Free Zone Formation

Free Zone Company Formation in the UAE

A Free Zone Company in the UAE is a business entity established within one of the country’s designated free zones — special jurisdictions designed to attract investors with full foreign ownership, tax advantages, and simplified procedures.

Each Free zone is governed by its own authority and offers sector-specific benefits, world-class infrastructure, and quick company registration. With a free zone licence, you can operate within the free zone and internationally, import/export goods with minimal restrictions, and enjoy flexible office and visa options.

Free zones are the ideal choice for entrepreneurs, SMEs, and international investors who want a cost-effective, low-barrier entry into the UAE market.

Why Choose a Free Zone Company

100% Foreign Ownership

No local partner required.

Favourable Tax Environment

No personal income tax; 9% corporate tax applies on profits above AED 375,000 (as per UAE Corporate Tax Law).

Customs Benefits

Duty-free import, export, and re-export within the free zone.

Full Profit Repatriation

Move capital and earnings freely.

Wide Range of Activities

From trading and logistics to media, finance, and manufacturing.

Fast Setup

Digital licensing options available in certain zones.

Flexible Office Solutions

Co-working desks, private offices, warehouses, industrial land.

Free Zone Activity Categories

Free zone company offers full ownership, competitive tax rates, and easy market access.
Commercial
Import/export, wholesale, retail, e-commerce, trading of goods.
Service
Consulting, IT services, education, marketing, professional services.
Industrial
Manufacturing, assembly, packaging, light/heavy industry.
Media & Creative
Broadcasting, publishing, design, content creation.
Finance & Innovation
Banking, fintech, R&D, technology hubs.
Logistics & Maritime
Warehousing, freight forwarding, shipping services.

Regulated Activities & External Approvals

Certain free zone activities require additional approvals before a licence is issued:

Jurisdiction Insights

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Common Legal Structures

Your legal structure defines ownership, liability and how banks, partners and regulators view your entity.

Company Formation Process

A practical roadmap from selecting your jurisdiction to becoming fully banked and visa-ready.

  • 1

Select the most suitable free zone based on your industry, target market, and operational needs.

  • 2

Decide on the legal entity (e.g., FZE, FZCO) and choose the appropriate licence.

  • 3

Choose a unique company name that meets the free zone’s naming rules and reserve it with the authority.

  • 4

Complete the company setup application and submit all required documents.

  • 5

Some business activities need approvals from external government departments or regulators.

  • 6

Review and sign key documents such as the Memorandum of Association

  • 7

Once approved, the free zone issues your trade licence and establishment.

  • 8

Use your licence and corporate documents to open a business bank account with a UAE bank.

  • 9

Submit visa applications for owners, employees, or dependents according to the visa quota allocated to your company.

Required Documents:

Documents vary depending on whether your shareholders are individuals, corporate entities, or managers assigned to the UAE entity.

For Individual Shareholders
For Corporate Shareholders
For Manager / Director
For Office / Facility Lease

Cost Range & Ongoing Compliance

Understand the typical investment for a UAE setup and the ongoing obligations to keep your licence in good standing.

All corporate documents issued outside the UAE must be notarised, attested by the UAE Embassy in the country of origin, and legalised by the UAE Ministry of Foreign Affairs. Additional approvals/documents may be required based on the business activity.

Cost Range
(Excluding rent, visas, and external approval fees)
UAQ, Ajman, Sharjah, Fujairah, RAK
AED 12,000 – AED 20,000
Dubai, Abu Dhabi
AED 15,000 – AED 25,000+
Specialised / High-Profile Zones
(DMCC, DIFC, ADGM) – AED 40,000 – AED 60,000+
Ongoing Compliance

Conclusion

A free zone company offers full ownership, competitive tax rates, and easy market access — making it a powerful option for new and expanding businesses.

SRP CONSULTING manages the entire process — from selecting the right jurisdiction to securing approvals, ensuring your setup is smooth, compliant, and ready for growth.

Contact us today to start your UAE free zone company formation.