Free Zone company in Dubai · How to choose
LorcaBase is the legal and tax advisory firm based in Dubai, specialised in opening Free Zone companies for Spanish-speaking and international founders in the Emirates. We set up your company with 100% foreign ownership, tax exemption under Qualifying Free Zone Person and access to UAE banking. Over 40 free zones available across all 7 Emirates. Operational in 5 to 14 days.
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How we form your company in a Free Zone.
Eleven structured steps: from choosing the optimal Free Zone to bank account opening and visas. Operational in 5 to 14 days.
- 01
Initial consultation
We analyse your project, profile and objectives. We determine whether a Free Zone is the best option in your case.
- 02
Free Zone selection
We evaluate the most suitable zone for your sector and visa plan: IFZA, DMCC, RAKEZ, Meydan, SPC, Innovation City, DWTC, RAK ICC or others.
- 03
Licence type
We define the correct licence: commercial, services, industrial, e-commerce, holding or freelance based on the activity.
- 04
Name reservation
You propose up to three names; we verify availability and compliance with local naming rules.
- 05
Documentation
We prepare the passport, photo and documents required by the chosen Free Zone. All handled remotely.
- 06
Legal structure
We choose FZE (single shareholder), FZCO or LLC-FZ (multiple shareholders) or a branch, and draft the MOA and articles of association.
- 07
Payment and official application
We pay the fees and submit the licence application to the Free Zone authority.
- 08
Office or flexi desk
We reserve the physical space required by the zone: flexi desk, virtual office or private office depending on the package.
- 09
Licence issuance
You receive the commercial licence and Certificate of Incorporation. The company has legal existence.
- 10
Visas and Emirates ID
We process the investor visa and UAE residency, together with the medical procedure and Emirates ID.
- 11
Corporate bank account
We open the account with Emirati banks (ENBD, Mashreq, WIO, ADCB). Company operational in 5 to 14 days.
What documents do you need to open a company in a Free Zone?
List of the documentation we request from clients at each stage of the process. If you have doubts, we guide you in the gathering.
Company name
Three options in order of preference. Each Free Zone authority chooses one based on availability and proximity to other brands.
- Minimum 2 words and consistent with the activity (not just "Trading" or "Consulting").
- Cannot start with: Global, International, Gulf, The, Corporate, or 2-letter abbreviations.
- Forbidden: Holding, Group, University, Institute, Online, Ecommerce, Middle East, religious, offensive or political terms.
- No registered trademarks (Apple, Rolex), countries or cities (Dubai, Japan), or domains (.com, .ae).
- Personal names only if that person is a shareholder, with full name.
Per shareholder
- Passport in colour, scanned with all 4 corners visible.
- Emirates ID both sides and residence visa, if you are already a resident.
- National ID from country of origin, scanned both sides.
- Digital photo passport-size from a professional studio. Scanned printed photos are not accepted.
- Proof of address: bank statement or utility bill in your name.
- CV or professional profile for regulated activities or premium licences.
- UAE history: dates and reasons for previous visits, if applicable.
Corporate structure
- Number of shareholders (FZE for one, FZCO or LLC-FZ for several).
- Total share capital and distribution per shareholder.
- Unit value of each share.
- Main and secondary activities under the licence.
For the visa application
Additional information requested by the immigration authorities.
- Full name of mother and father.
- Scanned passport cover page.
- Expected monthly salary for investor visa.
Important clarifications
Minimum of 10,000 AED share capital. For investor or partner visa, minimum capital of 50,000 AED. If capital exceeds 150,000 AED, payment confirmation is required.
Additional cost of 1,000 AED. Allows entry to the country once a year, instead of every 6 months.
Advantages of forming in a Free Zone.
Speed and agility
Simplified processes: incorporation in 5 to 14 business days, all dealings with a single administrative body, and mostly remote processing.
100% foreign ownership
No local partner required. You retain full control of the company and all strategic decisions.
Attractive tax regime
0% on the first 375,000 AED of profit. If you qualify as a Qualifying Free Zone Person, qualifying income is taxed at 0%.
Linked visas
The licence allows you to apply for residency for yourself, immediate family members and employees. Renewal every 2 to 3 years.
