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Free zone company setup in Dubai and the UAE: choosing the zone
Setting up a free zone company in Dubai or elsewhere in the UAE starts with choosing the zone. The UAE has more than 40 free zones, each run by its own authority, with its own permitted activities, office packages, visa allowances and fees. A free zone company can be 100% foreign-owned. If it meets the conditions, it can pay 0% corporate tax on qualifying income. The right zone depends on what the company will do and where its customers are, rather than on the headline price. [1][2][9][11]

Five questions that decide the choice
What will the company do? Each free zone licenses a defined list of activities. Some zones focus on particular sectors.
Where are your customers? A free zone company trades inside its zone and abroad. In Dubai, it can also work on the mainland through a branch licence or a Free Zone Mainland Operating Permit (AED 5,000 for 6 months). Mainland income is taxed at 9%. [3][4]
Do you need an office and visas? Visa allowances follow the office. At DMCC, for example, a flexi desk usually allows 1 to 3 visas, and a private office one visa per 9 square metres. [5]
How will it be taxed? Each company must register for corporate tax. To pay 0% on qualifying income, it must meet the Qualifying Free Zone Person conditions:
- adequate substance in the zone
- qualifying income
- arm's-length dealings with related parties
- audited accounts
- other income kept within the lower of 5% of revenue or AED 5 million
[2][6][10]
What will it cost each year? Look past the setup price to:
- annual licence renewal
- office or desk rent
- visa costs
- audit fees, where the zone requires an audit
Free zone or mainland?
Since 1 June 2021, most mainland activities can also be 100% foreign-owned. A mainland company can trade anywhere in the UAE. A free zone company may be able to pay 0% on qualifying income. If most of your customers are in the UAE, compare both before choosing. [7][9] Company formation in Dubai and the UAE →
The 6 zones families and business owners ask about
Facts from each zone's own pages, read on 29 October 2026. Each zone sets its own rules and prices, and changes them.
DMCC (Dubai Multi Commodities Centre)
A Government of Dubai authority, established in 2002, home to 26,000 companies, with a focus on commodities trade and enterprise and more than 1,000 licensed activities. Forms: a new free zone company, a subsidiary or a branch. A flexi desk is offered; the visa allowance follows the office, and DMCC's package with a flexi desk is eligible for 3 residence visas. Published setup costs run from AED 10,345 to AED 84,515. Marlborough Gulf has been a DMCC company since 2012. [5][8][12] DMCC companies →
DIFC (Dubai International Financial Centre)
A financial centre with its own common-law legal system and courts, and its own regulator, the Dubai Financial Services Authority, for financial firms. Non-financial firms, including family offices, holding companies and foundations, can also set up there. Government fees for a private company are USD 8,000 registration and USD 12,000 a year for the licence; the Innovation Licence for technology firms is USD 1,500 a year for 2 to 5 years. Flexi desks and coworking are offered through the Innovation Hub. A DIFC set-up is carried out by a firm licensed in the DIFC, which you engage directly; we plan where it fits and coordinate. [13]
Dubai South (DWC)
Dubai's aviation and logistics free zone, run by the Dubai Aviation City Corporation, next to the airport that will be the world's largest when fully operational and 30 km from Jebel Ali port. Routes: a DWC company or branch, a freelancer licence, or the Business Hub route with a licence, a visa and flexi-desk access. No prices are published on the zone's own site. [14]
Dubai Internet City (DIC)
The technology district, operated by TECOM Group and licensed by the Dubai Development Authority. Forms: a free zone limited liability company or a branch, with a dual licence available for the mainland. Coworking is offered at shared, dedicated and private-office levels; in a commercial office, 1 visa is allocated for every 60 square feet. No prices are published. [15]
Ajman Free Zone
Launched in 1988, with more than 9,000 companies. Forms: a free zone establishment, a free zone company, or a branch of a local or foreign company. Licences: commercial, industrial, services, e-commerce, freelancer and offshore, among others. Shared coworking space is offered; a sole professional licence holder is eligible for 1 residence visa. Prices come from the zone's cost calculator, not a published list. [16]
RAKEZ (Ras Al Khaimah Economic Zone)
Established by the Government of Ras Al Khaimah on 17 April 2017, taking over the RAK Free Trade Zone (founded 2000) and RAK Investment Authority. It serves free zone and non-free zone businesses, with a focus on start-ups, SMEs and industry. Forms: a free zone establishment, a free zone limited liability company (2 to 50 shareholders), or a branch. Published packages start at AED 6,000 (no visa) and AED 14,000 a year including 1 residence visa, with up to 3 more at AED 4,000 each. International companies once registered as RAK Offshore are now RAK ICC companies, which we form and administer as a RAK ICC registered agent. [17] RAK ICC companies →
How Marlborough Gulf helps
What we do:
- We compare free zones against your activities, customers, staff, tax position and the rest of your plan: residence, banking, property and succession.
- We set up the company in DMCC, RAK ICC and the other zones that license through corporate service providers, and handle its administration.
- We keep the books, and advise on the Qualifying Free Zone Person tests each year.
What a licensed partner does: a firm licensed in the DIFC carries out a DIFC set-up, and the Dubai Financial Services Authority licenses any financial activity there. You engage that firm directly.
Questions people ask
Which is the best free zone in the UAE?
