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40+ Free Zones options in Dubai
26,000+ Companies in DMCC alone
2,000+ Business activities covered
97% Companies set-up digitally
40+ Free Zones options in Dubai
26,000+ Companies in DMCC alone
2,000+ Business activities covered
97% Companies set-up digitally
The most flexible way to build in Dubai
2 Days
Licence approval time
100% Digital
Company setup process
1-6 Visas
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Your roadmap to launching your Dubai business
Start here Week 4
1
We confirm your activity is permitted and flag any additional approvals required.
myHQ handles for you
2
Share your preferred names and we submit them to the free zone authority. Most reservations complete within 24-48 hours, subject to the zone's naming rules.
You approve
3
We prepare and submit your complete application, including passports and supporting documents.
myHQ handles for you
4
The free zone reviews your application and issues your trade licence. Timelines vary by zone: IFZA and Meydan 3-5 days, DMCC 5-10 days, DIFC 7-15 days.
myHQ handles for you
5
Once your licence is issued, we handle your investor visa, medical, biometrics and Emirates ID. A visit to Dubai is required for this stage.
myHQ handles for you
Week 4
Your business is live
Trade legally from UAELicense issuedBank account ready
Start here
1
We confirm your activity is permitted and flag any additional approvals required.
myHQ handles for you
2
Share your preferred names and we submit them to the free zone authority. Most reservations complete within 24-48 hours, subject to the zone's naming rules.
You approve
3
We prepare and submit your complete application, including passports and supporting documents.
myHQ handles for you
4
The free zone reviews your application and issues your trade licence. Timelines vary by zone: IFZA and Meydan 3-5 days, DMCC 5-10 days, DIFC 7-15 days.
myHQ handles for you
5
Once your licence is issued, we handle your investor visa, medical, biometrics and Emirates ID. A visit to Dubai is required for this stage.
myHQ handles for you
Week 4
Your business is live
Trade legally from UAELicense issuedBank account ready
40+ Free zones
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Free Zone or Mainland? Get this right.
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Dubai Free Zone From AED 12,900 per year Most popular
Free Zone companies CAN invoice UAE B2B clients directly.The "can't trade in UAE" rule applies to B2C retail and government contracts.
Test the waters before going all-in on UAE.
Operate digitally without a physical setup.
Major revenue is from international clients.
Start lean with lower upfront commitment.
Full access
Dubai Mainland From AED 18,000 per year Full access
Think Mainland is a better fit?
Explore Dubai mainland
Your customers are living in the UAE.
Open physical stores, clinics & offices.
Enter regulated sectors like RERA/DHA.
Validated business & ready to commit.
You're not locked inMany founders start with a Free zone and expand to mainland when the local market becomes commercially necessary & viable
Why choose myHQ by ANAROCK?
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Approval Rate
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Your Dubai free zone setup options
Best ForSolo foundersShare capitalRequired as per zone/activityShareholders1DocumentationLowGovernanceSimplestIdeal Free ZonesMeydan · IFZA
Best ForCo-founders, investors, corporatesShare capitalRequired as per zone/activityShareholders2-50DocumentationMediumGovernanceFlexibleIdeal Free ZonesDMCC · IFZA · Meydan
We had a trade name conflict with an existing DET business. myHQ suggested three alternatives the same day and we were approved within 48 hours. The process I thought would take weeks took 3 days.
PS
Priya Singh
Founder of Management Consulting Firm
Frequently Asked Questions
Which is the best free zone in Dubai for an Indian founder?
There is no single best free zone — it depends on your activity, budget, and banking needs. For IT consulting, digital agencies, and professional services with international clients, IFZA and Meydan offer the best price-to-flexibility ratio (from AED 12,500, 2,000+ activities, fully remote setup, Dubai address). For commodities, fintech, and businesses where prestige and ecosystem matter, DMCC is worth the higher cost. For financial services requiring DFSA regulation, DIFC is the only option. myHQ recommends a specific free zone in the first consultation call after confirming your activity and budget.
How much does a Dubai free zone company cost to set up?
The minimum cost for a Dubai free zone company with a Dubai address is AED 12,500/year for a licence-only setup at IFZA or Meydan. Add one investor visa and the total rises to approximately AED 20,000–26,000 for the first year. DMCC starts at approximately AED 20,000 for the government licence fee alone. First-year total cost ranges from AED 17,500 (Meydan/IFZA, licence-only) to AED 50,000+ (DMCC with visa). Indian founders should budget an additional AED 2,000–5,000 for document apostille and attestation.
