0% up to AED 375,000, 9% above
A free zone company is also within the scope of corporate tax; tax is calculated on net profit. There is no personal income tax.
Dubai free zone company formation.
If your clients are outside the UAE and you carry out your activity digitally, the suitable structure is a free zone company. Formation, licensing and accounting processes are handled by our team in Dubai.
Prices from $5,120
- Since 1996
- Own office in Dubai
- Formation in 5-6 days
In both structures, the company can be wholly owned by foreign shareholders. The main difference between them is the market in which the activity is carried out.
| Free zone company | Mainland company | |
|---|---|---|
| Licensing authority | Free zone companyThe free zone authority | Mainland companyDubai Department of Economy and Tourism (DET) |
| UAE domestic market | Free zone companyShops, offices and ongoing operations require a separate permit or licence | Mainland companyShops, offices and direct sales within the licence |
| Physical address | Free zone companyA shared office address is sufficient | Mainland companyLeased premises in Dubai, registered with Ejari |
| Visa quota | Free zone companyBased on the licence package and office type | Mainland companyBased on the size of the premises and the activity |
| Audit | Free zone companyDepends on the free zone's rules | Mainland companyDepends on the activity and turnover |
| Total cost | Free zone companyLower | Mainland companyHigher, owing to rent |
If your clients are located outside the UAE and your activity is carried out digitally, the suitable structure is a free zone company.
E-commerce
Businesses that sell to clients outside the UAE through their own website or online marketplaces.
Software and SaaS
Software companies with clients in different countries and subscription revenue.
Consultancy and agencies
Consultancy, design and agency firms that deliver their services digitally to clients abroad.
Remote management
Teams limited to the founders, whose formation and day-to-day management will be handled remotely.
How each item works is shown in the diagram beneath it.Each item is shown in the diagram.
Corporate accounts with Wio, Mashreq, ENBD and FAB
We prepare the application documents in the format the bank requires; the decision to open the account rests with the bank concerned.We prepare the file; the decision is the bank's.
Formation with a shared office
Leasing a physical office is not required; a shared office address is included in the licence package. The total cost is lower than for a mainland company.
Remote registration
The application, registration and documents are handled digitally; you need to be in Dubai once for the bank and visa procedures.
The process is not handed to a distant intermediary; document, authority and bank procedures are handled by the same team. Your point of contact does not change after formation is complete.Documents, authority and bank procedures are handled by one team; your point of contact does not change.
- Partner of IFZA, Meydan and DWTCFree zone applications are handled directly, not through an intermediary.
- Our own accounting licenceBookkeeping and filings are not outsourced; the same team handles them after formation too.
- One point of contactAn adviser assigned to you; direct access during office hours.
Ortac GlobalDubai · Saaha Offices B - 304 Souk Al Bahar Bridge
You need to be in Dubai for the visa and Emirates ID. With the VIP service, our adviser accompanies you to the appointments and your stay in Dubai is shorter.With the VIP service, our adviser accompanies you to the appointments; your stay in Dubai is shorter.
VIPTime you will spend in Dubai
Standardapproximately 10-12 working days
VIPapproximately 5 working days
In most cases, the cost of the extra days in Dubai in the standard process covers the VIP service fee.
Add to Your Setup+$800VIP service scope
- Private reception at the airport
- Private car transfers throughout the process
- A dedicated adviser for official procedures
- Medical fitness test at a VIP health centre
- Emirates ID and biometrics appointments
- Appointments planned in advance
We are a contracted partner of all three. We determine the suitable option together, based on an assessment of your activity.We are a partner of all three; we choose the right option together.
IFZA
Most popularFor companies that bring consulting, trading, technology and service activities together in a single structure.
- Flexible activity and licence structure
- Competitive formation cost
- In Dubai Silicon Oasis
Most popular
IFZA
For companies that bring consulting, trading, technology and service activities together in a single structure.
- Flexible activity and licence structure
- Competitive formation cost
- In Dubai Silicon Oasis
Meydan Free Zone
For companies with limited physical office needs that run their activity in a flexible, digital way.
- Digital formation process
- Flexible activity and licence structure
- Government authority structure
DWTCDubai World Trade CentreMost prestigious
DWTC Free Zone
For businesses that want a strong physical and corporate presence in Dubai.
- Corporate structure, premium workspace
- In the centre of Dubai, Downtown
- Government authority structure
Select the free zone and additional services; the total is calculated item by item on the right.Choose a free zone and add-ons; the total is calculated below.
Free zone
Most popular. Flexible activity and licence structure, located in Dubai Silicon Oasis.View Details
Digital formation. For companies with limited physical office needs.View Details
Most prestigious. In the centre of Dubai, with a corporate structure and a premium workspace.View Details
Licence period
Visa
No visa
Additional services
The standard process requires approximately 10-12 working days in Dubai. With VIP, airport reception, a private car and a dedicated adviser at the appointments are provided.View Details
Accounting is mandatory for every company. If the annual option is not taken, $350 per month is charged.View Details
Each step states who is responsible; selecting a step pauses the flow.The responsible party is stated at each step.
