the Sharjah Research, Technology and Innovation Park. Counts on other websites differ for the same reason.

For a founder the count matters less than the shortlist. In practice you will compare two or three zones, usually in the emirate where you plan to live or where your customers are.

Free zones by emirate

The table follows the u.ae list of free zone authorities (updated 6 May 2026). Each name links to the authority's own website, which is where activity lists, packages and rules are published. The order is the portal's, not a ranking.

Also licensing companies: IFZA in Dubai (not named on the u.ae list), and Sharjah Publishing City and SRTIP in Sharjah, which appear on the Ministry of Economy and Tourism list.

How to choose a UAE free zone: four questions

Answer these in order. Each one removes zones from the list, and by the fourth you usually have two or three left to price.

1

Is your activity on the zone's list?

Every authority publishes its own list of licensable activities, and the wording matters: "IT consultancy" and "software development" can sit in different groups. Our guide to Dubai free zone IT companies shows how this works for software and IT services. Some sectors also answer to a second regulator; u.ae names media and food and beverage as examples. Write down what you will actually sell, then check that the zone licenses it. Meydan, for example, lets you combine up to three activity groups on one licence (meydanfz.ae).

2

How many visas do you need?

Free zone residence visas go through the zone, and u.ae says the number a company can get depends on factors such as the package it signs up for. In our experience a flexi-desk package comes with a small quota, and more visas need a bigger office. Count yourself, any partners and the staff you expect to hire within two years, so you do not have to move zones later.

3

What kind of office do you need?

A consultant or an online business selling abroad can usually start with a flexi-office address, which our Basic and Standard packages include. Holding stock, light manufacturing or a lab needs a warehouse, a plot or a dedicated office, and that narrows the field to zones with those facilities. u.ae points to the Free Zones Gateway for comparing facilities such as warehousing and land across Dubai's zones.

4

Where are your customers?

If you sell to clients abroad or to other free zone companies, a free zone fits well. If most of your revenue will come from customers on the UAE mainland, read the mainland comparison below first. u.ae says a free zone company that wants to sell locally must work through a licensed mainland distributor or set up a mainland branch or company. Since October 2025, Dubai also offers a six-month permit for free zone companies to work on the Dubai mainland.

Decision table: if you need this, look at these zones

Examples only, taken from the u.ae list and the authorities' own descriptions. Use it to start a shortlist, not as a ranking.

If you needLook atWhy
A licence without UAE residency (consulting, online services sold abroad)Digital free zones with flexi-office packages, such as IFZA or Meydan in DubaiThe lowest fixed price on our sheet, no visa needed, and Meydan describes its whole process as remote.
One residence visa for yourself and low running costsThe same zones, on a one-visa packageOur Standard package covers the licence, one residence visa, the medical test and Emirates ID.
Commodities trading: gold, diamonds, tea, coffee, energyDMCCu.ae lists these among the sectors DMCC licenses.
Media, gaming, publishing or broadcasttwofour54 (Abu Dhabi), Dubai Media City, Shams (Sharjah), Creative City (Fujairah)u.ae names the Creative Media Authority in Abu Dhabi for media, gaming and eSports licences. Media businesses also answer to the media regulators.
Regulated financial servicesDIFC (Dubai) or ADGM (Abu Dhabi)The two financial centres on the u.ae list. Financial activities usually need a regulator's approval as well as the licence.
Warehousing, import and export near a port or airportJAFZA, Dubai South, Dubai Airport Free Zone, KEZAD, SAIF Zone, HamriyahCompare warehouse and land options in the Free Zones Gateway tool for Dubai and on each authority's site.
Manufacturing or industrial activityKEZAD, Hamriyah, RAKEZ, National Industries Park, JAFZAu.ae links KEZAD's industrial licence service. Check plot size, power and permits with each zone.
Technology, software or AIDubai Internet City, Dubai Silicon Oasis, Dubai Science Park, DMCCu.ae lists tech, AI, gaming and crypto among DMCC sectors. Compare the activity lists before you choose.
Most customers on the UAE mainlandA mainland licence, or a Dubai free zone company with the mainland operating permitSee the free zone or mainland comparison below.

Which company type can you form in a free zone?

u.ae lists the legal forms a free zone may register: a free zone establishment (FZE), a free zone company (FZCo), a private limited liability company (often written FZ-LLC), a public company (PJSC) and a branch of a local or foreign company. The differences are the number of shareholders and whether they are people or companies, and not every zone registers every form. How the registration itself works is covered in our guide to company registration in Dubai.

Free Zone Establishment (FZE)

Usually one shareholder, a person or a company. This is the common choice for a solo founder.

Free Zone Company (FZCo or FZ-LLC)

Two or more shareholders, people or companies. Zones use different names for the same idea, so check the zone's own wording.

Branch of an existing company

Your company abroad opens a UAE branch instead of a new subsidiary. The parent stays liable, and the zone asks for its incorporation documents, usually legalised.