Can I set up a Dubai free zone company without visiting Dubai?
Yes, for the licence steps. All major Dubai free zones — DMCC, IFZA, Meydan, DAFZA — accept remote applications submitted through registered partner agents. For Indian founders using an Indian parent company as the shareholder, documents must be apostilled in India before submission. The investor visa step (biometrics, medical fitness, Emirates ID) requires a physical visit to Dubai — typically one trip of three to five days covers everything.
Can a Dubai free zone company invoice UAE-based clients directly?
Yes, for B2B services. A Dubai free zone company can invoice UAE-based companies directly for IT services, consulting, marketing, accounting, design, and most professional services without needing a mainland distributor. The restriction on direct invoicing applies to B2C retail — if you want to sell to individual UAE consumers through a physical shop, you need a DET mainland licence.
What is the difference between DMCC and IFZA in Dubai?
DMCC is the world's #1 ranked free zone (Financial Times), located in Jumeirah Lakes Towers, with 26,000+ member companies, a premium address, and an active business ecosystem. DMCC licences start at AED 20,000+ government fee. IFZA is located at Dubai Silicon Oasis, offers 2,000+ permitted activities, starts from AED 12,500, and processes licences in 3–5 business days. For Indian IT and consulting founders on a budget who want a Dubai address with maximum activity flexibility, IFZA is the practical choice. For founders for whom the DMCC name on the company documents matters commercially, DMCC is worth the premium.
How many visas can I get with a Dubai free zone licence?
It depends on the free zone and the package. Most Dubai free zones offer licence packages with 0, 1, 2, or 3 visas. Free zones with flexi-desk packages typically cap visas at two to three per licence tier; free zones with dedicated office spaces allow higher visa quotas. DMCC, DAFZA, and JAFZA allow up to six or more visas per standard commercial licence.
Which UAE banks accept Dubai free zone companies for corporate accounts?
Emirates NBD, Mashreq, Abu Dhabi Commercial Bank (ADCB), RAKBANK, Wio Bank (digital-first), and First Abu Dhabi Bank (FAB) all work with Dubai free zone companies. DMCC-registered companies have the highest bank acceptance rate. IFZA and Meydan companies are accepted by Mashreq, RAKBANK, and Wio Bank most reliably. Approval timelines range from two to six weeks. Indian passport holders benefit significantly from a bank introduction letter from myHQ.
Do Dubai free zone companies pay UAE corporate tax?
Dubai free zone companies are subject to UAE Corporate Tax (9%) but may qualify for a 0% "Qualifying Free Zone Person" rate if they meet specific conditions: adequate economic substance in the UAE, income from "qualifying activities," and UAE-domestic income not exceeding the 5% de minimis threshold. A free zone company with purely international income effectively pays 0% corporate tax.
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Business Setup in Dubai Free Zone: The Complete Guide (2026)
Dubai’s free zone ecosystem is the densest concentration of purpose-built business zones on the planet. More than 40 free zones operate within the emirate, each administered by its own independent authority, each licensed to issue different activity sets, and each competing to attract a different founder profile. Understanding those differences, not just the “100% ownership, 0% tax” summary, is what separates founders who pick the right zone from those who pay to transfer two years later.
This guide to business setup in Dubai free zone jurisdictions covers how the zones work, which zone suits which business, what setup actually costs in 2026, and the compliance and banking realities that are routinely understated.
What Is a Dubai Free Zone?
A Dubai free zone is a special economic zone run by its own authority, with its own company formation rules, licensing framework and physical infrastructure. DMCC Authority governs DMCC, the Dubai Financial Services Authority governs DIFC financial entities, and DAFZA Authority governs Dubai Airport Free Zone. That authority issues the trade licence and acts as the company’s regulator and landlord in one.
The structure sits distinct from the Dubai mainland, governed by Dubai Economy and Tourism (DET), formerly DED. A free zone company is not incorporated on the UAE mainland; it operates inside the free zone’s jurisdiction, which has three practical effects:
100% foreign ownership without a local sponsor. Free zones have always allowed it, which was the founding reason for the model, introduced via JAFZA in 1985. Since the 2021 Companies Law amendment most mainland activities allow it too, but free zones still offer a cleaner structure, lower minimum capital for most activities and a regulatory environment more familiar to international founders.
Separate legal jurisdiction in some zones. DIFC operates under its own legal system modelled on English common law, with the DIFC Courts as a fully functioning court system, which matters for intellectual property protection, contract enforcement and dispute resolution. DMCC, by contrast, operates under UAE federal law with DMCC Authority as its regulator.
