Why free zones like Meydan and IFZA are the first choice for business setup in Dubai

By Kitaab on December 18, 2025

Dubai continues to be one of the most founder‑friendly business hubs in the world, and business setup in Dubai has become especially attractive through Free Zones like Meydan Free Zone and IFZA Free Zone. But once you decide Dubai, the real question begins:

Which Free Zone should you choose? Two names that often come up in early conversations are Meydan Free Zone and IFZA (International Free Zone Authority). Both are popular, both are flexible, and both cater to startups, consultants, and international founders, but they serve very different founder mindsets.

Let’s break it down clearly, without brochure language.

What's Kitaab?

Kitaab provides finance, accounting and tax services for freelancers, start-ups and businesses in the service sector

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The structural incentives that keep Free Zones firmly in favor

Free Zones remain attractive because they offer:

100% foreign ownership
Zero customs duty (on qualifying activities)
Streamlined licensing
International credibility
No requirement for a local sponsor

But under UAE Corporate Tax, Free Zone choice now impacts tax treatment, compliance effort, and long‑term flexibility, not just setup cost.

Meydan Free Zone: optimised for speed and simplicity

The structural advantages that keep Meydan and IFZA at the center of Dubai incorporations

Meydan Free Zone is one of the most searched options for business setup in Dubai, especially among founders who want to:

Get licensed quickly
Operate lean
Avoid complexity in the early years

Why Meydan Free Zone works well for business setup in Dubai

1. Fast, paper‑light setup

Meydan is known for minimal documentation and quick approvals; ideal if you want to start billing without long lead times.

2. Prime Dubai address

Being located near Downtown Dubai adds branding value, especially for consultants and client‑facing businesses.

3. Cost‑efficient packages

Meydan often works well for solo founders and small teams looking to control burn in year one.

4. Suitable for service‑based models

Consulting, digital services, marketing, IT, advisory, freelancers; all fit naturally here.

Things to consider before choosing Meydan Free Zone

Limited industrial or trading depth
Office options are mostly flexi‑desk or shared
Scaling into warehousing or heavy operations later may require migration Meydan free zones are best for: Consultants, freelancers, coaches, digital agencies, and early-stage startups.

A flexible and scalable business setup alternative in Dubai: IFZA free zone business incorporation

IFZA Free Zone (International Free Zone Authority) is widely used for business setup in Dubai by founders thinking beyond year one.

Why IFZA free zone is strong for business setup in Dubai

1. Broad activity coverage

IFZA allows a wide mix of activities; services, trading, holding, and hybrid models.

2. Flexible visa structures

Ideal if you plan to bring in partners, employees, or relocate family later.

3. Strong international acceptance

IFZA is well‑recognized by banks, payment processors, and global partners.

4. Growth‑friendly ecosystem

If your business roadmap includes scaling teams, multi‑country operations, or restructuring, IFZA gives you room to evolve.

Things to consider

Slightly higher setup and renewal costs compared to lean zones
Requires better planning around compliance and accounting

IFZA is usually best for funded startups, trading companies, founders planning team expansion, international businesses.

A business setup in Dubai comparison between Meydan vs IFZA. How the differences play out in practice

Factor	Meydan Free Zone	IFZA
Setup speed	Very fast	Fast
Cost sensitivity	High (budget‑friendly)	Moderate
Business models	Service‑focused	Service, trading, holding
Visa flexibility	Limited	High
Scalability	Moderate	Strong
Long‑term structuring	Limited	Flexible

How corporate tax reshapes the Meydan vs IFZA decision

With UAE Corporate Tax now live:

Free Zone benefits depend on activity classification
Books must support Qualifying Income tests
Poor structuring at setup can lead to avoidable 9% tax exposure later

Choosing a Free Zone is no longer just a licensing decision, it’s a tax and compliance decision. This is where many founders struggle after incorporation. There is no "best" Free Zone in Dubai. There is only the right Free Zone for your business stage and future plans.

Choose Meydan if you want speed, simplicity, and a lean start
Choose IFZA if you’re building something that needs flexibility and scale visa optionalities.

How Kitaab helps you choose (and set up) right

There is no universally “best” Free Zone in Dubai.

There is only the right Free Zone for your business model, growth plans, and tax position. At Kitaab, we don’t treat business setup as a paperwork task.

We help founders:

Choose the right Free Zone based on how they earn and scale
Structure activities to protect Free Zone tax benefits
Set up VAT- and Corporate Tax-ready accounting systems from day one
Avoid costly restructuring later due to poor initial decisions

If you’re deciding between Meydan, IFZA, or unsure what actually fits your business, talk to Kitaab before you incorporate, not after issues appear.