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UAE Business Setup · Updated September 2026

Set up in the UAE.
Choose the right lane first.

45+ free zones, seven emirates, and a mainland route that changed twice in eighteen months. The licence is the easy part: picking a jurisdiction that matches your customers, your tax position and your visa needs is what actually determines your cost base for the next decade.

How to choose Browse free zones
Modern UAE business district at dusk reflected in the water
Active free zones 45+ across all seven emirates
Foreign ownership 100% mainland & free zone, most activities
Corporate tax 9% above AED 375,000 profit
Entry-level licence AED 4,888 cheapest all-in, zero visas

01 / What changed recently

Four regulatory shifts that change the setup maths.

The UAE has moved from "licence and forget" to a substance-tested, actively enforced regime. If your structure was designed before 2024, it is probably no longer optimal.

In force Resolution No. 11 of 2025

Dubai free zone companies can now trade on the mainland, without a second entity.

Dubai's Executive Council Resolution No. 11 of 2025 ended the long-standing wall between free zone and mainland. A free zone company (DIFC excepted) can now obtain a from the Department of Economy & Tourism and serve mainland customers directly, while staying registered in its zone. DET published the list of eligible economic activities on 3 September 2025.

Branch licenceAED 10,000 / year
Remote branchAED 10,000 / year
Temporary permitAED 5,000 / 6 months

Why it matters: The old workaround (a free zone entity plus a mainland LLC) cost two licences, two sets of accounts and two audits. For many businesses this resolution removes an entire legal entity from the structure.

Tightened 2026 Corporate Tax · QFZP

A free zone licence alone no longer buys you the 0% rate.

To hold status and the 0% rate on qualifying income, you must now demonstrate real operational substance in the zone (adequate premises, staff, and expenditure), and keep non-qualifying revenue under the . Income earned from dealing directly with mainland UAE businesses is generally excluded from the 0% rate.

Qualifying income0%
Non-qualifying / mainland9%
De minimis ceiling5% of revenue or AED 5M (lower)

Why it matters: Breach the de minimis in a single year and you lose QFZP status for that year and the following four. This is the most expensive mistake available in UAE structuring.

Live · pilot From July 2026

Mandatory e-invoicing has begun its phased rollout.

All B2B and B2G invoices will route through an accredited service provider on the Peppol network, validated by the FTA in real time. The pilot opened in July 2026; large businesses (AED 50M+ revenue) must appoint an ASP by 30 October 2026 and go live 1 January 2027.

Why it matters: Your accounting system choice at setup now has a compliance deadline attached to it. Picking software that cannot emit structured PINT AE data means migrating twice. Read the full e-invoicing guide

Established Since June 2023

Corporate tax is fully bedded in, and first audits are landing.

9% applies to taxable profit above AED 375,000 for financial years starting on or after 1 June 2023. Every entity (including free zone companies claiming 0%) must register for corporate tax and file a return. Registration is not optional simply because your rate is zero.

Why it matters: A surprising number of free zone companies registered late or not at all, assuming exemption meant exclusion. Penalties for late registration are being enforced.

02 / The three routes

Mainland, free zone, or offshore.

Nearly every setup decision reduces to this choice. Everything downstream (cost, tax, visas, who you can invoice) follows from it.

Mainland

Onshore LLC

Licensed by the emirate's Department of Economy

  • Foreign ownership100% (most activities)
  • Trade with UAE marketUnrestricted
  • Government contractsEligible
  • Corporate tax9% above AED 375k
  • Office requirementPhysical premises (Ejari)
  • Visa quotaTied to office space
  • Typical all-in costAED 15,000 – 30,000+

Best for: Retail, F&B, contracting, clinics, anything selling to UAE consumers or bidding for government work.

Free zone

FZ-LLC / FZE / FZCO

Licensed by an individual zone authority

  • Foreign ownership100% always
  • Trade with UAE marketVia dual licence or distributor
  • Government contractsGenerally not directly
  • Corporate tax0% on qualifying income (QFZP)
  • Office requirementFlexi-desk accepted in most zones
  • Visa quotaPackage-based, 0–6+ typical
  • Typical all-in costAED 4,888 – 35,000

Best for: Export, international trading, consultancy, holding structures, tech and e-commerce serving customers outside the UAE.

