Free Zone Company Formation in the UAE

The UAE has more than forty free zones, each with its own licence types, activity lists, office options and fee structure. Choosing the right one depends on what the company will do, where its customers are, how many visas it needs, and whether it wants to qualify for 0% Corporate Tax as a Qualifying Free Zone Person. Dawn Consultancy forms companies in the zones we also audit, including DMCC, JAFZA, DAFZA, DSO, IFZA, Meydan Free Zone, RAKEZ, SAIF Zone and DIFC, and stays with the company afterwards for accounting, audit, VAT and Corporate Tax.

Free zone or mainland

Factor	Free zone company	Mainland LLC
Ownership	100% foreign ownership	100% for most activities since 2021
Trading in mainland UAE	Through a distributor, a mainland branch or a dual licence, depending on the zone	Unrestricted
Government contracts	Generally not eligible	Eligible
Corporate Tax	0% on qualifying income if QFZP conditions are met; otherwise 9%	9% above AED 375,000
Office	Flexi-desk to warehouse, inside the zone	Physical office anywhere in the emirate (Ejari)
Audit	Mandatory in most zones annually	Mandatory above the revenue threshold; required by most banks
Set-up time	Typically 3 to 10 working days	Typically 1 to 2 weeks

Which zone for which business

• DMCC (Jumeirah Lakes Towers): commodities, trading, professional services; strong banking acceptance; annual audit filing within 180 days
• JAFZA (Jebel Ali): import-export, logistics, manufacturing, warehousing; access to Jebel Ali port; also JAFZA Offshore for holding companies
• DAFZA (Dubai Airport): air-freight trading, aviation, pharmaceuticals, IT hardware; adjacent to the airport cargo village
• Dubai Silicon Oasis: technology, software, R&D, electronics; Dtec for start-ups
• IFZA and Meydan Free Zone: cost-effective licences for consultancy, e-commerce and services with low visa requirements
• RAKEZ: industrial and trading businesses needing large premises at lower cost; RAK ICC for offshore holding
• SAIF Zone: Sharjah-based trading and light industry with airport access
• DIFC: financial services (DFSA-regulated), family offices, holding companies and professional firms wanting a common-law jurisdiction

Formation process

1. Activity selection and zone recommendation, including a Corporate Tax review of whether the intended revenue will be qualifying income
2. Trade name reservation and initial approval
3. Choice of office or desk package, which determines the visa quota
4. Submission of shareholder and manager documents; corporate shareholders provide attested incorporation documents
5. Signing of the memorandum and articles (in person or by power of attorney)
6. Licence issue and establishment card
7. Immigration file, visas and Emirates ID
8. Corporate bank account opening support, Corporate Tax registration and, where applicable, VAT registration

Documents required

• Passport copies and, if in the UAE, visa or entry stamp for each shareholder and manager
• Proof of address and, in some zones, a short CV or business plan
• For corporate shareholders: certificate of incorporation, memorandum, board resolution and certificate of incumbency, attested for use in the UAE
• Three proposed trade names

After formation

Free zone companies must renew the licence annually, keep accounting records under IFRS, file audited financial statements where the zone requires it, register and file for Corporate Tax, register for VAT once taxable supplies exceed AED 375,000, and maintain their beneficial ownership registers. Because we audit in these zones, the same team that sets the company up can keep it compliant.

Frequently asked questions

Can a free zone company sell to customers in mainland Dubai?
Yes, but the route depends on the goods or services. Goods are generally sold through a mainland distributor or importer of record; services can often be provided directly. Mainland revenue counts as non-qualifying for Corporate Tax and is limited by the de minimis rule if the company wants 0% treatment.

How many visas can I get?
The quota is set by the office package: a flexi-desk usually carries one to three visas, a physical office more, in proportion to floor area.

Do I need to visit the UAE to form the company?
Most zones allow formation by power of attorney. A visit is needed later for the residence visa medical and Emirates ID biometrics.

Is an audit compulsory in every free zone?
Most zones, including DMCC, JAFZA, DAFZA, DSO and DIFC (subject to exemptions), require annual audited financial statements. Even where the zone does not, audited accounts are required to claim 0% Corporate Tax as a Qualifying Free Zone Person.

Get a formation quotation

Tell us your activity, number of visas and where your customers are, and we will recommend the zone and send a fixed-fee quotation. Email info@dawnconsultancy.com, call +971 55 441 1036, or request a call back. Related: mainland LLC setup, offshore company formation, free zone Corporate Tax.