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Dubai offers multiple Free Zones for businesses in technology, trading, logistics, media, finance, healthcare, e-commerce, professional services, manufacturing, and other sectors.
However, choosing a Free Zone should involve more than comparing licence prices.
Each jurisdiction has its own permitted activities, legal structures, facilities, visa arrangements, operating rules, regulatory approvals, and renewal costs. Your Free Zone choice can also affect how you trade in Dubai, open a corporate bank account, manage customs, meet VAT obligations and qualify for the UAE Free Zone Corporate Tax regime.
Eighty20 helps UAE residents, overseas investors, entrepreneurs, SMEs and international companies compare Dubai Free Zones and establish a structure that fits how the business will actually operate.
Speak to Our Dubai Free Zone Company Setup Team!
A Dubai Free Zone company is a business incorporated and licensed by one of Dubai’s Free Zone authorities rather than directly through Dubai’s Mainland licensing system.
Free Zones are established to support particular types of commercial activity and investment. Some focus on technology and media, while others specialise in commodities, logistics, aviation, healthcare, finance, design, manufacturing or e-commerce.
Depending on the selected jurisdiction, a Dubai Free Zone business may have access to:
The UAE Government advises investors to select the legal entity, trade name, business activity, facility and licence according to the requirements of the chosen Free Zone.
A Free Zone licence does not automatically guarantee visas, a bank account, 0% Corporate Tax treatment, unrestricted Mainland activity or approval for regulated activities.
Dubai Free Zones can support businesses ranging from individual consultants and start-ups to multinational groups.
Potential benefits include:
Official UAE guidance also describes Free Zones as providing company registration, licensing, visa services, office facilities, customs and logistics support, and specialised infrastructure depending on the jurisdiction.
These advantages vary significantly between jurisdictions.
A low first-year licence fee should therefore not be the only reason for selecting a Free Zone.
A Dubai Free Zone may be suitable where your company:
Dubai Mainland may be more appropriate where the business primarily requires direct operations throughout Dubai, a Mainland retail presence, or an activity that is better supported through Mainland licensing.
However, this comparison must now also consider Dubai’s newer rules allowing eligible Free Zone establishments to conduct approved activities outside their Free Zone through specified Dubai Department of Economy and Tourism licences or permits.
The right structure depends on:
| Area | Dubai Free Zone | Dubai Mainland |
|---|---|---|
| Licensing authority | Relevant Free Zone authority | Dubai Department of Economy and Tourism and other competent authorities where applicable |
| Foreign ownership | Generally 100% | 100% is available for many activities |
| Permitted activities | Activities approved by the selected Free Zone | Activities approved through the Mainland licensing framework |
| Facilities | May include flexi-desks, offices, warehouses and specialist facilities | Premises requirements depend on the activity and licence |
| Dubai Mainland activity | May require an eligible DET branch licence, permit or another approved route | Generally structured for direct Mainland operations |
| International trade | Commonly suited to international, import, export and re-export operations | Also available subject to the relevant licence and customs requirements |
| Visas | Depends on Free Zone, package, facility and immigration approval | Depends on licensing, establishment and immigration requirements |
| Corporate Tax | UAE Corporate Tax applies; 0% may apply only to Qualifying Income of an eligible Qualifying Free Zone Person | Standard UAE Corporate Tax framework applies |
| Best suited for | International, sector-specific, digital, trading, logistics and specialist businesses | Businesses requiring broader direct Mainland operations |
Neither structure is automatically cheaper or more tax-efficient.
The commercial model should determine the jurisdiction, not the advertised setup price.
Yes, in certain circumstances, but the correct legal route must be established.
This area changed significantly under Dubai Executive Council Resolution No. 11 of 2025.
The Resolution allows eligible Dubai Free Zone establishments to conduct activities outside their Free Zone and within Dubai after obtaining the appropriate licence or permit from the Dubai Department of Economy and Tourism.
Depending on the circumstances, DET may provide:
Additional government approvals may also be required depending on the activity.
Businesses authorised under this framework must also maintain separate financial records for activities conducted outside the Free Zone and within Dubai.
Temporary activity permits under the Resolution may be valid for up to six months, while specified branch licences are issued for one year and may be renewed.
The Resolution does not apply to financial establishments licensed to operate in DIFC.
This means the old assumption that every Free Zone business must always establish a completely separate Mainland company or work only through a Mainland distributor is no longer accurate.
The correct route still depends on:
There is no single “best” Dubai Free Zone.
