Key takeaways
- Masdar City free zone company setup means licensing a company with Masdar City Free Zone (MCFZ), the free zone authority inside Masdar City, Abu Dhabi’s sustainable urban district next to Zayed International Airport. It now operates under Abu Dhabi Law No. 6 of 2023, which replaced Law No. 22 of 2007.
- Three legal forms: a free zone limited liability company (its name must end in “Limited”), a branch of a foreign company, or a branch of a UAE company. There is no minimum share capital, and one natural person can be the sole director.
- Published packages start at AED 7,000 (licence and registration only, up to two activities). The Business One package is AED 17,500 with one visa, a flexi desk and the establishment card; the Enterprise package is AED 27,000 with a three-visa quota. VAT at 5% is added.
- Your desk decides your Masdar City Free Zone visa quota: the leasing page lists a flexi desk lite (AED 2,000, one visa) up to a dedicated desk (AED 20,000, four visas).
- Visas run through ICP, not GDRFA Dubai. MCFZ publishes its visa costs: establishment card AED 1,600, e-channel registration AED 2,600, a two-year employment visa package AED 3,050 and a refundable AED 2,500 deposit per employee.
- Masdar City is known for clean energy, life sciences, AI, smart mobility (SAVI), agri-tech (AGWA) and space tech, and offers freelancer, non-profit and temporary event licences alongside standard ones.
- It is not a VAT designated zone, so it suits service, research and technology companies better than goods traders. The 0% corporate tax rate still needs Qualifying Free Zone Person status.
Masdar City free zone company setup is the process of registering and licensing a company with Masdar City Free Zone (MCFZ), the authority that licenses businesses inside Masdar City, a planned low-carbon district in Abu Dhabi about 20 minutes from downtown and minutes from Zayed International Airport. MCFZ’s current regulations define it as “Masdar City as reorganized under Law No. (6) of 2023 of Emirate of Abu Dhabi”, which replaced the 2007 law that first set up the zone. It issues its own business, freelancer, non-profit and temporary licences, registers limited liability companies and branches, leases desks and offices, and sponsors staff visas. It is best known for renewable energy, life sciences, artificial intelligence, autonomous mobility and research-led start-ups, and for what MCFZ calls “one of the largest clusters of LEED Platinum-certified buildings globally”.
This guide is for founders, research teams and international companies comparing the Masdar City Free Zone with other Abu Dhabi and Dubai options. It covers the legal forms and licences, the documents, every package, desk and visa fee MCFZ publishes (with the date we read them), residency, tax, mainland access and ongoing compliance. If you are still weighing up a free zone against the mainland for business setup in Dubai or Abu Dhabi, start with our free zone vs mainland guide; our Abu Dhabi free zones guide compares MCFZ with ADGM, KEZAD, twofour54 and the airport free zone, and the UAE free zones guide covers the whole country.
Every figure below comes from Masdar City Free Zone’s own pages and 2026 regulations, ADDED, the Federal Tax Authority’s designated zones list and the federal tax rules, read on 26 September 2026. Where MCFZ’s pages disagree, we show both figures.
Masdar City Free Zone at a glance
| Question | Short answer | Official basis |
|---|---|---|
| Licensing authority | Masdar City Free Zone (MCFZ), with a Registrar of companies and a One-Stop Shop | MCFZ Company Registration Regulations |
| Legal basis | Abu Dhabi Law No. 6 of 2023 (replacing Law No. 22 of 2007); MCFZ Company Registration, Business Licensing and Employment Regulations (2025, published as the 2026 set) | MCFZ Regulatory Framework page |
| Location | Masdar City, Abu Dhabi; MCFZ says 5 to 10 minutes from Zayed International Airport, 20 minutes from downtown, 45 minutes from Dubai | masdarcityfreezone.com |
| Established | Under Law No. 22 of 2007; reorganised by Law No. 6 of 2023 | MCFZ regulations |
| Best for | Clean energy, clean tech and ICT, AI, life sciences, smart and autonomous mobility, agri-tech and water, space tech, consulting and regional headquarters | MCFZ licence and cluster pages |
| Legal forms | Free zone LLC (name ends “Limited”); branch of a foreign company; branch of a UAE company | MCFZ “License and Registration”; Regulations cl. 5.3 |
| Licence types | Business licence; freelancer licence; non-profit licence; temporary licence for events | Business Licensing Regulations |
| Setup time (official) | “Within a few working days once all required documents are submitted and approved” | MCFZ licence page FAQ |
| Visa allocation basis | By desk or package: 1 visa (flexi desk lite) up to 4 (dedicated desk); larger offices by agreement; MCFZ may limit numbers “in its absolute discretion” | MCFZ leasing page; Employment Regulations 4.11 |
| Office options | Virtual desk, flexi desks, dedicated desks, serviced and custom-built offices, life sciences lab space | MCFZ leasing and licence pages |
| VAT designated zone | No; Masdar City is not on the FTA’s designated zones list | FTA list under Cabinet Decision 59/2017 as amended |
| Mainland route | No operation outside Masdar City on the MCFZ licence alone “unless expressly authorized in writing”; distributor, ADDED licence or mainland company | Business Licensing Regulations; ADDED |
| Website and contact | masdarcityfreezone.com; 800 6239 | masdarcityfreezone.com |
Two features define the zone. It is an urban campus rather than an industrial park: you lease desks and offices among universities, labs and cafes, not warehouses. And its regulations were rewritten from scratch in 2025, so older articles quoting minimum capital, two-director rules or GDRFA processes are out of date.
