Free zone company setup

Who it suits

• Consultants, agencies, e-commerce and technology businesses that sell mainly abroad or online.
• Trading companies moving goods through the UAE without clearing them into the local market.
• Founders who want a licence and residence visa quickly, with a flexi desk instead of a full office.²

Selling on the mainland

A free zone company needs a licensed mainland distributor, a mainland branch or the licences the emirate requires to sell to UAE customers outside the zone. In Dubai, the Free Zone Mainland Operating Permit launched in October 2025 costs AED 5,000 for six months, first covers non-regulated activities such as consultancy, technology, design and trading, and requires separate accounts; that mainland revenue is taxed at 9%.^2,4

Typical steps

1. Choose the zone and activityEach zone lists the activities it licenses and the office options it offers.
2. Reserve the name and applyPassport copies, a photo and, for some zones, a short business plan.
3. Sign the lease and constitutional documentsA flexi desk, coworking seat or office inside the zone.
4. Receive the licenceThe government portal gives about 14 working days after approval.
5. Apply for the establishment card and visasThe zone authority handles immigration for its companies.

Source¹

Tax in a free zone

Free zone companies are subject to corporate tax, but a Qualifying Free Zone Person that meets the conditions pays 0% on qualifying income and 9% on the rest. The company must keep adequate substance in the zone, earn qualifying income and prepare audited accounts.^5,6

Timeline and timeframe

Each step in order, with the processing time the authority publishes. Green steps are handled by a government authority.

1. Choose the zone and activityYour decision

   Each zone lists the activities it licenses and the office options it offers.²

2. Application and documentsVaries by zone

   Passport copies, a photo and, for some zones, a short business plan.¹

3. Free zone licence14 working days after approval

   The zone issues the licence and the lease or flexi desk agreement.¹

4. Investor entry permitValid 60 days

   The green entry permit lets the investor enter to complete the residence. Already in the UAE? Change status instead.⁹

5. Medical test30 to 40 minutes, result in 1 to 2 days

   At an approved centre; in Dubai, Smart Salem centres publish a 30-minute service.^11,12

6. Emirates ID and residenceWithin 60 days of entry

   The residence is linked to the Emirates ID application and delivered by courier.¹⁰

7. Bank account3 business days

   Central Bank standard for a low-risk SME with complete documents.¹³

8. Corporate tax registration20 business days

   Every free zone company registers, even when it pays 0%.¹⁴

Questions