Masdar Free Zone Company Setup

Masdar Free Zone, officially called Masdar City Free Zone, is a rapidly growing business hub in Abu Dhabi built around sustainability, technology, and innovation. It sits at the heart of Masdar City, a sustainable urban development and a model for low‑carbon living.

Over 2,000 companies from more than 90 countries operate here, ranging from startups to multinational brands in AI, agritech, and smart mobility. In 2025 alone, over 1,000 new businesses joined  the Free Zone, driving a 36% growth in registered firms. This surge has strengthened Abu Dhabi’s position as a global hub for green and technology-driven business.

To support business success, Masdar Free Zone offers a 24/7 digital platform and dedicated customer support for companies. It also provides tailored licensing packages, including a specialized AI business setup option starting at AED 12,000 per year , with discounts for academic founders.

Located near Abu Dhabi International Airport and within easy reach of Dubai, Masdar Free Zone gives companies access to local and international markets. This makes it an ideal destination for those considering a business setup in UAE.

Masdar Free Zone offers a strategic and future-focused environment for businesses. Setting up a business in this Free Zone offers various benefits, including:

• 100% Foreign Ownership: You can keep complete control of your company and make all key business decisions independently. This gives founders clarity, flexibility, and long-term security.
• Tax Efficiency with Clear Compliance: Qualifying Free Zone Persons may benefit from 0% corporate tax on qualifying income. Non-qualifying income is taxed at 9%, subject to UAE Corporate Tax regulations. This favorable corporate tax regime helps you legally optimize profits.
• Fast and Streamlined Setup: Masdar Free Zone keeps the incorporation process simple. You complete most steps digitally, submit minimal paperwork, and receive approvals quickly. This makes it an attractive option for business setup in UAE Free Zone.
• Access to Diverse Business Activities: You can choose from a wide range of licensed activities across consultancy, trading, technology, renewable energy, AI, sustainability, and more. This flexibility allows you to align your license with your existing business model.
• Cost-Effective and Flexible Packages: The Free Zone offers competitive pricing, especially for startups and innovation-led businesses. You can select packages that match your budget and scale up as your company grows.
• Sustainable and High-Credibility Business Address: Masdar City is globally recognized as a hub for clean energy, sustainability, and innovation-driven industries. Moreover, the presence of organizations like the International Renewable Energy Agency (IRENA) enhances credibility, especially if you work in sustainability, climate tech, or ESG-driven sectors.
• Flexible Workspace Options: Whether you need a smart desk or a larger commercial unit, the Free Zone offers a space that fits your team size and operational needs. You only pay for what you actually use.
• Simple Visa Processing: The Free Zone allows you to add employee or investor visa as your team grows without complicated procedures.
• Collaborative Innovation Ecosystem: Masdar Free Zone brings together startups, research institutions, and global companies in one community. This creates opportunities for partnerships, knowledge sharing, and long-term growth. This is especially relevant for technology and sustainability-focused businesses.

Such benefits position Masdar Free Zone as a competitive option for Abu Dhabi company formation, especially for businesses that value flexibility and long-term growth.

Masdar Free Zone offers a diverse range of licenses to support startups, SMEs, multinational firms, and innovation-driven enterprises. These are:

These flexible licensing options let businesses choose a structure that fits their operations, industry, and growth plans.

You can also check out the cheapest Free Zone options in UAE to compare and plan your setup efficiently.

Masdar Free Zone supports a broad range of business activities, with a strong emphasis on innovation, sustainability, and knowledge-driven sectors. Here are the major activity categories permitted in Masdar:

