Free Zone Company Formation Services in UAE
Explore costs, visas and perks of free zone company formation in UAE. Compare DMCC, IFZA, Meydan & RAKEZ to choose the best for your business. Setting up a business in the UAE might feel overwhelming at first. With so many options and legal steps, it’s easy to get lost in the process. But here’s the good news: if you choose the right route, you can be up and running in just a few days. That’s where free zone company formation comes in.
Free zones have been one of the most popular ways to start a business setup in UAE for many years. Even in 2025, they’re still growing fast. Xact Auditing is a highly reputed firm with extensive experience in establishing companies across all UAE Free Zones. Our business setup services in UAE strictly adhere to government regulations and legal requirements, ensuring premium-quality support for our clients.
How to Setup a Free Zone Company in UAE?
Starting a company in a free zone is not hard. But you do need to follow the right steps. Here’s a simple breakdown of the usual process:
1. Choose Your Free Zone
Pick a zone that suits your business type. For example, IFZA is great for digital businesses. DMCC is strong for trade.
2. Decide Your Business Activity
Ensure the zone you’ve chosen allows for your type of work. Each one has a list of approved activities.
3. Documents required for a Free Zone Company Formation
You’ll need basic items like:
- Passport copy
- Recent photo (white background)
- Entry stamp or UAE visa copy
- Business name options
4. Pay the Fees
Once your documents are reviewed, you’ll get a payment link or invoice.
5. Get Your License
Some zones issue licenses in one day. Others may take up to a week.
6. Apply for Your Visa (Optional)
Depending on your license type, you may apply for your own visa and those for your staff or dependents.
What is a Free Zone?
A free zone is a special economic area where business regulations are simplified. These zones are created to attract foreign investors and support entrepreneurs. The biggest benefit? You don’t need a local partner. You can own 100% of your company.
Each free zone has its own setup process, fees, and rules. Some focus on media, while others concentrate on trade, technology, or even cryptocurrency.
List of UAE Free Zones
A free zone company formation is one of the easiest ways to establish a presence in the UAE. Whether you’re a solo freelancer or a growing startup, free zones offer a safe, flexible path forward. There are more than 45 free zones in the UAE as of 2025. Some of the best-known include:
- DMCC
- IFZA
- DIFC
- DSO
- DDA
- Meydan FZ
- RAKEZ
- Ajman Media City
- SHAMS
- SPC Free Zone
Why Free Zones Are Still the Ideal Business Setup Option in 2025?
A significant amount of change has occurred in the UAE’s business landscape over the past few years. But even with new tax rules, free zones remain a smart option for startups and small companies.
Here’s why:
✅ 100% foreign ownership allowed
✅ Access to international markets
✅ Flexible visa options
✅ Simple registration process
✅ Access to modern office spaces
✅ Business-friendly support systems
✅ No personal income tax
✅ Profits can be sent abroad without restriction
Additionally, many free zones now offer comprehensive digital portals. This means you can complete most steps without even leaving your home.
🌟 The Xact Advantage for UAE Free Zone Formation
At Xact Auditing, we don’t just assist with forms. We become your journey partner throughout the entire business setup in UAE. From your first consultation to your yearly audit, we’re with you at every step.
Here’s what we offer:
- Help choosing the right free zone
- Document and application support
- Visa and immigration processing
- Accounting and Bookkeeping
- VAT registration and VAT filing
- Corporate tax registration
- Corporate tax filing
- Audit for Free Zones in UAE, especially for zones like DMCC and IFZA
We also have strong links with banks and local authorities, which makes the process even smoother for you.
FAQs
1. How long does it take to set up a free zone company in the UAE?
It depends on the free zone and the type of business activity. In most cases, the company can be registered within 2 to 5 working days. Some zones, like SPC or IFZA, may issue the license in just one day if all documents are complete.
2. Do I need to live in the UAE to open a free zone company?
No, not always. Many free zones allow remote company formation. You can submit documents and get your license from outside the UAE. However, if you plan to apply for a visa under your company, you’ll need to visit the UAE to complete medical and biometric steps.
3. Can I trade directly with UAE mainland companies through a free zone setup?
Not directly. Free zone companies are primarily permitted to conduct business within the zone or outside the UAE. If you want to trade with mainland clients, you will need a local distributor or must upgrade your structure through a mainland license.
4. Do free zone companies have to pay corporate tax in 2025?
If your annual income exceeds AED 375,000, then yes, your company is required to pay a 9% corporate tax. But if your revenue is under that limit, you may qualify for Small Business Relief. Always consult a tax consultant to confirm.