A free zone is a designated area with its own unique tax, customs, and import regulations, separate from the mainland. The key benefit of establishing a company in a free zone is that expatriates can enjoy 100% ownership of their business without needing to share any equity.

The time required to incorporate a company in the UAE varies significantly depending on the complexity of the business. A straightforward Free Zone Enterprise (FZE) can be established within a few days, while an industrial facility may take several months to secure all the necessary permits for legal and safe operation. On average, we recommend allowing about 30 days for the entire process, provided all documentation is in order and authorized signatories are available.

The average cost for setting up a free zone license in the UAE, using a flexidesk virtual office with 1 or 2 staff visas, is approximately AED 40,000. However, fees can vary depending on the specific free zone and your office and staffing needs. While free zone companies are generally more cost-effective than mainland companies during the initial stages, office expenses can increase with more staff, making it more costly over time. Key benefits of establishing a business in a free zone include 100% foreign ownership, zero personal and corporate taxes, and exemption from import duties.

Commercial space requirements vary based on the size, location, and activity of the business. A simple Free Zone Enterprise (FZE), such as a service or consultancy company, can be set up in just a few days using a cost-effective flexidesk or virtual office. However, companies in Industrial or Logistics Free Zones must rent industrial space to obtain the necessary permits for legal and safe operations. In such cases, the formation process may take several months, pending approvals for the commercial space.