Overview

Meydan Free Zone, or MFZ, is an economic free zone located in central Dubai. It offers a business address with proximity to key commercial hubs, including Dubai Airport and Downtown. MFZ is designed to support entrepreneurs, startups, and established businesses by providing a reasonably-priced, business-friendly environment with good infrastructure, and some flexible office solutions. Companies in the MFZ are incorporated as Free Zone Limited Liability Companies (FZ-LLCs).

Usage Cases

Meydan Free Zone is suitable for a variety of use cases:

Startups and Freelancers

Startups and Freelancers are attracted to its low-cost licensing, and to the minimal capital deposit requirements that make it ideal for entrepreneurs and solo professionals.

Trading business

Trading and commercial business companies can engage in import/export, retail, or general trading and have the option to combine up to three activities under one commercial license at no extra cost.

Consultancy

Service-based businesses such as consulting and professional services, HR, finance, and IT consulting are popular options using a professional license.

Media Companies

Media and Creative Ventures such as advertising, web design, digital marketing and content creation.

Operational Company

Companies who are looking to get a base in the UAE are very wel suited to a Meydan Freezone company as well.

Tax Status

Meydan Free Zone offers a low tax regime. Corporate Tax is now at 9%. It is possible for free zone companies in MFZ to qualify for a 0% rate if they meet a detailed set of requirements which include that they are conducting "qualifying activities" which includes fund management services, wealth and investment management services, manufacturing, owning and holding shares, but not trading. Companies must also maintain adequate economic substance. The precise details of the 0% tax rate are extensive and require advice from a tax specialist.

Personal income tax is 0% across the UAE. Imports and Exports through free zones are exempt from VAT, but 5% VAT applies to transactions within the UAE mainland. The threshold to register for VAT is AED 375,000 annually. Quarterly or monthly VAT returns are required.
There are no capital gains or property taxes.

Privacy

The details of directors, managers, and shareholders are not publicly disclosed. Companies must maintain a UBO register, accessible to MFZ authorities, in order to comply with anti-money laundering regulations, but this UBO register is not public. The use of nominees is not explicitly prohibited, but it is not favoured or generally done. According to the Meydan Free Zone regulations only individual directors, and not corporate directors are permitted. Directors are expected to have genuine involvement in the company’s management.
MFZ adheres to UAE data protection standards governing the secure handling of business data during transactions and onboarding.

Onboarding

The onboarding process in Meydan Free Zone is streamlined into a simple process.
Choose a company name and business activity. Apply using the MFZ online portal or through your service provider. This includes submission of required documents including passport copy, digital photo, and, if applicable, Emirates ID copies for shareholders. Pay a licensing fee. Once your application has been checked and approved you will receive your initial approval, followed 3-7 days later by your new business licence. No physical attendance is required for setup. Dedicated offices are not mandatory and flexi-desk arrangements are acceptable. Once the business licence has been received this enables an application for an annual Establishment card. This helps meet residency laws and helps to apply for visas through the company, and may be required by banks for account opening. This application is also managed through the online portal, along with its annual renewal.

KYC Process

The Know Your Customer (KYC) process ensures compliance with AML regulations. In the case of the Meydan Free Zone this process and the accompanying background checks are conducted via the MFZ online portal and overseen by the Free Zone Authority. In line with other KYC processes the document required include passport copies and photos of shareholders and directors. Corporate shareholders should provide their certificate of incorporation, incumbency, memo of articles, and board resolution.

Entity Maintenance

Licences must be renewed each year although it may be possible to obtain a 10-year licence in some cases. The renewal process is relatively expensive, but reporting requirements are fairly light which may reduce costs. If you have obtained residence visas through the company, these must be maintained also.

Renewal Periods

The business licence and the establishment card require renewal every year, 12 months after it was issued. Penalties apply if the renewal is over 30 days late, and suspension of the licence is possible in very late cases. If you are using a flexi-office arrangement, this will also need to be kept up to date.

Reporting

Reporting requirements are overall fairly light. Accurate accounting records must be kept, but annual financial statements are not required to be audited or submitted, except for some specific activities. For VAT-registered companies, VAT returns are required, due within 28 days of the period end. There is no economic substance report required, but companies who have applied for tax benefits must still maintain substance in order to continue to qualify for those tax benefits. An updated UBO register must be maintained, but only needs to be submitted to MFZ upon request.

Shutting Down Your Entity

If a license isn’t renewed after 30 days after expiry, the MFZ may automatically cancel it along with any related visa services.
To close the company in a more planned way the process is to submit a formal request via email to MFZ. Any outstanding fees, taxes, or liabilities must be paid. Any residency visas are to be returned and the refundable deposits will be paid back to you. Finally, obtain a clearance certificate and deregister the entity. This process may be completed within a few weeks.