Masdar City Business Setup: Licenses, Process, Costs

Why Choose Masdar City Free Zone for Business Setup?

Masdar City Free Zone is a promising business hub in the center of Abu Dhabi, attracting entrepreneurs focused on technology, sustainable development, and the green economy. It is located within the Masdar City innovation cluster, the first city in the region designed from scratch with energy efficiency and environmental sustainability in mind.

The popularity of this free zone is growing not only because of its environmental image, but also thanks to real support from the state. It offers a simplified registration procedure, 100% foreign ownership, minimal income tax and flexible business conditions.

Masdar City Free Zone is suitable for start-ups as well as consulting, IT and research companies. In this place, you can start with a minimum package and scale up as you grow.

It is a sensible choice for those who value flexibility, innovation and strategic location without unnecessary bureaucratic barriers.

About Masdar City Free Zone

Masdar City Free Zone was created as part of the large-scale Masdar government project in Abu Dhabi, aimed at developing sustainable technologies and a green economy. It is a specialised platform focused on companies in the fields of innovation, renewable energy, IT and scientific research. The free zone receives active support from the UAE government, which guarantees stability and strategic importance for investors.

Located near Abu Dhabi International Airport and integrated into a broader logistics and technology cluster, Masdar City is positioned as an international hub for start-ups and corporations seeking to combine business development with environmental standards.

Business Activities Allowed in Masdar City Free Zone

Masdar City Free Zone offers a wide range of activities, including information technology, consulting, renewable energy, research and development, education, marketing, and creative industries. Companies can engage in both traditional services (such as business consulting or IT support) and specialised areas related to sustainable development and green technologies, which is a unique feature of this free zone.

For some licences, especially in the fields of education, telecommunications or energy-related activities, prior approval from the relevant government agencies may be required. Of particular interest is the opportunity to conduct scientific research and test environmentally friendly solutions, which in the UAE is mainly offered in Masdar City, forming an ecosystem for innovative start-ups and international companies.

Step-by-Step Masdar City Free Zone Company Formation and Registration

Registering a company in Masdar City Free Zone is a strategic move for entrepreneurs focused on modern and stable development. The process of setting up a business here is transparent, and has the option of submitting documents remotely and support at every stage. The zone offers good conditions for both start-ups and international companies wanting to establish themselves in the UAE market. Below is a step-by-step guide to opening a company.

Required Documents and Timeline

To register a business in Masdar City Free Zone, the following documents are required:

• Foreign passport of the founder or director (copy, valid for at least 6 months).
• Photograph on a white background.
• Proof of residence (e.g. utility bill, not older than 3 months).
• Entry visa or residence visa (if the applicant is in the UAE).
• Curriculum vitae (CV) sometimes required for licences related to consulting or science.
• Company incorporation documents (if a subsidiary is being established).

Some activities may require prior approval from regulatory authorities (especially in the fields of education, energy or research).

The process of registering and obtaining a licence in Masdar City Free Zone takes from 5 to 15 working days. Everything depends on the type of licence, the completeness of the documents and the need for prior approvals.

The timeframe may be extended if:

• a non-standard activity is selected;
• a background check is required:
• documents are submitted with errors or delays.

In standard cases, registration is quick and can be completed entirely remotely.

Want to learn more about UAE business setup services?

Book a consultation

Remote Registration Option

Masdar City Free Zone offers full remote company registration, which is particularly convenient for international entrepreneurs and investors. Physical presence in the UAE is not required. All stages can be completed online with the support of accredited registration agents.

How remote registration in Masdar City Free Zone works:

• Preliminary consultation. You choose the form of the company, the type of licence and discuss your business goals with the agent.
• Document transfer. All necessary files (passport, photo, proof of address, etc.) are sent via email or through a secure portal.
• Signing of forms. The founding documents are signed remotely, often using an electronic signature or by sending scans.
• Identity verification. This can be done via video call with a representative of the free zone or registration agent.
• Licence receipt. After approval, the documents and licence are sent by email. Originals are sent by courier if necessary.

This format allows you to launch your company quickly and securely. This is particularly convenient in today's environment, where many entrepreneurs work remotely and are often located outside the UAE.

Types of Licenses and Costs in Masdar City Free Zone

In Masdar City Free Zone, a company can be registered in one of two main forms: FZ-LLC or a branch of a foreign company. The first option, FZ-LLC, is convenient for entrepreneurs who want to establish a separate legal entity with limited liability in the UAE and conduct business on behalf of the new structure. The branch form is more suitable for existing businesses that want to establish themselves in the region while maintaining ties with their parent company.

Along with choosing a business form, investors must also consider the features of the tax system. The country has introduced a corporate income tax (CIT) at a rate of 9%, which applies only to profits exceeding AED 375,000 per year. No tax is levied below this threshold. At the same time, companies that qualify as Qualifying Free Zone Persons can take advantage of a preferential regime: income from permitted activities within and outside the zone may remain exempt.

Visa Packages and Pricing Breakdown

Masdar City Free Zone offers a transparent and flexible visa package system. For example, the AED 7,000 Startup Package includes registration, a licence and up to two types of activities. The more comprehensive Business One Package, priced at AED 17,500, offers the added benefit of one visa, flexi-desk Lite rental, a company card, e-channel payment, medical examination and Emirates ID registration. For larger companies, there is the Enterprise Package is for AED 27,000, you get a licence, three visas and a flexi-desk Plus rental. The Innovation Package, priced at 12,000 dirhams, has been created specifically for innovative projects and includes up to three types of activity, a licence, two visas and a flexi-desk.

Masdar City Free Zone Company Formation: Who Should (and Shouldn’t) Choose This Free Zone?

Masdar City Free Zone is a specialised zone that is ideal for innovative and sustainable businesses, but it is not a universal solution for all types of companies. Here is the list of who is suitable for and who it is not suitable for.

Suitable for:

• Freelancers and sole traders working in IT, marketing and design.
• Consultants, sustainability specialists, and green technology start-ups.
• Scientific research projects, educational organisations.
• Technology companies, developing software solutions.

Not suitable for:

• Trading and distribution companies that require warehouse infrastructure.
• Manufacturing companies. There are no developed industrial facilities in the area.
• Companies expecting quick VAT registration (not always available).
• Representatives of ‘high-risk’ jurisdictions - additional checks or refusal may be required

Masdar City is a niche solution for those who focus on technology, ecology and sustainable development. Others should consider more versatile free zones.

Conclusion

Masdar City Free Zone is a rare combination of technological sophistication, environmental focus and flexible business conditions. It creates an environment that is conducive to launching and developing projects related to innovation, digital products and sustainable solutions. Registering a company here gives you access to an international business community supported at the state level, with the option to complete everything remotely, without a personal visit, while retaining full control - 100% foreign ownership, favorable income tax rate, and clear rules.

This zone is particularly interesting for freelancers, IT specialists, consultants and scientific projects. Conditions have been created for them here: modern offices, prompt document processing, visa packages and reasonable pricing solutions. All this makes Masdar City not just a comfortable option for a start, but also a sensible choice for those who are making plans for the future, surrounded by like-minded people and with opportunities for growth.

If you are considering starting a business in the UAE, the next sensible step would be to consult with relevant specialists. Professional assistance allows you to avoid mistakes, optimise costs and choose the structure that best suits your goals.