Company Setup
Free Zone Company Setup
in the UAE
From entry-level flexi-desk licences to established zones like DMCC and JAFZA, free zone setup can be fast and cost-efficient, provided the zone, activity and tax position are matched to how you actually trade. We check that before we file.
Start a ConversationOverview
Fast to Set Up,
Easy to Get Wrong
A free zone licence gives you 100% foreign ownership, a straightforward setup process and, in many zones, a licence issued within a matter of days. It is a strong fit for businesses whose customers, suppliers and revenue sit mainly outside the UAE, or who do not need to trade directly with UAE mainland customers.
Where clients most often get it wrong is treating free zone as a blanket tax exemption, or picking the cheapest package without checking whether it covers the visa count and office type they actually need.
Free Zone Suits You If
- Your customers or clients are mainly outside the UAE
- You run a consultancy, trading, tech or e-commerce business
- You want a lower-cost, faster route to a working licence
- You need only one to three visas to start
Cost
Free Zone Cost by Scenario
Cost varies significantly by zone, licence type and visa need. These ranges are indicative starting points, not fixed quotes.
| Scenario | Indicative Range (AED) |
|---|---|
| Entry-level licence, no visa | 5,500 to 13,500 |
| Dubai address, one visa, all-in year one | 20,000 to 40,000 |
| Established zone (DMCC, JAFZA, DAFZA) | 35,000 to 100,000+ |
| DIFC, standard non-regulated structure | 75,000 to 150,000+ |
| Per residence visa, government-related costs | 3,500 to 6,500+ |
| Annual renewal, share of year-one cost | 60 to 85% |
Low headline prices from some zones can exclude establishment card, immigration file, medical and Emirates ID costs. Established zones such as DMCC price registration, licence, establishment card and workspace as separate components, which is why their totals sit higher. DIFC follows a different commercial licence framework and should always be costed separately, particularly for regulated financial activities.
Corporate Tax
"Free Zone" and "0% Tax"
Are Not the Same Thing
Only a Qualifying Free Zone Person can benefit from the 0% Corporate Tax rate, and only on Qualifying Income, subject to meeting substance, activity and transfer-pricing conditions. Income that falls outside those conditions is generally taxed at 9%.
A common misconception is that any revenue from a UAE mainland customer automatically disqualifies that income. That is not accurate. Transactions with non-free-zone customers can still count as Qualifying Income where they arise from a defined Qualifying Activity and are not an Excluded Activity, subject to the other QFZP conditions. A de minimis threshold also applies: non-qualifying revenue generally needs to stay within the lower of 5% of total revenue or AED 5 million for the QFZP regime to be retained.
Visas
How Many Visas
Can You Get
Visa quota depends on the activity, premises type, establishment classification and the specific free zone package, not a single fixed ratio to floor area. Flexi-desk and serviced-office products often carry a fixed visa quota that does not map cleanly to square metres. We confirm the available quota for your chosen package before you commit to an office.
What Determines Your Quota
- Business activity and licence type
- Premises type: flexi-desk, serviced office or leased space
- Free zone package and establishment classification
- Immigration and GDRFA approval
Why Aurum
Why Clients Choose Aurum
for Free Zone Setup
Zone Chosen for Fit, Not Price
We shortlist the zone based on your activity, banking needs and tax position, not just whichever offers the lowest headline licence fee.
QFZP Assessed Before You File
We check your likely qualifying status against your real revenue mix, so the 0% Corporate Tax rate is not a surprise finding at year end.
Full Cost Shown Upfront
Government, authority and Aurum's professional fee are quoted separately, so there are no costs discovered after you have already committed.
What Clients Say
In Their Own Words
"I had assumed my free zone company would automatically be taxed at zero percent. Aurum went through my actual client base with me and explained exactly which parts of my income qualified and which did not, before I filed anything. That conversation alone was worth having before, not after."
Pakistani Founder, Digital Services Free zone setup, Corporate Tax assessmentCommon Questions
Free Zone Setup FAQs
No. Only a Qualifying Free Zone Person benefits from the 0% rate, and only on Qualifying Income, subject to substance, activity and other conditions. Other taxable income can be subject to 9%. We assess this before you choose a zone.
Generally, a free zone company needs a local distributor or a dual-licence arrangement to sell directly to UAE mainland customers. If most of your revenue will come from mainland UAE clients, a mainland licence is usually the more direct route. See our Mainland Company Setup page.
The right zone depends on your activity, budget, visa need and banking plans, not a single "best" answer. Established zones such as DMCC and JAFZA carry a higher cost but can support stronger banking relationships and specific activity types. We shortlist zones based on your actual requirements.
This is a common market rule of thumb for some physical-office cases, but it is not a universal ratio. Visa quota also depends on activity, establishment classification, premises type and immigration approval. Flexi-desk products often carry a fixed quota instead. We confirm your actual allocation before you commit to a package.