The right choice depends on the company’s activities, customers, facility requirements, ownership structure, visas, and long-term plans.
| Free Zone / Business Hub | Common Business Focus |
|---|---|
| DMCC | Commodities, trading, technology, e-commerce and professional activities |
| Jebel Ali Free Zone – JAFZA | Trading, logistics, warehousing, distribution and industrial operations |
| Dubai Airport Freezone – DAFZ | Aviation, logistics, technology, trading and airport-connected businesses |
| Dubai South | Aviation, logistics, e-commerce and commercial activities |
| Dubai Silicon Oasis / DIEZ ecosystem | Technology, innovation and related businesses |
| Dubai Internet City | Technology, digital and ICT businesses |
| Dubai Media City | Media, advertising, communications and production |
| Dubai Knowledge Park | Training, education and human-capital-related activities |
| Dubai Design District – d3 | Design, fashion, architecture and creative businesses |
| Dubai Healthcare City | Healthcare, medical, wellness and related professional activities |
| DIFC | Financial services and qualifying non-financial businesses under a separate legal and regulatory framework |
| Dubai CommerCity | E-commerce and digital commerce |
| Dubai Maritime City | Maritime, shipping and marine-related activities |
| Meydan Free Zone | Commercial, professional and service activities |
| IFZA Dubai | Professional, commercial and other approved business activities |
Industry descriptions are indicative. Activities, packages and eligibility should always be confirmed with the relevant licensing authority before formation.
The UAE Government’s 2026 Free Zone guidance likewise recommends selecting the sector first and then comparing the jurisdictions that support the required business activity and facilities.
The selected jurisdiction must offer a licence activity that accurately reflects how the company will earn revenue.
A general consulting activity should not be assumed to cover regulated consulting, recruitment, financial advice, healthcare, education, or product trading.
A company serving mainly international clients may require a different structure from one delivering services or products directly throughout Dubai.
If the company expects significant activity outside its Free Zone, eligibility under Dubai’s current DET licensing and permit framework should be considered before incorporation.
Trading businesses should determine:
A consultant may only require a shared workspace.
A logistics, manufacturing, food, healthcare, or trading company may require a warehouse, industrial unit, clinic, kitchen, laboratory, or other approved premises.
Visa availability can depend on:
Visa requirements should be assessed before buying a low-cost or zero-visa licence package.
A Free Zone address does not automatically provide a 0% Corporate Tax rate.
Whether a company qualifies depends on its activities, income, transactions, substance, transfer pricing compliance, audited financial statements, and other requirements.
Banks may assess:
The Free Zone should therefore also fit the company’s banking profile.
Compare more than the first-year licence price.
Consider:
Available activities vary between jurisdictions but may include:
Some activities can be combined under one licence.
Others require separate licences, specialist premises, qualified personnel or external regulatory approval.
The licensed activity should reflect how the company actually generates income because it can affect banking, tax, customs and regulatory compliance.
Licence terminology differs between jurisdictions, but common categories include:
For approved consultancy, technology, management, marketing, design and other professional services.
For trading approved goods specified on the licence.
Allows a wider range of permitted products, subject to restrictions and regulatory requirements.
For qualifying manufacturing, processing, assembly or production activities.
For approved online commercial activities.
An e-commerce licence does not remove VAT, customs, consumer-protection, payment or product-registration obligations.
For approved publishing, advertising, production, broadcasting and related media activities.
Available through selected jurisdictions for eligible individuals undertaking specified professional activities.
A freelance permit is not the same as incorporating a separate company.
Financial services, healthcare, virtual assets, education, aviation and other regulated activities may require separate approval from the relevant regulator.
The available legal forms depend on the selected Free Zone.
Common options include:
A separate legal entity with one or more individual or corporate shareholders, subject to the selected jurisdiction’s rules.
Terminology may include FZCO, FZE, FZ-LLC, or another jurisdiction-specific legal form.
An existing UAE or international company may establish a subsidiary within an eligible Free Zone.
An existing UAE company may establish a branch for approved activities.
The branch generally remains legally connected to the parent.
An overseas company may establish a branch subject to the Free Zone’s incorporation, legalisation and approval requirements.
An eligible individual may operate through a freelance permit rather than incorporating a separate legal entity.
Liability, banking, tax, contracting, and visa implications should be considered before selecting this option.
Yes. Dubai Free Zone companies generally permit 100% foreign ownership.
Ownership may potentially include:
Corporate shareholders normally require additional constitutional, ownership, and board documents.
Ultimate beneficial owner information may also be required as part of incorporation and ongoing compliance.
We review what the company will sell, where its customers are located, how services or goods will be delivered, and how revenue is expected to be generated.
Suitable jurisdictions are compared using:
The company’s actual products and services are matched with available licence activities.
Ownership, liability, shareholder type, and future expansion requirements are considered.
The appropriate licence and office, flexi-desk, warehouse, or specialist facility are selected.
