Free Zone
A designated area in the UAE where businesses enjoy 100% foreign ownership, zero income tax, and full profit repatriation.
Free zones are special economic areas established by the UAE government to attract foreign investment. Companies registered in free zones benefit from 100% foreign ownership (no local sponsor required), zero personal income tax, full repatriation of profits and capital, exemption from import and export duties within the zone, and simplified setup procedures.
Each free zone is governed by its own authority and has specific regulations. As of 2026, there are over 40 free zones across the seven emirates, each specializing in different industries.
Related Terms
Mainland Company (LLC)
A business registered under the UAE Department of Economic Development (DED), allowing trade anywhere within the UAE and internationally.
Trade License
The official government permit required to conduct business in the UAE, specifying the activities a company is allowed to perform.