Freezone Business Setup in Dubai, UAE

Free zones are specially designated areas in Dubai where companies can enjoy many benefits unavailable in the mainland.

These zones have been established primarily to attract foreign investors by offering them 100% ownership, tax exemptions, and simplified business processes.

Each free zone caters to particular industries, like technology, media, finance, or trade, to help businesses in such fields flourish and develop.

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Company Formation
BENEFITS

Why Setup Business in Free Zone?

Setting up a business in a free zone carries many advantages, especially for foreign investors. Here are the major advantages of establishing a business in a free zone.
100% Foreign Ownership

One of the most significant benefits of attracting entrepreneurs to free zones is owning 100% of your company. Unlike the mainland, where simply having your say is often the most you can do, you don’t need a local sponsor who owns 51% of your business.

Tax Benefits

Several free zones located in Dubai enjoy tax advantages. Within them, businesses have tax exemptions on corporation income tax, which may vary after several years. This makes free zones a desirable option for startups and international firms that seek to minimize their tax burdens.

Simple Business Setup Process

You can set up a free zone company within a few days with very little documentation. The hassle of running around government offices is eliminated, as most free zones offer online registration facilities.

Full Repatriation of Profits and Capital

Businesses operating in free zones can return 100% of their capital and profit to their home country. This is especially beneficial for multinational companies seeking to manage their finances effortlessly.

Access to Global Markets

UAE is a major international trade hub. Establishing a business in a free zone area benefits you from a simple and efficient export and import mechanism. Most free zones are near seaports, airports, and highways, which help you if you are running an import and export business.

Affordable Office Spaces

You will find affordable and flexible office spaces in all Dubai Freezones. Most free zones offer shared spaces and other facilities that significantly reduce overhead costs for startups and small companies.

No Customs Duties

Operating in a free zone allows companies to import and export goods without payment of customs duties. This advantage is excellent for trading or manufacturing companies because it reduces operational costs.

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How to Set Up a Freezone Business in Dubai

The Process

Setting up a freezone business in Dubai is a relatively straightforward process, but there are important steps you must follow to ensure everything is done correctly. Here’s a step-by-step guide to help you through the process.

Choose the Right Freezone for Your Business

Dubai has more than 50 free zone options which cater to different industries. The first step to starting a business is to choose the right free zone based on your activities and business goals. It is essential to take your time at this stage and research the free zone that offers the best facilities and services for your business activity.

Select Your Business Activity

Within each free zone, you will have multiple business activity offers. Depending on the free zone, each will offer different activities, from trading and manufacturing to consulting and professional services. Choose your business’s current activity, as the activities on your trade license are essential for specific business-related activities.

Prepare the Necessary Documentation

Once you have chosen your free zone and the activity that best describes your business, you must prepare the required registration documents. Documentation will usually include the following:

  • Copies of passport for each shareholder,
  • Owner’s CV, Application forms,
  • Business Plan
  • Feasibility Study
  • Proof of the physical address of the business premises (if applicable), and
  • Bank reference letters (if applicable).

Ensure all this documentation is ready beforehand to avoid unexpected delays.

Apply for a Trade License

Once all of the required documents for registration have been achieved, the next step will be to apply for the trade license. The trade license is the official documentation that will permit you to conduct business in the legal zone, and without it, you are not allowed to operate your company in the legal zone. The type of licenses might vary depending on the type of business you will do. They possibly will be

  • Commercial License (Trading companies)
  • Professional License (Consulting or Services based companies)
  • Industrial licenses (Manufacturing companies), and so on.

The authority of the specific free zone will usually process the trading license approval within a couple of weeks after reviewing your application and required documents.

Get Office Space

Most Freezone authorities offer different office solutions, including virtual offices, shared workspaces, and private offices. You can choose the type of office that suits your business needs and budget. You may also find packages that include the office space along with the trade license, saving you from the hassle of handling everything separately.