There's no single answer. The right zone is the one that licenses your activity, fits your office and visa needs, and suits how the company will be taxed. [1]
Do free zone companies need to register for corporate tax?
Yes. Every free zone company must register. Only a Qualifying Free Zone Person pays 0% on qualifying income. [2][6][10]
Can a free zone company sell to customers on the mainland?
In Dubai, yes, through a branch licence or a Free Zone Mainland Operating Permit. Mainland income is taxed at 9%. [3][4]
This page is general information. Each free zone sets its own rules and fees.
Sources
- u.ae, Starting a business in a free zone, updated 27 Oct 2026. https://u.ae/en/information-and-services/business/Doing-business/doing-business-in-free-zones/starting-a-business-in-a-free-zone
- PwC Worldwide Tax Summaries, UAE: corporate, taxes on corporate income, reviewed 9 Sep 2026. https://taxsummaries.pwc.com/united-arab-emirates/corporate/taxes-on-corporate-income
- KPMG Lower Gulf, "Dubai issues resolution enabling free zone companies to operate on mainland", 2025. https://kpmg.com/ae/en/insights/tax-insights/dubai-issues-resolution-enabling-free-zone-companies-to-operate-on-mainland.html
- Dubai Media Office, "Dubai launches Free Zone Mainland Operating Permit", 8 Oct 2025. https://mediaoffice.ae/en/news/2025/october/08-10/dubai-launches-free-zone-mainland-operating-permit
- DMCC, "Complete guide on DMCC licences", 9 Apr 2026. https://dmcc.ae/blog/complete-guide-on-dmcc-licences
- DMCC, Corporate Tax (member support), read 28 Oct 2026. https://dmcc.ae/members/support/corporate-tax
- Clyde & Co, "UAE Foreign Ownership Updates", 28 Jun 2021. https://connectedworld.clydeco.com/post/102h1i2/uae-foreign-ownership-updates-1-strategic-impact-activities-confirmed-2-abu
- DMCC home page, read 28 Oct 2026. https://www.dmcc.ae/
- DMCC, "The Differences Between Mainland and Free Zone Companies in Dubai", 25 Aug 2026. https://dmcc.ae/blog/company-registration-in-dubai-mainland-vs-free-zone-vs-offshore
- Federal Tax Authority, Free Zone Persons Corporate Tax Guide (CTGFZP1), May 2024, sections 3.2 and 12. https://tax.gov.ae/Datafolder/Files/Guides/CT/Free%20Zone%20Persons%20-%2020%2005%202024%20final%20for%20GCD.pdf
- UAE Ministry of Economy and Tourism, 40 Free Zones for Company Incorporation ("More than 40 free zones"), updated 28 Oct 2026. https://www.moet.gov.ae/en/-/100-company-ownersh-1
- DMCC, About DMCC; Set up a new business; Business setup packages; read 29 Oct 2026. https://dmcc.ae/about-us https://dmcc.ae/business/set-up-a-new-business https://dmcc.ae/business/business-setup-packages
- DIFC, Establish a business; Non-financial firms; Innovation Licence; Laws and regulations; Spaces and offices; Company Services Table of Fees, DIFC-CS-GL-03 Rev. 16, updated 31 Dec 2025; DIFC Courts, About. Read 29 Oct 2026. https://www.difc.com/business/establish-a-business https://www.difc.com/business/establish-a-business/non-financial-firms https://www.difc.com/business/establish-a-business/innovation-licence https://www.difc.com/business/laws-and-regulations https://www.difc.com/business/services/spaces-and-offices https://www.difc.com/business/handbook-fees https://www.difccourts.ae/about/difc-courts
- Dubai South, Free Zone; Business setup; FAQs; read 29 Oct 2026. https://www.dubaisouth.ae/en/work/freezone https://www.dubaisouth.ae/en/business-setup https://www.dubaisouth.ae/en/faqs
- Dubai Internet City, FAQs; D/Quarters; Dubai Development Authority, Setting up a business; read 29 Oct 2026. https://dic.ae/connect/faqs https://dic.ae/offerings/dquarters https://dda.gov.ae/registration-licensing/setting-up-a-business
- Ajman Free Zone, Profile; Start your business; Business licence types; Workspaces; read 29 Oct 2026. https://afz.gov.ae/en/about-us/profile.html https://afz.gov.ae/en/start-your-business.html https://afz.gov.ae/en/start-your-business/business-license-types.html https://afz.gov.ae/en/start-your-business/product.html
- RAKEZ, About RAKEZ; company brochure (entities, licences, flexi facilities); Biz Starter Package (AED 6,000); SME business setup (AED 14,000); RAK Government Media Centre, "Achievements listed in first RAKEZ report", 17 Apr 2018 (established 17 Apr 2017). Read 29 Oct 2026. https://rakez.com/en/about-us/rakez https://www.rakez.com/portals/30/download/company-brouchure/rakez_brochure_english.pdf https://rakez.com/en/promotions/biz-starter-package https://rakez.com/en/promotions/sme-business-setup https://www.rak.ae/wps/portal/rak/media-center/news/achievements+listed+in+first+rakez+report+to+boost+prosperity+in+ras+al+khaimah/achievements+listed+in+first+rakez+report+to+boost+prosperity+in+ras+al+khaimah