Free Zone LLC (FZLLC)
Flexible company structure for partnerships and joint ventures.
What is an FZLLC?
A Free Zone Limited Liability Company (FZLLC) is a flexible business structure that combines the benefits of a corporation with the operational flexibility of a partnership. Members (owners) enjoy limited liability while having the ability to customize profit distribution and management structure.
FZLLCs are ideal for:
Key Features
Multiple Members
Minimum 2 members required - perfect for partnerships.
Flexible Profit Sharing
Customize how profits are distributed among members.
Pass-Through Taxation
Profits pass directly to members, avoiding double taxation.
Management Flexibility
Choose member-managed or manager-managed structure.
FZLLC vs FZCO
| Feature | FZLLC | FZCO |
|---|---|---|
| Minimum Owners | 2 members | 1 shareholder |
| Ownership Units | Membership interests | Shares |
| Profit Distribution | Flexible (per agreement) | Based on shares |
| Management | Members or Managers | Directors |
| Taxation | Pass-through | Corporate |
| Best For | Partnerships | Solo/Startups |
Structure Requirements
| Minimum Members | 2 |
| Maximum Members | Unlimited |
| Manager Requirement | At least 1 (can be a member) |
| Operating Agreement | Required |
| Registered Address | Required (provided by ZDFZ) |
| Capital Contribution | No minimum requirement |
FZLLC Fees
| Fee Type | Amount |
|---|---|
| LLC Registration | $1,000 USD |
| Annual License Fee | $750 USD |
| Registered Address | Included |
| Operating Agreement Template | Included |
Operating Agreement
Every FZLLC must have an Operating Agreement that defines:
- • Ownership percentages of each member
- • Profit and loss distribution
- • Voting rights and decision-making procedures
- • Management structure (member-managed vs manager-managed)
- • Rules for adding or removing members
- • Dissolution procedures
ZDFZ provides a standard operating agreement template, or you can use a custom agreement prepared by your legal counsel.
Ready to form an FZLLC?
Learn about the incorporation process or compare all fees.