Physical zone boundaries. A free zone licence covers operations within the zone and international trade. Direct retail sales or services delivered physically to UAE mainland consumers need a mainland licence or an approved DET-registered distributor or agent. This does not prevent B2B invoicing to UAE mainland companies, or delivering services digitally or remotely to UAE clients.
Dubai Free Zones vs Free Zones in Other Emirates
Dubai is not the only emirate with free zones. Ras Al Khaimah has RAKEZ and RAKIA; Sharjah has SHAMS, SAIF Zone and Hamriyah; Ajman has AFZA; Fujairah has FFZA. For Indian founders, the honest answer to “Dubai or elsewhere?” involves trade-offs rather than a clear winner:
Cost. Free zones in Sharjah, RAK and Ajman are materially cheaper than Dubai at entry level. For a founder whose clients are international and who has no specific reason to be in Dubai, an out-of-emirate licence is functionally equivalent for company formation, bank account opening and visa issuance.
Business address. The free zone name appears on your trade licence, bank correspondence and invoices. DMCC and DIFC are recognised as premium addresses by financial institutions in India, Singapore and the UK without additional due diligence; SHAMS and RAKEZ are legitimate but less universally recognised, which can slow institutional KYC for certain client types.
Banking access. DMCC and DIFC companies are generally onboarded fastest by the large UAE banks. Companies in newer or lower-cost zones may face longer onboarding and commonly start with digital-first banks such as Wio and Mashreq Neo.
Visas. A free zone visa is a UAE residence visa whichever emirate issued it, and does not restrict where you work, but the address on it points to the free zone’s emirate. For founders who want to live in Dubai, a Dubai free zone visa is the natural match.
Ecosystem. DMCC alone has 26,000+ registered companies, making it the world’s largest free zone by member count, and DIFC has 6,000+ active companies alongside a concentration of global financial institutions. For a commodities trader or financial services firm, that network is structural; for a service business whose clients never visit the zone, it matters little.
The Major Dubai Free Zones: A Practical Breakdown
Entry costs vary by roughly ten times across Dubai’s main zones.
Free Zone
Year 1 licence + desk
Processing
Best suited to
IFZA
AED 12,900–18,500
5–8 days
Consulting, IT, agencies, multi-activity
Meydan
AED 12,900–19,000
5–7 days
Freelancers, solo founders, early-stage
DAFZA
AED 15,000–30,000
7–10 days
Logistics, aviation, air-cargo e-commerce
Dubai CommerCity
AED 15,000–25,000
Not listed
E-commerce with GCC fulfilment
JAFZA
AED 17,500–40,000+
10–15 days
Manufacturing, heavy trading, shipping
DMCC
AED 20,900–35,000
7–12 days
Commodities, tech, scaling businesses
DIFC
AED 40,000–120,000+
10–20 days
Financial services, funds, family offices
DMCC (Dubai Multi Commodities Centre) is the largest free zone in Dubai by registered company count, located in Jumeirah Lakes Towers. Built for commodities, it now covers technology, media, financial services and general trading across 2,000+ activity types, with DMCC-exclusive gold and diamond trading licences. Licence plus flexi-desk runs AED 20,900–35,000 a year, with 2 visas on a flexi-desk, more with a physical office, and an AED 50,000 minimum share capital for most structures, registered rather than paid-up. DMCC is the most-used zone among Indian founders in commodities, textiles, gems and jewellery, and tech.
DIFC (Dubai International Financial Centre) is a financial free zone established under a separate federal decree, with its own English common-law courts. It suits fintech, investment firms, wealth managers, hedge funds and family offices. Regulated entities need Dubai Financial Services Authority (DFSA) authorisation, which can take 3–6 months, while non-financial tech, media and consulting firms can register as Prescribed Companies or Recognised Bodies. Costs run AED 40,000–120,000+ a year, with office space from AED 140 per sq ft per year. Indian fintech founders selling B2B SaaS to financial services clients favour it.
DAFZA (Dubai Airport Free Zone Authority) sits beside Dubai International Airport and suits logistics, freight forwarding, aviation services and e-commerce or trading businesses with high-frequency air shipments. Licence plus desk costs AED 15,000–30,000 a year, with warehousing and cargo facilities leased separately.
IFZA free zone, launched in 2018 in the Silicon Oasis area, is positioned as a lower-cost alternative to DMCC with 2,000+ business activities and a reputation for faster approvals. It suits tech, consulting, digital services and marketing businesses, and is the most popular choice for Indian founders setting up service businesses in IT, consulting, marketing and education technology who want a Dubai address at a lower cost than DMCC.
