DMCC, IFZA and RAKEZ: Comparing Free Zone Companies

Sources checked: 29 October 2026.

“Set up a company in Dubai” can mean two very different things: running a real business or holding property. Each needs different questions. This guide shows how to compare DMCC, IFZA and RAKEZ without trusting “cheapest” or “best” labels, how to move from idea to a working company and how to build your own three-year cost sheet. We deliberately leave out prices, which change with package and date, and every number in the worksheet is an assumption.

Decide first what the company is for

The first decision is not the zone but the purpose. An operating company has customers, contracts, invoices, usually people and a place to work. A property-holding company mainly has a title deed and tenants. These are different models with different regulators, costs and risks, and bundling them under one “Dubai company” package leads to poor decisions.

Example one: an IT consultant sells services to clients in several countries and wants a company to invoice from, pay contractors and open an account. That is an operating business, and zone comparison fits it. Example two: someone buys a single flat to let and wants “a company to make it cheaper”. That is a question about how property is owned, not about a business, and the answer starts with different institutions (see the risks section).

Before asking any zone anything, answer a few questions yourself:

• What exactly will the company sell, and to whom?
• Who will actually run it, and from where?
• Is a physical premises needed, or is a registered address enough?
• Will the company buy or own anything, including property?

Free zone, mainland and the fact that RAKEZ is another emirate

The u.ae portal, updated 16 April 2026, notes that mainland activities require the appropriate approval or licence and that a free zone does not mean permission for every kind of business. In practice: if your customers are local-market buyers, ask the zone in writing whether your activity is permitted and what extra approval applies.

DMCC and IFZA are in Dubai. RAKEZ is in Ras Al Khaimah, a different emirate, and its own FAQ describes both free zone and non-free-zone options. The emirate matters: it affects address, authorities, and proximity to customers and partners. It must not be read as meaning a company from any jurisdiction can buy any property in Dubai. That is a separate question, answered for a specific company and a specific property.

How to compare DMCC, IFZA and RAKEZ without a price ranking

DMCC’s schedule of charges lists set-up, renewal and package fees, and the packages differ in what they include. IFZA describes commercial and professional options, the ability to work with partners and a tailored package. The consequence is simple: two offers at a similar price can contain very different things, so a “cheapest first” list means nothing until scope is compared.

Instead of asking which zone is best, build your own table and fill it from written offers. Check the same points for every zone, and treat an empty cell as a question, not as zero.

• Licence: type, permitted activities, whether more can be added and at what cost.
• Premises: what is in the package (address, desk, office) and whether upgrading mid-term is possible.
• Visas: how many are included, what is extra and who handles the paperwork.
• Renewal: whether the first-year rate repeats in later years.
• Accounting and audit expectations: whether the zone imposes them, confirmed in writing.
• Exit: fees and documents needed to close the company.

Seven steps from idea to a working company

Order matters, because discovering one constraint late can undo earlier choices. We suggest the sequence below, without timelines, because those depend on the zone and on how complete your documents are.

• Business activities: list what the company will do and check that the zone allows them under one licence.
• Clients: establish where buyers are and whether local sales need an extra approval.
• Staff: count who will work in the company and how many people need visas.
• Premises: choose the minimum the zone accepts for your activity and find out what changes as you grow.
• Banking: research the bank’s requirements before paying for a package (next sections).
• Tax: establish which registrations and filings apply to the company and who will handle them.
• Ownership: write down who owns, who manages and which documents prove the structure.

A licence is not a visa, and a visa is not tax residency

Four things are often confused, and each needs its own confirmation: the company licence, the visa, tax residency and a bank account. A licence does not guarantee a visa, which has its own conditions and process. A visa does not settle tax residency, which turns on separate criteria. Neither gives you a bank account, because the bank decides.

So when reading a zone’s offer, check whether a visa is “included”, “available” or “can be applied for”. Those are three different promises. Also ask what happens to the fees if a visa application is refused.

Business banking: assistance is not a guarantee

IFZA’s banking page describes help with opening an account and states that the documents required depend on the bank and the company structure. An account is not guaranteed. The same principle holds for any zone: an intermediary can prepare an application but does not decide for the bank.

In practice that means three things. Do not treat the account as a formality that follows the licence. Prepare a description of the business, the ownership structure, information about customers and the source of funds, because a bank may ask about each. And plan how the company operates if the account arrives later than the licence. For a wider look at accounts, see UAE bank accounts for international buyers.

UAE tax: a free zone does not mean an automatic zero

According to the FTA’s free zone persons guide (May 2024), the 0% rate applies only to qualifying income and only when conditions are met. Incorporation in a free zone does not deliver it automatically.

Before forming a company, obtain an assessment of its activities and income under current rules. Personal property ownership requires a separate analysis: see personal or company ownership.

Obligations in your home country depend on facts, not on the zone’s name

Before formation, ask an adviser to assess consequences in your country of residence and wherever management actually takes place. Cover company residence, any CFC rules, distributions to owners and record keeping. For personal residence, see our separate guide.

Your own three-year cost worksheet (hypothetical example)

The example below is an arithmetic exercise, not an offer from any zone. Assume a one-off set-up fee of AED 8,000, an annual licence of AED 15,000, an annual office of AED 12,000, annual accounting of AED 6,000 and a closure budget of AED 5,000.

The sum: 8,000 + 3 × (15,000 + 12,000 + 6,000) + 5,000 = 8,000 + 99,000 + 5,000 = AED 112,000. That is before VAT, visas and taxes, which the example leaves out because they depend on the individual case.

Two mistakes come up most. The first is double counting: if the package includes the desk you need, do not count that same cost twice; a separate office may still be an additional expense. The second is forgetting the exit: put the closure cost in from the start.

• Enter only amounts from a written offer and mark gaps as “to confirm”.
• Separate items included in the package from extras.
• Run the scenario with and without a visa as two separate variants.
• Add a line for unknowns instead of pretending there are none.

Why not set up a company solely to avoid tax on one flat

A company adds costs and obligations. Compare them with a specific benefit confirmed by an adviser; a hypothetical worksheet cannot establish whether your own purchase is worthwhile. Also confirm whether the particular entity may acquire the unit.

Before buying, obtain written confirmation from DLD; separately confirm the zone’s and financing bank’s requirements for the exact legal entity, the exact property and the exact ownership structure. Do not assume universal eligibility, asset protection, easier inheritance, tax residency or visa rights. Property costs are covered in Dubai apartment buying and ownership costs, and the purchase process in buying property in Dubai step by step.

What to request from each zone in writing

The best comparison tool is one enquiry sent to every zone, with answers recorded in one format. Ask for an all-in cost in writing for four moments: the first year, a renewal year, year three and exit. Ask also for a list of included and excluded items, and for confirmation of which renewal, banking, accounting, UBO records and audit requirements apply in that jurisdiction. They are not identical everywhere.

Compare the zone’s answers with your bank’s position and legal and tax advice. This guide helps prepare a comparison; it does not replace an assessment of your particular business.