What the Masdar City Free Zone is known for
Masdar City Free Zone’s home page says the zone hosts “2500+ companies”, while its “Business Enabler” page says “over 1,000 organizations”. Both are MCFZ’s own figures, and the pages are undated. Either way, it is one of Abu Dhabi’s larger free zones by number of companies, built around research and sustainability rather than trade.
The clusters MCFZ promotes
- Life sciences: a cluster opened in 2020 that MCFZ says is designed to grow from 18,000 to 70,000 sq m, with basic and pre-clinical research, clinical trials and health logistics, working with the Department of Health Abu Dhabi and the Abu Dhabi Investment Office.
- Smart and autonomous mobility (SAVI): the Smart and Autonomous Vehicle Industry cluster, which MCFZ says was “established by Abu Dhabi Department of Economic Development and ADIO in October 2023”, plus the district’s driverless Personal Rapid Transit.
- AgriFood Growth and Water Abundance (AGWA): agri-tech and water technology.
- Artificial intelligence, energy and space tech: with the UAE Space Agency named as the regulator for space activities.
Who is there
Masdar City Free Zone’s own site quotes tenants such as CellSave Arabia (stem cell technology), Air Q (drone systems), Aliensense and Global Logistics Projects, and names the GEMS Founders Net Zero Energy School and an AI research university inside the city. The mix is start-ups, research spin-outs and regional offices of technology and energy groups.
How Masdar differs from other Abu Dhabi zones
- Compared with ADGM, it is not a financial centre and has no financial regulator; MCFZ says it has partnered with ADGM so that its companies can opt into ADGM’s common law framework.
- Compared with KEZAD, it has no industrial land, bonded warehouses or designated zone VAT treatment.
- Compared with twofour54, it targets science and technology rather than media and gaming.
- It publishes a complete fee table for packages, desks and visas, which many Abu Dhabi zones do not.
Masdar City Free Zone legal forms
Masdar City Free Zone offers three structures. Its 2025 Company Registration Regulations state that the federal Commercial Companies Law of 1984 “shall not apply” except where the regulations incorporate it, so the free zone rules govern the company.
| Point | Free zone LLC | Branch of a foreign company | Branch of a UAE company |
|---|---|---|---|
| Legal person | Separate company | Part of the parent | Part of the parent |
| Shareholders | “Any one or more persons”, individual or corporate (cl. 5.1) | The foreign parent | The UAE parent |
| Name | Must end with “Limited” (cl. 5.3(a)) | Parent’s name | Parent’s name |
| Share capital | “No minimum or maximum Share capital requirement, unless otherwise Prescribed by the Registrar” (cl. 5.3(d)) | None of its own | None of its own |
| Directors | “At least one natural person acting as Director”, aged 18 or over (cl. 44) | Branch manager | Branch manager |
| Secretary | “Every Company shall have a secretary” (cl. 63) | Not applicable | Not applicable |
| Registered office | In Masdar City “at all times” (cl. 43.1) | In Masdar City | In Masdar City |
| Articles | Must follow MCFZ’s template “unless otherwise approved” (cl. 5.3(f)) | Parent’s constitution | Parent’s constitution |
Masdar City Free Zone’s marketing pages call the company an “FZ-LLC”; the regulations require the suffix “Limited”. Use the form MCFZ’s Registrar approves at name reservation. A sole founder can be shareholder and director, but still needs a secretary, who can be a second person or a corporate service provider.