Meydan Free Zone is a boutique zone at the Meydan racecourse complex for SMEs and entrepreneurs, and one of the few Dubai zones offering a digital-first licence with no physical address required. It suits freelancers, consultants and early-stage founders testing a business model, with a narrower activity list than DMCC or IFZA. A single-activity services licence costs AED 12,900–19,000 a year, with issuance often turned around in 3–5 business days and 1 visa on the base package.
JAFZA (Jebel Ali Free Zone Authority), established in 1985 beside Jebel Ali Port, one of the world’s top 10 container ports, is the original modern UAE free zone and the standard for manufacturing, heavy trading, logistics and distribution. Its industrial licences allow physical manufacturing within the zone, a rarity among Dubai free zones. A standard commercial licence costs AED 17,500–40,000+ a year, and it is not optimal for pure service businesses.
Dubai CommerCity, established in Al Qusais in 2019 by the Dubai Airport Free Zone Authority and Wasl Asset Management, is a dedicated e-commerce free zone with fulfilment centres, digital bonded warehouses and last-mile delivery integration. It suits D2C brands, cross-border retailers and marketplace sellers shipping into the GCC, at AED 15,000–25,000 a year.
Free Zone Company Setup in Dubai: Step-by-Step Process
Free zone company setup in Dubai follows the same seven steps in most zones:
Choose your free zone and activity. Confirm your activity code is on the zone’s published activity list. Multi-activity founders should shortlist zones such as IFZA and DMCC that allow 3+ activities on one licence without per-activity charges.
Choose your legal structure. Most companies incorporate as a Free Zone Company (FZC) or a Free Zone Establishment (FZE); DIFC uses Prescribed Company or Private Company Limited by Shares structures. The entity type is set by the zone’s company law, so the difference is minimal for small businesses.
Prepare and submit documents.Standard requirements across most Dubai free zones: a colour passport scan for all shareholders and directors, address proof from the last 3 months, a 2–3 paragraph activity description, the memorandum of association (most zones provide a template), Emirates ID if already a UAE resident, and company documents for a corporate shareholder.
Receive initial approval. IFZA and Meydan take 5–7 days, DMCC 7–12, DAFZA 7–10 and non-regulated DIFC entities 10–15.
Sign the MoA and receive your trade licence. Most zones accept digital signatures. The trade licence lists the company name, licence number, activity codes and expiry date, and is renewed annually.
Open a corporate bank account. You need the trade licence, the signing director’s Emirates ID (unless using a non-resident account structure), proof of address, a source of funds declaration and bank KYC forms. DMCC companies tend to get the best terms from Emirates NBD Priority or ADCB; IFZA and Meydan companies commonly use Mashreq, RAKBank or Wio Bank; DIFC companies use Standard Chartered, HSBC or Barclays. Allow 3–8 weeks, since banking is where most setups stall.
Apply for a residence visa, if required. Visas go through the zone’s immigration desk and need physical presence in the UAE for medical tests and Emirates ID biometrics. Budget one UAE trip of 10–14 days, or use the zone’s PRO service across multiple trips.
Dubai Free Zone License Cost: What You Actually Pay in 2026
Dubai free zone license cost is only part of the picture. This breakdown is for a single-shareholder company in 2026, using IFZA as the reference zone.
Cost Item
Amount (AED)
Notes
IFZA licence, single activity, flexi-desk
12,900
Annual fee, inclusive of activity registration
Additional activity, if needed
Included
IFZA allows 3 activities in the base licence
Establishment card
1,000
One-time; required for visa applications
E-Channel registration
2,000
One-time; required for immigration processing
Shareholder residence visa
3,500–5,000
Per visa; includes entry permit, medical, Emirates ID
myHQ setup service fee
3,000–5,000
Optional; includes document prep, submission, follow-up
Year 1 total, licence + 1 visa + setup
~22,400–25,900
All-in; no hidden additions
Annual renewal, from Year 2
~16,400–17,900
Licence and visa renewal only
For comparison, DMCC runs approximately AED 30,000–48,000 in Year 1, with annual renewal at roughly AED 24,000–40,000.
Dubai Free Zone Visa Cost
The residence visa is the largest variable cost after the licence, and it is charged per person. A shareholder or investor visa costs AED 3,500–5,000 in most Dubai free zones and AED 3,500–5,500 at DMCC, covering the entry permit, status change, medical test, Emirates ID and stamping; employee visas cost broadly the same plus labour contract registration. Your package sets the quota: a flexi-desk typically supports 1–3 visas, a dedicated desk or small office 3–6, and larger offices more. Visas can only be applied for once the licence is issued, so budget 2–3 weeks per visa.