Offshore

IBC / Offshore Co.

RAK ICC, JAFZA Offshore, Ajman Offshore

  • Foreign ownership100%
  • Trade with UAE marketNot permitted
  • Government contractsNo
  • Corporate taxDepends on substance & activity
  • Office requirementRegistered agent only
  • Visa quotaNo residence visas
  • Typical all-in costAED 6,000 – 12,000

Best for: Holding companies, asset and IP holding, property ownership in designated areas. Not an operating vehicle.

The 2026 nuance: the mainland-vs-free-zone question is less binary than it was. With Dubai's dual-licence route, a free zone company can now reach mainland customers without incorporating a second entity: which makes "free zone first, add mainland access later" a viable default for many service businesses.

03 / The free zones

45+ zones. These are the ones that matter.

Filter by emirate. Costs shown are indicative all-in first-year licence figures for a zero-visa or single-visa package: always confirm current pricing, as zones revise packages frequently.

IFZA

from AED 12,900

International Free Zone Authority

The volume leader for SMEs. Very broad activity list, fast incorporation, no physical office needed. The default choice for consultants and general traders.

ConsultancyGeneral tradingFlexible

Meydan

from AED 12,500

Meydan Free Zone

Cheapest mainstream Dubai option. Strong for e-commerce and digital services, with a Dubai address and quick licence turnaround.

E-commerceDigitalBudget Dubai

DMCC

from AED 34,000

Dubai Multi Commodities Centre

Repeatedly ranked the world's leading free zone. Premium JLT address, deep commodities and crypto ecosystem, strongest banking acceptance of any UAE zone.

CommoditiesCryptoPrestige

DIFC

from AED 45,000+

Dubai International Financial Centre

Independent common-law jurisdiction with its own courts and regulator (DFSA). Required for regulated financial services. Note: excluded from the mainland dual-licence route.

Financial servicesCommon lawFunds

JAFZA

from AED 20,000

Jebel Ali Free Zone

The UAE's original industrial free zone, attached to Jebel Ali Port. Unmatched for physical logistics, warehousing and manufacturing at scale.

LogisticsManufacturingPort access

DAFZA

from AED 25,000

Dubai Airport Free Zone

Adjacent to DXB terminals. Favoured by high-value, low-volume importers: electronics, pharma, aviation parts, luxury goods.

AviationHigh-value tradeRe-export

Dubai Internet City

from AED 25,000

DIC, part of TECOM

The region's technology cluster. Home to the major global software and platform companies; strong for enterprise software and IT services.

TechnologySoftwareICT

Dubai Media City

from AED 22,000

DMC, part of TECOM

Media, advertising, PR and production. Sister zones cover design (d3), education (Knowledge Park), publishing (Production City) and broadcast (Studio City).

MediaMarketingCreative

Dubai Silicon Oasis

from AED 15,000

DSO, Dubai Integrated Economic Zones

Tech park with integrated residential and R&D facilities. Good middle ground on price for hardware, electronics and engineering firms.

TechR&DElectronics

Dubai South

from AED 14,000

DWC, Dubai World Central

Around Al Maktoum International Airport and Expo City. Aviation, logistics and light industrial, with substantial land available for expansion.

AviationLogisticsIndustrial

Dubai Healthcare City

from AED 28,000

DHCC

The only free zone with its own healthcare regulator. Mandatory for clinics, medical practices and healthcare providers operating within the zone.

HealthcareClinicalRegulated

Dubai CommerCity

from AED 20,000

DCC

Purpose-built for e-commerce, with integrated warehousing, fulfilment and last-mile logistics infrastructure inside the zone.

E-commerceFulfilmentLogistics

ADGM

from AED 40,000+

Abu Dhabi Global Market

Common-law financial centre on Al Maryah Island. Direct application of English common law. Leading regional jurisdiction for funds, family offices and digital assets.

Financial servicesFundsFamily office

Masdar City

from AED 7,000

Masdar City Free Zone

Cheapest route to an Abu Dhabi licence. Sustainability and cleantech focus, but the activity list is broader than the branding suggests.