Masdar City Free Zone licence types and activities
The Business Licensing Regulations create four kinds of licence, all for one year, renewable yearly (temporary licences are “not renewable”).
- Standard business licence for companies and branches, covering the activities MCFZ’s Board publishes.
- Freelancer licence for individuals.
- Non-profit business licence for associations.
- Temporary licence for sporting and other specified events.
Activity categories
Masdar City Free Zone says it offers “over 1,000 approved activities” and groups them into categories: renewable energy; clean tech and information and communication technology; marketing and events; human resources; energy; healthcare services; service providers; property development services; regional headquarters, trading and holding companies; business centres and data centres; oil and gas services; and retail, food and beverage. Its activity search is part of the online portal rather than a public list.
Special activities cost more
The packages exclude “special activities” in these segments: associations (1.11), service providers (5.1), regional headquarters (5.3), onshore and offshore oil and gas services (16), retail (22) and space (24). Extra activities cost AED 2,500 each for a general activity and AED 5,000 each for a special activity. A special trade name costs AED 1,000 more, “subject to DED approval”.
Outside approvals
Licensees must “obtain and at all times during the Term of the License maintain all permits, authorisations and Licenses” required by law. Masdar City Free Zone names the Department of Health Abu Dhabi for life sciences and the UAE Space Agency for space tech; clinical, pharmaceutical, drone, telecom and energy activities usually need a sector regulator as well.
Masdar City Free Zone company setup process, step by step
Masdar City Free Zone sets out six steps on its licence page. The table adds what happens at each and the published time.
| Step | What happens | Official time |
|---|---|---|
| 1. Choose activities | Pick from the approved list; check whether any is a special activity | Not published |
| 2. Choose structure | LLC, foreign branch or UAE branch | Not published |
| 3. Apply online | Application and name reservation on the MCFZ e-services portal | Not published |
| 4. Documents and approvals | KYC, corporate documents, UBO; approvals “from Abu Dhabi authorities and the free zone regulator” | Attestation abroad not counted |
| 5. Licence | Sign the legal documents; licence, registration certificate and portal access issued | “Within a few working days” of complete documents |
| 6. Desk and visas | Lease a desk or office; establishment card, e-channel, visas | Not published |
| 7. Bank, UBO, tax | Bank account; UBO record within 60 days; corporate tax registration within three months | Cabinet Decision 109/2023; FTA Decision 3/2024 |
The federal u.ae statement is that free zone authorities approve applications “within 14 working days”. Masdar City Free Zone’s “few working days” is the faster, zone-specific figure once the file is complete. Attesting foreign corporate documents usually takes longer than both.
Documents required for Masdar City Free Zone company setup
Masdar City Free Zone lists documents in general terms (“passport copies, application forms, business activity details and legal incorporation documents”) and requests the rest through the portal. Based on the regulations and standard free zone KYC, expect:
- Individual shareholders, directors, secretary: passport copy, UAE visa and Emirates ID if resident, a CV or profile, proof of address, and a no-objection letter from a UAE employer where relevant.
- Corporate shareholders and branch parents: certificate of incorporation, memorandum and articles, certificate of good standing, a board resolution to set up the company or branch and appoint the director or manager, a power of attorney, and the register of directors and shareholders. Foreign papers are normally notarised, legalised and attested by the UAE embassy and the UAE Ministry of Foreign Affairs (see our attestation guide).
- Beneficial ownership: MCFZ asks every company to declare and keep a record of beneficial owners holding 25% or more under Cabinet Decision 109 of 2023, with full name, nationality, date and place of birth, address, ID details and the dates ownership started or stopped.
- Articles of association on MCFZ’s template.
- Sector approvals where the activity needs them.
Masdar City Free Zone packages and costs
Masdar City Free Zone publishes packages, desk prices and visa costs on its licence and leasing pages. We read them on 26 September 2026. The site shows prices with the new dirham symbol; we write AED.