Open a Corporate Bank Account

The next step after getting the trade license and office space is opening a corporate bank account in Dubai, which enables you to conduct financial operations and receive payments from your clients. To open a bank account, you will need the following documents:

  • An original trade license
  • Passport copy of the shareholder
  • Shareholder’s residency visa
  • Proof of business activity, which may include invoice, receipt and/or delivery note
  • Completed account opening forms

The process may require 2-5 working days, which is crucial for developing business activities.

Apply for Visas

Now that your company is set up, you can apply for visas for yourself, any staff you might have, and your family. The costs and exact procedure vary from package to package. Generally, the free zones offer visa allocations based on the amount of office space and number of employees you hire. The process includes medical examination and Emirates ID issuance.

Different Zones. Different benefits

UAE Freezone Locations

The UAE has many free zones, each designed to meet different industries and business needs. Here is a list of over 48 free zones in the UAE, categorized by emirate.

Dubai Freezones
  • Jebel Ali Free Zone (JAFZA)
  • Dubai Multi Commodities Centre (DMCC)
  • Dubai Airport Free Zone (DAFZA)
  • Dubai Silicon Oasis (DSO)
  • Dubai Internet City (DIC)
  • Dubai Media City (DMC)
  • Dubai Knowledge Village
  • Dubai Healthcare City (DHCC)
  • Dubai International Financial Centre (DIFC)
  • Dubai World Central (DWC)
  • Dubai Production City (DPC)
  • Dubai Design District (D3)
  • Dubai Science Park (DSP)
  • Dubai Studio City (DSC)
  • International Humanitarian City (IHC)
  • Dubai South
  • Meydan Free Zone
  • Dubai Auto Zone (DAZ)
  • Dubai Cars and Automotive Zone (DUCAMZ)
  • Dubai Textile City (DTC)
  • Gold and Diamond Park
  • Dubai Flower Centre (DFC)
  • Dubai Industrial City (DIC)
  • Dubai International Academic City (DIAC)
  • Dubai Outsource City (DOC)
  • Dubai Knowledge Park (DKP)
  • Dubai Logistics City (DLC)
  • International Free Zone Authority (IFZA)
Abu Dhabi Free Zones
  • Abu Dhabi Global Market (ADGM)
  • Khalifa Industrial Zone Abu Dhabi (KIZAD)
  • Twofour54
  • Masdar City Free Zone
  • Industrial City of Abu Dhabi (ICAD)
  • ZonesCorp
Sharjah Free Zones
  • Sharjah Airport International Free Zone (SAIF)
  • Hamriyah Free Zone Authority (HFZA)
  • Sharjah Media City (Shams)
  • Sharjah Publishing City Free Zone (SPC Free Zone)
  • Sharjah Research Technology and Innovation Park (SRTIP)
Ras Al Khaimah Free Zones
  • Ras Al Khaimah Economic Zone (RAKEZ)
  • RAK Maritime City (RAKMC)
  • Ras Al Khaimah International Corporate Centre (RAK ICC)
Fujairah Free Zones
  • Fujairah Free Zone (FFZA)
  • Fujairah Creative City
Ajman Free Zones
  • Ajman Free Zone (AFZ)
  • Ajman Media City Free Zone (AMCFZ)
Umm Al Quwain Free Zones
  • Umm Al Quwain Free Trade Zone (UAQ FTZ)
Define your Purpose

Types of Freezone Licenses

These licenses are backed by different free zones across the UAE. Each zone provides distinct advantages like complete foreign ownership, tax exemptions, and top-notch infrastructure to support business activities. 

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Commercial License

These are issued to businesses that trade both within and outside the UAE. Some examples of these are trading in software, foodstuff, beverages, or cosmetics.

Industrial License

This type is given to companies involved in manufacturing or industrial activities such as garment production factories; plastic product manufacturers; bottled water plants among others.

Professional License

For professionals who provide services based on their expertise, such as consultancies in engineering, health awareness, marketing research, and education.

