Masdar City Free Zone Company Setup
Masdar City Free Zone company setup in Abu Dhabi for AI, cleantech, technology, R&D, consultancy and startups: activities, licences, cost, process and visas.
Business Setup AE editorial review Last reviewed 2026-09-27
Quick answer
Masdar City Free Zone is an Abu Dhabi free zone and technology hub inside Masdar City. It licenses approved technology, AI, cleantech, sustainability, R&D, consultancy and startup activities with 100% foreign ownership, and offers flexible and dedicated workspaces.
- Authority / zone
- Masdar City Free Zone
- Emirate
- Abu Dhabi
- Ownership
- 100% foreign ownership available in free zones
- Price evidence
- Source-linked provider packages only
Masdar City identifies itself as a free zone and technology hub. It is usually shortlisted by founders building technology, sustainability or research-led businesses in Abu Dhabi.
Figures shown come only from source-linked provider packages. Confirm fees and activities with the authority before paying.
Current verified packages
These are provider package prices, not universal government fees. Each row preserves the published price basis, renewal disclosure and source date.
| Provider and package | Activity | Visas | Workspace | Published price | Renewal | Last verified | Source |
|---|---|---|---|---|---|---|---|
| Zero-Visa Startup PackageMasdar City Innovation Zone | Innovation / cleantech / consulting | 0 | Not stated | from AED 7,000Starting from | Not stated | 2026-09-13 | Provider source |
| Business One 1-YearMasdar City Innovation Zone | Innovation / cleantech / consulting | 1 | Not stated | from AED 12,500Starting from | Not stated | 2026-09-13 | Provider source |
| Business One 2-YearMasdar City Innovation Zone | Innovation / cleantech / consulting | 1 | Not stated | from AED 17,500Starting from | Not stated | 2026-09-13 | Provider source |
What is Masdar City Free Zone?
Masdar City Free Zone is a free zone within Masdar City in Abu Dhabi, positioned as a technology and sustainability hub. The free-zone authority issues licences and approves activities.
Who Masdar City suits
- AI and software companies
- Cleantech, renewable-energy and sustainability businesses
- Technology and deep-tech startups
- Research and development activities
- Consultancy linked to technology or sustainability
- Innovation companies and early-stage founders
Licence types and activities
Licence categories follow the approved activity list. Confirm each activity code and any sector approval, particularly for energy, health or regulated technology activities.
Masdar City Free Zone company setup cost
There is no single all-in Masdar City Free Zone price. The total depends on the licence type, number of activities, legal structure, workspace, visa count and any external approval. Figures below come only from current provider packages with a source link and verification date; packages whose prices are under review or conditional are not used as a starting price.
- Authority registration and licence fees
- Workspace or facility charge (flexi desk, office, warehouse or land)
- Establishment card and immigration file where visas are required
- Per-person visa, medical and Emirates ID processing
- External approvals for regulated activities
- Provider professional fee and VAT where applicable
- Year-two renewal of licence, facility and visas
Workspace and visas
Workspace options range from flexible desks to dedicated offices and labs. Visa eligibility follows the licence and workspace; immigration, medical and Emirates ID charges are separate unless included in writing.
Masdar City vs other Abu Dhabi jurisdictions
| Jurisdiction | Best known for | Consider when |
|---|---|---|
| Masdar City Free Zone | Technology, cleantech, R&D | You build technology, AI or sustainability products |
| twofour54 | Media, gaming, content | Your core activity is creative or media |
| ADGM | Financial services | You need a financial-centre entity |
| KEZAD | Industrial and logistics | You need warehouses, land or port access |
Who this option suits best
- AI, software and deep-tech founders
- Cleantech and sustainability companies
- R&D teams and technology consultancies
Step-by-step process
- 1
Confirm activities
Check the intended activities against the authority's current list and identify any external approval.
- 2
Choose licence, legal structure and space
Select the licence type, company form and workspace that support the activities and planned visa quota.
- 3
Submit the application and KYC
Provide proposed trade names, shareholder and manager passports and the authority's application forms.
- 4
Review an itemised quotation
Separate authority, workspace, immigration and professional fees and get the renewal amount in writing.
