Moving Between UAE Free Zones

Outgrowing your current free zone, chasing lower renewal costs, or need an activity your licence doesn’t cover — moving a UAE company from one free zone to another is more common than most business owners realise, and in 2026 it is also more flexible than it has ever been. For nearly four years, switching free zones meant one thing: close the old licence, open a brand-new one, and start your corporate history from zero. Since 15 October 2025, that is no longer the only option.

This guide covers both routes available in 2026 — the new statutory redomiciliation mechanism and the traditional close-and-re-register process — along with real costs, visa transfer procedures, the tax consequences most advisors don’t explain clearly, and a realistic timeline for each path.

Quick answerYes, you can move a UAE company between free zones in 2026 in two ways: (1) statutory redomiciliation under Article 15bis of the Commercial Companies Law, introduced by Federal Decree-Law No. 20 of 2025, which preserves the same legal entity, contracts and history where both free zones support it; or (2) the traditional route of closing the old licence and registering a new company in the destination free zone, which works everywhere but resets your corporate history. Budget AED 19,000–40,000 and 3–18 weeks depending on the route and the two free zones involved.

Why UAE Businesses Move Between Free Zones in 2026

Free zone migration is rarely about one factor alone. In practice it’s usually a combination of cost, capability and credibility catching up with a company that has outgrown the zone it started in.

Driver	What’s actually happening
Renewal cost	Switching from a premium zone (e.g. DMCC, from AED 25,000+) to a budget zone (e.g. IFZA, from ~AED 11,500–15,000) can save AED 10,000–20,000+ a year.
Visa quota	Growing headcount outgrows the current package; a new zone or office tier unlocks a larger allocation (DAFZA, for example, allows 15+ visas versus 6 on a typical IFZA starter package).
Activity restrictions	The current free zone’s activity list doesn’t cover a new product line the business wants to add.
Banking relationships	Some free zones have materially stronger relationships with specific UAE banks, which shortens account-opening timelines.
Reputation / client profile	Moving to an established or specialised zone (DMCC for commodities, DAFZA for aviation/logistics, DIFC/ADGM for financial services) signals credibility to enterprise clients.
VAT Designated Zone status	Goods-trading businesses may benefit from moving into a Designated Zone under Cabinet Decision No. 59 of 2017, which changes VAT treatment on qualifying goods transactions.
Geographic relocation	Physically relocating operations to a different Emirate, e.g. Dubai to Abu Dhabi or Sharjah, to be closer to ports, clients or talent.

Can You Actually Move a Free Zone Company? Two Legal Routes in 2026

Yes — but ‘moving’ means different things depending on which route you use. It’s important to pick the right one deliberately rather than default to whichever one your PRO company happens to offer.

Route 1: Statutory Redomiciliation (new since 15 October 2025)

On 15 October 2025, Federal Decree-Law No. 20 of 2025 (issued 1 October 2025) came into force, inserting a new Article 15bis into the UAE Commercial Companies Law (Federal Decree-Law No. 32 of 2021). For the first time in UAE federal legislation, this codifies a statutory mechanism for a company to transfer its registration from one jurisdiction to another inside the UAE — including free zone to free zone, free zone to mainland, mainland to free zone, and transfers involving the financial free zones DIFC and ADGM — while keeping the same legal personality, corporate history, contracts, and (typically) bank account.

• The company does not liquidate or dissolve — it continues as the same legal entity under a new licensing authority.
• Contracts, IP, trade history and (in most cases) banking relationships transfer with the company rather than needing to be re-signed or re-opened.
• Both the exiting free zone and the receiving free zone must approve the transfer — this is not a unilateral, one-click process.
• Where both zones share a single regulator — for example IFZA and DAFZA, both under the Dubai Integrated Economic Zones Authority (DIEZ) — the process is materially faster because the corporate register doesn’t change hands between separate authorities.
• Important caveat: as of the most recent available guidance, Cabinet-level implementing regulations detailing the exact procedure for every free-zone pairing have not been published in full. Practical procedure currently rests on each free zone’s own implementing regulations plus Article 15bis itself, so timelines and document lists should be confirmed directly with both authorities before committing to a date.

Route 2: Close and Re-Register (the traditional ‘parallel setup’)

This is the process every UAE business owner used before October 2025, and it’s still the only workable option where the two free zones involved don’t (yet) support formal redomiciliation between each other. It is treated legally as two separate events: closing the existing licence, and opening a brand-new one.

