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Home / NRI & Global Services / UAE Free Zone Company
Last updated: 2 October 2026
A UAE free zone company gives you 100% ownership, a base for Gulf and global trade, and residence visas. Our team helps you choose the right free zone and licence, coordinates registration and banking, and completes the Indian overseas investment (ODI) filings.
Each UAE free zone is run by its own authority, with its own list of permitted activities, licence types (such as trading, service or industrial) and visa quotas. A free zone company can be 100% foreign-owned.
Tax: UAE corporate tax applies to financial years starting on or after 1 June 2023 — 0% on taxable income up to AED 375,000 and 9% above that. A free zone company that meets the conditions of a Qualifying Free Zone Person — adequate substance, only qualifying income, audited accounts and arm’s-length pricing — pays 0% on qualifying income. VAT at 5% applies, with registration required above AED 375,000 of taxable supplies. Companies also keep a register of their ultimate beneficial owners.
The Indian side: an Indian resident individual or company investing in the UAE company makes an overseas direct investment (ODI) under the FEMA (Overseas Investment) Rules, 2022, reported through an authorised dealer bank, with an Annual Performance Report by 31 December.
Based on UAE Federal Decree-Law No. 47 of 2022 and the FEMA (Overseas Investment) Rules, 2022. Last updated: 27 September 2026.
Foreign ownership allowed in a free zone company
Corporate tax on taxable income above AED 375,000
On qualifying income for a Qualifying Free Zone Person that meets all conditions
Registration required above AED 375,000 of taxable supplies
Ultimate beneficial owner details kept and filed
Indian residents report the investment through their AD bank
Most problems come from choices made in the first week.
An activity not covered by the licence limits what the company can invoice for.
Banks ask for proof of substance and source of funds; incomplete files are rejected.
0% applies only to qualifying income when every condition is met; otherwise 9% applies.
Compare other overseas options, or plan the Indian reporting.
Indian reporting for your UAE investment.
An Asia-Pacific holding option.
For US investors and customers.
For UK and European markets.
We compare free zones and licence types for your activity.
Trade name reservation and initial approval from the free zone authority.
Company registration and trade licence issued.
Establishment card and residence visas, as needed.
Bank account application; corporate tax and VAT registrations as applicable.
ODI filing through your AD bank, then the yearly APR.
A UAE company has yearly obligations in the UAE and in India.
Trade licence renewed every year with the free zone.
Filed each year, even where the tax due is 0%.
Needed to claim Qualifying Free Zone Person status.
Annual Performance Report by 31 December through your AD bank.
Share your query and our team will reply during business hours.
Yes. Free zone companies can be fully foreign-owned. Indian residents report the investment as ODI through their AD bank.
Not automatically. Corporate tax is 9% on taxable income above AED 375,000. A Qualifying Free Zone Person pays 0% on qualifying income only if it meets all the conditions.
It depends on the bank. Most banks carry out detailed checks and often ask the owner to be present; expect the process to take several weeks.
In most cases no — investment within the limits is made under the automatic route and reported through your AD bank.
Not necessarily. Your Indian tax depends on your residential status and on income that arises in India.
ACS – Director, Expertvuw Management Pvt Ltd
Registration is completed with the free zone authority, and UAE tax filings through licensed UAE tax agents. Indian ODI reporting is prepared by Expertvuw’s team and filed through your authorised dealer bank.