Free Zone Company Formation in Dubai

The UAE, especially Dubai, has become a hotspot for businesspeople worldwide. Its stable political climate, strategic location, top-tier infrastructure, and thriving business community make it the ideal destination for starting any kind of venture. The government is always on the move, introducing new initiatives to encourage international investors to come on board. One such game-changing initiative is freezones. Free zone company formation in Dubai stands as the most loved and affordable option for entrepreneurs. 

If you are ready to build a business that thrives while enjoying unbeatable perks, Dubai freezones are your winning choice. Let us uncover the secrets of freezones, why they are so popular and how to navigate free zone company formation in Dubai successfully. Read this guide thoroughly, and you will have everything you need to get started with confidence! 

Understanding freezones in UAE: 

Let us first understand what a freezone is. Freezones, also known as free trade zones, are special economic areas established in Dubai to offer tax advantages and unrestricted business opportunities to foreign investors. Each freezone has its own governing authority and set of laws that do not apply to businesses outside of it. These freezones cater to various industries and facilitate the development of sectors like media, education, finance, retail, IT, healthcare, and more. The respective authority in each zone issues business licenses for companies operating within their specific categories. 

A notable and exciting feature of freezones is that they allow expatriates to own 100% of their business without needing a local sponsor. Currently, there are more than 50 freezones across various Emirates in the UAE, with over 30 located in Dubai. 

Benefits of free zone company formation in Dubai: 

Investors and business owners can greatly benefit from establishing a free zone company in the United Arab Emirates. Freezones provide the finest conditions for the establishment and growth of businesses of all types. Below are some of the amazing benefits of free zone company formation in Dubai: 

1. 100% ownership of your business: No local sponsor is required, allowing you to fully own and run your business independently. 
2. Full repatriation of profits and capital: You can transfer 100% of your capital and profits back to your home country without restrictions. 
3. Easy and simple business setup: The registration and licensing process is straightforward, saving you time and effort. 
4. Amazing tax benefits: Businesses in freezones are often exempt from corporate or personal income taxes for a specific period. 
5. Relaxed customs duties: Reduced import and export tariffs, along with simplified customs processes, make international trade more efficient and cost-effective. 
6. Business freedom: Freezones offer streamlined, low-bureaucracy registration and licensing processes, with a wide range of activities across various sectors to choose from. 
7. Strategic location for trade: Many freezones are strategically located near major ports, airports, and transit hubs, ensuring smooth logistics and international trade operations. 
8. State-of-the-art infrastructure: Modern infrastructure, office spaces, warehouses, and transport connectivity facilitate seamless business operations. 
9. Diverse talent pool: Freezones attract international experts and skilled professionals, creating a melting pot of talent to meet your business needs. 
10. Access to investment incentives: Some freezones offer grants, venture capital, and government incentives to help boost your business. 
11. Global expansion opportunities: With relaxed laws and an ideal location, freezones make it easy to expand internationally and build your brand, reaching a broad clientele. 
12. Thriving business communities: Freezones are home to renowned, thriving brands, providing excellent networking opportunities for your business. 

Steps to free zone company formation in Dubai: 

The process of free zone company formation in Dubai is quite simple and straightforward. Here is a step-by-step guide to free zone business setup in Dubai: 

Step 1 – Determine your business activities and type of license needed: 

Start by selecting the business activities you want to engage in. There are more than 2,000 activities listed by the DED. You can choose from various sectors including finance, IT, healthcare, education, and more. The activity you select will determine the type of UAE trade license required for your business. Types of free zone license in Dubai include: 

• Commercial license 
• Industrial license 
• General trading license 
• Service license 
• Freelancer license 
• Manufacturing license 
• E-commerce license 

Step 2 – Select the right freezone: 

The list of freezones in Dubai extends beyond thirty. You will need to decide where you will operate. When making your decision, consider factors such as location, available facilities, costs, and industry focus. Not all freezones will provide the specific license you may need. Therefore, based on your chosen activities and business requirements, select the freezone that best suits your needs. 

Step 3 – Decide on your legal structure of business: 

Dubai freezones offer a variety of legal structures for businesses, with specific options available within each zone. Some of the most sought-after legal entities in Dubai freezones include: 

• Freezone Limited Liability Company (FZ LLC) 
• Freezone Company (FZ Co.) 
• Freezone Establishment (FZE) 
• Local/Foreign Company Branch 

Your choice of legal structure will depend on factors such as ownership, liability, and operational requirements. It is also advisable to consult directly with the management of your chosen freezone to check which options are available for your business. 

