If you’re starting a business in Dubai, you’ve probably heard of FZE (Free Zone Establishment) and FZCO (Free Zone Company). But what do these terms mean, and how are they different? Let’s break it down so it’s simple to understand.
And don’t worry—DubaiBizHub is here to help you every step of the way. We specialise in making business setup in Dubai smooth and hassle-free.
The Basics of FZE and FZCO
Imagine you’re starting a small business in Dubai’s free zones. The difference between FZE and FZCO comes down to:
- Number of Owners
- FZE: Only one person or company owns the business.
- FZCO: Two to five people or companies can own it together.
- Liability
- Both protect the owners. You’re only responsible for the money you’ve invested, no more.
- Management
- FZE: Easier to manage since it’s owned by just one person.
- FZCO: Requires teamwork or a hired manager to handle operations.
What Is an FZE?
An FZE is a single-owner business. It’s perfect if you want full control over your business and don’t want to deal with partners.
Features of an FZE:
- 100% Ownership: No need for a local sponsor.
- Simple Setup: Ideal for small businesses or solo entrepreneurs.
- Limited Liability: Your personal assets are protected.
Requirements for an FZE:
- Hire at least two directors and one secretary (one person can do both).
- Submit audited financial reports annually.
- Follow free zone regulations for any changes in ownership.
What Is an FZCO?
An FZCO is a business with multiple owners—perfect if you want to collaborate with others.
Features of an FZCO:
- Up to 5 Owners: Great for partnerships or group investments.
- Flexible Shares: Decide how ownership is divided among shareholders.
- Team Approach: Owners can manage the company themselves or hire a manager.
Requirements for an FZCO:
- Same as FZE for directors, secretaries, and financial reports.
- All shareholders must participate in setting up the business.
Comparison: FZE vs. FZCO
| Feature | FZE | FZCO |
|---|---|---|
| Number of Owners | 1 | 2 to 5 |
| Ownership Control | Full control by one person | Shared control among owners |
| Liability | Limited to your investment | Limited to your investment |
| Management | Easier to manage | Requires teamwork or a manager |
| Setup Complexity | Faster and simpler | Slightly more time and effort |
How DubaiBizHub Can Help
Starting a business in Dubai’s free zones might sound complicated, but it doesn’t have to be. At DubaiBizHub, we simplify the process for you:
- We’ll guide you in choosing between FZE and FZCO based on your goals.
- Our experts handle all the paperwork, from licenses to shareholder agreements.
- We ensure compliance with Dubai’s free zone regulations.
Let DubaiBizHub take care of the details, so you can focus on growing your business.
For personalised support, contact DubaiBizHub today:
📧 info@dubaibizhub.com