Free Zone Company Formation in the UAE

UAE free trade zones can provide a wide range of incentives for investors from around the world. The following information will help you decide whether establishing your company in one of the UAE free zones is beneficial for achieving your business objectives. CLA Consultants Group assists with all facets to register a new company in the form of a Free Zone Company (FZCo), including i) company registration; ii) assistance in obtaining the trade license; iii) lease premises and iv) assistance in  opening a corporate bank account. Our staff will handle all formalities without our Client needing to visit Dubai. International entrepreneurs can establish one of the following entities in the free zone. CLA Consultants will be pleased to assist our Clients in choosing the optimum business entity:

  • A free zone company (FZC) – this entity requires a minimum of two shareholders;
  • A free zone establishment (FZE) – this entity requires a minimum of one shareholder;
  • Branch of a foreign company;
  • Representative office from the parent company.
  • Investors who choose to setup in the UAE free zones enjoy the following benefits: i) 100% foreign ownership; ii) 100% import and export tax exemptions; iii) 100% repatriation of capital and profits; iv) corporate tax exemption for up to 50 years; v) personal income tax exemption and vi) assistance with labor recruitment and additional support services, such as sponsorship and housing;
  • Other benefits include i) low bureaucratic requirements for incorporation; ii) fewer restrictions relating to staff recruitment; iii) high quality infrastructure facilities and iv) competitively priced energy and utilities;
  • There are more than 35 operational free zones in the UAE. These include more than 25 in Dubai, 7 in Abu Dhabi and 8 in the Emirate of Sharjah and the Northern Emirates;
  • Free zone activities allowed include i) import of raw materials; ii) manufacturing; iii) processing, assembling and packaging; iv) export of finished products and v) storage/warehousing of products.
  • FZ companies are considered tax resident entities and therefore can benefit from UAE tax treaties.
  • To be fully established in a FZ, every company must i) lease premises and ii) obtain a free trade zone license. The type of license will restrict the activities that can be conducted in the company. Company licenses are renewable annually after FZ laws are complied with, including submitting annual audited financial statements to the authorities;
  • The paid-up share capital varies from US$14 to US$300,000 depending on i) the free zone chosen and ii) the company structure. After incorporation, the share capital can be used to fund the daily business activities of the company;
  • A FZ company must rent an office within its zone and majority do not allow to rent an office in Dubai city center.

A FZ company can:

  • Conduct business with and issue invoices to clients located outside the UAE or in other UAE free zones;
  • Custom duty of 5% would be levied on free zones company sales within the UAE.   
Abu Dhabi free zones
All Abu Dhabi Free Zones Popular Free Zones in Abu Dhabi
Abu Dhabi Global Market (ADGM)Abu Dhabi Global Market (ADGM)
Masdar City Free Zonetwofour54
Khalifa Port Free Trade Zone
Abu Dhabi Airport Free Zone
twofour54
Free zone for defence and security sector in Tawazun Industrial Park

