A UAE FZCO can be 100% foreign-owned, qualifies for 0% corporate tax on qualifying income, and opens the door to UAE residency. Everything you need to know.
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Entrepreneurs from high-tax countries who want to structure their business internationally face complexity: nominee structures, opaque jurisdictions, or entities that banks reject. They need a clean, bankable structure in a credible jurisdiction.
FIXE GROUP sets up your UAE Free Zone company from entity selection and incorporation through banking — guaranteed. We pair the structure with a UAE residency visa to combine business and personal tax optimization in one move.
A UAE Free Zone Company (FZCO) is a legal entity registered in one of the UAE's 40+ designated free zones. It can be 100% foreign-owned, requires no local partner, and benefits from 0% corporate tax on qualifying income under UAE Federal Decree-Law No. 47 of 2022. It also serves as the basis for a UAE residency visa, enabling access to the UAE's 0% personal income tax environment.
The UAE introduced its federal Corporate Tax Law in June 2023, setting a standard rate of 9% on taxable income above AED 375,000 (~$102,000). However, Qualifying Free Zone Persons — entities registered in a designated free zone that meet substance and income source requirements — are taxed at 0% on their Qualifying Income.
Qualifying Income includes income from transactions with other free zone entities, income from certain foreign-source transactions, and income from Qualifying Activities under Cabinet Decision No. 100 of 2023. Excluded (and taxed at 9%) is income from domestic UAE customers, real estate, and certain financial services. For a consulting or digital services business with international clients, the vast majority of income will typically qualify.
Over 40 free zones operate in the UAE. The most business-friendly for international entrepreneurs include: DIFC, ADGM, DMCC, Meydan Free Zone, and RAKEZ. Each has different activity lists, minimum capital requirements, and office requirements. Selecting the wrong free zone can create costly mismatches with your business activities.
An FZCO establishment entitles the founder to apply for a UAE residency visa (investor or partner visa, typically 2–3 years, renewable). UAE residency, combined with 183+ days in-country, can establish UAE tax residency — where there is no personal income tax. Banking remains a critical step: UAE banks conduct thorough KYC. FIXE GROUP guarantees account opening as part of its International Structures service.
Legal basis
UAE Federal Decree-Law No. 47 of 2022 (Corporate Tax Law)
Cabinet Decision No. 100 of 2023 (Qualifying Activities)
Ministerial Decision No. 265 of 2023 (Qualifying Income)
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