Masdar City Free Zone company setup, costs and visas
A cleantech city lab where renewables, mobility and AI companies cluster for the ecosystem and the proximity to the Abu Dhabi government. The official Startup package costs AED 7,000 plus VAT for a licence with up to two activities; a desk (from AED 6,000 a year) and visas are extra, or come bundled in the Business One package at AED 17,500.
Masdar City Free Zone in numbers
Last verified: 28 Sep 2026. Checked against the zone’s own published tariff.
Who Masdar City fits and who it does not
Masdar City Free Zone is a specialist zone. It was built as a cleantech district (renewables, energy storage, sustainable mobility, climate tech, PropTech and applied AI) and its real value is the ecosystem, not the licence itself: the Abu Dhabi Future Energy Company (Masdar), IRENA’s headquarters, and universities focused on energy and artificial intelligence next door, plus pilot-project access to Abu Dhabi government entities. Founders who plan to be present, hire researchers and tap that network get something a cheaper mailbox zone cannot replicate.
It fits poorly for pure general trading, import-and-warehouse e-commerce, or anyone who only wants a licence to park and never set foot on site. If your model is storage and re-export, KEZAD is the better answer; if it is fund management or a holding structure, ADGM is. Masdar rewards companies whose work touches its themes.
What the AED 7,000 Startup Package includes and what sits beyond it
The AED 7,000 in the spec table above is the official Startup Package for a single-activity licence, and it is low for Abu Dhabi. Treat it as the licence line only. Additional activities, the establishment card, immigration (e-channel) registration and every residence visa are separate costs that stack on top.
| Cost line | What it is |
|---|---|
| Licence (Startup Package) | AED 7,000, one activity |
| Flexi‑desk | Shared workstation, included in the package |
| Extra activities | Added per activity beyond the first |
| Establishment card | One-off, required before any visa |
| Per residence visa | Entry permit + status change + medical + Emirates ID |
A one- or two-person cleantech company that needs two visas lands well above the licence figure alone in year one. Model your own mix on the setup-cost calculator before you commit to a number.
Office, substance and visas at Masdar
The Startup Package includes a flexi‑desk (a shared workstation) which satisfies the physical-presence requirement a free-zone company needs, and is enough to open a corporate bank account and register for tax. Your visa allocation scales with the space you take: a flexi‑desk supports a small founding team, and leasing a private office or lab lifts the headcount you can sponsor.
For qualifying cleantech, software and IP income, a Masdar entity can pursue the 0% Qualifying Free Zone Person rate, but only with real substance on the ground, which is exactly what the on-site ecosystem makes practical rather than theoretical. Read our corporate-tax and economic-substance notes before assuming the 0% rate applies to you.
Masdar vs ADGM vs KEZAD: choosing the right Abu Dhabi zone
Within Abu Dhabi the decision is usually three-way. ADGM suits financial services, funds and holding companies under a common-law regime with a higher cost base. KEZAD suits manufacturing, logistics and heavy trade that need land and warehousing. Masdar sits between them for technology and sustainability ventures that want R&D adjacency and government proximity without ADGM pricing.
How to set up a company in Masdar City Free Zone
Activities and trade name
Choose the licensed activities and reserve a trade name. The activities decide which approvals you need, how banks read your file and whether your income can qualify for the 0% QFZP rate.
Documents and KYC
Passports, application forms and a clear account of where the money comes from. Free zone companies can be 100% foreign-owned, so no local sponsor is needed.
Licence and establishment card
The zone issues the licence (typically 7–14 business days). The immigration establishment card comes next and opens visa processing.
Visas and bank account
Each visa holder needs an entry permit, a medical test and an Emirates ID. The corporate bank account is opened in parallel and is usually the slowest step.
Masdar City Free Zone: questions founders ask
How much does a Masdar City Free Zone licence cost?
Is Masdar City only for cleantech companies?
Do I need a physical office in Masdar City?
Can a Masdar City company get 0% corporate tax?
What does proximity to the Abu Dhabi government give a startup?
Is the “from AED 7,000” price the official tariff?
Can this company do business on the UAE mainland?
This is general information on UAE rules. It is not legal, tax or immigration advice for your situation. Rules and government fees change; we confirm the position for your facts in writing before you act.