• Most flexible route — works between any two free zones, regardless of regulator.
• The new company is a distinct legal entity: a new licence number, typically a new bank account, and contracts usually need to be re-signed or novated to the new entity.
• Ownership can stay identical (same shareholders), which preserves continuity for the people involved even though the corporate registration number changes.
• Common approach: set up the new company first, run both licences in parallel briefly while contracts and the bank account transition, then close the old one — this avoids the operational gap of closing first and reopening second.

Factor	Route 1: Redomiciliation	Route 2: Close & Re-Register
Legal entity	Same entity continues	New entity created
Corporate history	Preserved	Reset to zero
Contracts	Generally continue unchanged	Usually need re-signing/novation
Bank account	Often retained (fresh KYC required)	Typically closed and reopened — banking gap risk
Available between	Only zone pairs that support it (expanding through 2026)	Any two UAE free zones
Typical timeline	6–18 weeks (faster within one regulator, e.g. DIEZ)	2–4 weeks
Typical cost	AED 15,000–40,000+ (legal, admin & professional fees)	AED 19,000–23,500 all-in (see cost table below)
QFZP / tax status	Reassessed fresh in the new zone either way	Reassessed fresh in the new zone either way

The Legal Backbone: Federal Decree-Law No. 20 of 2025 in Plain English

Before this law, redomiciling a company between UAE jurisdictions was, in practice, not really possible — there was no published mechanism, even though nothing explicitly forbade it. Any attempt to move, say, a mainland company into a free zone (or vice versa) needed a no-objection certificate from the relevant authority, and no standard procedure existed to obtain one. The Decree-Law changes that by giving Article 15bis of the Commercial Companies Law direct legal force.

• What it covers: transfers between mainland authorities of different Emirates (e.g. Dubai to Abu Dhabi); mainland to free zone and free zone to mainland; and free zone to free zone, explicitly including the financial free zones DIFC and ADGM.
• What survives the transfer: legal personality, corporate history, existing contracts, rights and obligations.
• What still has to happen: mutual consent from the exiting and receiving authorities, shareholder resolutions, updated constitutional documents, and — in practice — a full banking KYC refresh, since a change of registered jurisdiction is an AML trigger event for UAE banks.
• What’s still catching up: several free zones (DMCC, JAFZA, RAKEZ, Meydan, RAK ICC, ADGM and DIFC among them) have published or are actively refining their own inbound-continuation procedures; others have not yet formalised theirs. Confirm feasibility with both authorities before assuming redomiciliation is available for your specific pair of zones.

Step-by-Step: Redomiciliation Between Two Free Zones

This is a generalised sequence based on current DIEZ, DMCC and RAK ICC continuation practice. Exact steps and required documents vary by free zone pair, so confirm the current checklist with both authorities before starting.

1. Preliminary review: check your Memorandum & Articles of Association permit redomiciliation, confirm your target free zone accepts inbound continuation for your activity, and audit for outstanding debts, disputes or compliance issues (both zones require the company to be in good standing).
2. Shareholder approval: pass a special resolution authorising the transfer, per Article 15bis and your company’s articles. All shareholders typically need to sign, and notarisation is often required.
3. Application to the receiving free zone: reserve the company name, submit the licence application, KYC package and constitutional documents; the receiving authority checks that your licensed activities are compatible with its own activity list.
4. In-principle approval and office confirmation: the receiving free zone issues in-principle approval; you confirm your office or flexi-desk arrangement (physical presence requirements differ meaningfully between zones — don’t assume a flexi-desk that worked in your old zone will satisfy the new one).
5. Exit-zone notification: file notice of the redomiciliation with the current free zone and notify creditors/counterparties as required under that zone’s implementing regulations.
6. Registration transfer: the receiving authority issues the new licence and, where a shared regulator is involved (e.g. DIEZ for IFZA/DAFZA/DSO/DCC), the registration transfer itself is faster because it’s a single corporate register.
7. Post-transfer updates: update your Tax Registration Number and VAT status with the Federal Tax Authority, re-issue the Establishment Card, transfer employee visas, and notify your bank in advance of the change (see the banking section below).

