Meydan Free Zone

Meydan Free Zone (MFZ) is an autonomous free economic zone in central Dubai, established by Law No. 5 of 2009 as Meydan City Corporation. Unlike most other free zones, Meydan operates under its own statutory law and its own Companies and Licensing Regulations, under which the federal Commercial Companies Law (Federal Law No. 32 of 2021) does not apply within the zone. The minimum capital for registration is AED 100,000. The zone is known for its flagship service, Fawri: a fully digital 60-minute business licence. Meydan companies can apply for the 0% Corporate Tax rate subject to Qualifying Free Zone Person (QFZP) conditions, but the zone is not a VAT Designated Zone.

A holding company in Meydan Free Zone is an FZ-LLC incorporated under the Meydan Free Zone Companies and Licensing Regulations 2022 with activity code 6420.00 “Holding Companies”, a licence priced from AED 12,500 a year, no physical office and no third-party regulatory approval. Dividends from UAE subsidiaries reach the holding company free of corporate tax with no conditions attached (Article 22(1) of Federal Decree-Law No. 47 of 2022); dividends and capital gains from foreign subsidiaries are exempt under the participation exemption if the holding company owns at least 5% or paid at least AED 4,000,000, has held the stake for 12 months, and the subsidiary is taxed at 9% or more. Qualifying Free Zone Person (QFZP) status, with its 0% rate, is usually irrelevant to a passive holding company; an active holding company (intra-group loans, management fees, sub-5% portfolio stakes) needs it, and QFZP status brings real substance, an audit with no revenue threshold and transfer pricing compliance.