The large number of Free Zones in the UAE offers wide opportunities for business, but it also makes choosing the right jurisdiction for company registration more complex. We have prepared an overview of the key features of the Top 10 Free Zones in the UAE. This analysis will help you select the optimal location for company formation in the UAE.
- Over 40 Free Zones exist, offering a wide choice of jurisdictions across the UAE for company registration.
- 100% foreign ownership allowed in Free Zones, enabling full foreign investor control without local partners.
- Corporate tax relief possible (0% rate) for Free Zone companies meeting specific conditions; registration for tax and VAT required.
- Independent regulation — each Free Zone has its own legal framework, regulator, and some even have their own courts.
- Wage Protection System (WPS) application varies by Free Zone; some require WPS, others do not or have compatible systems.
- Key practical differences: sector specialisation, licence cost/flexibility, minimum capital, digitisation, office requirements and support services.
Key Features of the UAE Free Zone Regime
You can register a company in the UAE in three ways:
- On the mainland (local companies, “mainland”)
- In a Free Zone within the UAE
- As an offshore company in an offshore jurisdiction
A Free Zone is a designated geographic area within the UAE that offers special, generally more favourable, conditions for setting up and growing a business. Free Zones are established at the level of individual Emirates and are designed to:
- Attract investment
- Make it simpler to run a business
- Support specific sectors of the economy
In general, the UAE Free Zone regime is characterised by the following features:
| Feature | What does this mean in practice? |
|---|---|
|
A wide choice |
As of today, there are more than 40 Free Zones operating in the UAE. |
|
100% foreign ownership |
Companies registered in Free Zones may be wholly owned by foreign investors without the need for local partners. |
|
Corporate tax relief |
Free Zone companies may benefit from a 0% corporate tax rate if certain conditions are met. Nevertheless, companies must register for corporate tax and, where applicable, for VAT. |
|
Duty-free export regime |
Free Zone companies are exempt from customs duties. |
|
Independent legislation and regulation |
Each Free Zone has its own legal framework and regulator. Some Free Zones also have their own courts. |
|
UAE residency |
Incorporating a company in a Free Zone allows founders, directors and employees to become UAE residents. |
|
Wage Protection System (WPS) |
The UAE labour legislation provides for the Wage Protection System (WPS), which enables the authorities to monitor salary payments automatically and take action where violations are identified. At present, this system operates only in certain Free Zones. |
Among the many Free Zones, we highlight the Top 10 Free Zones in the UAE that are the most promising for company formation.
Top 10 Free Zones in the UAE
IFZA Free Zone, Dubai, positions itself as a general‑purpose Free Zone. This means it is suitable for registering companies with a wide range of activities, including:
- consultancy,
- professional services, or
- trading.
This jurisdiction is well‑suited for those planning to set up a business in Dubai.
Licences can be issued for up to five years. Their cost varies and depends on the number of residency visas the company plans to obtain. A company can increase its visa quota by upgrading its licence category.
One licence may cover several activities (typically up to three).
The following can be registered in IFZA:
| Company types | Minimum share capital |
|---|---|
|
Free Zone Companies (FZCO) |
No minimum share capital requirement. |
|
Branches of foreign companies |
— |
IFZA companies must keep accounting records and prepare and file audited financial statements annually. From 30 September 2025, financial statements must be submitted as part of the business licence renewal process. If they are not provided, the licence will not be renewed.
IFZA offers various office leasing options, including a “virtual” office. If you increase your visa quota, a physical office may be required.
The Wage Protection System (WPS) is not applied in IFZA.
Meydan Free Zone, Dubai
Meydan Free Zone, Dubai, is also a general‑purpose zone: companies registered here can choose from more than 2,500 licensed activities. A key feature of Meydan is its focus on full digitisation of business processes, which significantly reduces company set‑up and licence renewal timeframes.
A licence can include up to three activities. The fee depends on the licence term and the number of residency visas required.
In Meydan, you can register:
| Company types | Minimum share capital |
|---|---|
|
Limited liability companies |
No minimum share capital requirement |
|
Branches of local or foreign companies |
— |
Companies registered in Meydan must have a registered address within the Free Zone. As a minimum physical presence, co‑working desks may be used.
A company must maintain accounting records and prepare audited financial statements. Filing is required upon request from the regulator; once requested, the statements must be submitted within 30 days.
The Wage Protection System (WPS) is not applied in Meydan.
Ras Al Khaimah Economic Zone (RAKEZ), Ras Al Khaimah
Within RAKEZ Free Zone, Ras Al Khaimah, there are several specialised zones, including:
- Industrial zones
- Business zones (with business centres for companies and freelancers)
- An academic zone (international education services)
These sectors are prioritised, but RAKEZ is also suitable for registering companies with other activities.
