What Are UAE Free Zones? A Complete Guide for Entrepreneurs

Posted on 30 Apr 2025

The UAE is home to one of the most attractive business environments for entrepreneurs and investors, thanks to its diverse Free Zones. These zones offer a wealth of benefits that make setting up a business not only easier but also more profitable. From 100% foreign ownership to tax exemptions, the UAE Free Zones provide the ideal platform for companies to grow and thrive in a dynamic economy.

The UAE’s free zones combine 100% foreign ownership, fast licensing and world-class infrastructure. Since the introduction of corporate tax, many free zone companies can still achieve a 0% rate on qualifying income if they meet specific conditions. Below we cover benefits, who qualifies for 0%, steps, timelines and the best zones by use case.

Why Set Up a Business in UAE Free Zones?

UAE Free Zones offer entrepreneurs unmatched opportunities to establish and expand their businesses. Here are the key advantages of setting up in one of these zones:

100% Foreign Ownership – Enjoy full control over your business without the need for a local sponsor.
Zero Corporate and Personal Tax – Benefit from exemptions from corporate income tax, offering significant savings.
Easy Business Setup – The process is streamlined and quick, with minimal paperwork required.
Repatriation of Profits – Enjoy the flexibility of repatriating all your capital and profits.
No Currency Restrictions – Conduct international transactions without any constraints.
Access to World-Class Infrastructure – Take advantage of modern office spaces, logistics hubs, and networking opportunities.
Fast-Track Visa Process – Obtain UAE residence visas for investors and employees quickly and easily.
Industry-Specific Free Zones – Choose from various zones tailored to specific sectors such as tech, media, logistics, and healthcare.

Note: Corporate tax is 9 percent by default. Free zone entities can secure a 0 percent rate on qualifying income if they meet specific rules on activity scope, geographic conditions, audited accounts and transfer pricing. Non-qualifying income is at 9 percent. Personal income tax is not imposed.

With TAG Consultancy’s expert guidance, you can navigate the Free Zone company formation process with ease, ensuring full compliance with local regulations while maximizing your business benefits.

Steps to Set Up a Business in a UAE Free Zone

Starting a business in a Free Zone involves several straightforward steps:

Choose the Legal Structure – Decide between a Free Zone Establishment (FZE) or a Free Zone Company (FZC) based on the number of shareholders.
Select a Business Name – Ensure your business name complies with the Free Zone Authority’s regulations.
Apply for a Trade License – Choose the appropriate license based on your business activity (commercial, industrial, or service).
Secure Office Space – Choose from flexible office setups within the Free Zone, either through leasing or purchasing.
Complete Registration & Licensing – Submit the required documentation and obtain the necessary approvals to officially start operations.

Costs, visas and office: what to expect

Exact fees vary by activity, visa quota and office requirement. Use this as a planning guide, then request a tailored estimate.

Item	What it covers	What affects the figure	Planning note
License and registration	Incorporation, trade license, establishment card	Activity type, zone policy, number of activities	Zones publish schedules and bundles.
Visas	Investor and employee visas, medicals and ID	Quota, medical category, dependants	Plan lead time if you need multiple visas quickly.
Office	Flexi-desk, shared or dedicated office	Zone minimums, visa quota, substance	Dedicated space may support more visas and bank KYC.
Add-ons	Name reservation, PO Box, attestation	Notarisation and translation needs	Budget a small buffer for document services.

For current packages and indicative totals, book a consultation with our team for a quote that reflects your activity and visa plan.

Popular Free Zones in the UAE

Each Free Zone in the UAE offers its own unique set of benefits tailored to specific industries. Here are some of the most popular Free Zones in the UAE:

IFZA (International Free Zone Authority) – Ideal for startups and SMEs, offering flexible licensing options and low setup costs.
RAKEZ (Ras Al Khaimah Economic Zone) – A cost-effective option that supports a wide range of industries.
Meydan – The UAE's only fully 24/7 digital free zone. Meydan Free Zone operates a digital-first model and reports a large base of registered companies, offering 24/7 online services.
DMCC (Dubai Multi Commodities Centre) – The world’s leading Free Zone for commodities trade and business. DMCC is regularly recognised by fDi Intelligence and others for ecosystem quality and ease of doing business.
DAFZ (Dubai Airport Free Zone) – A prime location for logistics and aviation-related businesses.
DHCC (Dubai Healthcare City) – The leading Free Zone for healthcare and medical businesses.
JAFZA (Jebel Ali Free Zone) – A logistics hub with direct access to Jebel Ali Port, ideal for international trade.
DIC (Dubai Internet City) – A top choice for tech and IT companies.
DMC (Dubai Media City) – The preferred Free Zone for media, advertising, and creative industries.
DSO (Dubai Silicon Oasis) – A hub for technology and innovation-driven businesses.
DIFC (Dubai International Financial Centre) – The region’s leading financial services Free Zone.

Do UAE free zones have 0% tax in 2025

Yes, but not automatically. A company must be a Qualifying Free Zone Person and earn qualifying income to get 0%. Non-qualifying income is taxed at 9%. Large multinational groups may also face a 15% top-up tax under global minimum tax rules.

Why Choose TAG Consultancy?

Setting up a business in a UAE Free Zone requires knowledge of local laws, licensing procedures, and business regulations. At TAG Consultancy, we provide expert support throughout the entire process:

Expert Business Advisory – Leverage our decades of experience in UAE company formation.
Tailored Solutions – We customize our services to meet your unique business needs.
End-to-End Support – From documentation to licensing and visa processing, we handle it all.
Fast & Hassle-Free Setup – Our team manages the complexities of Free Zone setup so you can focus on growing your business.

Ready to Launch Your Business in a UAE Free Zone?

If you’re ready to start your business in the UAE, let TAG Consultancy help you navigate the process with ease. Contact us today to learn more about the best Free Zone options for your business and start your journey toward success in the UAE!

Contact Us:
📧 info@tagconsultancy.ae
📞 +971 (0) 58 518 4291
🏢 The Meydan Hotel, Dubai, UAE