Access to Emirati banking
Multi-currency corporate account, digital banking, letters of credit and connections with international operators.
Variety of zones
Over 40 specialised free zones: finance, technology, trade, media, healthcare, logistics. Each with its own advantageous regulations.
Top Free Zones we handle directly.
LorcaBase handles the licence directly with the authorities, the visas and the corporate bank account when required. Each with its ideal profile, cost tier and banking reputation. If your activity fits another zone, we cover it as well.
| Free Zone | Emirate | Ideal for | Tier | Banking reputation |
|---|---|---|---|---|
| IFZA | Dubai | Generalist, consulting, marketing, IT, multi-activity under a single licence. | Mid-range | High |
| DMCC | Dubai | Commodities, trading, jewellery, coffee, tea, crypto assets. Internationally recognised cluster. | Premium | Very high |
| Meydan | Dubai | Startups, e-commerce, consulting and digital services with affordable multi-visa packages. | Mid-range | High |
| DWTC | Dubai | Events, MICE, international trade and companies needing institutional presence in Dubai. | Premium | High |
| RAKEZ | Ras Al Khaimah | Light industry, consulting, e-commerce and manufacturing with affordable costs and large offices. | Budget | Medium |
| RAK ICC | Ras Al Khaimah | International holding, asset ownership, wealth management and SPV. Recognised offshore structure. | Budget | Medium |
| Innovation City | Ras Al Khaimah | Digital assets, Web3, DAOs, tokenisation and crypto projects. Specific regulatory framework. | Mid-range | Medium |
| SPC | Sharjah | Publishing, e-commerce, creative freelance and digital services with budget-friendly package. | Budget | Medium |
Average setup time: 5 to 14 business days. Banking reputation conditions the speed of corporate account opening.
Request a personalised recommendation →Main Free Zones in the United Arab Emirates.
Free Zones by Emirate
| Emirate | Key Free Zones | Main focus |
|---|---|---|
| Dubai | IFZA, DMCC, Meydan, DWTC, DIFC, Dubai Internet City, Dubai Media City, DHCC, JAFZA, DSO, DAFZA, DWC | Finance, trade, technology, media, healthcare, logistics |
| Abu Dhabi | ADGM, KIZAD, Masdar City, ADAFZ | Financial services, industry, energy, media |
| Sharjah | SPC, HFZA, SAIF Zone, SRTIP | Publishing, industry, innovation, e-commerce |
| Ras Al Khaimah | RAKEZ, RAK ICC, Innovation City | Industry, consulting, digital assets |
| Ajman | Ajman Free Zone, Ajman Media City | Small businesses, media, services |
| Fujairah | Fujairah Free Zone, Fujairah Creative City | Maritime trading, media |
| Umm Al Quwain | UAQ Free Trade Zone | General trade, services, affordable pricing |
Which is the best Free Zone for your activity?
Dubai Internet City · DSO.
For software companies, SaaS, AI, cybersecurity, fintech and the digital economy. A global ecosystem with the presence of Google, Microsoft, Meta and IBM. Innovation, IT Services and e-Services licences available.
DMCC · JAFZA · RAKEZ.
Ideal for international trade, commodities, jewellery and trading. DMCC for precious metals, coffee and tea; JAFZA for port logistics and general trade with dedicated warehouse space; RAKEZ for regional trading with affordable costs and large offices.
IFZA · Meydan · SPC.
Flexible and cost-effective free zones for consulting, marketing and professional services. Multi-activity licences, flexi desks and visas included in packages from 6,000 USD per year.
DIFC · ADGM.
Financial centres regulated by English common law. Asset managers, brokers, family offices and funds. Higher capital and compliance requirements, but offering institutional-grade reputation.
Innovation City.
For Web3, exchanges, crypto custodians and blockchain projects. Specific regulatory framework at Innovation City, the first Free Zone dedicated to digital assets and tokenised companies.
RAKEZ · JAFZA.
Large industrial warehouse facilities, port and logistics access, customs advantages. RAKEZ for manufacturing, assembly and regional distribution with contained costs; JAFZA for heavy industry with direct access to Jebel Ali port.
