A Freezone (or Free Trade Zone) in the UAE is a specially designated area that helps in foreign investment and promotes international trade, all while boosting economic growth through various incentives. Free Trade Zones are managed by independent Free Zone Authorities (FZAs) which create their own laws, issue licenses, and oversee operations. Unlike Mainland businesses, Free Zone companies enjoy exemptions from certain federal laws, like the Commercial Companies Law, which offers more operational flexibility.
Free Zones are strategically located near to seaports, airports, and industrial hubs to facilitate access to global markets. The free zones are industry specific and focus on technology, logistics, healthcare, and manufacturing with added support of specialized infrastructure and services.
Unlike traditional Mainland setups, Free Zones allow the foreign investor to own the entire company without the need for a UAE national partner.
In UAE free zones, no customs duties are applicable on imports or exports for goods that remain within the free zone or are re-exported outside the GCC, in accordance with the Common Customs Law of the GCC States (Article 78(a)).
In UAE Free Zones, Qualifying Free Zone Persons (QFZPs) don’t have to pay any corporate taxes on their qualifying income. However, they do have to pay 9% on any taxable income over AED 375,000.
Businesses are allowed to transfer 100% of profits and capital with no restrictions to their home countries.
Financial freezones are a great option for businesses that want to start or grow their operations in the UAE while also reaching regional and international markets. These zones let foreigners own 100% of a business, pay no corporate or personal income tax (if they meet UAE federal tax thresholds), and don’t have to pay import or export duties. The infrastructure is top-notch, with modern commercial spaces, serviced offices, and flexi-desks made just for financial companies. Also, the rules in these areas are independent, which means that there are clear laws in place for things like bankruptcy, data protection, and resolving disputes.
These areas are great for international financial activity because they have arbitration centers, independent courts, and help with compliance. Companies also gain from easier licensing processes, quicker visa processing, and access to a large pool of skilled workers.
In the UAE, Free Zones can be classified into various categories based on location, industry focus, and operational purpose. Below are the main types:
Here’s a simplified breakdown of the company setup process in the UAE.
Follow these six essential steps to get your business up and running smoothly.
Step 4
From launch to long-term success, BYB simplifies every step of your UAE business journey.
With tailored support and unmatched local expertise, we’re your trusted partner for seamless setup.
We help you select the most beneficial free zone or mainland setup based on your business model, industry, and goals.
From legal structuring to trade name approval and license acquisition—we take care of everything under one roof.
Stay worry-free about renewals, regulations, and filings. We ensure your business remains 100% compliant with UAE laws.
No hidden costs or vague deadlines—we commit to clear communication, pricing, and setup timelines.
Our team knows the UAE business ecosystem inside out. Leverage our local connections for faster processes and better outcomes.
We don’t stop at formation. We assist you in banking, office space, visa services, and even scaling your operations.
Free Zones in UAE offer various options for company formation, depending on the requirement and structure of ownership. The main types are:
Select the right structure for business setup in UAE according to business model, market, and budget objectives to set a business in the UAE. The table below provides a comprehensive comparison:
Anywhere in UAE (e.g., Dubai, Abu Dhabi)
Designated Area (e.g., Jafza, DMCC)
Specialized financial hubs (e.g., DIFC, ADGM)
Full access to UAE local market and global trade
Freezone and global trade; limited local access
Global financial markets; limited local UAE market access
100% foreign in most sectors
100% foreign in most sectors
100% foreign in most sectors
9% corporate tax on profits > AED 375,000
0% tax; 9% if profits > AED 375,000
0% corporate tax; 9% if profits > AED 375,000; specific tax incentives for finance
Mandatory (Ejari-registered office) and flexible option available
Optional (flexi-desks in some Freezones)
Optional (flexi-desks in some Freezones)
Starts at AED 15,000*
Starts at AED 6000*
Starts at AED 25,000*
Higher quotas based on office size
Limited visas; varies by Freezone
Moderate visas; tied to office size and business type
Mandatory annual audit if the turnover exceeds AED 50 million.
Mandatory annual audit if the turnover exceeds AED 50 million or as stipulated under the laws of the Free Zone.
Mandatory annual audit if the turnover exceeds AED 50 million or as stipulated under the laws of the Free Zone.
Regulated by the Department of Economic Development (DED) and other government bodies.
Governed by the respective Free Zone Authority (FZA).
Governed by respective free zone authority. Regulated activities governed by Independent Regulatory Bodies.
Local market focus, scalability
International trade, tax efficiency
Financial Services, Banking, Wealth Management, Holding Company, Finance, Crypto.
Manage all your social channels, ensure customer supremacy engagement, track your performance and more—all from a single platform
Free Zones in UAE offer various options for company formation, depending on the requirement and structure of ownership. The main types are:
Freezones offer full foreign ownership and are ideal for export-oriented businesses. Mainland allows trade within the UAE market. Offshore is best for holding companies and international business without local operations.
Yes, in most freezones and certain mainland activities, full foreign ownership is allowed without the need for a local partner.
Common documents include passport copy, business plan, passport-sized photo, and application forms. Additional documents may be needed based on the activity and zone.
Yes. We assist with preparing the necessary documents and connecting you with reliable banking partners in the UAE.
Absolutely. We manage the entire visa process for investors, partners, employees, and dependents.
We offer personalized consultation, transparent pricing, dedicated relationship managers, and end-to-end support from formation to scaling your business.
The UAE offers a wide range of activities—trading, consulting, e-commerce, manufacturing, and more. We’ll help you select the most appropriate license type.
BYB (Build Your Business) is a specialized firm focused on building the foundation for businesses to operate globally. We provide clear guidance and practical support to individuals and companies on how to properly establish their business, follow all rules, and design its structure to begin work in different countries. Our deep knowledge includes how to stay compliant in various nations, selecting the best legal setup, and making smart choices about local business environments. We help get registrations, explain tax requirements, and put in place the basic systems for running an office. BYB is an essential partner for those starting international businesses, making sure they have a solid and rule-abiding base from the very beginning.
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