Free zone or mainland: what changes for you?

Both routes allow full foreign ownership for most activities (u.ae). The practical differences are who licenses you, where you can sell, and how office and tax rules work.

TopicFree zoneMainland
Who licenses youThe free zone authorityThe emirate's economic department, for example the Department of Economy and Tourism in Dubai
OwnershipCan be fully foreign ownedFully foreign owned for most activities since 2021; some "strategic impact" activities are restricted
Selling to UAE customersThrough a mainland distributor, a mainland branch or, in Dubai, a six-month mainland operating permitDirectly, anywhere in the UAE
OfficeA flexi-office address is often part of the packageUsually a leased office, and visa numbers tend to follow its size
Corporate tax0% on qualifying income if every qualifying free zone person condition is met; 9% on other taxable income0% on taxable income up to AED 375,000, 9% above it
Our fixed pricesIFZA and Meydan packages, in the table belowNot on our price sheet; ask for a written quote

If the mainland column fits you better, read our Dubai mainland licence guide before you decide.

What does a UAE free zone company cost?

Our only fixed prices are packages for two Dubai free zones, IFZA and Meydan. Pick one zone: the two columns are alternatives, never added together.

PackageWhat it coversIFZAMeydan
Basic, no visaTrade licence, MOA, flexi-office address, certificate of registration, share registry if applicableAED 12,900AED 12,500
Standard, one visaBasic plus one residence visa, normal medical test, Emirates ID biometrics and free corporate tax registrationAED 23,436AED 23,136
Premium, digital bankStandard plus digital company stamp, digital or fintech business account opening assistance and one personal accountAED 28,436AED 28,136
Premium, local bankAs above, with a standard local bank business account instead (you need to be in the UAE for the bank)AED 33,436AED 33,136
GoldOne visa, one year of corporate services support, a local bank account with a relationship manager, a digital business account and two personal accountsAED 48,436AED 48,136

The professional fees in these totals are promotional: AED 0 on Basic (regular AED 1,000) and AED 2,000 on Standard (regular AED 3,500).

What is inside the one-visa (Standard) package

ItemIFZAMeydan
Trade licenceAED 12,900AED 12,500
Visa allocationAED 2,000AED 1,850
Establishment cardAED 2,000AED 2,000
Residence visa (IFZA lists it as a manager or employee visa)AED 3,750AED 4,000
Normal medical testAED 400AED 400
Normal biometrics and Emirates IDAED 386AED 386
Professional fee (promotional, regular AED 3,500)AED 2,000AED 2,000
TotalAED 23,436AED 23,136

Optional extras

  • Status change, if you are already in the UAE on another visaAED 1,600
  • VIP medical test instead of the normal oneAED 750
  • Help getting an earlier biometrics appointmentAED 600

Bank account opening is subject to the bank's KYC, compliance review and final approval.

Other zones (DMCC, JAFZA, DIFC, ADGM, RAKEZ, SPC and the rest) are not on our price sheet. Send your activity and visa count on WhatsApp and we reply with an itemised written quote, usually within a couple of hours. To model a package yourself, try our free zone cost calculator.

Every free zone licence renews each year, and the renewal includes the zone's licence fee plus any visa renewals that fall due. We charge no professional fee for renewals; the authority fees still apply.

Government fee example: Dubai's Free Zone Mainland Operating Permit was announced at AED 5,000 for six months, renewable for the same fee (Dubai Media Office, 8 October 2025). Check the current fee with the Department of Economy and Tourism before you rely on it.

How to set up in a UAE free zone from abroad

Most of the work happens online, and you travel once, for the visa stage. The timings are typical, not promises: each authority sets its own.

StepWhat happensTypical timeWhere you are
1. Shortlist and quoteYou send your activity, visa count and where your customers are. We reply with a shortlist and an itemised written quote.A reply usually within a couple of hoursAt home
2. Name and activity approvalThe zone checks the trade name and activity. Names must not offend public order, must carry the legal form (for example FZE) and must not be taken already.Varies by zoneAt home
3. Licence issuedYou sign and pay online. The zone issues the licence, MOA and certificate of registration.u.ae: within 14 working days of review and approval, in most casesAt home
4. Visa stageEstablishment card and entry permit, then the medical test and Emirates ID biometrics in the UAE.A normal biometrics appointment is generally 5 to 7 days away, subject to availabilityIn the UAE
5. Bank account and taxOpen the business account and register the company for corporate tax with the Federal Tax Authority.Depends on the bank's compliance reviewLocal banks meet you in person

For the full Dubai process, document by document, see our Dubai free zone licence guide.

Documents most zones ask for

  • A passport copy for every shareholder and manager
  • A passport photo on a white background, for the visa
  • Proof of your home address, such as a utility bill or bank statement
  • A short CV or business profile, which some zones and most banks ask for
  • If you already live in the UAE: your current visa and Emirates ID copies
  • For a company shareholder: certificate of incorporation, articles and a board resolution, usually legalised for use in the UAE

Each authority publishes its own list, and banks ask for more (see below). The MOA is prepared for you as part of the package.