Licences available in a Free Zone.
Licence comparison
| Type | Description | Activity examples |
|---|---|---|
| Commercial | Allows purchasing, importing, exporting and distributing products. | Trading, e-commerce, retail, international trade |
| Services | Provision of professional or consultancy services. | Consulting, marketing, IT, legal, training |
| Industrial | Authorises manufacturing, assembly or product transformation. | Production, packaging, light manufacturing |
| Freelance | Individual permit to operate as an independent professional. | Designers, programmers, independent consultants |
| Holding | Ownership of shares and assets in other companies. | Holding, wealth management, SPV |
| E-commerce | For 100% digital activities and online trade. | Online stores, marketplaces, dropshipping |
How much does it cost to open a Free Zone company?
3,500 to 6,000 USD/year.
Affordable packages in free zones such as Ajman Free Zone, UAQ FTZ or SPC. Basic licence, flexi desk and 0 to 1 visas included. Ideal for small operations.
6,000 to 12,000 USD/year.
Popular free zones: IFZA, Meydan, RAKEZ, Innovation City. Multi-visa packages, combined activities and better infrastructure. Optimal value for money.
12,000 USD and above.
Specialised and premium zones: DMCC, DIFC, ADGM, DWTC, Dubai Internet City. Prestige, sophisticated regulation and access to institutional clusters.
Each case is quoted individually based on activity, Free Zone, office and required visas.
Taxation of a company in a Free Zone.
Corporate Tax
- General rate
- 0% up to 375,000 AED · 9% above that.
- Qualifying Free Zone Person
- Qualifying income at 0% if conditions are met.
- Non-qualifying income
- Taxed at the federal rate of 9% (e.g. invoicing mainland clients).
- Registration
- Mandatory with the FTA within the stipulated timeframe.
VAT
- Mandatory registration
- If annual turnover exceeds 375,000 AED.
- Voluntary registration
- From 187,500 AED.
- Standard rate
- 5%.
- Exports and international services
- Generally zero-rated (0%).
Spain vs Free Zone Dubai: a tax and corporate comparison.
Key differences between operating a Spanish company and a Free Zone company in Dubai. Indicative and simplified figures; each case depends on the activity, tax residency and structure.
| Concept | Spain | Free Zone Dubai |
|---|---|---|
| Corporate income tax | 25% | 0% on qualifying income (QFZP). 9% on non-qualifying income exceeding 375,000 AED. |
| Dividend taxation | up to 28% | 0% |
| VAT | 21% | 5% (0% on exports and international services) |
| Setup time | 4 to 8 weeks | 5 to 14 business days |
| Foreign ownership | 100% allowed | 100% allowed without local partner |
| Personal income tax for residents | progressive scale up to 47% | 0% |
| Double taxation treaty | yes, signed in 2006 | yes, signed in 2006 |
| Capital repatriation | with restrictions | 100% free |
Simplified figures. Source: Spanish Corporate Income Tax Law 27/2014, Federal Decree-Law No. 47 of 2022 (UAE), Cabinet Decision No. 100 of 2023 (QFZP), Spain-UAE treaty of 2006.
Let's talk about your case →
Can I live in Dubai if I open a Free Zone company?
Yes. If you register a company in a Dubai Free Zone you can apply for a residence visa linked to the company, which lets you live, work and open bank accounts in the UAE. This visa is normally issued for 2 to 3 years and can be renewed while the company stays active and meets legal requirements.
Common visas linked to a Free Zone:
- Investor or partner visa: for owners or shareholders of the Free Zone company.
- Employee visa: for workers hired by the Free Zone company.
- Dependent visa: for immediate family members (spouse, children, parents).
- Golden Visa: for investors, entrepreneurs or highly qualified professionals, with duration of up to 10 years.
Each Free Zone sets the number of visas based on the type of office contracted: up to 3 visas with flexi desk; physical office required from the fourth onwards. All visas require a valid commercial licence, sponsor of the Free Zone itself and compliance with residency and medical procedures.
See visa types →Common mistakes when opening a Free Zone company.
The 6 mistakes we see repeatedly in clients who arrive after trying it on their own. If you know them in advance, you save time and money.
