Company formation in UAE (free zone)
Free zone LLC / FZCO
Legal minimum, year 1£3,100
Legal minimum, per year after£1,500
Typical year 1£9,000
Corporation tax9%Ease Banking
Every fee
Setting up
Government fee£2,500
AED 6,000 to 25,000 licence (renewed yearly)Establishment card£300 to 500
Required
Investor visa and Emirates ID£0 to 1,250
OptionalUsually needed to open a UAE bank account
Formation agent£0 to 600
Optional
Share capitalUsually none
Time to form1 to 3 weeks
Running it, per year
Licence renewal£1,200 to 5,250
RequiredAED 6,000 to 25,000
Establishment card renewal£300 to 500
Required
Audit£0 to 2,100
Practically neededRequired to keep 0% QFZP tax status
Corporate tax and VAT compliance£0 to 1,000
Practically needed
Legal minimum after year 1£1,500
Audit: Often required by the free zone; needed for 0% QFZP statusForeign ownersNo local director or sponsor in free zonesLicence remote; visa and bank account usually need a visit
Tax0% on qualifying free zone income; 9% above AED 375k otherwiseDividend withholding: 0%VAT/GST: 5%
BankingUAE banks usually want a residence visa and visit
Running cost includes licence renewal, which is the main recurring fee.
Questions
- How much does it cost to set up a company in UAE (free zone)?
- The legal minimum for the first year is £3,100, counting only what the law requires and doing every filing yourself. A typical first year, with an accountant, costs about £9,000. The government fee is £2,500 (AED 6,000 to 25,000 licence (renewed yearly)). Share capital is not included.
- How much does it cost per year to run a company in UAE (free zone)?
- The legal minimum after the first year is £1,500 a year. Running costs including optional and practically needed services range from £1,500 to 8,850. Audit: Often required by the free zone; needed for 0% QFZP status.
- Do I need a local director in UAE (free zone)?
- No. No local director or sponsor in free zones.
- Can a non-resident form a company in UAE (free zone) remotely?
- Yes. Licence remote; visa and bank account usually need a visit.
- What is the corporation tax rate in UAE (free zone)?
- 0% on qualifying free zone income; 9% above AED 375k otherwise. Dividend withholding: 0%. VAT/GST: 5%.
- How long does it take to form a company in UAE (free zone)?
- 1 to 3 weeks.
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