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Costs and visasPackages, visas and renewal by zoneRules and taxAuthority, QFZP and audit rulesBy emiratePrice indexZones ranked by costCost calculatorFree zone authoritiesBest for startupsBest for freelancersSetup guide
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In Scout · Business setup

Free zones
Costs and visasRules and taxBy emiratePrice indexCost calculatorFree zone authoritiesBest for startupsBest for freelancersSetup guide
Mainland
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Free Zones / Guide

How UAE free zone setup actually works

Free zone company setup in the UAE typically takes 4-8 weeks end to end. This guide covers how to choose a zone, the 8-step process, what actually drives cost, and the mistakes that cost new founders the most money.

How to choose the right zone

Five factors decide fit — price alone is a poor filter

1

Licensed activity fit

Check the zone's permitted activities list actually covers what you do — this is the single most common mismatch that forces a re-licensing.

2

Visa quota you'll actually need

Office/desk tiers cap visa count. Undersizing this means a costly upgrade six months in; oversizing wastes money on office space you don't need yet.

3

Full Year 1 cost, not the headline price

Licence fee alone is rarely the total. Establishment card, per-visa cost, insurance, and office/desk fees usually add 40-100% on top of the advertised 'from' price.

4

Mainland access, if you need it

Free zone companies generally cannot sell directly to UAE mainland customers without a mainland licence, a distributor, or a dual-licence structure. Decide this before, not after, incorporating.

5

Banking difficulty

Account-opening ease varies materially by zone and by your business profile — this is usually the longest step in the whole process, not licensing.

The 8-step setup process

Typical total: 4-8 weeks, banking is usually the long pole

1

Choose your zone and activity

1-3 days

Get this step wrong and every later step compounds the cost of fixing it — activity and zone selection is worth spending real time on.

2

Reserve your trade name

1-2 days

Have 2-3 name options ready; common single-word names get rejected for being too generic or already reserved.

3

Submit application and documents

1-3 days

Passport copies, proof of address, and a business plan (for some zones/activities) are the baseline — some activities require additional approvals from sector regulators.

4

Pay fees and receive your trade licence

1-5 days

This is when the licence fee, registration fee, and establishment card are actually charged.

5

Apply for residency visa(s)

1-2 weeks

Visa processing runs in parallel with the medical test and Emirates ID application, not sequentially, in most zones.

6

Open a corporate bank account

2-6 weeks

Apply to 2-3 banks in parallel rather than one at a time — this is consistently the longest and least predictable step, and a single rejection shouldn't restart your timeline.

7

Arrange mandatory health insurance

1-3 days

Required for every visa holder before the visa stamping completes, in every emirate.

8

Register for VAT and corporate tax, if applicable

Varies

UAE corporate tax registration is mandatory even for many free zone entities — QFZP eligibility for the 0% rate has its own substance and activity conditions, it isn't automatic.

Mistakes that cost new founders money

Choosing the cheapest headline price without pricing the full Year 1 stack (visas, office, insurance, establishment card)

Ignoring banking difficulty until after incorporation, when switching zones is expensive

Picking a licence activity code that doesn't cover a service you start offering later

Comparing setup cost but not renewal cost — some zones are cheap to enter and expensive to keep

Applying to only one bank and waiting weeks before trying a second

Forgetting mandatory add-ons: health insurance per visa, annual audit (where required), and VAT/CT registration

Assuming 'free zone' means 'no tax' — UAE corporate tax applies to most free zone income above the small business threshold, with QFZP conditions for the 0% rate

Common questions

How long does UAE free zone setup take end to end?

Most zones complete licensing in a few days to two weeks. The full process including visa issuance and bank account opening typically takes 4-8 weeks, with banking usually the longest and least predictable step.

Is a UAE free zone company tax-free?

Not automatically. UAE corporate tax applies to most free zone income above the small business threshold. Free zone entities can qualify for a 0% rate on qualifying income as a Qualifying Free Zone Person (QFZP), but this has specific substance, activity, and income-type conditions — it is not granted simply by being in a free zone.

Can a UAE free zone company sell to mainland customers?

Not directly, in most cases. A free zone company generally needs a mainland licence, a local distributor, or a dual-licence arrangement with the relevant Department of Economic Development to sell directly to mainland UAE customers.

Cost calculatorPrice indexBrowse all zones

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Scout applies these same criteria — activity fit, visa quota, real Year 1 cost, mainland access, banking — to your specific business and ranks every UAE zone against it.

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11 apps

Comply

Your compliance manager

Govern

Governance and board compliance

Onboard

Client onboarding (KYC/CDD)

Shield

Clients' regulatory compliance

Ledger

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Scout

Planning your UAE setup

Atlas

UAE setup reference

Verify

Sanctions and PEP screening

Lexara

UAE rulebook library

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What applies to you

Business setup by activity

All 2,100+ activities
Trading & ServicesManufacturingReal Estate & Business ServicesPersonal & Social ServicesTransport, Storage & LogisticsConstruction & ContractingFinancial ServicesVirtual AssetsHealth & Social WorkEducationAgriculture & FishingProfessional & Technical ServicesAccommodation & Food ServicesMining & QuarryingUtilities & Energy
Free zone setup costsFree zone price indexSetup cost calculatorMainland vs free zoneWhich zones permit your activity

UAE free zones by emirate

View all
Dubai
DMCCDIFCJAFZADAFZADSODWCDICDubai Media CityDHCCIFZAMeydanDSCDPCDKPDOCDSPD3DIACDCCDubai Maritime CityDWTCGDP
Abu Dhabi
ADGMKEZADMCFZtwofour54ADAFZICADAAIAFZ
Sharjah
SPCSHAMSHFZASAIFSRTIPSHCC
RAK
RAKEZRAK DAO
Ajman
ACMFZAFZAMC
Fujairah
FOIZFCCFFZ
UAQ
UAQIZUAQ FTZ

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