fze

FZE stands for Free Zone Establishment, a corporate form used in the United Arab Emirates and other Gulf states within designated free zones. An FZE is a limited liability company that can be fully foreign-owned and is registered with a free zone authority. It is typically formed by a single shareholder, who may be an individual or a corporate entity, and is licensed to conduct a defined set of activities within the free zone. The FZE is a separate legal entity from its owner and is governed by the rules of the chosen free zone.

In many free zones, the FZE is the single-shareholder version of a Free Zone Company (FZCO), which is designed for multiple shareholders. Requirements such as minimum share capital, office space, and visa quotas vary by zone. Licenses may cover trading, services, or manufacturing, and some zones permit outside-the-zone business with restrictions and approvals.

Formation and operations: Establishing an FZE involves selecting a free zone, submitting incorporation documents to the free zone authority, leasing office space, and obtaining the relevant license. An FZE can typically import, export, and distribute goods within the free zone and, depending on the license, conduct business outside the zone. Free zones often offer benefits such as 100 percent foreign ownership, tax exemptions for a fixed period, and simplified customs procedures, counterbalanced by annual renewals and ongoing regulatory compliance.

The FZE model is widely used in several UAE free zones, including those dedicated to trade, logistics, finance, and technology, and the term is sometimes extended to similar corporate forms in other Gulf states that allow 100 percent foreign ownership within a free zone.