Setting up from India, Pakistan, the UK or the US

Your home country's rules still apply. In India, a stake in a foreign company falls under the overseas investment rules, so talk to your bank's foreign exchange desk before you send capital. Pakistan, the UK and the US have their own reporting rules for foreign companies and accounts.

If you stay tax resident at home, your home country may tax the UAE company's profits or your salary from it. Check with a tax adviser at home before you move or start invoicing. For the bigger picture, read our guide to setting up a business in Dubai.

Visas, bank account and tax

Residence visa through your free zone company

Your free zone company can sponsor your residence visa and your staff's. u.ae says you apply for work permits and residence visas through the free zone authority, and the number of visas depends on factors such as your package. Sponsored residence visas run for 1, 2 or 3 years depending on the type and sponsor, and adults need a medical test and an Emirates ID (u.ae).

One rule surprises founders who keep a home abroad: a residence visa is cancelled automatically after more than 180 days in a row outside the UAE, with some exceptions. Our guide to the residence visa through your own company covers the visa routes in more detail, and our page on Dubai business visa requirements explains which visa to use for the first trip.

Business bank account

A licence does not come with a bank account. Banks run their own checks, so expect questions about your source of funds, expected turnover, customers and suppliers, and the countries you will deal with. Local banks need to meet you in person. Our Premium package includes account opening assistance with a digital or a local bank.

Bank account opening is subject to the bank's KYC, compliance review and final approval.

Corporate tax for free zone companies

Free zone companies are inside the corporate tax system. Each one must register with the Federal Tax Authority, file a return within 9 months of its year end and keep records for 7 years (FTA). A company that meets every condition to be a qualifying free zone person pays 0% on qualifying income and 9% on other taxable income (Ministry of Finance).

The conditions include adequate substance in the free zone, audited financial statements, transfer pricing rules and a de minimis limit: non-qualifying revenue must stay below the lower of AED 5 million or 5% of total revenue. A qualifying free zone person does not get the 0% band on the first AED 375,000, and transactions with individuals are generally excluded activities, so a consultant billing private clients can pay 9% on that income. Ask a tax adviser before you rely on the 0% rate.

The UAE does not levy income tax on individuals (u.ae). Corporate tax registration is free in every package from Standard upward.

Frequently asked questions

What is a free zone in the UAE?

A free zone is a designated area whose own authority licenses and registers companies and handles their residence visas. Each emirate has its own zones, and each zone sets its own activity list, packages and rules.

How many free zones are there in the UAE?

There is no single official count. The UAE government portal u.ae lists 37 free zones and authorities across the seven emirates (page updated 6 May 2026), 22 of them in Dubai. Some zones that license companies, such as IFZA, are not on that list.

Which UAE free zone should I choose?

Choose by method, not by ranking. Check that the zone licenses your exact activity, count the visas you need, decide whether a flexi-desk is enough and look at where your customers are. That usually leaves two or three zones to price.

Can a foreigner set up a company in a UAE free zone?

Yes. Free zone companies can be fully owned by foreign investors, according to u.ae, and you do not need to live in the UAE to own one. You only travel for the residence visa stage, if you want a visa.

Can a UAE free zone company trade with the mainland?

Not directly. u.ae says it must sell through a licensed mainland distributor or set up a mainland branch or company. In Dubai, the Free Zone Mainland Operating Permit, launched in October 2025, lets free zone companies in non-regulated activities work on the mainland six months at a time.

Do UAE free zone companies pay corporate tax?

They must register and file. A qualifying free zone person that meets every condition, including substance and audited accounts, pays 0% on qualifying income and 9% on other taxable income. Otherwise the standard rules apply: 0% on taxable income up to AED 375,000 and 9% above it.

Can I live in the UAE with a free zone company?

Yes. Your company can sponsor your residence visa through the free zone authority, within its visa quota. You need a medical test and an Emirates ID, and the visa lapses if you stay outside the UAE for more than 180 days in a row.

Can I set up a UAE free zone company online?

Mostly. u.ae says you apply online through the free zone authority, and Meydan describes its process as fully remote. The visa medical test and biometrics happen in the UAE, and local banks will want to meet you.

Official sources, checked on 8 October 2026

Not sure which zone fits?

Send your business activity, the visas you need and where your customers are. We reply on WhatsApp, usually within a couple of hours, with a shortlist and an itemised written quote.

Subscribe to Our Newsletter

Stay updated with the latest business trends and opportunities in Dubai and UAE

We respect your privacy. Your information is safe and will never be shared.

Follow Us

Questions about free zones in the UAE?

Send us a message on WhatsApp. You will get a straight answer from a consultant, not an automated reply.