UAE Free Zone Company Setup 2026: 100% Ownership & Low Cost

Key facts

●100% foreign ownership, full profit repatriation, and 0% on qualifying income for a QFZP.
●Licences from around AED 5,000 (Northern Emirates) to AED 12,900 (Dubai zones).
●Setup is largely digital; some zones issue in under a day.
●Selling to the UAE mainland usually needs a distributor, branch or dual licence.

A free zone is the default choice for consultants, agencies, traders and online businesses. You get full ownership without a local partner, a streamlined digital process, and, if you meet the conditions, a 0% corporate tax rate on qualifying income.

Where free zones shine

International trade and services, holding structures, and remote or online businesses all fit a free zone cleanly. Setup is fast and paperwork is light compared with the mainland.

The two catches

First, a free zone company cannot sell directly to mainland UAE customers for most activities without a distributor, a branch or a dual licence. Second, banking varies sharply by zone; Dubai-issued licences clear far more easily than Northern Emirates or offshore ones. Weigh both before optimising for the cheapest licence.

Choosing your zone

Match the zone to your activity, visa count and banking need. Our free zone comparison ranks the major zones, and the matcher tool gives you a personalised top three in two minutes. Estimate the all-in cost with the cost calculator.

Frequently asked questions

Can a free zone company sell in the UAE mainland?

Not directly for most activities. You typically need a mainland distributor, a branch, or a dual licence to reach mainland customers.

Do free zone companies get 0% corporate tax?

Only a Qualifying Free Zone Person on qualifying income, meeting substance, transfer-pricing and audit conditions. All free zone companies must still register and file.

Sources

Free zone authority packages 2026
Ministerial Decision No. 229 of 2025 (QFZP)

UAE free zone company setup 2026