• Technology & Artificial Intelligence: Software development, AI solutions, data analytics, cybersecurity, blockchain, IoT, robotics, SaaS platforms, and digital transformation services.
• Renewable Energy & CleanTech: Solar and wind energy solutions, energy management systems, carbon capture technologies, environmental consulting, and climate-tech innovation.
• Sustainability & ESG Advisory: Carbon auditing, ESG reporting consultancy, green building advisory, climate risk assessment, and sustainable business strategy services.
• Research & Development (R&D): Scientific research, product testing, prototype development, innovation labs, and technology commercialization activities.
• Healthcare, Life Sciences & Biotechnology (Non-Clinical): Biotech research, health-tech solutions, medical device trading, pharmaceutical consultancy, and laboratory-based innovation (subject to regulatory approvals where required).
• Agritech & FoodTech: Hydroponics systems, vertical farming solutions, sustainable agriculture technology, food innovation research, and climate-smart farming services.
• Consultancy & Professional Services: Management consulting, corporate advisory, HR consulting, legal consultancy (non-litigation), accounting support, and business strategy services.
• Trading & General Trading: Import, export, storage, and distribution of approved goods, including electronics, machinery, industrial equipment, and specialized products.
• E-Commerce & Digital Businesses: Online retail operations, marketplace selling, digital platforms, subscription-based models, and cross-border e-commerce.
• Media & Creative Industries: Digital marketing, advertising, content creation, publishing, branding, and communication services.
• Industrial & Light Manufacturing: Assembly, packaging, processing, and other approved light industrial activities within designated facilities.
• Investment, Holding & IP Management: Holding company structures, proprietary investments, intellectual property ownership, licensing, and royalty management.
• Education & Training Services: Professional training institutes, technical workshops, executive education, and sustainability-focused skill development programs.
• Logistics & Supply Chain Services: Supply chain consulting, distribution coordination, freight management support, and warehousing (subject to facility approval).

With this diverse activity framework, Masdar Free Zone has become a strong choice for entrepreneurs planning Abu Dhabi Free Zone company formation.

Masdar City Free Zone offers flexible legal structures to suit startups, SMEs, investors, and multinational companies. Each structure defines ownership, liability, and operational scope, allowing businesses to choose a model that aligns with their long-term strategy.

Below are the main company structure options available in Masdar Free Zone:

1. Free Zone Limited Liability Company (FZ-LLC)

The FZ-LLC is the most common structure in Masdar Free Zone. It is a separate legal entity with limited liability, meaning shareholders’ liability is restricted to their capital contribution.

• Can be formed by a single shareholder or multiple shareholders.
• Suitable for startups, SMEs, and growing enterprises.
• Allows full operational flexibility within approved activities.

2. Branch of a Foreign Company

An existing international company can register a branch in Masdar City Free Zone without creating a separate legal entity.

• The parent company retains full ownership.
• The branch can conduct activities similar to the parent company.
• Ideal for global firms expanding into the UAE market.

3. Branch of a UAE Company

A UAE mainland or other Free Zone company can open a branch in Masdar.

• No new share capital required.
• Operates under the parent company’s legal identity.
• Suitable for businesses expanding operations into Abu Dhabi.

4. Holding Company Structure

Investors can establish a holding entity to own shares in other companies or manage assets and intellectual property.

• Used for corporate structuring and investment planning.
• Suitable for asset protection and IP ownership strategies.

Each structure requires specific documentation, capital requirements, and compliance obligations. The right choice depends on business goals, ownership preferences, and expansion plans within the UAE and beyond.

Setting up a company in Masdar City Free Zone requires clear and straightforward documentation. The exact list may vary based on the chosen structure (FZ-LLC or branch) and business activity, but most applicants need the following documents:

For Individual Shareholders:

• Clear passport copy (valid for at least 6 months)
• Passport-size photograph with white background
• UAE entry stamp or visa copy (if applicable)
• Emirates ID copy (if resident)
• Updated CV or professional profile
• Proof of residential address (utility bill or bank statement)

For Corporate Shareholders:

• Certificate of Incorporation
• Memorandum and Articles of Association (MOA/AOA)
• Board Resolution approving company formation in Masdar
• Passport copies of directors and authorized signatories
• Company trade license (if UAE-based entity)
• Certificate of Good Standing (in some cases)

For Branch Registration (Local or Foreign Company):

• Parent company incorporation documents
• Board Resolution approving branch formation
• Power of Attorney appointing the branch manager
• Existing trade license copy (if applicable)

Additional Documents (If Required):

• Business plan (especially for regulated or technical activities)
• No Objection Certificate (NOC) from the current sponsor
• Specimen signature of shareholders
• Lease agreement or office space confirmation

Submitting complete and accurate documentation helps speed up approvals and ensures a smooth company registration process in Masdar Free Zone.

