UAE Free Zone FZE vs. FZCO vs. Branch — Entity Type Reference 2026
UAE free zones offer different entity types. Here is the complete reference guide to FZE, FZCO, Branch, and other structures.
In this guide:
UAE Free Zone Entity Types
- FZE (Free Zone Establishment): Single shareholder; one person owns 100% of the company
- FZCO (Free Zone Company): Two or more shareholders; multi-owner structure
- Branch of a Foreign Company: Extension of the parent company; not a separate entity
- Branch of a UAE Company: Branch of an existing UAE mainland or free zone company
- Free Zone LLC (in DIFC, ADGM): Uses LLC structure similar to DIFC LLC or ADGM LLC
FZE vs. FZCO — Which to Choose?
| Feature | FZE | FZCO |
|---|---|---|
| Shareholders | 1 (individual or corporate) | 2-50 (most free zones) |
| Share transfer | More straightforward (1 owner) | Requires shareholder agreement |
| Investor visa | 1 investor visa for owner | Each shareholder can get investor visa |
| Cost | Same as FZCO in most zones | Same as FZE in most zones |
| Common use | Solo founders | Business partners, joint ventures |
Changing Entity Type Later
- FZE to FZCO: Can add shareholder via share transfer; requires free zone approval and updated MOA
- FZCO to FZE: Requires one shareholder to buy out other(s); updated documents
- Timeline: Entity structure changes typically take 2-4 weeks