Step-by-Step: Close and Re-Register in a New Free Zone

Stage 1 — Close the existing company

• Apply for company closure with the current free zone authority.
• Settle all outstanding dues, office rent and employee-related liabilities.
• Cancel every active visa under the company before applying for closure — failing to do this is the single most common cause of delay and fines.
• Obtain a Clearance Certificate confirming no outstanding liabilities. Typical duration: 5–7 working days.

Stage 2 — Register in the new free zone

• Choose the destination free zone and submit the new licence application.
• Provide documentation from the old company to support ownership continuity (shareholders, activity history).
• Receive initial approval, pay setup fees, and collect the new trade licence and Establishment Card. Typical duration: 5–10 working days.

Stage 3 — Bank account

A new licence usually means a new bank account, since the previous account was tied to the now-closed entity. Some banks will consider a like-for-like transfer if ownership and activity are unchanged, but this is bank-discretionary, not guaranteed — plan for a temporary banking gap and keep enough working capital accessible outside the business account to bridge it.

Stage 4 — New visas

The new free zone issues a fresh Establishment Card, after which investor and employee visas can be applied for again from scratch (see the visa transfer section below for cost and timeline detail).

Documents You’ll Need

For redomiciliation

• Certificate of good standing / current trade licence
• Constitutional documents (MOA/AOA) and any amendments
• Shareholder / board resolution authorising the transfer
• Legal opinion confirming the transfer is permitted (increasingly requested by receiving free zones)
• Solvency declaration and UBO (Ultimate Beneficial Owner) information
• Passport copies and visa/entry stamps for all shareholders

For close-and-re-register

• Closure side: original trade licence, share certificate and MOA, lease cancellation, bank closure letter, visa cancellation proofs
• New setup side: shareholder passport copies, UAE visa or entry stamp, old free zone clearance certificate, business plan (required by some zones), passport photos

Transferring Your UAE Residence Visa Between Free Zones

If people (not just the licence) are moving between free zones — an employee, an investor, or you as a shareholder — the visa sponsorship has to move too. This is handled separately from the company migration itself and is regulated by the individual free zone authorities together with UAE immigration rules, not by MOHRE.

1. Eligibility and visa check — confirm current visa status, expiry date, and transferability.
2. New free zone visa-quota approval — verify the receiving employer has quota available and the role is eligible.
3. Existing visa cancellation / NOC — cancel the current visa or secure the required approval from the existing free zone.
4. Entry permit application — the new sponsor applies for an employment entry permit.
5. In-country status change — change status without leaving the UAE, subject to approval.
6. Medical fitness test at an authorised centre.
7. Emirates ID update and biometrics.
8. Residence visa stamping under the new sponsor.

Emirate	Visa transfer fee (AED)
Dubai	4,500 – 7,000
Sharjah	4,000 – 6,000
Ajman	3,800 – 5,500
Ras Al Khaimah	3,500 – 5,000
Abu Dhabi	5,000 – 7,500

Processing typically runs 7–14 working days. Family/dependent visas remain valid after the transfer once the sponsor is updated. If the transfer completes inside the grace period after the old visa is cancelled, no overstay fines apply.

What Free Zone Migration Actually Costs in 2026

Treat these as planning ranges, not fixed quotes — actual cost depends heavily on which two free zones are involved, your activity, and how many visas you’re carrying. Always get a written quote from both free zone authorities before budgeting a final number.

Cost item	Close & re-register (AED)	Redomiciliation (AED)	Notes
Old licence closure / clearance	2,000 – 3,000	Not applicable — no closure	Includes clearance certificate fees
New licence / continuation fee	11,500 – 15,000+	8,000 – 20,000	Varies enormously by destination free zone tier
Legal & professional fees	1,000 – 2,000 (admin/PRO)	5,000 – 15,000	Redomiciliation typically needs legal drafting (resolutions, legal opinion)
Visa reissuance / transfer	3,000 – 4,000 per visa	3,500 – 7,000 per visa (transfer fee)	See emirate table above for visa transfer
Establishment card	1,500	Usually reissued, similar range	Required for visa processing
Typical total (1–2 visas)	≈ 19,000 – 23,500	≈ 20,000 – 40,000+	Redomiciliation costs more upfront but avoids re-signing every client contract
Typical timeline	2 – 3 weeks	6 – 18 weeks	Faster when both zones share one regulator (e.g. DIEZ)

