United Arab Emirates

Company Formation in Masdar City Free Zone

Masdar City Free Zone (Abu Dhabi)

Formation Time

3–5 business days

Min. Capital

AED 50,000

Corporate Tax

0% qualifying income / 9% standard

Foreign Ownership

100%

Overview

Masdar City Free Zone, situated in Abu Dhabi, is the world's foremost planned sustainable urban community and a global clean-tech innovation hub. Designed as a living testbed for renewable energy, artificial intelligence, urban mobility, green building tech, and environmental science, Masdar City houses the International Renewable Energy Agency (IRENA) global headquarters, the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), Siemens Middle East HQ, and over 1,000 green enterprises and startups. It is the definitive address for ESG-driven ventures, climate-tech pioneers, and sustainability consultancies in the Middle East.

Sovereign-backed by Mubadala

Home to IRENA & MBZUAI

Clean-tech accelerator access

0% QFZP tax potential

Near Abu Dhabi Airport

Why Choose Masdar City Free Zone

Global hub for clean technology, renewable energy, AI, and sustainability innovation

Hosts IRENA global headquarters and Mohamed bin Zayed University of Artificial Intelligence (MBZUAI)

0% corporate tax on Qualifying Free Zone Person (QFZP) income

World-class sustainable office spaces meeting highest LEED and Estidama green standards

Access to The Catalyst — the region's first clean-tech accelerator with seed funding access

Strategic proximity to Abu Dhabi International Airport (Zayed International Airport) and Dubai highway

Business Entity Types

Entity	Ownership	Directors	Capital	Tax	Best For
FZ-LLC (Corporate / Individual)	100%	1	AED 50,000	0% QFZP qualifying income / 9% standard CIT above AED 375,000	Clean-tech startups, AI developers, sustainability consultancies, green energy firms
Branch of Foreign or UAE Company	100%	1 manager	None	Subject to UAE Corporate Tax Law and PE rules	Global renewable energy corporations, international ESG consulting practices

Step-by-Step Formation Process

Initial Approval & Name Check

1–2 days

Submit online application via the Masdar City One-Stop Shop portal.

Office Lease Agreement

1–2 days

Select hot desk, dedicated executive desk, or private green office suite.

Document Signing & License

1–2 days

Sign digital formation documents and receive the Masdar City commercial license.

Immigration Establishment & Visas

7–10 days

Issue establishment card and process UAE investor and employee residence visas.

Corporate Bank Account Opening

2–3 weeks

Open multi-currency corporate bank account with leading Abu Dhabi or digital bank.

Costs & Fees

Government / License Fee	AED 12,000+
Our Service Fee	USD 2,800 – 4,200
Annual Renewal	AED 10,000+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Masdar City companies are highly regarded by UAE commercial banks due to the free zone's prestigious sovereign backing (Mubadala Investment Company) and high corporate governance standards.

Account Opening Time

2–3 weeks

Multi-Currency

Yes — multiple currencies supported

Recommended Banks

First Abu Dhabi Bank (FAB)Abu Dhabi Commercial Bank (ADCB)Wio BusinessEmirates NBDMashreq Bank

Tax Overview

Corporate Tax

0% on Qualifying Income; 9% on Non-Qualifying Income above AED 375,000

Personal Income Tax

VAT / Sales Tax

5% standard VAT rate (export of green tech services zero-rated)

Capital Gains Tax

Withholding Tax

Double Tax Treaties

137 countries

Qualifying Free Zone Persons in Masdar City benefit from 0% corporate tax on qualifying activities including R&D, holding of qualifying intellectual property, and global services.

Frequently Asked Questions

What industries are prioritized in Masdar City Free Zone?

Masdar City prioritizes clean technology, renewable energy, artificial intelligence, energy storage, water efficiency, sustainable agriculture, smart mobility, healthcare, ESG consultancy, and software engineering.

Who owns and operates Masdar City Free Zone?

Masdar City is owned by Mubadala Investment Company (Abu Dhabi's sovereign wealth fund), ensuring long-term institutional stability, premium infrastructure, and strong government support.

Can a startup in Masdar City access venture funding?

Yes. Startups can apply to The Catalyst, the MENA region's first clean-tech accelerator founded by Masdar and BP, which provides up to $100,000 in seed funding, mentorship, and laboratory facilities.

What is the corporate tax rate for companies in Masdar City?

Companies in Masdar City are subject to UAE Corporate Tax Law. Qualifying Free Zone Persons that maintain local economic substance and earn qualifying income benefit from a 0% tax rate. Income from non-qualifying activities or domestic mainland trade is taxed at 9% above AED 375,000.

Are flexi-desks available in Masdar City?

Yes. Masdar City offers cost-effective 'Workstation' and 'Executive Desk' packages that include commercial licensing, flexi-desk usage, and 1 to 2 residence visa allocations.

Is physical presence required in the UAE to incorporate in Masdar City?

No. The entire company formation process can be completed 100% remotely through Incorp International via digital signature and remote passport verification.