Choosing the wrong Free Zone
Each Free Zone has its own catalogue of qualifying activities, costs and banking reputation. Registering in a cheap Free Zone without aligning with the actual activity forces a company migration later, losing time and licence.
Confusing Free Zone with Mainland
A Free Zone does not allow direct sales to the local UAE market without a local distributor. If your model is B2C in Dubai (shop, restaurant, real estate agency), you need Mainland.
Ignoring the flexi desk visa limit
Free Zones accept flexi desk for up to 3 visas. From the fourth onwards, they require a private physical office. Ignoring the limit blocks the issuance of additional visas and forces rushed office contracting.
Not meeting QFZP requirements
The Qualifying Free Zone Person regime requires economic substance, audited accounts and activity restrictions. If you do not comply, income is taxed at the 9% federal rate instead of the 0% qualifying rate.
Not registering Corporate Tax on time
Corporate Tax registration is mandatory even for qualifying Free Zones and must be completed within 3 months of licence issuance. Missing the deadline carries a 10,000 AED penalty.
Not maintaining audited accounts
Bookkeeping is mandatory under UAE regulations and most Free Zones require audited financial statements to renew the annual licence. Without up-to-date accounts, the licence cannot be renewed and the company is left inactive.
Why choose LorcaBase for your Free Zone Dubai.
If you are about to open a Free Zone company, we accompany you every step of the way. These are the reasons our clients value most:
No abusive contracts
Most clients trying to switch to us have problems doing so because their previous providers impose abusive clauses that hinder the change. With LorcaBase no such clause exists: your company is always yours.
Strategic Free Zone selection
We compare over 40 free zones based on your sector, budget, visa plan and banking expectations. No commercial bias toward a specific zone.
Remote process
You can complete almost everything without travelling. You only attend in person for the banking process and Emirates ID, depending on the chosen Free Zone and bank.
Established banking access
Direct relationships with ENBD, Mashreq, ADCB, WIO and international banks. We prepare your KYC professionally to reduce rejections.
End-to-end QFZP taxation
We assess your fit as a Qualifying Free Zone Person, design the invoicing structure and support you with Corporate Tax and VAT once operational.
Service in English and Spanish
Each document, meeting and delivery in your language, without rough translations or misunderstandings on operations that move significant assets.
Prefer a different structure?
Company formation.
Overview of all structures available in the UAE: Free Zone, Mainland, Offshore, Holding, Freelance.
Discover → VI · OffshoreOffshore company.
For asset management, international wealth and foreign trade, without operating in the local market. JAFZA, RAK ICC, Ajman.
Discover → VIII · FreelanceFreelance licence.
Individual permit for independent professionals: consultants, programmers, designers. Access to UAE residency.
Discover → IX · HoldingHolding structure.
Parent entity that consolidates subsidiary shares and assets, optimising taxation and corporate control.
Discover →Key terms for opening a Free Zone company.
Dictionary of technical terms you will see during the process of setting up a Free Zone company in the UAE. If anything is unclear, we explain it.
Free Zone▸
Special economic area with tax benefits and 100% foreign ownership. Each Free Zone has its own authority and licence catalogue. Over 45 in the UAE.
QFZP (Qualifying Free Zone Person)▸
Corporate Tax regime allowing 0% taxation on qualifying income provided the company meets economic substance, audited accounts and activity restrictions.
FZE (Free Zone Establishment)▸
Free Zone company with a single shareholder. Equivalent to a sole-proprietor entity. Minimum share capital depends on the zone.
FZCO (Free Zone Company)▸
Free Zone company with two or more shareholders. Equivalent to a limited liability company. Minimum share capital depends on the zone.
Corporate Tax (CT)▸
9% tax on profits exceeding 375,000 AED. Effective since June 2023. Qualifying Free Zone companies can keep 0% under the QFZP regime.
VAT (Value Added Tax)▸
UAE VAT at 5% on goods and services. Mandatory registration if you exceed 375,000 AED in annual sales, voluntary from 187,500 AED.
MOA (Memorandum of Association)▸
Founding legal document defining shareholders, share capital, share distribution and company activity.