The proposed business name is submitted according to the relevant naming rules.
The Free Zone reviews the proposed shareholders, business activity, and initial documentation.
Regulated activities may require additional approval.
Required shareholder, manager, corporate, and business documents are submitted.
Once approvals, documents, facility requirements, and fees are completed, the relevant incorporation documents and business licence may be issued.
Depending on the company, post-setup work may include:
| Applicant | Common Documentation |
|---|---|
| Individual shareholder | Passport, contact details, address and other identification documents requested by the authority |
| UAE resident shareholder | Passport, Emirates ID, residence information and other required records |
| Overseas shareholder | Passport, overseas address, identification and verification information |
| UAE corporate shareholder | Licence, incorporation documents, constitutional records, ownership details and board resolution |
| Foreign corporate shareholder | Incorporation documents, constitutional documents, board resolution, ownership details and legalised documents where required |
| Foreign company branch | Parent-company documents, manager appointment, board resolution and ownership information |
| Regulated business | Business plan, qualifications, professional records, financial information or regulator approval where applicable |
Requirements vary according to jurisdiction, business activity and shareholder structure.
May suit consultants, start-ups and smaller service businesses.
Visa allocation, access arrangements and facilities vary by Free Zone.
May be suitable for teams requiring permanent workspace, meetings, privacy or greater operating presence.
Relevant to logistics, distribution, e-commerce and trading businesses requiring physical storage.
Manufacturing and processing companies may require approved industrial premises and additional safety, environmental or regulatory approvals.
Healthcare, food, laboratory, education, aviation and media companies may require approved sector-specific premises.
A virtual or low-cost office package should not automatically be assumed to satisfy banking, tax-substance, visa or regulatory requirements.
After company formation and completion of the necessary immigration procedures, eligible Free Zone companies may apply for investor or employee residence visas.
The number and type of visas can depend on:
Official UAE guidance confirms that employee visa numbers vary based on factors including the particular Free Zone and package selected.
A company licence does not guarantee approval of a particular visa application.
Dubai Free Zone companies fall within the UAE Corporate Tax regime.
All Free Zone juridical persons must assess their Corporate Tax registration and filing obligations. The FTA confirms that Free Zone entities are required to register and file Corporate Tax returns whether or not they qualify as a Qualifying Free Zone Person.
No.
A Free Zone Person meeting the legal requirements to become a Qualifying Free Zone Person, or QFZP, may benefit from:
The Ministry of Finance confirms that Free Zone Persons remain within the Corporate Tax system and that the 0% treatment applies only when the conditions for QFZP status and Qualifying Income are met.
Requirements include matters such as:
The 2025 Free Zone Corporate Tax rules remain particularly important in 2026. Ministerial Decision No. 229 of 2025 replaced the earlier decision governing Qualifying and Excluded Activities and introduced updated treatment for activities including qualifying commodity trading and certain treasury and financing activities.
A Free Zone company should therefore never be promoted simply as a “tax-free company.”
Yes.
Under Ministerial Decision No. 84 of 2025, a Qualifying Free Zone Person must prepare and maintain audited financial statements regardless of revenue.
For other taxable persons that are not Tax Groups, the Corporate Tax rule generally requires audited financial statements where revenue exceeds AED 50 million during the relevant Tax Period. Other statutory, regulatory or Free Zone audit requirements may apply separately.
This is an important factor when assessing whether the Free Zone Corporate Tax regime is commercially appropriate.
Free Zone status does not automatically mean VAT exemption.
A UAE-resident business is generally required to register for VAT when taxable supplies and imports exceed AED 375,000, subject to the applicable FTA rules.
Businesses should assess:
No.
Only Free Zones specifically recognised as Designated Zones receive special VAT treatment, and that treatment is limited to transactions meeting the relevant conditions.
The FTA’s current guidance confirms that Free Zones are not automatically outside the UAE for VAT purposes; only listed Designated Zones can receive the special VAT treatment.
Getting the licence is only the beginning.
Depending on its activities and tax position, a Dubai Free Zone company may need to:
A company seeking QFZP treatment should pay particular attention to its activities, income, substance, transfer pricing, financial statements and accounting records.
The UAE Electronic Invoicing programme is now relevant to business setup and accounting-system planning.
The UAE eInvoicing pilot began on 1 July 2026, and voluntary adoption is available from the same date.
For in-scope businesses with annual revenue of AED 50 million or more, mandatory implementation begins on 1 January 2027. In May 2026, the Ministry of Finance extended the deadline for those businesses to appoint an Accredited Service Provider from 31 July 2026 to 30 October 2026.
Businesses below AED 50 million that are within scope are scheduled to implement the system from 1 July 2027, under the current phased framework.