Tax Implications You Cannot Ignore

Corporate tax and QFZP status resets, it doesn’t transfer

Under the UAE Corporate Tax Law (Federal Decree-Law No. 47 of 2022), standard corporate tax is 0% on the first AED 375,000 of taxable income and 9% above that. Free zone companies that qualify as a Qualifying Free Zone Person (QFZP) can instead pay 0% on Qualifying Income, but every condition — adequate economic substance in the specific free zone, income limited to Qualifying Activities under Ministerial Decision No. 229 of 2025, a de minimis non-qualifying income cap (the lower of AED 5 million or 5% of total revenue), and audited financial statements — is assessed fresh in the new free zone. QFZP status earned in your old zone does not automatically carry over, whichever migration route you use. If it’s lost, the standard 9% rate applies for that tax period plus the following four.

Separately, Small Business Relief lets tax-resident businesses with revenue under AED 3 million elect to be treated as having no taxable income — but this expires 31 December 2026, and a QFZP cannot claim both QFZP and Small Business Relief in the same period.

Transfer pricing on any asset movement

If assets, contracts, or intellectual property move from the old company to a new one (relevant on the close-and-re-register route, since two separate legal entities are involved), UAE transfer pricing rules under Federal Decree-Law No. 47 of 2022 require the transfer to happen at arm’s length — broadly, at the value an unrelated third party would pay. Where the old and new companies sit inside the same UAE corporate tax group (95%+ common ownership), the transfer can instead happen at book value with no taxable gain. Businesses above the applicable revenue thresholds must also maintain Local File and Master File transfer pricing documentation to support the position taken.

VAT and Designated Zone status can change

Not every free zone is a VAT “Designated Zone” under Cabinet Decision No. 59 of 2017 (as amended). Moving from a non-designated zone into a designated one — or vice versa — changes the VAT treatment of goods transactions with UAE counterparties: supplies of goods within a Designated Zone, or between two Designated Zones, can be treated as outside UAE territory for VAT purposes under strict conditions, while movement of those same goods onto the mainland is treated as an import and taxed at 5%. This distinction matters only for goods-trading businesses — for service companies, Designated Zone status makes no difference, since services are always subject to standard UAE VAT rules regardless of zone. Either way, your Tax Registration Number and VAT registration must be updated with the Federal Tax Authority to reflect the new address and zone status.

Choosing Your Destination Free Zone: Quick 2026 Comparison

Free zone	Emirate	Best for	Indicative licence cost (AED/yr)
IFZA (DIEZ / Dubai Silicon Oasis)	Dubai	Startups, consulting, trading — lowest-cost fast setup	10,000 – 30,000
DAFZA (DIEZ)	Dubai	Aviation logistics, international trade, VAT Designated Zone status	15,000 – 50,000+
DMCC	Dubai	Commodities, gold & diamond trading, premium credibility	25,000+
RAKEZ	Ras Al Khaimah	Manufacturing, warehousing, logistics	13,000+
Sharjah Free Zones (SAIF/SHAMS)	Sharjah	Trading, exporters, media — near airport & seaport	12,000 – 14,000
Ajman Free Zone	Ajman	Small startups and freelancers on a tight budget	12,000+
Meydan Free Zone	Dubai	Flexible licensing, broad inbound-redomiciliation acceptance	12,000+
DIFC / ADGM	Dubai / Abu Dhabi	Financial services, funds, holding structures, English common law	Higher — bespoke pricing

Note: DAFZA is a VAT Designated Zone under Cabinet Decision No. 59 of 2017; IFZA/DSO is not. That single difference is often the real reason a goods-trading business moves between the two, more than the licence cost itself.

Moving Physical Stock Between Free Zones: A Different Process Entirely

If your business holds inventory and you’re physically relocating goods — not just the company registration — that’s a Customs matter, handled through Dubai Trade / Dubai Customs (Mirsal 2), not through the free zone authority. Businesses registering as a Customs “Free Zone” business type must also register a Facility as “Free Zone,” and cargo movements between zones are processed as customs transfer declarations. There is no registration fee for Free Zone company account activation on Dubai Trade, though standard declaration and service charges apply per shipment. Don’t confuse this with company migration — it’s entirely possible to redomicile or re-register your licence without moving a single physical item, and equally possible to need a customs transfer of goods without changing your company’s jurisdiction at all.

