Quick answer: Setting up a free zone company in Dubai in 2026 typically costs AED 12,000–35,000 for the first year, depending on the free zone, office package and visa requirements. Dubai free zones offer 100% foreign ownership, no personal income tax, and access to one of the world’s leading business hubs. The process takes 3–10 working days once documents are in order.
Dubai Free Zones at a Glance (2026)
Dubai hosts more than 30 free zone authorities. The table below covers the most commonly selected zones across major business categories.
| Free Zone | Best Suited For | Approx. First-Year Cost (AED) | Min. Visa Quota |
|---|---|---|---|
| DMCC | Commodities, trading, fintech, professional services | 20,000–50,000+ | 1–3 (flexi) / more with office |
| IFZA | Consultancy, tech, trading, media, e-commerce | 12,000–22,000 | 0–3 per package |
| Meydan Free Zone | Tech, marketing, consulting, holding structures | 12,500–25,000 | 0–3 |
| JAFZA | Logistics, industrial, import-export | 20,000–60,000+ | Based on facility |
| DAFZA | Aviation, aerospace, tech, trading | 25,000–60,000+ | Based on office |
| DIFC | Financial services, fintech, law, professional services | 40,000–100,000+ | Based on office |
| DSO (Dubai Silicon Oasis) | Tech, ICT, engineering, innovation | 15,000–30,000 | Based on package |
| Dubai South | Logistics, aviation, e-commerce, light industry | 15,000–40,000 | Based on facility |
Costs are approximate ranges (licence, registration, flexi-desk/office, government fees) for year one. Exclude visa fees and bank account costs. Verify directly with each authority.
Key Benefits of a Dubai Free Zone Company
- 100% foreign ownership — no UAE national partner required
- 0% personal income tax and 0% corporate tax on Qualifying Free Zone income (subject to QFZP conditions)
- Full profit and capital repatriation
- No customs duty within the free zone
- Simple incorporation — most licences issued in 3–7 working days
- Access to Dubai’s international banking, logistics and talent ecosystem
- UAE residence visa eligibility for investor and employees
Types of Dubai Free Zone Licences
- Commercial / Trading licence: buying and selling goods, general trading, import/export
- Service / Consultancy licence: professional services, consulting, IT, marketing, HR
- Industrial licence: manufacturing, processing, assembly — typically requires a facility or warehouse
- Media / Creative licence: content creation, PR, advertising, publishing (TECOM zones)
- Holding licence: owning shares in other companies; available in selected zones
Step-by-Step Formation Process
- Choose free zone and activity: match your business activity to the zone that licences it and fits your budget, office needs and visa plan
- Reserve trade name: check availability and reserve through the zone’s portal (typically AED 150–500)
- Submit application and documents: passport copies, address proof, business description, NOC if applicable
- Sign licence agreement and pay fees
- Receive trade licence certificate (3–7 working days for most zones)
- Apply for UAE residence visas (investor + employees): entry permit → medical → Emirates ID → visa stamp (3–5 weeks total)
- Open corporate bank account: present licence, MOA, Emirates ID and supporting documents
Documents Required
- Passport copy (6+ months validity) for all shareholders and managers
- Recent passport photograph (white background)
- Proof of residential address (utility bill or bank statement, within 3 months)
- Business activity description or brief business plan
- NOC from current UAE employer (if on a UAE work visa)
- Corporate documents (if a company is a shareholder): Certificate of Incorporation, MOA, Board Resolution, UBO declaration
Typical Timelines
- Licence approval: 3–7 working days (most zones), up to 15 for regulated activities
- Visa processing (investor): 3–5 weeks from entry permit to stamped visa
- Bank account opening: 2–8 weeks depending on the bank and due diligence level
Frequently Asked Questions
Can a Dubai free zone company trade inside the UAE mainland?
Free zone companies can generally trade internationally and with other free zone entities. For direct sales or services within the UAE mainland, some activities require a commercial agent arrangement, a mainland branch or a specific DED approval. Confirm with the relevant zone and a business setup adviser.
Which Dubai free zone is suitable for e-commerce?
Several Dubai free zones licence e-commerce activities, including IFZA, Meydan and Dubai South. Each has different cost structures, visa packages and infrastructure. The right zone depends on your activity scope, warehouse needs, budget and visa requirements.
Is DMCC the only option for trading in Dubai?
No — while DMCC is well-recognised for commodities and high-value trading, other Dubai free zones (IFZA, JAFZA, Dubai South) also licence trading activities and may offer lower cost entry points depending on your activity, office requirement and visa plan.
Do I need a physical office in a Dubai free zone?
Not necessarily — many Dubai free zones offer virtual or flexi-desk packages that include a registered address without a dedicated office. A physical office is required for higher visa quotas and certain regulated or industrial activities.
Can I have multiple activities on one Dubai free zone licence?
Most free zones allow multiple related activities under one licence for an additional fee. The range of activities permitted on a single licence varies by zone and activity category. Confirm with the specific authority during your application.
Important Caveats
- Costs and timelines vary significantly across Dubai’s 30+ free zones and change with government fee revisions. Always request a formal quotation from the zone or a registered consultant.
- Corporate tax at 9% applies to taxable income above AED 375,000 unless Qualifying Free Zone Person (QFZP) conditions are met. Consult a UAE-registered tax adviser.
- This guide provides general information only and is not legal or tax advice.
Content reviewed: June 2026. Dubai free zone fees are periodically revised. Verify current costs with the relevant free zone authority.