Corporate Tax and Dubai Free Zones
The UAE introduced a 9% federal corporate tax in June 2023, and Dubai free zone companies are not automatically exempt. A company keeps 0% on its Qualifying Income only as a Qualifying Free Zone Person (QFZP), which requires adequate UAE substance (real employees, operations and decision-making), income only from Qualifying Activities under Cabinet Decision No. 55 of 2023, domestic mainland income below AED 5 million or 5% of total income under the de minimis rule, and audited financial statements.
In practice, a company invoicing clients in India, Singapore or the UK with genuine UAE substance will likely qualify; one primarily serving UAE mainland clients likely won’t, and pays 9% on taxable income above AED 375,000. Confirm your structure with a UAE-registered tax adviser before filing.
FEMA Compliance for Indian Founders Setting Up a Dubai Free Zone Company
No NOC from the Indian government is required for a UAE free zone company, but Indian-resident founders are subject to the Foreign Exchange Management Act (FEMA), administered by the Reserve Bank of India and filed through your Authorised Dealer (AD) bank. An Indian resident holding 10% or more of a foreign company, or acting as its director or manager, must file under the Overseas Direct Investment (ODI) route, so for a sole Indian shareholder the filing is mandatory.
Filing: your AD bank processes Form ODI, now on the RBI’s FIRMS portal, using the Dubai entity’s incorporation documents, share certificate and audited financials or first-year projections, in 30–60 days.
Ongoing: an Annual Performance Report every year, and changes in shareholding, directorship or structure reported within 30 days.
Common mistakes: remitting money before the ODI filing, which is a FEMA violation; treating the ODI filing as one-time and skipping the APR; adding a co-founder without updating the filing.
File before the company opens a bank account and before any remittance from India. myHQ can refer you to FEMA-experienced CAs in Mumbai, Delhi and Bengaluru who handle this routinely.
Dubai Free Zone or Mainland?
The free zone vs mainland question is asked at the start of almost every consultation, and the short answer depends on who your customers are and where they are. A free zone suits founders whose customers are mainly outside the UAE, or who invoice UAE businesses B2B; a mainland licence suits those selling to UAE consumers, running a physical outlet, or whose activity requires a DET licence.
Extended FAQ: Dubai Free Zone Company Formation
What are the disadvantages of a Dubai free zone company?
Three constraints matter in practice: no retail or physical services on the UAE mainland without a mainland licence or DET-registered distributor, though B2B invoicing to UAE businesses is free; a visa quota tied to your package, so a flexi-desk caps you at 1–3 visas; and costs that accumulate at scale through renewals, visas and office upgrades, often ending in a mainland entity anyway, with no direct conversion path.
Which Dubai free zone is best for technology and IT companies?
DMCC’s tech cluster, IFZA and Meydan are the top three: DMCC for ecosystem and brand recognition, including the DMCC Crypto Centre; IFZA for broader activities and lower cost; Meydan for the fastest setup and lowest entry price. B2B SaaS selling to financial services should evaluate the DIFC Innovation Hub, and AI and deep-tech companies DTEC, the Dubai Technology Entrepreneur Campus at Silicon Oasis.
Which Dubai free zones can non-industrial businesses choose from?
Dubai has 40+ active free zones. The main ones for non-industrial businesses are DMCC, DIFC, DAFZA, IFZA, Meydan Free Zone, JAFZA and Dubai CommerCity, alongside the TECOM zones: Dubai Internet City, Dubai Media City, Dubai Knowledge Park and Dubai Design District. Each publishes its own activity scope on its portal.
Can I convert my Dubai free zone company to the mainland later?
No, because the entity types are distinct and sit under different authorities. You can incorporate a new mainland company and wind down the free zone entity, or run both, as some founders do: the free zone entity for international invoicing, the mainland entity for UAE market access.
What happens if I miss the annual renewal of my Dubai free zone licence?
A late fee applies, typically AED 1,000–3,000 per month depending on the zone. After 90–120 days the zone can issue a cancellation notice, dissolving the company and lapsing sponsored employees’ visas. Reinstatement is possible within time limits by paying outstanding fees, but renewing 30–60 days before expiry is strongly advisable.
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Dubai Free Zone From AED 12,900 per year 
Free Zone companies CAN invoice UAE B2B clients directly.The "can't trade in UAE" rule applies to B2C retail and government contracts.
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