What is the difference between FZE and FZCO?
FZE means Free Zone Establishment; FZCO means Free Zone Company. In Jafza, an FZE has one shareholder, while an FZCO has between two and 50. These are Jafza rules, not a single rule for every UAE free zone. The authority, legal form and ownership records must be checked together.
For a business in Ras Al Khaimah, RAKEZ offers the Free Zone Limited Liability Company (FZ-LLC). Start with the relevant authority’s requirements before comparing licences, workspace, visas and costs. Rasif Accountants can help you assess RAKEZ business setup options.
Reviewed against official free-zone sources on 22 October 2026. Confirm the requirements for your activity and application before proceeding.
FZE, FZCO and RAKEZ FZ-LLC: a practical comparison
| Authority and form | Ownership | Source |
|---|---|---|
| Jafza FZE | One shareholder: an individual or company. | Jafza formation rules |
| Jafza FZCO | Two to 50 shareholders: individuals, companies or a combination. | Jafza FZCO guide |
| RAKEZ FZ-LLC | One to 50 shareholders, subject to the applicable registration requirements. | RAKEZ legal entities |
Company suffixes also vary. DMCC’s naming guidance introduced the FZCO suffix for its companies from 2 January 2025. Check the incorporation documents rather than assuming a company’s shareholder count from its suffix.
Choose the authority and permitted activity first, then confirm the legal form, ownership and capital requirements.
Share capital and setup costs
RAKEZ: its official FAQs state a minimum share capital of AED 10,000 for an FZ-LLC, with higher requirements for certain activities. Confirm the amount and any payment or evidence requirements for your application.
Jafza: its formation guidance says there is no prescribed fixed minimum share capital for an FZE or FZCO; capital must be sufficient for the licensed activities.
DMCC: its share-capital guidance allows minimum capital requirements set by the Registrar or linked to the activity. A blanket claim that DMCC has no capital requirement is therefore unsuitable.
Share capital and setup fees are different. Compare licence and registration fees, premises, visas, renewal charges and professional fees in an itemised quotation. The letters FZE or FZCO alone do not show which option costs less.
How to choose a suitable company structure
- Describe your activity: list the products or services, customers and operating locations.
- Confirm ownership: identify each individual or corporate shareholder and the proposed ownership shares.
- Review the authority’s rules: check the permitted form, activity approvals, capital, documents and premises.
- Agree decision-making: clarify management, signing authority and future ownership plans in the company documents.
- Compare the full cost: separate initial charges from renewal and ongoing support.
Company form is one part of the decision. Discuss your planned transactions with our Corporate Tax team and VAT team, and plan bookkeeping and financial reporting from the start.
Questions about FZE, FZCO and RAKEZ companies
Does every FZCO need at least two shareholders?
Do not apply that rule to every free zone. Jafza specifies two to 50 shareholders for its FZCO. Other authorities use their own company forms and naming rules, so check the authority’s requirements and incorporation documents.
Can I set up a RAKEZ company on my own?
RAKEZ offers the FZ-LLC form with one or more shareholders, up to 50. Your activity, documents and application remain subject to RAKEZ’s requirements and approval.
Is an FZE always cheaper than an FZCO?
The name alone does not establish the cost. Compare the same activity, premises, visa needs, registration work and renewal basis in written quotations.
What should I send Rasif for an initial consultation?
Share your proposed activity, number and type of owners, workspace and visa needs, budget and preferred start date. We can help compare options and prepare an agreed scope for RAKEZ or other free-zone setup support. Licensing, immigration and banking decisions remain with the relevant authority or institution.
Meet Rasif Accountants FZ-LLC in Ras Al Khaimah or book a free initial consultation. Setup services and government fees are quoted separately. Mobile: +971 55 770 9776 | Landline: +971 7 204 1565.
