Activity first, then the licence
Free zones offer different legal forms and permitted activities. Availability and requirements must be checked with the specific authority. Mainland operations may require additional approvals or a separate presence; a free zone licence alone may not cover them.
The general corporate tax regime
Under the general corporate tax regime, taxable income up to AED 375,000 is subject to 0%, with 9% on the excess. This is not a turnover tax. Assess the taxpayer’s status, tax base and eligibility for any special treatment before modelling the result.
Free zones: the 0% rate has conditions
Free zone incorporation does not automatically secure a zero tax rate. Qualifying Free Zone Person treatment depends on income type, adequate substance and compliance with specific requirements. Eligibility needs a transaction-level assessment and ongoing attention.
Accounting and operations
Our operating budget covers licence renewal, premises, accounting, tax procedures and support. Before incorporation, map the obligations for the chosen zone and activity and assign responsibility for records and filings.
Banking, payments and residence
For bank discussions we prepare a clear chain from customer to contract, goods or services, and payment. Owner and employee visas are considered separately. Incorporation is not treated as automatic banking or immigration approval.
Before we talk
What helps us get started.
A short overview is enough. We can agree the documents and details after discussing your needs.
- Activities and sales markets
- Mainland, free zone and overseas transactions
- Expected turnover, income and staffing
- Premises, visa and banking needs
Common questions
Do all free zone companies pay 0%?
No. Treatment depends on the company’s status, income and compliance with conditions, which should be assessed before choosing a zone.
Can a free zone company sell on the mainland?
Check the permitted structure, licence and approvals for the particular activity and emirate.
Official sources
Primary sources for your own review.
This guide provides general information as of the review date. Company, tax and relocation decisions require an assessment of the circumstances, applicable law and current requirements.