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Company formation in the UAE means picking two things before anything else: a legal form, and the emirate and free zone that will register it. The UAE has about 40 free zones. The government portal u.ae names 37 of them by emirate, and our list of free zones covers 48. They offer a small set of legal forms, FZE, FZCO, FZ-LLC, PJSC and branches, but not every zone offers every form, and they do not all use the names the same way. If this is your first company, the guide to starting a business in Dubai puts these decisions in order.
The legal forms, as the zones define them
u.ae lists the free zone forms as FZ LLC, FZ Co, FZE, PJSC, or a branch of a local or foreign company. Each zone then sets its own rules.
| Form | What it usually means | Examples from zone rules |
|---|---|---|
| FZE (Free Zone Establishment) | One shareholder, a person or a company | Jafza, UAQ FTZ, Ajman Nuventures, SAIF Zone, Fujairah Free Zone, DWTC |
| FZCO or FZC (Free Zone Company) | Two or more shareholders | Jafza and UAQ FTZ: 2 to 50. DWTC: up to ten |
| FZ-LLC | A limited liability company in the zone | TECOM parks, Dubai Healthcare City, Sharjah Healthcare City; RAKEZ allows 1 to 50 shareholders |
| Branch | An existing UAE or foreign company working in the zone | Offered by most zones |
| Public company (PLC or PJSC) | A company that can offer shares to the public | Jafza, Dubai CommerCity |
Source: each zone's company types or setup page and u.ae, checked .
Some zones use their own labels. SPC Free Zone calls its forms FZE-LLC (one shareholder) and FZC-LLC (two or more). Creative City uses FZE, FZ LLE for a single owner and FZ LLC for several. Shams registers every company as an LLC. Dubai Silicon Oasis offers only the FZCO and a branch.
Choosing between a new company and a branch
A new FZE, FZCO or FZ-LLC is its own legal person with limited liability. A branch is the parent company working in the zone under the parent's name. The choice changes your documents and sometimes your capital. At SAIF Zone an FZE or FZC needs AED 150,000 of share capital, while a branch needs none. Ask the zone which parent company papers it wants for a branch. See MOA and board resolution and document attestation.
Special structures
- Financial centres. DIFC registers private, public, recognised, SPC and VCC companies, several kinds of partnership, non-profits and foundations. ADGM registers companies, partnerships, branches, foundations and DLT foundations. Financial services need the regulator's licence on top. See DIFC and ADGM.
- Offshore companies. RAK ICC is an international registry, not a classic free zone. It offers companies limited by shares or by guarantee, restricted purposes companies, segregated portfolio companies, IP holding companies and foundations. Incorporation can take one day. See offshore company.
- Guarantee companies. DMCC offers a company limited by guarantee for family offices and associations, at AED 34,185.
- Mainland forms from a free zone. RAKEZ also issues non-free zone LLCs and individual establishments.
For a company that only holds shares or assets, see holding company in the UAE.
Company formation by emirate
| Emirate | Free zones on u.ae | Lowest published official start |
|---|---|---|
| Dubai | 22 (the Dubai Free Zones Council counts 27) | AED 12,500, Meydan or Expo City, no visa |
| Abu Dhabi | 5 | AED 7,000 at Masdar City (its two sites differ on the visa); KEZAD AED 9,450 with 1 visa |
| Sharjah | 3 (Invest in Sharjah lists 6) | AED 3,999 at SRTIP (limited time), no visa |
| Ajman | 2 | AED 4,888 at Ajman Nuventures, no visa |
| Umm Al Quwain | 1 | AED 5,500, UAQ LYTE, no visa |
| Ras Al Khaimah | 2 | AED 6,000 at RAKEZ, no visa |
| Fujairah | 2 | AED 3,999 Media Package on a Creative City offer page, no visa; confirm it still applies |
Source: u.ae free zone authorities list and each zone's package page, including the Creative City offer page, checked .
Each emirate has its own hub with every zone: Dubai, Abu Dhabi, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah.
The emirate matters for more than price.
Dubai company formation and registration
Dubai company incorporation follows the same steps as in any other emirate. What changes is choice and price. Company formation in Dubai gives you 27 zones to choose from, most built around a sector. A new company formation in Dubai starts from AED 12,500 at Meydan or Expo City, with no visa. For business incorporation in Dubai, the zone also decides your legal form: Dubai Silicon Oasis offers only the FZCO and a branch, while the TECOM parks register FZ-LLCs.
Abu Dhabi and Sharjah company formation
Abu Dhabi company formation splits by purpose. ADGM covers finance, KEZAD covers industrial and trading licences, and Masdar City starts at AED 7,000. Sharjah company formation costs less to start, from AED 3,999 at SRTIP for a limited time, with no visa. The northern emirates also compete on quick licences: UAQ FTZ issues a licence in 1 working day once documents and payment are complete.
What every UAE company must do after formation
- Beneficial owners. Mainland and commercial free zone companies must keep a UBO register under Cabinet Decision 109 of . A beneficial owner holds 25% or more, or controls the company another way. See UBO register.
- Corporate tax. Register within 3 months of incorporation. A qualifying free zone person pays 0% on qualifying income and 9% on other taxable income, and must keep audited accounts. See corporate tax registration.
- Economic substance. ESR reporting was cancelled for financial years ending after 31 December . Duties for earlier years remain.
Ownership and the mainland
Free zone companies can be 100% owned by foreign investors. Since early , so can most mainland companies. A free zone company sells freely inside its zone and abroad, and needs a distributor, a branch or a permit to sell on the mainland. More in free zone vs mainland.
Starting the formation
Use the form on this page. Tell us how many shareholders you have, whether they are people or companies, and what the company will do. We are an independent directory, not a registrar or a free zone. We pass your details to a zone or a licensed setup partner that offers the form you need, and they quote it.
Sources
- https://u.ae/en/information-and-services/business/Doing-business/doing-business-in-free-zones/starting-a-business-in-a-free-zone (legal forms and free zone list)
- https://www.jafza.ae/business-setup/company-formation/ (Jafza FZE and FZCO rules)
- https://uaqftz.gov.ae/licenses-entity (UAQ FTZ entity types)
- https://www.dwtc.com/en/free-zone/set-up-your-business/company-types/ (DWTC company types)
- https://www.saif-zone.com/en/business-set-up/ (SAIF Zone entity types and capital)
- https://www.spcfz.ae/business-setup-in-sharjah/ (SPC entity types)
- https://ancfz.ae/types-of-companies/ (Ajman Nuventures entity types)
- https://freezone.fujairah.ae/en/start-your-business (Fujairah Free Zone entity types)
- https://www.moet.gov.ae/en/web/guest/company-registrars-in-free-zones (free zone registrars)
- https://creativecity.gov.ae/packages_old/ (Creative City Media Package offer)
