Masdar City Free Zone Company Setup (MCFZ, Abu Dhabi)

Masdar City Free Zone company setup is the way to anchor your business in Masdar City, Abu Dhabi's green technology cluster next to the international airport. MCFZ has historically attracted clean energy, climate tech, AI and R&D companies, but it also licenses consulting, IT, trading and service businesses. The zone operates under UAE civil law, so the procedure is simpler and cheaper than in neighbouring ADGM.
Content reviewed:
Serhii
Serhii
Senior Attorney at Dynasty Business Adviser
Content reviewed
Updated: 18.08.2026 Reading time: 5 minutes
Masdar City Free Zone Company Setup (MCFZ, Abu Dhabi)
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Content

Pricing is transparent: packages are published on masdarcityfreezone.com, with the entry-level option at 7,000 AED. This article covers current 2026 rates, the registration steps, taxes and the typical mistakes people make when choosing a package.

Masdar City Free Zone Company Setup (MCFZ, Abu Dhabi), image 1

Why Choose MCFZ

Masdar City offers a rare combination: a low entry cost, a strong sustainability brand and a living ecosystem — from research institutes to the IRENA headquarters.

  • Startup Package at 7,000 AED — one of the most affordable official rates in Abu Dhabi
  • A dedicated Innovation Package at 12,000 AED with a 2-visa quota for technology startups
  • A clean-tech and R&D ecosystem: institutes, pilot sites, and IRENA and technology corporations as neighbours
  • Flexible workspace formats: virtual desk from 6,000 AED per year, flexi desk, offices and laboratories
  • 100% foreign ownership and free repatriation of profits
  • 10 minutes from Abu Dhabi International Airport — convenient for international teams

Steps to Set Up a Company in MCFZ

The process is standard for UAE free zones and runs through the administration’s online portal. The main decision comes at step one — which package to take and how many activities to include in the licence.

  1. Choose a package (Startup, Innovation, Business One, Enterprise) and your business activities
  2. Reserve a trade name and submit the application via the Masdar City portal
  3. Prepare incorporation documents and details of shareholders and beneficial owners
  4. Choose your workspace: virtual desk, flexi desk, office or laboratory
  5. Pay for the package and receive the licence
  6. Obtain the Establishment Card, e-channel registration, residence visas and open a bank account

Standard registration takes 5–10 business days with a complete document set. If your activity requires external approvals — for example, certain energy or research licences — allow 3–4 weeks.

Cost of Setting Up a Company in MCFZ (2026)

All figures below are official rates from the License and Registration page on masdarcityfreezone.com; 5% VAT is added on top. Packages differ in the number of activities, the visa quota and the workspace format.

Cost item Amount, AED Notes
Startup Package 7 000 Licence and registration, up to 2 activities, no visa or workspace
Innovation Package 12 000 For startups: up to 3 activities, 2-visa quota, flexi desk
Business One Package 17 500 1 visa, flexi desk lite, Establishment Card, e-channel, medical test, Emirates ID
Enterprise Package 27 000 Up to 6 activities, 3-visa quota, flexi desk plus
Employment visa (2 years) 3 050 Plus medical test 350, Emirates ID 450, status change 800–900; refundable deposit 2,500
Establishment Card / e-channel 1 600 / 2 600 One-off immigration registrations; e-channel renewal — 1,600 per year
Additional business activity 2 500 Special activities — 5,000

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A detail many people miss: the 7,000 AED Startup Package covers the licence only — no visa, no desk. A company with one visa realistically starts at 17,500 AED (Business One). The discounted Startup rate runs for three years, after which the company moves to the standard tariff.

Taxation in MCFZ

Masdar City residents operate under the general UAE regime: 9% Corporate Tax on profit above 375,000 AED, 0% below the threshold, and 5% VAT. The zone is on the list of free zones for Corporate Tax purposes, so a company with Qualifying Free Zone Person status can apply 0% to qualifying income — primarily transactions with foreign counterparties and other free zone residents. That requires a real office, staff and discipline in how revenue is structured.

Masdar City Free Zone Company Setup (MCFZ, Abu Dhabi), image 2

Who MCFZ Is Right For

  • Startups and companies in clean tech, renewable energy, climate and water technologies
  • R&D teams and IT ventures that value the tech park ecosystem and the Masdar City brand
  • Consultancies and small businesses looking for an affordable official entry into Abu Dhabi

‘Masdar City is the most economical entry into Abu Dhabi for a technology startup: the official 7,000 AED rate comes with a brand that opens doors to corporate clients’, notes the lead lawyer at Dynasty Business Adviser.

Set Up Your MCFZ Company with Dynasty Business Adviser

We will match a Masdar City package to your profile, verify the business activities, prepare the documents, arrange visas and open a corporate account. Get in touch and we will calculate a complete first-year budget with no hidden items.

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    Pricing information is accurate as of the publication date (July 13, 2026) and verified against open sources, including masdarcityfreezone.com; confirm current fees directly with the zone administration before paying.

    Content reviewed by
    The company's lead attorney
    An expert with over 14 years of legal practice experience, possessing a deep understanding of corporate legislation and regulatory requirements across international jurisdictions. Specializes in international tax planning, business structuring, and corporate governance, with practical experience in the business and legal environment of the countries of the GCC.
    Who will you communicate with?
    Customer Service
    Manager
    We will discuss your request and issue, find the optimal solution, and pass the project to the appropriate specialist. We will provide information about the company's services and introduce you to leading specialists within the company.
    Legal
    Consultant
    After consultation with the customer service manager, the legal consultant conducts a more in-depth analysis of your request and develops project strategy options and preliminary organization of all processes.
    Lead Company
    Lawyer
    Will coordinate with you the strategy and stages of further work and conditions. Will be responsible for coordinating the work of the legal consultant, ensuring the correct implementation of the strategy, providing individual approach, and ensuring compliance of the team's activities with legal norms.
    Project
    Manager
    Manages your project within the company, coordinates team activities, and ensures that project goals are achieved on time. Responsible for planning, executing, and monitoring assigned tasks.
    Public Relations
    Manager (PRO)
    Represents your interests in government agencies, including handling company registration and subsequent processes, obtaining additional permits, and accompanying you during visits to government agencies.
    Accounting Department
    Manager
    Will communicate directly with you regarding accounting issues, transactions, and necessary documentation. Ensures the correctness and order of your financial flows functioning.

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    Serhii Senior Attorney at Dynasty Business Adviser

    Frequently asked questions

    Do I have to work in energy to register in Masdar City?

    No. The zone licenses a wide range of activities — consulting, IT, trading, education, media. Sustainability remains the ecosystem’s priority, but there are no formal industry restrictions for most applicants.

    What does the 7,000 AED package actually include?

    Only the licence and company registration with two business activities — no visa, workspace or immigration cards. The visa, e-channel and desk are paid separately, so a ‘company plus one visa’ budget is more accurately based on the Business One package at 17,500 AED.

    How is MCFZ different from ADGM?

    MCFZ operates under UAE civil law and its administration’s rules, while ADGM is a separate English common law jurisdiction with its own courts and the FSRA regulator. Funds and financial structures logically belong in ADGM; for operating businesses and startups, Masdar City is noticeably cheaper and simpler.

    How much does an employee visa cost through Masdar City?

    A 2-year employment visa package costs 3,050 AED, plus a 350 AED medical test, 450 AED Emirates ID and 800–900 AED status change if processed inside the country. A refundable deposit of 2,500 AED per employee also applies.

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