Free Zone Company (FZCO) in United Arab Emirates — Import / Export & Trading Formation Guide
Choose a jurisdiction with strong logistics infrastructure, favorable customs agreements, and access to major trade blocs (like the EU or US). Consider VAT deferral schemes and free trade zones.
Last verified: June 13, 2026
Corporate Tax
9.0%
State Tax
0.0%
Formation Cost
$3,500
Annual Fee
$3,500
Forming a Free Zone Company (FZCO) in United Arab Emirates as a Import / Export & Trading means a total tax burden of 9.0% and an official formation cost of $3,500. There is no minimum capital requirement. Standard formation takes 3-7 business days, or 1-2 business days expedited. No local director is required; the process can be managed remotely. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.
First-year total cost
≈ $3,500
Ongoing (per year)
≈ $3,500
Why Free Zone Company (FZCO) for Import / Export & Trading?
A business model focused on sourcing goods from one country and selling them in another. Success relies heavily on supply chain efficiency, customs compliance, and navigating international trade tariffs.
Ideal for
- Physical product brands
- Wholesalers and distributors
- Dropshippers scaling to bulk inventory
- Cross-border B2B traders
Challenges to watch
- Complex customs and import duties
- High shipping and logistics costs
- Cash flow management due to inventory delays
- Regulatory compliance across multiple jurisdictions
Key decision criteria
- Proximity to major ports or logistics hubs
- Availability of Free Trade Zones (FTZs)
- VAT and sales tax registration requirements (e.g., EORI in the EU)
- Double taxation treaties between sourcing and selling countries
Free Zone Company (FZCO) formation requirements
Minimum capital
None
Standard timeline
3-7 business days
Expedited timeline
1-2 business days
Local director
Not required
Registered office
Virtual office allowed
Notarization
Not required
100% foreign ownership is allowed. A local director is not required, but a resident manager may be needed depending on the Free Zone.
Estimated breakdown (based on avg. $1,000,000 revenue)
Simulate with your own revenue →
VAT / Sales Tax
Standard rate 5%. Registration threshold: 102,110 USD. Non-resident providers of digital services must register for VAT if they make supplies to non-registered consumers in the UAE, with no minimum threshold.
Banking & payments for Import / Export & Trading
Opening a corporate bank account in the UAE can be challenging and time-consuming due to strict Central Bank AML/KYC regulations. While traditional banks often require in-person visits, extensive documentation, and high minimum balances, digital platforms like Wio Bank have significantly streamlined the process for founders who have already secured their UAE residency visa and Emirates ID.
Supported payment gateways
Remote-friendly accounts
Wio Bank
A leading digital bank in the UAE offering fast, fully digital account opening for SMEs and Free Zone companies, provided the founder has an Emirates ID.
Mashreq NeoBiz
The digital business banking arm of Mashreq Bank. It offers a streamlined application process tailored for startups and Free Zone entities.
Payoneer
A global payment platform widely used by UAE-based e-commerce and service businesses to receive USD, EUR, and GBP from international clients.
United Arab Emirates incentives & advantages
0% Corporate Tax on Qualifying Income
0% corporate tax rate instead of the standard 9%.
Small Business Relief (SBR)
Full relief from corporate tax liability.
Free Zone Company (FZCO) formation steps
Choose your business activities and select the most suitable Free Zone (e.g., IFZA, DMCC, RAKEZ).
Submit the company name for approval to the respective Free Zone Authority.
Prepare and submit the application form along with passport copies and a business plan (if required).
Sign the incorporation documents and lease agreement for your flexi-desk or office space.
Pay the Free Zone license, registration, and facility fees.
Receive your electronic Trade License, Certificate of Incorporation, and Memorandum of Association.
Apply for the Establishment Card to register your company with the UAE immigration authorities.
Process your UAE residency visa, including the entry permit, medical fitness test, and Emirates ID biometrics.
Open a corporate bank account with a UAE digital or traditional bank (e.g., Wio, Mashreq, Emirates NBD).
Import / Export & Trading FAQ
Do I need a company in the country I am importing to?
Not always. You can often act as a Non-Resident Importer (NRI), but having a local entity can simplify customs, VAT registration, and local banking.
What is an EORI number and do I need one?
An Economic Operators Registration and Identification (EORI) number is required for businesses importing or exporting goods into or out of the European Union.
Should I incorporate in a Free Trade Zone (FTZ)?
FTZs offer tax exemptions and simplified customs procedures, making them ideal if you plan to re-export goods without them entering the local domestic market.
Ready to form your Free Zone Company (FZCO)?
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Related guides
Complete Free Zone Company (FZCO) guide
Taxes, requirements, banking, compliance
Free Zone Company (FZCO) cost calculator
One-time and annual cost breakdown
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