Free Zone Limited Liability Company FZ-LLCUAE · RAKEZ
What it takes to form, own and run a private limited company in UAE · RAKEZ, and how its profit is taxed. Each figure links to the page it was read from.
This company type
At a glance
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Each shareholder is only liable to the extent of his shares in the company
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A FZ LLC shall be permitted to have one (1) or more shareholder and maximum of fifty (50) shareholders subject to the approval of the Registrar.
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Subject to any limitations in the Memorandum of Association, the Company may have one (1) or more Director(s).
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The minimum share capital of an FZ-LLC is AED 10,000 (each share is valued AED 1,000).
Form it
Who registers it
- Registry
- Formed without visiting
- Yes
- Formed online
- Yes
What it takes to form
- A notary
- Not stated
The registry’s and the law’s own pages do not mention it.
- A resident director
- Not required
- Paying up the capital
- The Authority may waive the requirement that share capital be fully paid up; unless it approves otherwise, capital is deposited in a UAE bank account opened for the company under formation (Reg 32).
Own it
Who may own and run it
- Directors
- At least 1 · none need live there · individuals only
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Subject to any limitations in the Memorandum of Association, the Company may have one (1) or more Director(s).
- Shareholders
- At least 1 · at most 50 · a company may be one
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A FZ LLC shall be permitted to have one (1) or more shareholder and maximum of fifty (50) shareholders subject to the approval of the Registrar.
- Members
- At least 1 · at most 50 · one person may form it alone
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A FZ LLC shall be permitted to have one (1) or more shareholder and maximum of fifty (50) shareholders subject to the approval of the Registrar.
- A local company secretary
- Not required
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A Company may have a secretary. A secretary cannot be a Director.
- A local registered agent
- Not required
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A Company shall at all times have a registered office in the Zone to which all communications and notices may be addressed.
Each year, at the registry
- Annual registry fee
- Not in our records
- Accounts on the public record
- Not stated
The registry’s and the law’s own pages do not mention it.
- Audit for a small company
- Required
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Do I need to submit audited financial statements to RAKEZ? Yes, all companies incorporated in RAKEZ jurisdiction are required to prepare and submit audited financial statements for every financial year.
- Audit
- All companies incorporated in RAKEZ jurisdiction must prepare and submit audited financial statements every financial year, by a RAKEZ-approved auditor, within six months of year end; no small-company exemption is stated.
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Do I need to submit audited financial statements to RAKEZ? Yes, all companies incorporated in RAKEZ jurisdiction are required to prepare and submit audited financial statements for every financial year.
Important dates
When each obligation falls due, as the authority states it.
- Submit audited financial statements, prepared by a RAKEZ-approved auditor, to RAKEZ
- 6 months after the end of the accounting period
With RAKEZ
First financial year runs 6 to 18 months from incorporation (Reg 75).
- Renew the RAKEZ licence
- Each year, on the anniversary of incorporation
With RAKEZ
Anchor is the licence issue date, approximated by incorporation. The FAQ gives a late renewal penalty of AED 50 per day.
What is public
- Shareholders
- Public
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The register of Shareholders shall during business hours be open to the inspection of any Shareholder of the Company without charge, and of any
- Beneficial owners
- To the authorities only
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The register of Shareholders shall during business hours be open to the inspection of any Shareholder of the Company without charge, and of any
Tax
Tax on profit
How this company type is taxed, which can differ from its place’s headline rate.
Varies · 9%+3 regimes
UAE Corporate Tax applies to a Free Zone Person; a Qualifying Free Zone Person pays 0% on Qualifying Income and 9% on Taxable Income that is not Qualifying Income (FTA Free Zone Persons guide, s3.3).
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• 0% on its Qualifying Income, and
Special regimes that may apply
- Qualifying Free Zone Person free zone · 0%
A qualifying free zone person Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, art. 18 - Participation Exemption holding · 100% exempt
Taxable persons holding a Participating Interest — a 5% or greater ownership interest in the shares or capital of a juridical person, held or intended to be held for at least twelve uninterrupted months Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, art. 23 - Foreign Permanent Establishment Exemption other
Resident persons with foreign permanent establishments Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, art. 24
Whether a company qualifies depends on its activity and conditions set in each statute.
- CFC rules in United Arab Emirates
- Not in our records
Close it
Closing it
The other end, which most guides leave out.
- Route
- Voluntary or Registrar winding up, de-registration or strike-off under Companies Regulations Part 15 and the FAQ on strike-off.
- Statutory fee
- Not in our records
Every business in UAE · RAKEZ
VAT
- Standard rate
- 5%
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VAT 5% (AED)
- Other rates
- Not stated
- Registration threshold
- AED 375,000 · about €89,335
total value of taxable supplies and imports; previous 12 months, or expected within the next 30 days
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Businesses resident in the UAE: Registration for VAT is mandatory if: - The total value of taxable supplies and imports exceeds AED 375,000 over the past 12 months, or is expected to exceed that threshold within the next 30 days.
- Voluntary registration
- Yes
A resident business below the mandatory threshold may register voluntarily once its taxable supplies, imports or taxable expenses exceed AED 187,500 in the past 12 months or are expected to within 30 days.
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Businesses resident in the UAE that make taxable supplies may register voluntarily for VAT if: - The total value of taxable supplies, imports, or taxable expenses in the past 12 months, or expected in the next 30 days, exceeds AED 187,500 (the voluntary registration threshold).
- A foreign company
- Registers from its first taxable supply; no local representative required
A non-resident business must register for VAT if it makes taxable supplies in the UAE, even where the value of those supplies does not exceed the AED 375,000 threshold, unless another party in the UAE is responsible for settling the VAT on those supplies. Registration is made directly through an EmaraTax account; no representative is required.
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Non-resident businesses: VAT registration is mandatory if: - The business makes taxable supplies in the UAE, even if the value of supplies does not exceed the threshold, unless there is another party in the UAE responsible for settling the VAT on those supplies.
- Returns filed
- Depends on the business
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Once you have registered for VAT in the UAE, you are required to file your VAT return and make related VAT payments within 28 days from the end of your tax period.
- Tax authority
- Registration page read 2026-10-22
Portals and registers
- Business registerMinistry of Finance – Agreements Avoiding Double Taxation
- Tax authorityFederal Tax Authority (FTA)
- Tax treatiesCustoms and Port Security (ICP)
Payment and banking services
2 services name United Arab Emirates on their own list: Paysera, Stripe. Each provider, and what a listing means.
Reference
Its name and code
- Kind
- Private limited companyDerived our grouping, the same words in every country
- Name in law
- Free Zone Limited Liability Company (FZ-LLC)
- Identifier
- AE-RAKEZ-FZ-LLCA form ISO 20275 does not list.