A free zone (or free trade zone) in the UAE is a designated economic area where businesses operate under a unique set of regulations, independent of the UAE’s mainland commercial laws. These zones are tailored to specific industries and offer international investors a simplified, cost-effective, and flexible business environment.
Free zones exist in all seven Emirates—Dubai, Abu Dhabi, Sharjah, Ajman, Fujairah, Ras Al Khaimah, and Umm Al Quwain—each governed by its own authority.
The first free zone, Jebel Ali Free Zone (JAFZA), was established in 1985. Today, the UAE hosts over 40 free zones, supporting sectors such as media, technology, trade, logistics, and finance.
Free zones were introduced as part of the UAE’s long-term economic diversification strategy, aimed at:
No need for a local sponsor or partner in most zones.
Freely transfer profits and capital internationally.
1. 0% corporate and personal income tax.
2. Exempt from import/export duties.
3. VAT exemptions (in some zones)
Freedom to transact in any currency.
Fast-track licensing, registration, and immigration processes.
Flexible office packages including virtual offices.
Near major airports, seaports, and highways with access to modern facilities.
Trade across GCC, MENA, and international markets.
Choose your license based on the business activity:
Import, export, distribute, and store a wide variety of goods.
Buy and sell specific goods/services locally and internationally.
Manufacture and process goods; import raw materials and export finished products.
Offer services like consultancy, IT, marketing, travel, etc.
| Feature | Mainland | Free Zone |
|---|---|---|
| Ownership | Up to 100% foreign (sector-dependent) | 100% foreign ownership |
| Business Scope | Entire UAE + government contracts | Limited to free zone and international markets |
| Office Requirement | Physical office required | Virtual office options available |
| Taxation | Subject to corporate tax | Often exempt from income/corporate tax |
| Visa Eligibility | Based on space and activity | Visa packages vary by free zone |
| Feature | Mainland | Free Zone |
|---|---|---|
| Ownership | Up to 100% foreign (sector-dependent) | 100% foreign ownership |
| Business Scope | Entire UAE + government contracts | Limited to free zone and international markets |
| Office Requirement | Physical office required | Virtual office options available |
| Taxation | Subject to corporate tax | Often exempt from income/corporate tax |
| Visa Eligibility | Based on space and activity | Visa packages vary by free zone |
We are just a call or text away. Reach out to us and our expert business setup consultants will get back to you to counsel you at every step of your company formation journey.
No Physical Presence Required (in some cases)
You may need to be present for visa processing, but not necessarily for setup.
Limited Government Interaction
Free zone authorities handle government procedures on your behalf.
VAT Exemption for International Operations
Businesses operating solely outside the UAE may qualify.
Corporate Tax Filing is Still Required
Even tax-exempt companies must file annual tax returns.
Operational Flexibility
B2B across UAE
B2C within free zone & international (with extra permissions for mainland)
Broad trading capabilities
Product/service-based trade
Manufacturing and export
Professional services
Factory-based production
Passport copies (shareholders, managers)
Recent passport-size photos
Proposed trade names
Attested parent company documents:
Certificate of Registration
Certificate of Incorporation
MOA/AOA
Original Board Resolution
Passport and photo of representative
We are just a call or text away. Reach out to us and our expert business setup consultants will get back to you to counsel you at every step of your company formation journey.
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Barsha Heights, Dubai
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