Masdar City Free Zone packages: what each includes
| Package | Price (AED) | Activities | What is included |
|---|---|---|---|
| Startup | 7,000 | Up to 2 | Licence and registration only; no desk or visa |
| Innovation (start-ups and research) | 12,000 | Up to 3 | Licence and registration, 2-visa quota, flexi desk lease |
| Business One | 17,500 | Up to 3 | Licence and registration, “one free visa”, flexi desk lite lease, establishment card, e-channel fees, visa medical exam, Emirates ID application |
| Enterprise | 27,000 | Up to 6 | Licence and registration, 3-visa quota, flexi desk plus lease |
Masdar City Free Zone’s remarks under the table: charges “are subject to 5% VAT”; activities are “limited and subject to approval”; a special name adds AED 1,000; extra activities cost AED 2,500 (general) or AED 5,000 (special). A footnote says start-up package clients “convert to signature package upon completion of 3 years”, so the entry price does not last indefinitely; MCFZ does not publish the signature package price.
Desks and offices
| Workspace | Price per year (AED) | Visa allocation | Source page |
|---|---|---|---|
| Flexi desk lite | 2,000 | 1 | Commercial Leasing |
| Flexi desk | 6,000 | 2 | Commercial Leasing |
| Flexi desk plus | 10,000 | 3 | Commercial Leasing |
| Dedicated desk | 20,000 | 4 | Commercial Leasing |
| Virtual desk | 6,000 | Not stated | License and Registration |
| “Flexidesk” | 10,000 | Not stated | License and Registration |
The two pages price a flexi desk differently (AED 6,000 on the leasing page, AED 10,000 on the licence page). We read the licence page’s “Flexidesk” as the flexi desk plus, but the pages do not say so. A refundable deposit equal to two months’ rent applies to flexi desk leases, and Masdar City Free Zone says its visa-cost rates include VAT “except for lease”. Serviced and custom offices are quoted on request.
Masdar City Free Zone visa and immigration costs
| Item | AED | Note |
|---|---|---|
| Immigration establishment card | 1,600 | One-time fee |
| E-channel registration | 2,600 | One-time; annual renewal shown as “D 1,6000/-“, which appears to be a typo for AED 1,600 |
| Employment visa deposit | 2,500 | Per employee; refunded after visa cancellation |
| Employment visa package, 2-year visa | 3,050 | Excludes medical test and Emirates ID |
| In-country entry permit | 800 | If the person is already in the UAE |
| Local amendment or change of status | 900 | If applicable |
| Medical fitness test | 350 | |
| Emirates ID | 450 | For 2 years |
A first-year budget, worked from the published figures
A founder who wants one residence visa and the cheapest route that includes it might compare two paths:
- Business One: AED 17,500 plus 5% VAT (AED 875) = AED 18,375, which already includes the desk, establishment card, e-channel, medical and Emirates ID application and “one free visa”. Ask MCFZ in writing whether the AED 3,050 visa package and the AED 2,500 deposit are also covered.
- Startup plus desk and visa: AED 7,350 (with VAT), a flexi desk lite at AED 2,000, establishment card AED 1,600, e-channel AED 2,600, visa package AED 3,050, medical AED 350 and Emirates ID AED 450. That is about AED 17,400, plus the refundable AED 2,500 visa deposit and a two-month desk deposit.
The two routes land within about AED 1,000 of each other. If Masdar City Free Zone confirms that Business One’s “one free visa” covers the AED 3,050 visa package, Business One is clearly cheaper; if not, the Startup route is slightly cheaper for the same flexi desk lite. Get the answer in writing before you pay.
Add health insurance, which Abu Dhabi requires for employees, and any attestation costs. Masdar City Free Zone’s cost calculator gives a personalised estimate by email.
Masdar City Free Zone office and facility options
Securing space is part of licensing: Masdar City Free Zone’s leasing page says the lease “determines visa eligibility, operational capacity, and compliance with free zone regulations”. The practical choice is:
- Flexi desks and dedicated desks for one to four visas, sold with the packages or separately.
- Serviced and custom-built offices in Masdar City’s LEED-rated buildings for larger teams, quoted on request; visa numbers are agreed with MCFZ.
- Laboratory and life sciences space in the life sciences cluster, for research, pre-clinical work and trials.
- Virtual desk (AED 6,000 on the licence page) for a registered presence without staff visas.
Masdar City has no warehouses or industrial plots for general trading. Companies that hold stock usually pair a Masdar office with a third-party logistics provider elsewhere, or look at KEZAD or the Abu Dhabi Airports Free Zone.
Masdar City Free Zone visa and residency rules
Residence visas for Masdar City companies are federal Abu Dhabi visas issued through the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP). Masdar City Free Zone’s legal page still refers to its “collaboration with Abu Dhabi’s General Directorate of Residency and Foreigners Affairs”; residence in Abu Dhabi is handled by ICP today, and Dubai’s GDRFA plays no part.
