UAE Free Zone FAQ — 50 Most Asked Questions Answered 2026
The most frequently asked questions about UAE free zone companies answered in one place for 2026.
In this guide:
Company Setup Questions
- How long does UAE free zone setup take? Typically 3-7 working days for the trade licence. Visa takes an additional 2-3 weeks.
- Can a foreigner own 100% of a UAE company? Yes, 100% foreign ownership in all free zones (and most mainland sectors since 2021).
- Do I need to visit UAE to set up a company? The trade licence can be done remotely; UAE visa requires physical presence for medical test and biometrics.
- What is the minimum age to open a UAE free zone company? 18 years old.
- Can I have multiple UAE free zone companies? Yes, no limit on the number of UAE companies you can own.
- Can my UAE free zone company own shares in another company? Yes, including overseas companies.
- Do I need a UAE partner or sponsor? No. Free zones are 100% foreign-owned structures with no UAE partner requirement.
- Can a company (not an individual) be the shareholder? Yes. Corporate shareholders are allowed in most UAE free zones.
Cost and Banking Questions
- What is the cheapest UAE free zone? UAQ Free Trade Zone (AED ~10,000) and SPC Free Zone (AED 13,165).
- Do I need a minimum share capital for UAE free zone? Most UAE free zones have no paid-up share capital requirement (share capital is nominal).
- What is the minimum bank balance for a UAE business account? Wio Business has no minimum. ENBD requires AED 10,000+.
- Can I open a UAE bank account without visiting? Wio Business allows online opening; most traditional banks require a branch visit.
Tax Questions
- Is there income tax in UAE? No personal income tax in UAE.
- What is the UAE corporate tax rate? 0% under AED 375,000 or if qualifying free zone income; 9% above AED 375,000 on taxable income.
- Do I pay tax in my home country on UAE income? Depends on your home country rules. Genuine UAE tax residents with 183+ days in UAE generally reduce or eliminate home-country tax on UAE income — get local advice.
- Is VAT applicable in UAE? Yes, 5% VAT on taxable supplies in UAE. Registration mandatory above AED 375,000.
Visa Questions
- Does a UAE free zone company give me a UAE visa? Yes, investor visas are issued through the company.
- How many visas can I get with my UAE free zone company? Depends on office package: typically 1-6 visas on flexi-desk plans.
- Can I sponsor my family on a UAE investor visa? Yes, spouse, children, and in some cases parents.
- Can I work in Dubai with a free zone investor visa? The free zone investor visa allows you to live in UAE and run your free zone company, but technically you cannot work for a UAE mainland company on a free zone investor visa without a separate work permit.