General Trading License

This license enables you to engage in various types of trades without having separate permits for each line of business that you undertake, all under one single general trading license.

Service License

This category covers service-oriented businesses such as IT Services Providers; E-media/production companies & consultants etc

E-Commerce License

For companies who conduct their trading activities online through retain and service platforms. We help you get an e-commerce license that best suits your requirement.

Freelance Permit

Allows individual to operate as freelances from any part of the world even without a physical office space in his/her country residence.

Educational License

Training Centers (Institutes), eLearning Platforms Providers, Education Consultancies etc should apply under this category

Event Management License

Event organizers should fall under this category including exhibitions organizers & conference planners among others.

Virtual Asset License

For businesses engaged in activities related to virtual assets, including cryptocurrency trading.

Free Zone

Choose Your Freezone Business Activity

Do you know what type of business activity you should pursue for maximum profitability? Don’t worry if you don’t, as our company formation experts are here to help!

We start free zone businesses in the UAE every week. And while we deal with dozens of activities, here are a few of the most popular. 

Consulting

Share your professional expertise, experiences, and insights with other companies in your niche. Whether you’re a human resources expert or an IT professional, there’s a huge demand for consultancy services in the UAE.

Industrial Activities

The GCC region is experiencing unprecedented growth right now, which means the demand for processing, manufacturing, and logistical services is exceptionally high.

Education

As long as your visa allows it, pass on your specialist knowledge and expertise through an education, training, or coaching business.

Media and Marketing

Whether you’re a web developer, a content creator, or a digital marketing expert, your skills and experience are in demand throughout the UAE right now.

Entertainment

If you’re a professional musician, music producer, or music executive, the creation of a free zone business in the UAE could deliver impressive returns.

Information Technology

From programming to app development to managed IT solutions, free zone businesses in the UAE are thriving, thanks to unprecedented demand.

Broadcasting

If you have formal approval and choose the right free zone package, you can start a broadcasting operation on TV, radio, or online.

Events Management

Whether you organize corporate conferences, weddings, or theater productions, setting up a free zone business will maximize your profitability.

Whether you want to choose multiple activities or focus on just one, we’ll assess your current situation and objectives before advising you on which way to turn.

During an initial discovery session, we’ll ask you a few questions before suggesting the most appropriate activities. We’ll then work with you to ensure your trade license application runs smoothly.
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Set Up Costs

Prices can change depending on what you want, such as office space and visa slots.

You can enquire about costs for typical set-ups across many free zones by contacting us as all numbers are subject to change and we don’t like making false promises. If you have specific needs – such as requiring certain types of facilities or locations – you should speak to your chosen free zone or business setup consultants like ourselves about this.

Frequently Asked Questions

How do I start the visa application process?

Initiate the visa application process by contacting your consultant once your establishment card is issued. They will assist you throughout the process and gather all necessary documents.

Is it possible to relocate my company to another free zone?

Transferring your company to a different free zone is not feasible. However, you have the option to establish a branch of your existing company in another free zone.

What documents are required to open a bank account in the UAE?

To open a UAE bank account, you’ll need the original corporate documents, CVs of Shareholders and Directors, a business summary, and a selection of other documents. We’ll guide you through the process.

Are there any costs associated with opening a bank account?

Opening a UAE bank account is generally free if done independently, but banks may have minimum balance requirements. Dasa Consulting also offers assistance with setting up bank accounts.

How do I retrieve my company documents?

When your license is issued, you’ll receive an email from Dasa Consulting. Schedule a meeting with your specialist to collect your documents at your convenience.

What is the procedure for renewing my trade license?

Your designated specialist will notify you three months before license renewal is due. Contact them at your convenience to initiate the renewal procedure.

What is the process for renewing my visa?

You’ll begin by undergoing a medical fitness test and registering for Emirates ID renewal. You’ll then need to visit our office with your valid passport and required documents for guidance from your designated specialist.

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