Free Trade Zones (FTZs) are specially designated economic areas in the UAE that provide a highly supportive environment for international businesses. Each Free Zone is designed to cater to specific industrial sectors—ranging from technology and media to commodities and logistics—allowing businesses to operate within a specialized ecosystem.
Unlike Mainland companies, Free Zone entities offer 100% foreign ownership without the need for a local partner, coupled with full repatriation of capital and profits. This makes them the primary choice for visionary entrepreneurs and global corporations looking to establish a strategic base in the Middle East.
Juno BizHub provides end-to-end advisory services to help you select the ideal Free Zone that aligns with your specific business activities, budgetary requirements, and future growth plans across Dubai, Abu Dhabi, and the Northern Emirates.
Quick Answer
UAE free zones are special economic areas, each run by its own Free Zone Authority. They allow 100% foreign ownership and full repatriation of profits. Free zone companies must register for Corporate Tax, and those that qualify as a Qualifying Free Zone Person can pay 0% on Qualifying Income. Other income is taxed at the standard rates.
Key Facts
- 100% foreign ownership
- 100% repatriation of capital and profits
- 0% Corporate Tax on Qualifying Income for Qualifying Free Zone Persons, subject to conditions
- No personal income tax in the UAE
Free Zone vs Mainland Setup
| Feature | Free Zone | Mainland |
|---|---|---|
| Ownership | 100% Foreign | 100% Foreign (Most Sectors) |
| Trading Scope | International & within Free Zone | Direct B2B/B2C everywhere in UAE |
| Visas | Limited by desk/office size | Flexible based on office size |
| Audit Requirements | Required by many free zone authorities, and for every Qualifying Free Zone Person | Required for Corporate Tax if revenue exceeds AED 50M or the company is in a Tax Group; some authorities and banks also ask for audits |
Corporate Tax for Free Zone Companies
To pay 0% on Qualifying Income, a free zone company must meet all the conditions to be a Qualifying Free Zone Person. In summary, it must:
If any condition fails, the company is taxed at the standard rates for that period and the following four periods. Juno BizHub reviews your activities before setup so you know where you stand.
Free Zone Setup Process
Select Jurisdiction
Choose the right Free Zone based on your specific industry, budget, and facility requirements (e.g., DMCC, IFZA, JAFZA).
Initial Approval
Submit your business plan, passport copies, and select up to 3 proposed trade names.
Sign Legal Documents
Sign the Memorandum & Articles of Association and the lease agreement for your flexi-desk or physical office.
Obtain License & Visas
Receive your Trade License, Establishment Card, and begin the process for your UAE Residency Visa.
Legal Entities & Structures
The UAE Free Zone regulations provide flexible corporate structures to accommodate different business scales:
Our Premium Standard
Elite Banking
Direct introductions to premier UAE banks including multi-currency account setup support.
Tax Compliance
Strategic corporate tax and VAT planning supported by appropriately qualified professionals.
Concierge Pro
End-to-end visa processing and government liaison services for your entire team.
Frequently Asked Questions
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Key Advantages
- 100% Foreign Ownership from day one
- 100% Repatriation of Capital and Profits with no restrictions
- Possible 0% Corporate Tax on Qualifying Income (conditions apply); no personal income tax
- Customs benefits for goods kept within designated zones, subject to customs rules
- No currency restrictions or exchange controls
- Streamlined licensing through the free zone authority
- Access to world-class logistics and industrial infrastructure
- Eligibility for UAE Residence Visas for owners, employees, and families
- Modern communication networks and smart city services
- Simplified labor recruitment and immigration processes
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