Timeline Summary

Stage	Close & re-register	Redomiciliation
Preliminary review / closure prep	5 – 7 working days	1 – 2 weeks
Shareholder approval	—	1 week
New free zone application & approval	5 – 10 working days	4 – 7 weeks
Registration transfer / new licence issued	Included above	2 – 4 weeks
Visa transfer (per person)	5 – 7 working days	7 – 14 working days
Total, typical	2 – 3 weeks	6 – 18 weeks (shorter within one regulator)

7 Mistakes That Delay or Derail a Free Zone Migration

1. Assuming redomiciliation is available for any free zone pair — confirm both authorities actually support inbound/outbound continuation for your specific activity before planning around it.
2. Leaving employee visas active when applying for closure — this is the single most common cause of delay and immigration fines on the close-and-re-register route.
3. Notifying the bank after the transfer instead of before — banks treat a jurisdiction change as an AML trigger and will freeze the account for review if surprised by it.
4. Choosing office space that satisfies the old zone’s physical-presence rules but not the new one’s — some free zones (DAFZA, for example) enforce stricter Economic Substance requirements than a typical flexi-desk zone.
5. Assuming QFZP status carries over automatically — it’s reassessed from day one in the new free zone, under both routes.
6. Ignoring the VAT Designated Zone question for goods-trading businesses — this can change your invoicing and customs treatment overnight.
7. Not updating customers, vendors and contracts — on the close-and-re-register route, contracts tied to the old entity may need formal novation to the new one to remain enforceable.

Frequently Asked Questions

Can I move my free zone company to another free zone without closing it?

Yes, if both free zones support redomiciliation under Article 15bis of the Commercial Companies Law (introduced by Federal Decree-Law No. 20 of 2025). If they don’t, the only option is to close the existing licence and register a new company — ownership can stay identical, but the legal entity changes.

How long does moving between UAE free zones take in 2026?

Close-and-re-register typically takes 2–3 weeks. Redomiciliation typically takes 6–18 weeks, faster when both free zones share a single regulator (for example IFZA and DAFZA, both under DIEZ).

Does my QFZP (0% corporate tax) status transfer with me?

No. QFZP status is reassessed from the first tax period in the new free zone regardless of which migration route you use — you must independently meet the substance, qualifying-income and de minimis conditions again.

Will my bank account stay open during the move?

On redomiciliation, many banks retain the account but require a full fresh KYC review, which can temporarily restrict transactions. On close-and-re-register, the old account is typically closed and a new one opened — budget for a banking gap and notify your bank before, not after, the change.

Do I need to cancel all employee visas before moving?

On the close-and-re-register route, yes — all active visas must be cancelled before the closure clearance is issued. On redomiciliation, visas are reissued under the new sponsor without necessarily requiring cancellation first, but this should be confirmed with both free zone immigration departments.

Can I keep the same company name?

Usually, yes, if the new free zone approves it and it’s available in their database — this applies to both routes.

Is redomiciliation available for every UAE free zone yet?

Not universally. Several major free zones (DMCC, JAFZA, RAKEZ, Meydan, RAK ICC, DIFC, ADGM and the DIEZ-governed zones) support inbound continuation, but full Cabinet-level implementing regulations for every possible free-zone pairing have not been published. Confirm current acceptance directly with both authorities.

What’s the difference between moving my company and moving goods to a free zone?

They’re unrelated processes. Moving your company is a licensing/registration matter with the free zone authority. Moving physical inventory is a Customs matter handled through Dubai Trade/Mirsal 2, which is entirely separate from your company’s legal jurisdiction.

Key Takeaways

• Since 15 October 2025, moving between UAE free zones no longer has to mean starting your company from zero — statutory redomiciliation under Article 15bis can preserve your legal entity, contracts and history where both zones support it.
• The traditional close-and-re-register route remains the only option between free zone pairs that don’t yet formally support redomiciliation, and it’s faster (2–3 weeks vs. 6–18 weeks) but resets corporate history and usually the bank account.
• Corporate tax QFZP status, VAT Designated Zone treatment, and transfer pricing exposure all need re-assessing in the destination free zone — none of them travel with you automatically.
• Budget AED 19,000–40,000+ depending on route, and confirm feasibility, activity compatibility and physical-presence requirements with both free zone authorities before committing to a timeline.