Free Zone Company Setup in Dubai — The Complete 2026 Guide
Last reviewed 2 April 2026 by Amna Farooqi, Senior Corporate Advisor. Fact-checked by Tariq Mansoor, Licensed UAE Corporate Services Consultant. Everything on this page has been verified against the current DET, DMCC, Meydan, IFZA, and RAKEZ fee schedules.
In 80 seconds — the answer you came here for
A free zone company in Dubai is a legal entity that you own 100%, that pays 0% personal income tax, that pays 9% corporate tax only on profits above AED 375,000, and that can be set up in 3–10 working days for between AED 11,900 and AED 34,600 for the first year depending on which of the 51 UAE free zones you pick.
You'll need your passport copy, a business activity selection, a proposed name, and a decision about whether you want a residence visa. Everything else — the MOA, the lease, the establishment card, the Emirates ID, the bank account — either comes bundled in your package or follows a clearly defined sequence we'll walk you through below.
That's the short version. If you want the real version — with the specific AED amounts, the exact order of operations, the quiet traps that cost first-time founders thousands of dirhams, and the eight mistakes we see every single week — keep reading. This page is all answering one question: how do you actually, practically, end up with a Dubai free zone licence in your name that works.
Who this guide is for (and who it isn't)
If you're a founder based in the UK, the US, India, Russia, Pakistan, Saudi Arabia, Germany, France, or one of the 160+ other countries whose citizens can own a UAE free zone company, this guide is for you. It's also for you if you're already in the UAE on an employment visa and thinking of making the jump. It's for first-time founders and it's for serial founders moving a second or third business across. The process is essentially identical.
This guide is not for you if you need a mainland licence to trade freely with the local UAE market without a distributor — that's a different animal and you want our mainland setup guide instead.
What a 'free zone' actually is
A UAE free zone is a geographically-defined commercial area where a dedicated licensing authority — not the federal government and not the emirate's economic department — issues and regulates business licences. There are currently 51 active free zones across the seven emirates.
The 12 most popular free zones in 2026, ranked by founder fit
| Free Zone | Best for | From (AED) | Visa quota |
|---|---|---|---|
| Meydan | Solo founders, consultants, agencies | 12,500 | 1 |
| IFZA (Dubai Silicon Oasis) | Price-sensitive, flexible activities | 11,900 | 0–6 |
| DMCC | Premium, commodities, gold, tea, coffee | 20,400 | 2–6 |
| JAFZA | Industrial, trading, warehousing | 28,500 | 1+ |
| RAKEZ | Manufacturers, SMEs, exporters | 11,900 | 1+ |
The 10-step setup process — what actually happens, in order
- Pick your free zone (1 day): This is the decision everything else depends on. Compare total first-year cost, not headline licence fee.
- Reserve your trade name (same day to 2 days): Submit three name options. The authority checks them against its internal registry.
- Initial approval (1–3 working days): Submit your passport copy, a business plan summary, and your activity list.
- Draft and sign your MOA (1–2 working days): Your Memorandum of Association is the legal document defining the shareholders.
- Lease agreement (varies): Every free zone requires some form of physical presence — even if it's just a flexi-desk.
- Pay your fees (same day): You pay the first-year licence fee, registration fee, lease fee, and any included visa-quota fee.
- Receive your trade licence (same day to 5 working days): Once payment clears, the authority issues your digital trade licence.
- Establishment card (1–2 working days): The digital token that links your company to the UAE Immigration system.
- Your residence visa (5–14 working days): Entry permit → medical fitness test → Emirates ID biometrics → visa stamping.
- Open your corporate bank account (7–28 working days): UAE banks are under heavy AML and KYC scrutiny. This is the stage that takes the longest.
In this cluster: Free Zones Deep Dive
FAQ — the 10 questions we answer every week
How long does the whole process take?
From submitting your initial application to holding your trade licence: 3–7 working days for the fast free zones (Meydan, IFZA) and 7–14 for the premium ones (DMCC). Add another 7–14 days for the residence visa stamping, and another 7–21 days for the bank account.
Can I own 100% of a UAE free zone company as a foreigner?
Yes. 100% foreign ownership has always been allowed in free zones, and since 2021 it has also been allowed in mainland for most activities. There is no requirement for a local sponsor or local service agent for free zone companies.
Can I sponsor my family on a free zone visa?
Yes, provided you meet the minimum income threshold (currently AED 4,000/month salary or AED 3,000 plus accommodation allowance as of April 2026). You can sponsor your spouse, your children under 18 (or 21 if in education), and your parents under specific conditions.
Changelog — 2 April 2026: updated Meydan starting package from AED 12,125 to AED 12,500 after the April authority notice. Updated Wio Bank approval time range from 7–11 days to 5–9 days. Added the corporate tax late-registration fine (AED 10,000) after the March 2024 FTA notice. Previous review: 4 January 2026 by Amna Farooqi.