Who sponsors the employee
Under the Employment Regulations 2025 (version 2.0, March 2026), Masdar City Free Zone sponsors employees through its Government Services Entity, or through “a company authorized by MCFZ”. The employer pays all permit, ticket and health card costs and is “prohibited from charging these costs to the Employee”. Sponsored staff “shall only work from Masdar City” but may live elsewhere and move freely in the UAE (reg. 4.3); MCFZ can allow outside work for “specialist consultancy, advisory or installation or repair and maintenance work” (reg. 4.4). MCFZ “may, in its absolute discretion, limit the number of Employees” it sponsors (reg. 4.11).
The visa steps
- Establishment card (AED 1,600) and e-channel registration (AED 2,600) for the company.
- Entry permit, or an in-country permit (AED 800) and change of status (AED 900) if the person is already in the UAE.
- Medical fitness test (AED 350) and Emirates ID biometrics (AED 450); see our UAE visa medical test guide and biometrics guide.
- Health insurance and residence issuance (two-year employment visa package AED 3,050).
- Employment contract signed on the minimum terms of Federal Decree-Law No. 33 of 2021 and filed within 48 hours of the employee’s arrival (regs. 13.5 and 13.6).
The AED 2,500 employment visa deposit appears on Masdar City Free Zone’s fee table but not in the Employment Regulations; budget for it and ask when it is refunded. Our ICP vs GDRFA guide explains why Abu Dhabi procedures differ from Dubai’s.
Investors, families and Golden Visas
A shareholder who lives in the UAE uses one place in the company’s quota. Visa holders can sponsor their families through ICP under the normal salary and housing rules; see our family visa service. Masdar City Free Zone says it works with the Abu Dhabi Residents Office on Golden Visa applications for qualifying investors, entrepreneurs and specialists; see our Golden Visa service.
Banking after Masdar City Free Zone company setup
Masdar City Free Zone says it has partnerships with “leading banks in Abu Dhabi” to simplify account opening, but names none on the pages we read. Banks will want the licence, certificate of incorporation, articles, lease, register of shareholders and directors, UBO documents, passports and visas, a business plan with expected turnover and counterparties, and proof of source of funds. Research companies with grants, contracts or investors usually open faster than trading start-ups with no track record. See our corporate bank account guide.
Tax for a Masdar City Free Zone company
Corporate tax. Masdar City Free Zone promotes “tax break benefits”, but federal Decree-Law 47 of 2022 applies in every free zone. Each company registers within three months (FTA Decision 3/2024) or risks an AED 10,000 penalty, and pays 9% above AED 375,000 unless it is a Qualifying Free Zone Person earning qualifying income, with adequate substance, audited accounts and non-qualifying revenue below the lower of 5% or AED 5 million (Cabinet Decision 100 of 2023). Qualifying activities are listed in Ministerial Decision 229 of 2025, which replaced Ministerial Decision 265 of 2023. Consulting, marketing and most services to third parties are not on it, and the goods distribution activity needs a designated zone, which Masdar City is not. Many Masdar companies will therefore pay 9% on profits above AED 375,000. Small Business Relief is available only to companies that do not claim Qualifying Free Zone Person status. See our corporate tax registration guide.
VAT. Masdar City does not appear on the FTA’s designated zones list under Cabinet Decision 59 of 2017 as amended (we used the FTA’s published PDF, as its web page blocks automated reading; check the current list). Its companies are treated like mainland businesses for VAT: register once taxable supplies pass AED 375,000 and charge 5% where due.
Customs. Goods imported into Masdar City clear customs as UAE imports; there is no bonded status.
Working with the Abu Dhabi mainland from Masdar City
The Business Licensing Regulations say: “No Person shall operate (or purport to operate) any business in the UAE outside Masdar City solely on the basis of a License issued by MCFZ” unless “expressly authorized in writing”. In practice a Masdar company can:
- Serve mainland clients from Masdar City under contracts, invoicing from the free zone (subject to VAT and corporate tax rules).
- Ask MCFZ for written authorisation for specific outside work, which the Employment Regulations also contemplate for consultancy, installation and maintenance.
- Apply to ADDED for a mainland licence. ADDED’s “Mainland and Free Zones” page lists “Dual licensing options” among Abu Dhabi free zone benefits; neither ADDED nor MCFZ publishes the Masdar-specific fee or conditions.
- Set up a separate mainland company in Abu Dhabi or Dubai.
