Free zone company formation in Dubai
A Dubai free zone company is licensed by its free zone authority rather than DET, can be 100% foreign-owned and is set up in a zone built around its sector — commodities at DMCC, logistics at Jebel Ali, finance at DIFC, media at Dubai Media City. You choose the zone, the legal entity and the licence activity, then apply through the zone’s own portal; the UAE government portal says a licence is typically issued within 14 working days after review and approval. Free zone companies are within the UAE corporate tax regime, and a Qualifying Free Zone Person can benefit from 0% on qualifying income.
Which Dubai free zone?
Each free zone has its own authority, permitted activities, entity types, office options and fees. Start from the sector, then shortlist the zones that support it.
| Free zone | Focus |
|---|---|
| Dubai Multi Commodities Centre (DMCC) | Covers JLT and Uptown Dubai; sectors include commodities, gold and diamonds, energy, tech, crypto, AI, e-commerce and financial services. |
| Jebel Ali Free Zone (Jafza) | Trade, logistics and industry next to Jebel Ali Port; also registers offshore companies. |
| Dubai Airport Free Zone (DAFZ) | Businesses that benefit from an airport location. |
| Dubai International Financial Centre (DIFC) | Financial services and related professional firms. |
| Dubai Internet City, Dubai Media City, Dubai Production City, Dubai Studio City | Technology, media and production. |
| Dubai Healthcare City, Dubai Science Park | Healthcare, life sciences and science businesses. |
| Dubai Silicon Oasis, Dubai Outsource City, Dubai Knowledge Park, Dubai International Academic City | Technology, outsourcing and education. |
| Dubai CommerCity, Dubai South, Meydan, Dubai Design District | E-commerce, logistics and aviation, multi-activity licensing, and design. |
The UAE government portal lists 22 free zones in Dubai. A grouped row is not a claim that every zone in that row does every activity beside it. The free zone authority confirms the activity. Zone pages below carry only the facts we cite.
Zone-by-zone guides
These are the zones this cluster covers. Dubai mainland is not a free zone. It is the DET route, linked so the two are not confused. IFZA and Sharjah Publishing City are included with the limits written on their pages.
| Zone | Emirate | Guide |
|---|---|---|
| DMCC | Dubai | DMCC company setup |
| Jebel Ali Free Zone (Jafza) | Dubai | Jafza company setup |
| Dubai Airport Free Zone (DAFZA) | Dubai | DAFZA company setup |
| Dubai Silicon Oasis | Dubai | Dubai Silicon Oasis |
| Meydan | Dubai | Meydan Free Zone |
| IFZA | Address published in Dubai Silicon Oasis. Not named on the u.ae list. | What IFZA publishes |
| RAKEZ | Ras Al Khaimah | RAKEZ company setup |
| Sharjah Media City (Shams) | Sharjah | Shams company setup |
| Sharjah Publishing City (SPC) | Sharjah. Named by the Ministry of Economy registrar note, not on the u.ae short list. | SPC company setup |
| Dubai mainland (not a free zone) | Dubai, DET | Mainland company formation |
More Dubai free zones are named on u.ae, including Dubai Internet City, Dubai Media City and Dubai CommerCity. They are not given their own pages in this cluster. Ask us to read that authority’s list rather than assume a page that does not exist.
Activity pages sit beside the zone: general trading, consultancy, IT, real estate brokerage, restaurants, digital marketing, plus the existing e-commerce and freelance guides. How to choose mainland or a zone is on mainland or free zone. After the licence, PRO services cover Dubai renewals. A Sharjah or Ras Al Khaimah licence is renewed by that authority.
Free zone legal entities
Company types you can set up in a UAE free zone (u.ae)
- Free Zone Establishment (FZE)
- Free Zone Company (FZ Co.)
- Private limited liability company (FZ-LLC)
- Public limited liability company
- Branch of a local or international company
The differences lie in the number of shareholders and whether each shareholder is a person or a company. Not every free zone registers every type, so the zone authority confirms what it offers.
How to set up in a free zone
Sector and zone
Pick the zone that supports your activity and offers the facilities you need, such as offices, warehousing or land.
Legal entity
Choose the entity type the zone registers for your shareholder structure.
Trade name
The name must be available, match the activity, end with the legal form (for example FZE or DMCC) and follow the zone’s restricted-name rules.
Licence application
Apply online through the zone authority with company information and documents. After review and approval, u.ae says you receive the licence within 14 working days.
Visas, bank and tax
Establishment card and visas under the zone’s rules, a corporate bank account, and an introduction to licensed partners for corporate tax registration. Free zone companies are still taxable persons.
Selling to customers on the mainland
A free zone company trades inside its zone and internationally. To sell on the UAE mainland it usually works through a mainland distributor or obtains a mainland licence. DET’s dual licence lets companies in participating free zones extend to the mainland without leasing additional office space or taking a local shareholder; Dubai’s government portal says it is available with five free zones.
If most of your customers will be in the UAE, compare mainland company formation first.
Corporate tax for free zone companies
- Free zone companies are taxable persons under the UAE Corporate Tax Law and must register with the Federal Tax Authority.
- A Qualifying Free Zone Person can benefit from a 0% rate on qualifying income.
- Income that is not qualifying income is taxed at the standard 9% rate.
- Conditions include adequate substance in the UAE, audited financial statements and transfer-pricing compliance.
Whether a company is a Qualifying Free Zone Person depends on its activities and income each tax period. Take tax advice before relying on the 0% rate.
Frequently asked questions
Can a free zone company trade on the Dubai mainland?
Not directly. It usually sells through a mainland distributor or obtains a mainland licence, for example DET’s dual licence where the zone participates.
Is a free zone company tax-free?
Not automatically. Free zone companies are within the UAE corporate tax regime. A Qualifying Free Zone Person can benefit from 0% on qualifying income; other income is taxed at 9%.
Can I get a residence visa with a free zone company?
Yes. Free zone companies sponsor investor and employee visas under the zone’s rules and visa allocation.
Which free zone is best?
The one that licenses your activity and fits your customers, office needs and budget. We shortlist zones against your activity before you commit.
Can a free zone company owner get a Golden Visa?
The authority decides whether a specific structure qualifies under the investor or entrepreneur criteria. See the Golden Visa for business owners.
Official sources
Facts on this page were checked against these sources on 5 November 2026. Rules and fees can change; the authority’s current page always prevails.
- Starting a business in a free zone — The UAE Government portal (u.ae)
- Free zones in Dubai — Government of Dubai (dubai.ae)
- Business set-up options: mainland or free zone — Government of Dubai (dubai.ae)
- Corporate Tax in the UAE — UAE Ministry of Finance
- Corporate Tax — basic information for Free Zone Persons — Federal Tax Authority (FTA)
- Corporate Tax registration — Federal Tax Authority (FTA)
Shortlist the right free zone
Share your activity and visa needs. We will compare the zones that fit.