CleantechSustainabilityBest value AD

KEZAD

from AED 12,000

Khalifa Economic Zones Abu Dhabi

The UAE's largest industrial zone group, linked to Khalifa Port. Built for heavy manufacturing, chemicals, metals and large-footprint logistics.

IndustrialManufacturingPort

twofour54

from AED 12,500

Abu Dhabi media zone

Media and creative industries, with production incentives and rebates for film and TV work shot in the emirate.

MediaFilm & TVCreative

SRTIP

from AED 5,500

Sharjah Research, Technology & Innovation Park

One of the lowest-cost credible licences in the UAE. Innovation and R&D positioning, with genuine lab and incubator facilities on site.

R&DInnovationLow cost

SPC Free Zone

from AED 5,750

Sharjah Publishing City

Despite the name, a broad general-purpose zone. Popular for its low entry price, dual-licence options and same-day incorporation.

PublishingGeneralFast setup

Shams

from AED 6,500

Sharjah Media City

A long-standing favourite for freelancers, content creators and small agencies. Simple packages, minimal documentation.

MediaFreelanceCreative

Hamriyah Free Zone

from AED 9,000

HFZA

Heavy industrial zone with its own port and deep-water berths. Oil & gas services, steel, petrochemicals and marine.

IndustrialOil & gasMarine

SAIF Zone

from AED 10,000

Sharjah Airport International Free Zone

Airport-adjacent trading and light manufacturing zone. Strong warehousing availability at lower rates than Dubai equivalents.

TradingWarehousingLight industry

RAKEZ

from AED 6,000

Ras Al Khaimah Economic Zone

The largest zone outside Dubai by company count. Exceptional value across the range (from a desk package to a full industrial plot), with a mature, well-run administration.

All-rounderIndustrialBest value

RAK DAO

from AED 14,000

RAK Digital Assets Oasis

The world's first free zone purpose-built for virtual assets, Web3 and DAOs. Bespoke regulatory framework for token issuers and blockchain businesses.

Web3Digital assetsBlockchain

RAK ICC

from AED 6,500

RAK International Corporate Centre

The UAE's leading offshore registry. Holding companies, IP vehicles and property ownership: no residence visas, no UAE trading.

OffshoreHoldingAsset protection

Ajman NuVentures

from AED 4,888

Ajman NuVentures Centre

The cheapest all-in company licence in the UAE at zero visas: roughly AED 10,800 with one residence visa. Built for solo founders, freelancers and e-commerce sellers testing the market.

CheapestFreelanceE-commerce

Ajman Free Zone

from AED 8,500

AFZ

Established zone with strong small-manufacturing and trading presence. Warehouse and light-industrial rates among the lowest in the country.

TradingManufacturingLow rent

Fujairah Creative City

from AED 8,000

Creative City Free Zone

Media, consultancy and services zone with straightforward remote incorporation, no visit to the emirate required.

MediaConsultancyRemote setup

Fujairah Free Zone

from AED 9,500

FFZ

The UAE's only free zone on the Gulf of Oman, outside the Strait of Hormuz. Strategically valuable for shipping and bunkering.

ShippingPortTrading

UAQ FTZ

from AED 13,500

Umm Al Quwain Free Trade Zone

Small, quiet zone favoured for micro-businesses and consultancies. Simple administration, limited but sufficient facilities.

SMEConsultancySimple

Showing the most commonly used zones. The UAE has 45+ in total: including specialist zones for gold and diamonds, maritime, humanitarian organisations, outsourcing and science. If your activity is unusual, there is very likely a zone purpose-built for it.

04 / How to choose

Six questions, in this order.

Most people start with cost. Cost is the sixth question, not the first, a cheap licence in the wrong jurisdiction is the most expensive outcome available.

01

Who actually pays your invoices?

If your revenue comes from UAE-resident businesses or consumers, you need mainland access, either a mainland licence or a free zone licence plus a dual licence. If your customers are outside the UAE, a free zone is almost always correct.

This single question eliminates roughly half the options.

02

Does your activity require a specific regulator?

Financial services need DIFC or ADGM. Healthcare needs DHCC or a health-authority licence. Education, media production and legal services all have designated zones or authorities. Where a regulator exists, the choice is made for you.