Dubai’s 2025 Free Zone Mainland Operating Permit under Executive Council Resolution 11/2025 was designed for Dubai free zone companies; a Masdar company wanting to operate in Dubai should ask Dubai’s Department of Economy and Tourism which route applies.
Masdar City Free Zone licence renewal and compliance
| Obligation | Rule | Source |
|---|---|---|
| Licence term | One year from grant; renewals for one year | Business Licensing Regulations |
| Renewal application | “No later than three (3) months prior to the end of the current Term” | Business Licensing Regulations |
| Audit | Accounts audited “at least once in every Year by a certified auditor” and laid before a general meeting | Company Registration Regulations, cl. 7.6 |
| Annual return | When MCFZ requests it, listing shareholders with 5% or more | Company Registration Regulations, cl. 16 |
| Beneficial owners | Record and declaration under Cabinet Decision 109/2023; MCFZ warns of fines “of up to D 100,000” and licence suspension for repeat breaches (Cabinet Decision 132/2023) | MCFZ Legal and Regulation page |
| AML | DNFBPs must register and report; MCFZ’s page still cites the 2018 law, now replaced by Federal Decree-Law 10/2025 | MCFZ Legal page; federal law |
| Telemarketing | MCFZ publishes Cabinet Resolutions 56 and 57 of 2024 on telemarketing rules and penalties | MCFZ Legal page |
| Strike-off | The Registrar may strike off defunct companies or those not paying fees | Company Registration Regulations, cl. 143 to 145 |
| Suspension or revocation | For misleading information, unpaid fees, unlicensed activity, reputational harm, insolvency or lapsed permits | Business Licensing Regulations |
Our UBO register guide explains the beneficial owner filing.
Masdar City Free Zone pros and cons
| Pros | Cons |
|---|---|
| Full fee table published: packages, desks and visa costs | Two pages give different flexi desk prices |
| New 2025 regulations: no minimum capital, one director allowed | A secretary is still compulsory |
| Freelancer, non-profit and event licences available | Special activities and extra activities add AED 2,500 to 5,000 each |
| Research clusters, universities and government programmes on site | Not a VAT designated zone; no warehouses |
| Close to the airport and central Abu Dhabi | Start-up pricing converts to a “signature package” after three years |
| Optional ADGM common law framework, per MCFZ | Mainland operation needs written authorisation or an ADDED licence |
Who Masdar City Free Zone suits
- Suits: clean energy and climate-tech start-ups; AI, software and data companies; life sciences and health research; autonomous vehicle, drone and mobility firms; agri-tech and water technology; consultants and regional offices that want an Abu Dhabi address near the airport; freelancers who want an Abu Dhabi licence.
- Look elsewhere if: you store or move physical goods (KEZAD or the Abu Dhabi Airports Free Zone); you are regulated financial services (ADGM); you are in media, film or gaming (twofour54); or most of your clients are in Dubai (compare Dubai Silicon Oasis).
Masdar City Free Zone company setup in practice: four cases
These cases are built from the situations we see most often. Names and identifying details are left out, and the figures are the published ones.
Case 1: a solo AI consultant
A software consultant wanted an Abu Dhabi licence and one residence visa. We compared the Startup package plus a desk and visa (about AED 17,400 plus deposits) with Business One (AED 18,375 including VAT, with the desk, establishment card, e-channel, medical and Emirates ID). The two routes were within about AED 1,000, so we asked Masdar City Free Zone in writing whether Business One’s “one free visa” covered the visa package fee before choosing it. Because consulting is not a qualifying activity, the corporate tax plan assumed the 9% rate above AED 375,000.
Case 2: a life sciences spin-out
A university spin-out needed lab space and two researchers’ visas. The Innovation package (AED 12,000, two-visa quota, flexi desk) covered the licence, and lab space in the life sciences cluster was negotiated separately. The Department of Health approval for pre-clinical work was built into the timeline.
Case 3: a foreign energy group’s branch
A European energy services group opened a branch of a foreign company. Its certificate of incorporation, articles, good standing letter and board resolution were attested before submission. Its activities included an oil and gas services segment, a “special activity” that the packages exclude, so it was priced outside the packages with the AED 5,000 special activity charge.
Case 4: a drone start-up needing mainland work
A drone company won a contract to survey sites across Abu Dhabi. Its staff visas limited work to Masdar City, so we asked Masdar City Free Zone for written authorisation for the field work under the “installation or repair and maintenance” exception and explored an ADDED licence for longer-term mainland operations.