All Dubai Free Zones		Best Use
Dubai Multi Commodities Centre (DMCC)All type of services including commodities trading.
Dubai International Financial Centre (DIFC)Financial services, banking, insurance, legal services, foundations.
International Free Zone Authority (IFZA)Trade, logistics, import, export
Meydan Free Zone (MFZ)Consultancy, financial services and trade
Jebel Ali Free Zone (JAFZA)Logistics, manufacturing, trade, and industrial activities.
Dubai World Trade Centre (DWTC)Events, exhibitions, conferences, trade fairs.
Dubai Healthcare City (DHCC)Healthcare services including hospitals, clinics, wellness centers.
Dubai Internet City (DIC)IT and tech companies, digital communication, software development.
Dubai Media City (DMC)Media and advertising companies, broadcasting, publishing.
Dubai Silicon Oasis (DSO)Education, construction, semiconductor industries, energy and IT services.
Dubai Airport Free Zone (DAFZA)Aviation, logistics, electronics, luxury goods.
Dubai Knowledge Park (DKP)Education, training institutes, human resource management.
Dubai Design District (d3)Fashion, design, luxury goods, creative industries.
Dubai Production City (DPC)Printing, publishing, packaging, media production.
International Media Production Zone (IMPZ)Media production, printing, publishing.
Dubai Science Park (DSP)Life sciences, biotech, research and development.
Dubai SouthTechnology (AI), events, restaurants and new / futuristic industries.
Dubai International Academic City (DIAC)Higher education, universities, academic institutions.
Dubai Maritime City (DMC)Maritime activities, shipbuilding, maritime services, marine industries.
Dubai Outsource City (DOC)Outsourcing services, call centers, BPO, IT support.
Dubai Gold and Diamond ParkJewellery manufacturing, trading in gold and diamonds.
Dubai Logistics City (DLC)Logistics, supply chain management, freight forwarding.
Dubai Textile CityTextile trading, garment manufacturing, fabric sales.
Dubai Studio City (DSC)Film and TV production, broadcasting, music, media and entertainment.
Dubai Industrial City (DIC)Manufacturing, logistics, light and heavy industry.
International Humanitarian City (IHC)NGOs and charitable organisations
Dubai Biotechnology and Research Park (DuBiotech)Pharmaceutical company, research and development, biotech
Dubai TechnoParkIT, software development, automation and robotics
Dubai Flower CentreFloral Industry Business
DUQE Free ZoneStartups, SMEs, tech, innovation, maritime industries.
Dubai Commercity (DCC)Warehousing, last mile delivery, e-commerce tech and consulting.
Dubai Auto Zone (DAZ)Auto industry
Expo City DubaiFuture city
All Sharjah Free ZonesPopular Free Zones in Sharjah
Popular Free Zones in SharjahHamriyah Free Zone
Hamriyah Free Zone Sharjah Media City (SHAMS)
Sharjah Media City (SHAMS)
Sharjah Airport International Free Zone
The Sharjah Research, Technology, and Innovation Park
Sharjah Oasis for Technology and Innovation (SOTI)
Sharjah Healthcare City
All Ajman Free Zones
Ajman Free Zone
Ajman Media City Free Zone
All Ras Al Khaimah Free ZonesPopular Free Zone in RAK
Ras Al Khaimah MaritimeRas Al Khaimah Economic Zones (RAKEZ)
Ras Al Khaimah Economic Zones (RAKEZ)
All Fujairah Free Zones
Creative City Free Zone
Fujairah Free Zone
All Umm Al Quwain Free Zones
Umm Al Quwain Free Zone
Dubai free zones
DMCCMeydan Free ZoneJebel Ali free zone
Incorporation time3.5 months3 months3 months
Cheapest yearly flexi-desk (US$)5,6001,22510,000
Yearly warehouse rent estimate (US$)Not availableNot available25,000
Paid up share capital estimate for free zone company (US$)14,00000
Paid up share capital estimate for free zone establishment (US$)14,00000
Virtual office allowedNoNoNo
All shareholders must travel required for company formationNoNoNo
Minimum number of shareholders111
Minimum number of directors111
Corporate shareholders allowedYesYesYes
Corporate directors allowedNoNoNo
100% foreign ownership allowedYesYesYes
Public register of shareholders and directorsNoNoNo
Annual tax return to be submittedYesYesYes
Statutory audit requiredYesYesYes
Access to UAE double tax treatiesYesYesYes
Can rent office premises outside free zonesNoYes, with NOCNo
Allowed to import raw materials?YesYesYes
Allowed to export goods?YesYesYes
How long to get work permit approved4 weeks4 weeks4 weeks
RAKEZ Free ZoneHamriyah Free Zone
Incorporation time3 months3 months
Cheapest yearly office rent estimate (US$)2,0002,500
Estimated warehouse cost / sq feetAED 15 -20AED 25 – 30
Paid up share capital estimate for free zone company (US$)00
Paid up share capital estimate for free zone establishment (US$)00
Virtual office allowedNoNo
All shareholders must travel required for company formationNoNo
Minimum number of shareholders11
Minimum number of directors11
Corporate shareholders allowedYesYes
Corporate directors allowedNoNo
100% foreign ownership allowedYesYes
Public register of shareholders and directorsNoNo
Exempt of corporate tax on profitsYesYes
Annual tax return to be submittedYesYes
Statutory audit requiredYesYes
Access to UAE double tax treatiesYesYes
Types of licenses allowedTrading
Industrial
Logistics
Service		Trading
Industrial
Logistics
Service
Can rent office premises outside free zonesNoNo
Allowed to import raw materials?YesYes
Allowed to export goods?YesYes
How long to get work permit approved4 weeks4 weeks
If your company is planning  i) to conduct business within the UAE, or ii) internationally, there are other options you may want to consider such as
LLC
  • Dubai
  • Abu Dhabi
  • Other Middle East LLC options
    • Kuwait
    • Oman
    • Bahrain
    • Saudi Arabia
    • Qatar
Offshore companies
  • Jebel Ali
  • RAKEZ
Register your company now!
CLA Group has the solution to help you grow.

Contact us

For more info on company registration, please contact our expert directly:

Mr. Petar Chakarov
Senior Manager, Sales & Business Development
Get in touch