03

How many residence visas do you need, now and in year three?

Visa quota is the most common reason businesses outgrow a licence within eighteen months. Free zone packages bundle a fixed number; mainland quota scales with office space. Migrating later costs more than buying headroom now.

Offshore companies carry no visa entitlement at all.

04

Can you genuinely meet QFZP substance requirements?

The 0% rate is real, but it is now earned rather than granted. If you will not have adequate premises, staff and expenditure in the zone (or if more than the de minimis share of your income comes from mainland customers), model your numbers at 9% and choose on other grounds.

05

Will your bank open an account for this structure?

Rarely discussed, frequently fatal. UAE banks apply their own risk view, and some zones face materially longer onboarding or outright decline for certain activities. DMCC, DIFC, ADGM and JAFZA carry the strongest acceptance. Confirm banking appetite before you pay a licence fee.

A company you cannot bank is a company you cannot run.

06

Now: what does it cost, over three years?

Compare renewal fees, visa costs, mandatory office or desk charges, audit requirements and establishment-card renewals. The headline first-year figure is frequently the smallest number in the calculation.

05 / The process

From decision to trade licence in 5–15 working days.

Free zone incorporations are genuinely fast when the paperwork is right the first time. Mainland takes longer, largely because of premises and Ejari.

01

Jurisdiction & activity selection

Confirm the activity list, jurisdiction, legal form and shareholding. Getting the activity codes right at this stage prevents an amendment fee later.

1–2 days
02

Name reservation & initial approval

Trade name reserved with the authority and initial approval issued. Names cannot reference religion, politics, or existing brands, and abbreviations are restricted.

1–3 days
03

Documentation & MoA

Passport copies, photographs, business plan where required, and the Memorandum of Association. Mainland structures require notarisation.

2–4 days
04

Premises: office, flexi-desk or warehouse

Free zones bundle a desk or office into the package. Mainland requires a real tenancy contract registered on Ejari before the licence issues.

1–7 days
05

Licence issuance & establishment card

Trade licence issued, followed by the establishment card that unlocks the visa quota.

2–5 days
06

Visas, Emirates ID & bank account

Entry permit, medical, biometrics and residence stamping. Bank account opening runs in parallel and is usually the longest pole, allow 2–6 weeks.

2–6 weeks
Bright, empty business centre with shared desks and a reception counter

Then, immediately after licensing

  • Corporate tax registration: mandatory for every entity, including 0% free zone companies
  • VAT registration: compulsory above AED 375,000 turnover; voluntary from AED 187,500
  • Accounting system, choose one that can emit structured e-invoicing data
  • UBO & ESR filings, beneficial ownership and economic substance declarations
  • Corporate bank account, begin as early as possible

06 / Residency

Your licence is also your route to residency.

Investor / Partner Visa

2 years, renewable

The standard route. Issued on the strength of your shareholding in the company. Extends to spouse, children and domestic staff.

Employment Visa

2 years, renewable

For staff sponsored by the company, within the licence's visa quota. Requires a registered employment contract and medical clearance.

Golden Visa, Entrepreneur

5 years

An innovative project valued from AED 500,000 with endorsement from an accredited UAE incubator or accelerator. The endorser assesses genuine substance and innovation, a thin business plan is the most common reason applications fail.

Golden Visa, SME Owner / Investor

5–10 years

Established business owners with annual revenue from AED 1 million qualify on the SME route; the larger investor route runs to ten years. Holding a trade licence does not by itself create eligibility.

Quick reference

The setup dictionary.

Every term that appears on a licence application, one tap to expand.

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Sources & currency of information

Compiled from Dubai Executive Council Resolution No. 11 of 2025 on free zone–mainland integration; Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and subsequent Cabinet Decisions on Qualifying Free Zone Persons; Federal Decree-Law No. 32 of 2021 (Commercial Companies Law) as amended on foreign ownership; and published 2026 pricing from the respective free zone authorities. Licence costs are indicative first-year all-in figures and change frequently: zones revise packages several times a year, and promotional rates are common. Nothing on this page is legal or tax advice; confirm your specific position with Finaxil before committing. Last reviewed 8 September 2026.

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