Ultimate Verified Guide to Free Zone Company Formation in Dubai UAE
Ultimate verified guide to free zone company formation in Dubai UAE outlines the streamlined 2026 process for 100% foreign ownership, tax exemptions, and rapid licensing across 40+ specialized zones.
Free zones like DMCC, JAFZA, and DAFZA eliminate local sponsor requirements, enabling global entrepreneurs to establish FZEs or FZCOs within 1–4 weeks via digital portals.
Step-by-Step Formation Process
1. Select Free Zone and Activity: Match business to zone expertise—DMCC for commodities, JAFZA for logistics, IFZA for cost-efficiency. Confirm 2,000+ approved activities via zone portals; general trading needs AED 1M+ capital in some.
2. Choose Legal Structure:
FZE (Free Zone Establishment): Single shareholder, min AED 1,000–50,000 capital.
FZCO (Free Zone Company): 2–50 shareholders, similar capital.
Branch/offshore for expansions.
3. Reserve Trade Name: Submit 3 options online—avoid Arabic words, offensive terms. Approval in 1–2 days.
4. Submit Documents: Passport copies, CVs, business plan, proof of address, MOA. Notarization optional remotely.
5. Initial Approval: Zone authority reviews eligibility (1–3 days).
6. Lease Space: Flexi-desk (AED 15,000/year), office, or land—sign Ejari-equivalent.
7. Pay Fees and Get License: Registration AED 4,500–30,000 + annual license AED 17,000–50,000. Visas extra (AED 3,750 each).
8. Open Bank Account: Post-license at FAB/Emirates NBD; 4–6 weeks AML clearance.
Total timeline: 6–15 days for trading firms.
Costs Breakdown Table
Component Cost Range (AED) Notes
Registration 4,500–30,000 One-time
License (Trading) 17,000–50,000 Annual renewal
Flexi-Desk 15,000–25,000 Minimum space
Visa (per person) 3,750 3-year renewable
Total First Year 35,000–100,000 Excl. sponsor fees
Key Benefits and Pro Tips
100% Ownership: No audits for small firms; 0% corporate tax on qualifying income.
Visas: 1–10 per license; golden visas for investors.
Remote setup possible—visit once for signing.
Verify agents via DED portal; use official s