Determining the company name
You provide three alternative names in order of preference; the suitability check and reservation are carried out by us.
With youfirst meeting
Timelines are averages. Decisions by authorities and banks rest with the institutions concerned; neither outcome nor timing is guaranteed.
Tick the documents that are ready for Dubai; we carry out the process.
On your side
Documents Required from You
In a free zone, all documents are collected digitally; no wet signature or physical document delivery is required.
0/5 ready
- Passport-style photograph on a white background
- Description of the business activity and target customers
- Three alternative company names, in order of preference
Additional documents may be requested depending on the activity code and the authority you select. If translation or notarisation is required, the relevant list is stated separately in the proposal.
A free zone company is subject to corporate tax and VAT. The rates are the same as for mainland companies; the regime specific to free zones is subject to strict conditions and does not apply automatically.
- 9%
Corporate tax
Calculated on the portion of taxable income above AED 375,000.
- 5%
VAT
Registration is mandatory once taxable supplies exceed AED 375,000 over 12 months.
- Conditional
Qualifying Free Zone Person regime
Subject to conditions such as adequate substance in the free zone, qualifying income and audited financial statements; it does not apply automatically.
- Conditional
Small Business Relief
Companies with revenue not exceeding AED 3 million may elect it for tax periods ending by the end of 2029; it cannot be combined with the free zone regime.
Formation is only the first step; afterwards, periodic obligations arise in accounting, tax and licensing. All of them are stated up front with their amounts; no unforeseen cost arises later.After formation, accounting, tax and licence obligations recur. All are listed with amounts.
Example calculation
Total Cost of the First Year
The first 12 months of a newly formed company carrying out a standard activity.
9,820USD+ VAT · first 12 months
- 4 itemsIncluded in this total
- 4 itemsOutside the total, conditional
Conditional and on-request items are outside this total; they are not included because they arise only if the conditions are met.Conditional items are outside the total; they apply only if the conditions arise.
Residence rule
The continuation of a residence permit depends on entry into the UAE.
Investor and partner residenceat least once a year
365 days
Employee residenceat least once every six months
182 days
Full rule
Once the visa has been issued, the permit remains valid as long as you enter the UAE at certain intervals. The period starts again with each entry. If this rule is not known, the permit may lapse without being noticed; it is therefore stated separately here.
- For an investor or partner residence, entry into the UAE is required at least once every 365 days.
- For an employee residence, the period is half as long: entry is required at least once every 182 days.
If the period expires without entry, the residence permit may lapse; in that case the process starts again. Following the entry calendar is the responsibility of the residence holder.
Amounts are in USD and exclude VAT unless otherwise stated; they are updated if official fees change. Periods are the timetables set by legislation; as the authorities' processing times are outside our control, we do not commit to fixed timeframes. Which items arise for your company depends on your activity, licence and transaction volume.Amounts are in USD, excluding VAT. Timelines follow the regulatory calendar; no fixed timeline is promised.
A free zone company is registered in one of Dubai's free zones and is licensed by that free zone's authority. It can be wholly owned by foreign shareholders and operates freely within the free zone and outside the UAE.
In practice, free zone companies can sell services and goods to clients in the UAE. Opening a shop or an office in the domestic market, or running permanent staff and ongoing operations outside the free zone, requires a separate permit or licence; in Dubai, this can be obtained through a branch licence or a temporary permit from DET.
All three are open to general commercial and service activities; the differences lie in location, licence term options and price. IFZA offers discounted multi-year licences of up to 5 years and Meydan up to 3 years; at DWTC, the licence is renewed every year and the free zone is in Dubai's business centre. The suitable free zone is chosen together, based on an assessment of your activity.
No. In the free zones we work with, a shared office address is included in the licence package and is sufficient for formation. If more visas are needed, the free zone's office options are considered.
The number of visas depends on the licence package and the office type; a shared office provides a limited quota. For companies whose team is limited to the founders, this quota is usually sufficient.
No. A free zone company is also subject to corporate tax: 0% on taxable income up to AED 375,000 and 9% on the portion above it. The Qualifying Free Zone Person regime in the law is subject to strict conditions and does not apply automatically; budgets should be prepared on the basis of the 9% rate.
The audit requirement depends on the free zone's rules and the company's tax position. At IFZA, Meydan and DWTC, financial statements are submitted at every licence renewal; companies above a certain turnover or headcount must submit audited statements. A company seeking the Qualifying Free Zone Person regime needs audited financial statements in every case.
No. Economic substance notifications and reports are not filed for financial years ending after 31 December 2022. Having adequate substance in the free zone remains a separate tax condition for a company seeking the Qualifying Free Zone Person regime.
No. Moving from a free zone to the mainland means forming a new company. For a free zone company that wants to enter the domestic market, the intermediate solution is a branch licence or permit from DET.
Is your question not on the list?You can ask about your own situation in a meeting.
Schedule a MeetingIf your activity is aimed at the UAE domestic market, you can also review the mainland structure.