Trade License▸
Mandatory commercial licence to operate. Three main types: commercial, professional and industrial. Annual renewal.
Flexi desk▸
Shared desk in a Free Zone office. Meets the physical address requirement at the lowest cost. Typical limit of 3 visas per company.
Emirates ID▸
UAE national identity card. Required to open a bank account, rent an apartment and contract utilities and services.
Golden Visa▸
5 or 10 year residence visa for investors, entrepreneurs, qualified professionals and specialised talent.
ESR (Economic Substance Regulations)▸
Regulation that between 2019 and 2022 required certain companies (banking, holding, intellectual property) to demonstrate real economic activity in the UAE. Repealed by Cabinet Decision 98/2024 for financial years starting on or after 1 January 2023; substance requirements were transferred to the Corporate Tax regime, especially for Qualifying Free Zone Persons.
UBO (Ultimate Beneficial Owner)▸
Natural person who ultimately controls the company at the end of the ownership chain. Mandatory disclosure since 2020.
AED▸
UAE Dirham, official currency of the UAE. Fixed exchange rate of approximately 1 USD = 3.67 AED.
DMCC, IFZA, RAKEZ, Meydan▸
The most popular UAE Free Zones. DMCC for commodities and trading; IFZA generalist and budget-friendly; RAKEZ industry and consulting; Meydan startups and services.
NOC (No Objection Certificate)▸
Letter of no objection from the current employer or sponsor. Required for certain visa or licence changes and administrative procedures.
What we get asked most.
How much does it cost to open a Free Zone company in Dubai?
Costs vary by zone and licence type. Budget options (Ajman Free Zone, UAQ FTZ, SPC) start from 3,500 to 6,000 USD per year. Mid-range zones such as IFZA, Meydan, RAKEZ or Innovation City from 6,000 to 12,000 USD. Premium zones like DMCC, DIFC, ADGM or DWTC from 12,000 USD upwards. See full table at cost ranges.
Note: these figures are indicative; each case varies.
What is the difference between a Free Zone and Mainland company?
A Free Zone company allows 100% foreign ownership, operates within the free zone or in international markets, and benefits from specific tax advantages. A Mainland company can operate across the entire UAE and hire without geographic restrictions, with broader administrative procedures.
Which Free Zone is best for my company?
It depends on your sector and objectives. DMCC for commodities and trading; DIFC and ADGM for financial services; Dubai Internet City for technology; Meydan and IFZA for consulting and general services; JAFZA for logistics; RAK ICC for international holding; Innovation City for digital assets and Web3.
Do I pay tax if my company is in a Free Zone?
If you meet the Qualifying Free Zone Person (QFZP) conditions, your qualifying income can be taxed at 0%. The remainder falls under the federal regime: 0% up to 375,000 AED and 9% above that threshold. VAT at 5% also applies if you exceed 375,000 AED in sales.
Can I have more than one activity under the same licence?
Yes. Many Free Zones allow compatible activities to be grouped under one licence. Each zone has its own list of permitted activities and combination rules.
Does a Free Zone allow residence visas?
Yes. Most Free Zones allow visa applications linked to the company for the investor, partners and employees. The number depends on the office type: up to 3 visas with a flexi desk, more with a physical office.
Can I trade with mainland clients from a Free Zone?
Yes, but with conditions. Invoicing mainland clients usually requires a local distributor or specific structures depending on the activity and the zone. Non-qualifying income is taxed at the 9% federal rate.
How long does it take to open a Free Zone company?
The average timeline is 5 to 14 business days from signing the proposal to commercial licence issuance. After the licence, opening a corporate bank account can add 2 to 4 weeks depending on the bank.
Can I open a Free Zone company while living outside the UAE?
Yes. Most of the process is remote: document signing, fee payment and licence issuance. You only need to travel to Dubai once for Emirates ID and, depending on the bank, for corporate account opening.
The trust of those who already work with us
Your Free Zone company, structured with precision from day one.
Schedule an initial consultation with no commitment. You will receive a tailored diagnosis on the optimal Free Zone, structure, licence and taxation for your project.
Book a consultation →Dubai Marina, UAE