Masdar City Free Zone myths: what circulates online that is not true
| Claim | What the sources say |
|---|---|
| “Masdar City Free Zone needs two directors and minimum capital” | The 2025 regulations need one natural person as director and set no minimum capital; a secretary is required |
| “Visas go through GDRFA” | Abu Dhabi residence is issued through ICP; Dubai’s GDRFA is not involved |
| “Masdar companies pay no tax” | All register for corporate tax; 0% applies only to qualifying income of a Qualifying Free Zone Person |
| “It is a VAT-free designated zone” | Masdar City is not on the FTA’s designated zones list |
| “The AED 7,000 package gets you a visa” | The Startup package is licence and registration only; visas need a desk and the visa fees |
| “A Masdar licence covers work anywhere in Abu Dhabi” | Operating outside Masdar City needs written authorisation, an ADDED licence or a mainland company |
How to verify every Masdar City Free Zone figure
| Figure | Where to check |
|---|---|
| Packages, extra activity and special name charges, visa costs | masdarcityfreezone.com, “License and Registration” |
| Desk prices and visa allocation | masdarcityfreezone.com, “Commercial Leasing” |
| Legal forms, capital, directors, audit | Company Registration Regulations (Regulatory Framework page) |
| Licence types, term, renewal, outside-zone rule | Business Licensing Regulations |
| Visa sponsorship, work location, contracts | Employment Regulations 2025 |
| UBO and AML duties | MCFZ “Legal and Regulation” page; Cabinet Decisions 109 and 132 of 2023 |
| Designated zone status | FTA designated zones list (tax.gov.ae) |
| Corporate tax | Cabinet Decision 100/2023, Ministerial Decision 229/2025, FTA Decision 3/2024 |
Masdar City Free Zone company setup: how MIRDXB PRO helps
MIRDXB PRO is an independent PRO and business-setup consultancy in Al Barsha 1, Dubai. We are not Masdar City Free Zone or an official MCFZ channel partner, and MCFZ does not list us.
What we do
- Check your activities against MCFZ’s categories and flag special activities before you pay.
- Compare the packages and desks against your visa needs and put the inclusions MCFZ leaves unclear to MCFZ in writing.
- Prepare and check the application, UBO record, resolutions and powers of attorney, and coordinate attestation.
- After the licence: establishment card, e-channel, entry permits, medicals, Emirates ID, family and Golden Visas, and renewals, through our free zone company setup support and PRO team.
- Prepare the company for corporate tax and VAT registration with your tax agent.
How it works
- Send us your activities, shareholders and hiring plan on WhatsApp.
- We reply with a written plan: structure, package, desk, visa count, the MCFZ fees and our fee.
- We prepare and check the file, and follow it through MCFZ’s One-Stop Shop.
- After the licence we run the visas and hand you a compliance calendar.
What it costs
Masdar City Free Zone and government fees are passed on at cost, on the authority’s receipt. Our own fee is quoted in writing before we start; see our fees page.
Why founders use us
- We work from MCFZ’s published fees and 2025 regulations and cite each source.
- We tell you when another zone fits better, or when you can do a step yourself.
- We handle the ICP immigration chain, attestation and tax registration after the licence.
- Our Al Barsha 1 office is open Monday to Thursday and Saturday 09:00 to 18:00 and Friday 09:00 to 12:00; owners abroad can instruct us under a power of attorney.
For the whole project, from zone choice to first visa, see our business setup service.
What we will and will not do
- We will show each published MCFZ fee and its source; we will not hide the VAT, deposits or visa costs a package leaves out.
- We will prepare and submit your files; we do not guarantee approvals or faster processing by MCFZ or ICP.
- We will explain the tax framework; your qualifying income test needs a registered tax agent.
- We will not claim to be an MCFZ partner or agent.
Related guides
- Abu Dhabi free zones compared
- Free zones in the UAE
- KEZAD company setup
- ADGM company setup
- twofour54 company setup
- Abu Dhabi Airports Free Zone
- Corporate tax registration in the UAE
- Establishment card explained
Masdar City free zone company setup: frequently asked questions
How much does Masdar City free zone company setup cost?
Masdar City Free Zone’s packages are AED 7,000 (Startup: licence and registration, up to two activities), AED 12,000 (Innovation: two-visa quota and flexi desk), AED 17,500 (Business One: one visa, flexi desk lite, establishment card, e-channel, medical and Emirates ID) and AED 27,000 (Enterprise: three-visa quota, flexi desk plus), all plus 5% VAT. Visa fees, deposits and insurance are extra where not included.
