If you’re thinking about starting a business that’s future-ready, sustainable, and smart—Masdar Free Zone is one of the best places to do it. Located in the heart of Masdar City in Abu Dhabi, this free zone is unlike any other. It’s not just about offices and licenses—it’s about being part of an eco-friendly, innovation-driven community that supports clean energy, technology, and forward-thinking enterprises.
In this guide, we’ll walk you through everything you need to know about business setup in Masdar Free Zone, from getting your license to finding the right workspace and understanding why this location is a smart choice for modern entrepreneurs.
What is Masdar Free Zone?
Masdar Free Zone is a special economic area within Masdar City, designed to attract businesses in clean energy, environmental technology, artificial intelligence, mobility, and advanced materials. But it’s not limited to just green-tech companies. Today, it welcomes startups, SMEs, and global firms from across industries—tech, R&D, consultancy, education, healthcare, media, and more.
This free zone is managed by Masdar City Free Zone Authority, and it offers an ecosystem where sustainability and innovation are at the core. The city itself is designed for low carbon emissions, walkability, and smart infrastructure, giving businesses a powerful image of being part of something progressive and green.
Why Choose Masdar Free Zone for Your Business?
Starting a company isn’t just about cost or location anymore. It’s about future-proofing your business. Here’s why Masdar Free Zone stands out:
Full Foreign Ownership – You can own 100% of your business. No local sponsor required. That means full control over decisions and profits.
Zero Corporate Tax – Currently, businesses enjoy corporate tax exemptions for a fixed number of years, making it highly attractive for startups and growing firms.
Strategic Location – Masdar City is right next to Abu Dhabi International Airport and a short drive from Dubai. This makes logistics, client meetings, and global access seamless.
Green Credentials – Setting up in a city built on sustainability instantly boosts your brand’s credibility and aligns you with the global movement toward responsible business.
Flexible Office Solutions – Whether you need a desk, co-working hub, or an entire floor, Masdar Free Zone gives you scalable options.
Support for Innovation – Masdar partners with tech hubs, incubators, universities, and investors, which gives your startup more visibility and support.
Types of Licenses You Can Apply For
When setting up your business in Masdar Free Zone, you’ll need to apply for a specific type of license based on your core activity. The free zone authority offers several options:
Commercial License
For businesses involved in trading, general trading, or distribution of products or services.
Service License
This is the most common license for consultants, project managers, marketing firms, HR agencies, and professional service providers.
Industrial License
For companies engaged in manufacturing, assembling, or industrial activities that are clean, safe, and sustainable.
Freelance License
Available for individual professionals working independently in creative, IT, or consulting roles.
Legal Structures for Business Setup
Masdar Free Zone gives entrepreneurs several business structure options:
Free Zone Limited Liability Company (FZ-LLC)
The most common form for private companies, offering limited liability and full foreign ownership.
Branch of a Foreign Company
If you already have a business registered outside the UAE, you can open a branch in Masdar Free Zone and conduct operations without forming a new company.
Branch of a UAE Company
Companies already licensed in another UAE jurisdiction can expand their operations through a Masdar branch.
The Step-by-Step Setup Process
Setting up your company in Masdar Free Zone is straightforward and efficient. Here’s how the process usually flows:
Step 1: Define Your Business Activity
Start by identifying the exact services or products your business will offer. The activity must align with the license categories offered.
Step 2: Choose a Legal Entity
Decide if you’ll register a new Free Zone LLC or open a branch. This affects your documentation, shareholding structure, and setup time.
Step 3: Reserve Your Trade Name
Select a company name that follows Masdar’s naming guidelines. It should not be misleading or duplicate an existing brand in the UAE.
Step 4: Submit Your Application
Fill out a registration form, submit passport copies, business plans, and legal documents required by your structure.
Step 5: Lease Office or Workspace
Every license must be linked to a physical address in Masdar City. Choose between a flexi-desk, private office, or co-working space.
Step 6: Receive Your Business License
Once everything is approved, you’ll receive your official license and can begin operations.