Companies forming in 2026 should therefore consider whether their accounting and invoicing software can support future UAE eInvoicing requirements.
After incorporation, a Dubai Free Zone company can apply for a UAE corporate bank account.
Bank approval is separate from company formation.
Banks may review:
Eighty20 can help organise the documentation and business profile required for the application.
Bank account approval, timing, credit facilities and account features remain subject to the bank’s own assessment.
Depending on the engagement, our support may include:
Government fees, facility costs, visa fees, legalisation, certified translation, independent audit fees, banking charges and specialist third-party services may be separate unless included in the agreed proposal.
| Area | Licence-Only Setup | Complete Support from Eighty20 |
|---|---|---|
| Free Zone selection | Based mainly on licence request | Compared against activity, customers, visas, facilities, tax and banking |
| Business activity | Selected from authority list | Reviewed against how the company will operate and earn revenue |
| Legal structure | Basic available structure | Ownership, liability and future plans considered |
| Costs | Initial licence cost | Setup, facility, visa, amendment and renewal costs reviewed |
| Mainland activity | Managed separately | Applicable operating routes considered during planning |
| Banking | Usually outside setup | Banking-readiness support available |
| Corporate Tax | Addressed after formation | Free Zone Corporate Tax implications reviewed earlier |
| VAT | Addressed separately | VAT position can be considered during setup |
| Accounting | Established later | Accounting processes can be implemented from the beginning |
| Ongoing compliance | Managed internally | Continuing accounting, tax, payroll and advisory support available |
We understand the activities, customers, owners, jurisdictions, facility needs, visas, banking requirements, and budget.
We compare potentially suitable jurisdictions and their relevant licence, facility, and renewal considerations.
We consider ownership, legal structure, Mainland activity, and potential UAE tax implications.
Required shareholder information, activity selections, UBO details, and incorporation documents are organised.
We coordinate the formation process with the selected jurisdiction based on the agreed scope.
After incorporation, support can continue across accounting, Corporate Tax, VAT, payroll, banking readiness, and ongoing compliance.
We do not assume that one jurisdiction is suitable for every investor.
The recommendation is based on the actual business model.
We consider activities, customers, visas, banking, tax, facilities, and future operating requirements rather than focusing only on the lowest advertised price.
Company setup decisions can affect Corporate Tax, VAT, customs, transfer pricing, accounting, and audit requirements.
We consider those issues as part of business planning.
We support resident entrepreneurs, overseas investors, SMEs, corporate shareholders and international companies entering the UAE.
Support can continue across accounting, payroll, VAT, Corporate Tax, CFO services and management consultancy.
We do not guarantee licences, visas, bank accounts, tax benefits, or authority approvals.
Final decisions remain with the relevant Free Zone, government authority, regulator, immigration authority, or bank.
Yes. Dubai Free Zones generally permit 100% foreign ownership, subject to the rules, activity requirements, and documentation of the selected jurisdiction.
There is no single best Free Zone. The right choice depends on the business activities, customer locations, office requirements, visas, banking profile, Corporate Tax position, budget, and future plans.
Licence prices and promotions change regularly. A low first-year price may exclude visas, facilities, immigration services, additional activities, or other costs. Compare total setup and renewal costs rather than licence price alone.
Many Free Zones support remote company-formation procedures for overseas investors. However, identity verification, corporate documents, legalisation, banking, or residence visa procedures may require additional steps.
The facility requirement depends on the jurisdiction, activity, and licence package. Options may include a flexi-desk, shared workspace, private office, warehouse, or specialist facility.
An eligible company can apply for investor and employee visas. Availability and quantity depend on the Free Zone, licence package, facility, and immigration approval.
Potentially, yes. Dubai Executive Council Resolution No. 11 of 2025 provides routes for eligible Free Zone establishments to conduct approved activities outside the Free Zone through specified DET branch licences or temporary permits, subject to the relevant requirements and approvals.
No. A Free Zone Person must satisfy the requirements to qualify as a QFZP, and the 0% Corporate Tax rate applies only to Qualifying Income.
Free Zone juridical persons are within the UAE Corporate Tax framework and must meet the applicable registration and filing requirements. The FTA confirms that Free Zone entities must register and file whether or not they qualify as a QFZP.
Yes. Ministerial Decision No. 84 of 2025 requires a Qualifying Free Zone Person to prepare and maintain audited financial statements regardless of revenue.
Eighty20 helps investors compare Dubai Free Zones, choose suitable business activities and facilities, prepare incorporation requirements, and plan the accounting, tax, and compliance processes needed after licensing.
Contact Eighty20 to discuss your Dubai Free Zone company setup.