free zoneDMCCIFZADIFCUAEcompany registration
UAE Free Zones Guide 2025: Which One Is Right for Your Business?
Comprehensive comparison of 40+ UAE free zones including DMCC, IFZA, DIFC, JAFZA and ADGM. Costs, activities, and how to choose the right one.
Bascore Consulting ·
The UAE is home to more than 40 free zones, each with its own regulator, specialisation, and advantages. Choosing the right free zone can save you significant costs and unlock the 0% corporate tax rate.
What Is a Free Zone?
A free zone is a designated area with its own regulatory authority, offering:
- 100% foreign ownership — no local sponsor required
- Zero or reduced corporate tax (with QFZP status)
- Full profit repatriation — no currency restrictions
- Streamlined registration — from 1 day, often online
- Customs duty exemptions in many zones
Key limitation: Free zone companies cannot directly trade with UAE mainland customers without a local distributor arrangement.
Top UAE Free Zones Compared
DMCC (Dubai Multi Commodities Centre)
- Best for: Trading, finance, consulting, IT, crypto
- Prestige: Best Free Zone in the World (Financial Times, 11 consecutive years)
- Cost: from 18,000–25,000 AED
- Highlights: Largest business community, JLT address
IFZA (International Free Zone Authority)
- Best for: SMEs, startups, wide range of activities
- Cost: from 12,000–18,000 AED
- Highlights: Competitive pricing, flexible packages, visa options
DIFC (Dubai International Financial Centre)
- Best for: Financial services, legal firms, fund management
- Cost: from 25,000–50,000+ AED
- Highlights: English common law, independent courts, prestigious address
JAFZA (Jebel Ali Free Zone)
- Best for: Logistics, trading, manufacturing
- Cost: from 15,000–22,000 AED
- Highlights: Direct access to Jebel Ali Port (world’s 9th largest)
ADGM (Abu Dhabi Global Market)
- Best for: Finance, fintech, crypto investment
- Cost: from 20,000–40,000 AED
- Highlights: Strict FSB-style regulation, high reputational value
Dubai Silicon Oasis / DTEC
- Best for: Tech startups, IT companies
- Cost: from 10,000–15,000 AED
- Highlights: Affordable, coworking infrastructure, startup ecosystem
How to Choose: Checklist
| Factor | What to Consider |
|---|---|
| Business activity | Does the free zone allow your specific activity? |
| Visa quota | How many visas are included or available? |
| Office type | Virtual, flexi-desk, or physical office? |
| Annual cost | Registration + renewal + visa costs? |
| Banking | Which banks work with this free zone? |
| Market access | Do you need to sell to UAE mainland customers? |
The 0% Tax Advantage (QFZP)
Free zone companies can maintain a 0% corporate tax rate by qualifying as a Qualifying Free Zone Person (QFZP):
- Adequate economic substance in the free zone
- Qualified income (intra-free zone or foreign-sourced)
- Non-qualified income ≤ 5% of total or AED 5M
- Transfer pricing compliance
- Audited financial statements
Contact us for a free analysis and free zone selection tailored to your business.