Note: You may need online notarization and attestation for documents issued outside the UAE through the relevant UAE Embassy and the Ministry of Foreign Affairs.

Below is the step-by-step process to set up a business in the Masdar Free Zone:

Step 1: Define Business Activity and Legal Structure

• Identify the exact business activities from Masdar’s approved activity list.
• Select the appropriate business license and the legal structure.
• Determine shareholder structure and capital allocation.

Estimated Timeline: 1–2 working days

Step 2: Reserve Trade Name

• Submit proposed company name options to the authority.
• Ensure the name complies with UAE naming guidelines.
• Avoid restricted or previously registered names.
• Receive official trade name approval confirmation from the Masdar City Free Zone Authority.

Estimated Timeline: 1–2 working days

Step 3: Submit Application and Documents

• Complete the company incorporation application form.
• Submit shareholder and director documents (passport copies, incorporation papers for corporate shareholders, etc.).
• Provide a business plan if required for regulated or technical activities.
• Pay initial approval fees (typically ranging between AED 1,500 and AED 3,000).

Estimated Timeline: 3–5 working days (subject to document completeness)

Step 4: Obtain Initial Approval

The Free Zone authority reviews the application. After that, they:

• Conduct due diligence and compliance checks.
• Issue initial approval confirmation once requirements are met.

Estimated Timeline: 3–7 working days

Step 5: Sign Legal Documents

• Sign Memorandum and Articles of Association (for FZ-LLC).
• Sign a lease agreement for office or workspace.
• Submit specimen signatures and authorized signatory forms.
• Complete notarization or attestation if required.

Estimated Timeline: 2–3 working days

Step 6: Pay License Fees and Receive License

• Pay the final license and registration fees.
• Receive trade license and company incorporation documents.
• Obtain Certificate of Incorporation and share certificates (if applicable).

Estimated Timeline: 1–3 working days after payment

Step 7: Apply for Establishment Card and Visas (If Required)

• Apply for visa (investor or employee) and an immigration establishment card.
• Complete medical test, Emirates ID, and residency stamping process.

Estimated Timeline: 5–10 working days (per visa)

Planning to establish your company in Masdar Free Zone and want the process handled with precision? SafeLedger delivers structured, end-to-end support, from activity selection and documentation to license issuance and visa processing. Our team ensures compliance, minimizes delays, and manages every regulatory step for you. Contact us today!

Setup costs in Masdar FZ typically start from AED 7,000 for basic packages and may exceed AED 80,000, depending on visa and office requirements. Below is a detailed breakdown:

Actual pricing may vary based on the specific business activity, visa categories, and your office requirements. Optional services like PRO support, bank account assistance, and legal translation will add to the total budget.

Setting up a company in Masdar Free Zone requires precision, compliance, and strategic planning. At SafeLedger, we focus on getting every step right so your business starts strong and stays compliant.

• Specialized Free Zone Expertise: Our team understands Masdar’s licensing structure, activity approvals, and regulatory framework. This reduces errors, avoids unnecessary delays, and keeps the process efficient.
• Strategic Structuring Guidance: We help structure your company based on ownership goals and long-term expansion plans under the UAE corporate tax system.
• Complete Documentation Handling: From application drafting to final submission, every document is reviewed carefully.
• Transparent Cost Planning: License costs, visa fees, office solutions, and renewal expenses are explained upfront so there are no surprises later.
• Ongoing Compliance Support: Business setup is just the beginning. Assistance continues with renewals, amendments, activity additions, and corporate tax advisory when required.

With SafeLedger, setting up a company in Masdar becomes structured, efficient, and strategically aligned for long-term growth.