What Makes Masdar Free Zone Unique?
While many free zones offer tax benefits and 100% ownership, Masdar Free Zone stands apart because of its purpose and ecosystem.
This is a city built around clean tech, green innovation, and climate-conscious design. Businesses here don’t just trade—they lead change.
You’re surrounded by institutions like IRENA (International Renewable Energy Agency), Mohamed bin Zayed University of Artificial Intelligence, and Masdar Institute. This environment fuels research, collaboration, and discovery—something very few zones can offer.
Cost of Business Setup in Masdar Free Zone
Startup costs in Masdar Free Zone are competitive and depend on your company size and office needs.
| Expense | Cost Range (AED) |
| Trade License Fee | 10,000 – 15,000 |
| Registration Fees (one-time) | 5,000 – 10,000 |
| Office Space (per year) | 12,000 – 50,000+ |
| Visa Fees (per person) | 3,500 – 5,000 |
| Document Attestation/Translation | 1,000 – 2,500 |
The total setup cost may range from AED 25,000 to AED 80,000+, depending on scale.
Living and Working in Masdar City
Masdar City is not just for work—it’s a great place to live, too. It’s quiet, modern, and designed for low carbon living. You’ll find restaurants, residences, green parks, and a walkable layout unlike anywhere else in Abu Dhabi.
If you’re relocating or spending long hours at work, living close to your office can save time and enhance your work-life balance.
Support Services and After-Setup Assistance
Masdar Free Zone offers ongoing support to keep your business running smoothly:
- Investor and employee visa processing
- Medical and Emirates ID support
- Bank account opening assistance
- Business networking events
- Document clearing and PRO services
This means you can focus on growth while they handle the admin.
Conclusion
Choosing Masdar Free Zone is more than just opening a business—it’s a strategic move. You position your brand within a globally recognized smart city, designed to support innovation, reduce environmental impact, and encourage tech-forward growth.
From 100% foreign ownership and zero corporate tax to a supportive startup ecosystem, business setup in Masdar Free Zone makes sense for entrepreneurs with vision.
If you’re ready to launch or expand your company in a sustainable, world-class environment, Masdar City welcomes you.
FAQs
How much does it cost to start a business in Masdar Free Zone?
The cost of starting a business in Masdar Free Zone typically ranges between AED 25,000 to AED 80,000, depending on the license type, office space, number of visas, and other operational needs. Flexi-desk options are more affordable, while full private offices cost more. Additional charges may include visa processing and document clearance.
What types of companies can be registered in Masdar Free Zone?
Masdar Free Zone allows the registration of Free Zone Limited Liability Companies (FZ-LLCs), branches of foreign companies, and branches of UAE companies. These structures are suitable for businesses in clean tech, consulting, trading, media, R&D, AI, and other innovative sectors.
Is 100% foreign ownership allowed in Masdar Free Zone?
Yes, businesses registered in Masdar Free Zone are allowed 100% foreign ownership with no need for a local sponsor. This allows international investors full control over their business operations and profits.
Can I open a bank account for my company in Masdar Free Zone?
Yes, once your license is issued, you can open a corporate bank account in the UAE. Masdar Free Zone provides the necessary legal documents and guidance to help you complete your banking setup with institutions like Emirates NBD, ADCB, or FAB.
What are the benefits of setting up in Masdar Free Zone compared to other free zones?
Masdar Free Zone stands out for its sustainability-focused ecosystem, strategic location near Abu Dhabi Airport, tax exemptions, and state-of-the-art infrastructure. It’s especially ideal for businesses in clean energy, AI, smart mobility, and environmental services.
How long does it take to get a business license in Masdar Free Zone?
The entire process—from application to license issuance—can take as little as 5 to 10 business days, provided all documents are submitted correctly and the business activity is approved.
Can I get residency visas through Masdar Free Zone company setup?
Yes, company owners and employees are eligible for UAE residency visas through their Masdar Free Zone entity. The number of visas depends on your office space and business size. Visa processing support is provided as part of the setup package.