What is the minimum share capital in Masdar City Free Zone?
There is none. Clause 5.3(d) of the 2025 Company Registration Regulations says there is “no minimum or maximum Share capital requirement, unless otherwise Prescribed by the Registrar”. You still state the authorised and issued capital in the application.
How long does company registration take in Masdar City?
Masdar City Free Zone says registration “can typically be completed within a few working days once all required documents are submitted and approved”. Attesting foreign corporate documents, sector approvals and visa processing add time on top.
How many visas can a Masdar City Free Zone company get?
It depends on the workspace: MCFZ’s leasing page gives one visa for a flexi desk lite, two for a flexi desk, three for a flexi desk plus and four for a dedicated desk. Offices are agreed case by case, and MCFZ may limit the number of employees it sponsors at its discretion.
Who issues visas for Masdar City Free Zone companies?
MCFZ sponsors employees through its Government Services Entity, and the residence visa and Emirates ID are issued through ICP, the federal authority that handles Abu Dhabi residency. Dubai’s GDRFA is not involved.
Can I get a freelancer licence in Masdar City?
Yes. The Business Licensing Regulations provide for freelancer individual licences as well as standard, non-profit and temporary event licences. MCFZ does not publish a separate freelancer price on its package table, so ask for a quotation.
Is Masdar City Free Zone a VAT designated zone?
No. Masdar City is not on the FTA’s list of designated zones under Cabinet Decision 59 of 2017 as amended. Its companies charge and account for VAT like mainland businesses once registered.
Do Masdar City companies pay corporate tax?
They must register and file. A Qualifying Free Zone Person pays 0% on qualifying income, but consulting, marketing and most services to third parties are not qualifying activities, so many Masdar companies pay 9% on taxable profit above AED 375,000.
Can a Masdar City company work on the Abu Dhabi mainland?
Not on its MCFZ licence alone: the regulations forbid operating outside Masdar City “unless expressly authorized in writing”. Options are written authorisation from MCFZ, an ADDED licence (ADDED lists dual licensing for free zones) or a separate mainland company.
How many directors does a Masdar City company need?
At least one natural person aged 18 or over (clause 44 of the Company Registration Regulations). Every company must also have a secretary, so a sole founder needs a second person or a corporate service provider in that role.
Is there a visa deposit in Masdar City Free Zone?
MCFZ’s fee table lists an employment visa deposit of AED 2,500 per employee, released after the visa is cancelled. Flexi desk leases also carry a refundable deposit of two months’ rent.
Can MIRDXB PRO set up my Masdar City Free Zone company?
Yes. We choose the package and desk with you, prepare and check the application, coordinate attestation and handle the visas, Emirates ID and renewals. We are independent of MCFZ; its fees are passed on at cost and our fee is quoted in writing before we start.
What does MIRDXB PRO charge for a Masdar City setup?
It depends on the structure, the number of visas and whether foreign documents need attestation. We quote in writing before we start and list MCFZ’s and the government’s fees separately, at cost.
Running the establishment card, visas, Emirates ID and renewals after the licence is what our PRO services in Dubai team does for Dubai and Abu Dhabi companies.
- MCFZ: License and Registration (packages, desks, visa costs)
- MCFZ: Commercial Leasing (desk prices and visa allocation)
- MCFZ: Regulatory Framework
- MCFZ Company Registration Regulations (2025)
- MCFZ Business Licensing Regulations
- MCFZ Employment Regulations 2025
- MCFZ: Legal and Regulation (UBO, AML, residency)
- MCFZ: Abu Dhabi government initiatives and clusters
- MCFZ: Business Enabler
- ADDED: Mainland and Free Zones
- Federal Tax Authority: VAT designated zones
- FTA Decision No. 3 of 2024
- ICP: Federal Authority for Identity, Citizenship, Customs and Port Security
Checked against MCFZ’s licence, leasing and legal pages, its 2025 regulations, ADDED, the FTA designated zones list and the federal tax rules on 26 September 2026. MCFZ updates its packages from time to time; its quotation and invoice are final.
Please note. This guide is general information, verified 26 September 2026, and is not legal or tax advice. MIRDXB PRO is an independent consultancy and is not affiliated with Masdar City Free Zone, Masdar or any authority named here. Fees and rules change; the authority’s own quotation and decision are final. The cases are illustrative, built from common situations, not records of named clients.