The number of activities that can be covered under a single licence depends on the licence type. For example, under a commercial licence you may conduct up to five activities within one group, or up to two activities from different groups. The licence fee depends on the number of residency visas required.
The following can be registered in RAKEZ:
| Company types | Minimum share capital |
|---|---|
|
Free Zone Limited Liability Companies (FZ-LLC) |
AED 10,000 However, for certain activities the minimum capital may be higher, for example:
|
|
Private joint‑stock companies (PJSC) |
AED 5,000,000, must be fully paid up |
|
Public limited companies (PLC) |
As determined by securities market regulations |
|
Branches of foreign companies |
— |
RAKEZ companies may use a virtual office or lease physical office space within the Free Zone, choosing the type and size to suit their business needs.
RAKEZ companies must maintain accounting records and prepare audited financial statements within six months of the end of their financial year. These statements must be provided to the registering authority within seven days of request.
RAKEZ operates its own wage protection system that is compatible with the WPS.
Dubai Multi Commodities Centre (DMCC), Dubai
The DMCC Free Zone in Dubai is one of the Emirate’s oldest. In 2023, the Financial Times recognised DMCC as the best Free Zone for the ninth year in a row. Historically, DMCC has led in commodities trading, but it is also suitable for companies engaged in other activities.
The following can be registered in DMCC:
| Company types | Minimum share capital |
|---|---|
|
Limited liability companies |
The 2024 Companies Regulations do not set a statutory minimum share capital. Under the new rules, the capital must be sufficient for the activities authorised by the licence. In practice, the authority typically requires share capital from AED 50,000, and for certain activities the amount may be higher. Note that the requirement to pay up the share capital remains. The authority will ask for proof of payment by way of bank documents or by depositing the amount to the company’s account on the DMCC portal. |
|
Branches of companies incorporated outside DMCC |
— |
Leasing office space is a mandatory requirement for company registration and licence issuance in DMCC. The Free Zone offers a wide range of office options, from physical offices to flexi‑desks in business centres. The licence fee depends on the number of residency visas required and the corresponding office space.
DMCC companies must maintain accounting records and prepare and file audited financial statements within six months of the end of their financial year. In 2025, this filing deadline was extended to nine months; however, it remains unclear how the deadline will be regulated in subsequent years.
The Wage Protection System (WPS) applies in DMCC.
Dubai World Trade Centre (DWTC), Dubai
DWTC Free Zone, Dubai, is one of the region’s leading hubs for exhibitions and other business events. The Free Zone is open to companies across a wide range of sectors and offers licences for more than 1,200 activities.
The following can be registered in DWTC:
| Company types | Minimum share capital |
|---|---|
|
Free Zone Establishment with a single shareholder |
Minimum of 1 share with a nominal value of AED 1,000 |
|
Free Zone Company with multiple shareholders |
Minimum of 1 share issued to each shareholder, with a nominal value of AED 1,000 |
|
Branches of UAE‑incorporated companies |
— |
|
Branches of foreign companies |
— |
DWTC companies must have a registered address within the Free Zone, which may be a virtual office. The size of the office space affects the number of residency visas the company can obtain.
DWTC companies are required to keep accounting records and to prepare audited financial statements within six months of the end of their financial year. The registering authority may request these statements at any time. Once requested, they must be provided within 60 days.
The Wage Protection System (WPS) is not used in DWTC. However, the regulator independently monitors salary payments and periodically (typically quarterly) requests supporting documents from employers.
Dubai International Financial Centre (DIFC), Dubai
The DIFC Free Zone in Dubai is one of the region’s leading financial centres, with its own courts and a common law legal system. In practice, this means that certain corporate procedures that are not available under UAE mainland law or in other Free Zones (for example, nominee arrangements) can be implemented in DIFC. The Free Zone hosts both regulated financial institutions and non‑financial businesses.
The following can be registered in DIFC:
| Company types | Minimum share capital |
|---|---|
|
Private companies |
No minimum share capital requirement |
|
Public companies |
USD 100,000 |
|
No minimum share capital requirement |
|
|
Partnerships |
— |
|
Funds |
— |
DIFC companies must secure office space, which may be a traditional physical office or a flexible virtual office solution. The size of the office determines how many residency visas the company can obtain.
Companies in DIFC must keep accounting records and prepare and file audited financial statements within six months of the end of their financial year. Subject to certain conditions, companies may qualify for an audit exemption.
The Wage Protection System (WPS) does not apply in DIFC.
Abu Dhabi Global Market (ADGM), Abu Dhabi
ADGM Free Zone, Abu Dhabi, offers more than 1,000 permitted activities, grouped into:
- financial;
- non‑financial; and
- retail and services activities.
Like DIFC, ADGM has its own courts. However, unlike DIFC, English law applies directly within ADGM.