- 5
Sign and receive the licence
Complete signing, pay the invoice and receive the licence and incorporation documents.
- 6
Visas, bank and tax
Open the immigration file, process visas, apply to a bank and complete corporate tax registration.
Documents required
- Passport copies (valid 6+ months) for every shareholder and manager
- Passport-size photo with white background for each applicant
- Proof of address or a recent utility bill / bank statement
- Three proposed trade names in order of preference
- Business activity list and a short business description
- Emirates ID and visa copy or entry stamp if you are already in the UAE
- Authority application forms and any activity-specific approvals
Realistic timeline
| Stage | Duration |
|---|---|
| Activity and KYC review | Authority dependent |
| Licence and incorporation | After approval and payment |
| Immigration and visas | Separate process, if selected |
| Bank account | Bank decision; not guaranteed |
Prices change. Use the source link and verification date shown for each package, then obtain a final itemised quotation before paying.
Common mistakes and how to avoid them
Comparing headline prices only
Fix: Compare like-for-like activities, workspace, visas, exclusions and price basis.
Assuming visas are included
Fix: Confirm the quota and every immigration charge in writing.
Ignoring year-two costs
Fix: Ask for the renewal components before paying for year one.
Compliance after licensing
- Corporate tax registration with the FTA — 9% applies on taxable profit above AED 375,000; 0% below it. Small Business Relief may apply to revenue under AED 3m.
- VAT registration is mandatory once taxable turnover passes AED 375,000 in 12 months, and voluntary from AED 187,500.
- Economic Substance notifications and reports applied only to financial years ending on or before 31 December 2022 — no new ESR filings are due for later years (Ministry of Finance).
- Ultimate Beneficial Owner (UBO) register kept with the licensing authority and updated within 15 days of any change.
- Anti-Money Laundering (AML) registration on the goAML portal for designated non-financial businesses and professions.
- Annual licence and establishment-card renewal, plus audited financials where the free zone or activity requires them.
Regulators referenced: Ministry of Economy (UAE) · Dubai Department of Economy and Tourism (DET) · Abu Dhabi Department of Economic Development (ADDED) · Federal Tax Authority (FTA) · General Directorate of Residency and Foreigners Affairs (GDRFA) · Ministry of Human Resources and Emiratisation (MOHRE)
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7 min read · Published Read guideFrequently asked questions
Is Masdar City a free zone?
Which businesses suit Masdar City Free Zone?
How much does Masdar City Free Zone setup cost?
Can I get a visa with a Masdar City licence?
People also ask
Does Business Setup AE issue the licence?
No. Business Setup AE is a comparison marketplace. Masdar City Free Zone issues the licence; a provider handles only the services stated in its quotation.
What should I confirm before paying a provider?
Confirm the issuing authority, activity codes, price basis, exclusions, visa quota, workspace, refund terms and full renewal cost in writing.
Founder checklist
- Confirm the exact activity codes you need before paying any fee
- Compare at least three verified providers on total year-one cost, not licence cost alone
- Check the visa quota attached to your chosen facility (flexi-desk vs office)
- Ask what is excluded: establishment card, e-channel deposit, medical, Emirates ID, PRO fees
- Confirm bank-account support and which banks the provider actually opens with
- Register for corporate tax within the deadline after licence issuance
- Diarise your licence renewal date and UBO register updates
Why you can trust this guide
- Independent marketplace — Business Setup AE does not form companies and takes no commission on provider pricing
- Package prices are read from each provider's own published page or PDF and stored with that source URL and check date
- Government fee figures are cited to the published schedule of the relevant authority; where an authority does not publish a figure we say so instead of estimating
- We do not audit provider operations, licence standing or adviser credentials — see how we verify for exactly what a verification covers
Editorial ownership: Business Setup AE Editorial Team. See our editorial and corrections policy and package verification method.
Related guides and services
Official government sources
Fees, thresholds and licensing rules on this page are checked against these official UAE government and regulator sources.
- Masdar City — official siteOfficial free zone and technology hub information
- Ministry of Economy — UAEFederal commercial registration, trade names and company law
- Federal Tax Authority — corporate tax and VATSource for the 9% corporate tax threshold and VAT registration limits
Topics covered
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