Sole entrepreneur, can I be a qualifying Free Zone Person with a flexi-desk
The question is very simple, the law as written is ambiguous, and the tax office won't make a pronouncement, the tax advisors are baffled, and every free zone appointee will give a different story.
I am considering incorporating in the UAE.
The company has only one member (me). I am sole director and shareholder.
The newly registered "general trading" Free Zone company will apply for my visa. I assume (but cannot be sure) that this means I will be an employee of this company. If I am right, the company will have 1 employee. If I am wrong, zero. It may or may not depend on whether the visa is "investor" or "business manager". I do not have a management degree so one of them may be off the table.
If I go with SHAMS or any other free zone that lets you register with just a flexi desk (not office)... I won't have a real office... and I am the only employee... I will reside in the UAE and provably perform all work relative to the business (ideally from home, but could consider using the flexi desk if absolutely necessary). The business is electronics trading, the goods come from abroad and are sent to clients abroad. I have no clients in the UAE whatsoever nor will I conduct any disqualifying activities in the mainland.
Can I then - AT LEAST AS FAR AS "SUBSTANCE" IS CONCERNED - quality as Free Zone Person and get 0% corporate tax rate on the entire profits?
The text of the law is here: https://tax.gov.ae//Datafolder/Files/Guides/CT/Free%20Zone%20Persons%20-%2020%2005%202024%20final%20for%20GCD.pdf
In section 3..2.2 but it it ambiguous. What is adequate? I am actually, really running the biz by myself, and this is not a shell company.
Posted Dec 11, 2025, 9:52 AM UTC