ADGM and the Abu Dhabi Department of Economic Development have a dual‑licensing arrangement. This allows ADGM companies to obtain a licence to operate on the Abu Dhabi mainland.
The following can be registered in ADGM:
| Company types | Minimum share capital |
|---|---|
|
Private companies |
No minimum share capital requirement |
|
Public companies |
USD 50,000 |
|
Companies limited by guarantee |
No minimum share capital requirement |
|
Unlimited companies |
No minimum share capital requirement |
|
SPV companies |
— |
|
Partnerships |
— |
|
— |
|
|
Branches of a foreign company or foreign partnership |
— |
ADGM companies (with certain exceptions) must keep accounting records and prepare and file audited financial statements annually within nine months of the end of the reporting period.
For companies incorporated in ADGM, except SPVs, a physical office is mandatory. A lease agreement is required at incorporation. The office may be a dedicated unit or a co‑working space.
The Wage Protection System (WPS) does not apply in ADGM.
SPC Free Zone is the world’s first Free Zone specialising in publishing. Today, companies can set up here across sectors such as:
- publishing
- design and printing
- general trading and e‑commerce
- IT consultancy
- marketing and more
The following can be registered in SPC:
| Company types | Minimum share capital |
|---|---|
|
Free Zone Establishment with a single shareholder |
No minimum share capital requirement |
|
Free Zone Company with multiple shareholders |
No minimum share capital requirement |
|
Branches of any companies |
— |
Up to five groups of activities can be included under one licence. In addition, SPC supports a dual‑licensing regime, allowing companies to operate on the Emirate’s mainland.
One of SPC’s features is the ability to obtain an unlimited number of visas for investors, partners, or employees for a company registered in the Free Zone.
SPC companies must have a registered address for official correspondence and notices. At the same time, office lease terms are flexible, including the option to rent an office anywhere in the UAE, subject to obtaining a No Objection Certificate (NOC).
SPC companies must maintain accounting records and prepare and file audited financial statements.
The Wage Protection System (WPS) does not apply in SPC.
Jebel Ali Free Zone (JAFZA), Dubai
JAFZA Free Zone, Dubai, is the emirate’s first and largest trade, industrial and logistics hub. Today, the range of permitted activities in JAFZA is broad and includes:
- manufacturing,
- services,
- trading, and other activities.
UAE offshore companies can be registered in JAFZA; however, they are not Free Zone companies. In addition to offshore entities, the following may be incorporated in JAFZA:
| Company types | Minimum share capital |
|---|---|
|
Free Zone Establishment with a single shareholder |
No minimum share capital requirement. However, it must be sufficient for the activities authorised by the licence. |
|
Free Zone Company with multiple shareholders |
No minimum share capital requirement. However, it must be sufficient for the activities authorised by the licence. |
|
Public companies (PLC) |
Capital must be sufficient for the activities authorised by the licence, unless a higher amount is set by securities market legislation. |
|
Branches of any companies |
— |
JAFZA companies must prepare and file audited financial statements for each financial year, which must be not more than 18 months and not less than 6 months.
At incorporation, a lease agreement for office premises is required. JAFZA offers a wide range of office units and co‑working desks. As a port Free Zone, it also provides extensive warehousing where goods can be stored for up to six months without customs clearance. The size and type of premises determine the number of residency visas that can be issued to the company.
Companies registered in JAFZA are required to use the Wage Protection System (WPS).
Dubai Airport Freezone (DAFZ), Dubai
DAFZ Free Zone is located at Dubai International Airport and is a major logistics hub. Thanks to its strategic location, it is particularly attractive for companies operating in:
- logistics,
- aviation,
- import–export operations, and
- related sectors.
The following can be registered in DAFZ:
| Company types | Minimum share capital |
|---|---|
|
Free Zone companies |
AED 1 |
|
PLC |
AED 250,000 |
|
Branches of foreign companies |
— |
A business licence in the Free Zone cannot be issued without leasing office space. DAFZ offers a range of office options with different levels of fit‑out, as well as varying visa quotas. In addition to offices, DAFZ provides warehousing and retail units. The size and type of premises determine how many residency visas can be issued to the company.
All DAFZ companies must keep accounting records and prepare audited financial statements.
Companies registered in DAFZ are required to use the Wage Protection System (WPS).
Conclusion
This overview of the Top 10 Free Zones in the UAE shows that many of their advantages are broadly similar. The real differences appear in practical details, in particular:
- brand and sector specialisation
- territorial jurisdiction
- cost and flexibility of licences
- legal forms and minimum share capital requirements
- level of digitisation and ease of incorporation
- application of the Wage Protection System (WPS)
- availability of additional services, as well as the level of support from business consultants
In practice, choosing a Free Zone often comes down to these nuances, which ultimately determine how comfortably and efficiently your business will operate in the chosen jurisdiction.