Step 4 – Finalize and register your trade name: 

Selecting a name for your business that accurately represents your activities while being catchy and attractive is essential. You must also ensure that the name complies with UAE’s naming conventions. To get approval, make sure the name: 

• Does not contain terms that offend moral or public sentiments 
• Has not been previously registered 
• Does not include the name or logo of any governing body or religion 
• Reflects your business activities and legal structure 

You can check the availability of the name with the freezone authority or the Department of Economic Development (DED). Once chosen, register the name with the respective freezone authority. 

Step 5 – Choose a location for your office: 

Most freezones in the UAE require businesses to have a physical office within their zones. Office options range from flexi-desks and shared offices to warehouses and industrial spaces, depending on your business needs. You can choose to build or lease office spaces in Dubai freezones. The nature of your business will determine the size of the workplace. Initially, you can start with a small, cost-effective location and expand as your business grows. Alternatively, some activities may allow you to operate through a virtual address as well. 

Step 6 – Get the initial approval: 

This is a very crucial step for freezone company formation in Dubai. In Dubai freezones, you first need an approval certificate to obtain a business license. To do so, you must follow the freezone regulations and submit the required documents. The documents needed for initial approval from the freezone authority include: 

• Initial approval application form 
• Business plan 
• Passport copies of shareholders and the appointed manager 
• Copy of current commercial license or registration certificate, if applicable 
• Signature copies of shareholders and the appointed manager 
• NOC from the current sponsor if any 
• Financial statements or bank reference letters 

Note: For certain businesses, additional approvals from specific government departments may be required. For example, for starting real estate business in Dubai, you will need approval from Dubai Land department. Similarly, to start a cleaning company in Dubai, you will need to get registered with Dubai Municipality. 

Step 7 – Apply for Your business license: 

Once you receive initial approval, you can proceed with the registration and business license application. You will also need to pay the registration and license fees, along with the submission of: 

• Registration application with complete details 
• Board of Directors’ resolution on the appointment of the company’s manager/director, duly notarized and certified 
• Power of attorney granted to the manager/director, notarized and attested 
• Memorandum and Articles of Association of the company, duly notarized and certified 
• Specimen signature of the manager/director, duly notarized and certified 
• Passport-sized photograph of the manager/director with a white background 
• Details regarding contributed capital 

After a successful application and getting all approvals, you will receive your business license and can start operating legally. 

Step 8 – Open a corporate bank account: 

After securing your business license, gather your corporate documents and open a business bank account. Choose a bank that meets your business requirements. Dubai hosts a wide range of domestic and international banks. You will need to provide your business license, shareholders’ passport copies, and any other documents that the bank may request. 

Step 9 – Get the necessary visas: 

The final step of free zone company formation in Dubai involves immigration and Dubai free zone visa processing. If you or your employees require visas to live and work in the UAE, initiate the visa application process. This often includes medical testing and the submission of passport copies, photos, and other relevant documents. UAE also offers e-channel system where you can apply for immigration and residency services conveniently online. 

After completing all necessary steps, you can officially operate in the freezone and take full advantage of its benefits. However, it is essential to stay informed about your legal, financial, and operational obligations, such as renewing licenses, visa regulations, and audit requirements. 

Understanding the cost of Dubai freezone company formation: 

The cost of freezone business setup in Dubai starts from AED 16,900*. However, this cost is subject to change and depends on your specific business needs, the number of visas required, and the particular freezone chosen. 

Here are the expenses involved in freezone company formation in Dubai you should be aware of: 

• Registration fees 
• License fees 
• Visa charges 
• Office space 
• Notarization charges 
• Name approval charges 
• Insurance expenses 
• Bank account charges 
• Emirates ID card 
• Police clearance and medical tests 

Please feel free to get in touch with one of our consultants at Dubiz Business Setup for detailed information. 

Top freezones in Dubai to consider: 

Dubai is home to more than 30 stunning freezones. Here are few famous and advanced freezones in Dubai that you can consider for your business setup in Dubai: 

1. Jebel Ali Freezone (JAFZA): 

As the UAE’s pioneering free zone, JAFZA is ISO-certified and home to a diverse array of global companies, manufacturers, traders, and exporters, positioning itself as DP World’s leading hub for international trade. 

2. International Freezone Authority (IFZA): 

One of Dubai’s most affordable free zones, IFZA supports businesses in trading, consultancy, media, and technology, and allows for virtual operations.  

3. Dubai South: 

Home to Al Maktoum International Airport, Dubai South hosts major events like Expo 2020 and the Dubai Airshow. It offers opportunities in technology, events, restaurants, and emerging industries. 

4. Dubai Science Park (DSP): 

DSP connects government institutions, investors, and experts. It supports over 3,000 scientific professionals and offers top office spaces and labs. It is part of the TECOM Group. 

5. Dubai Commercity: 

This freezone is divided into three clusters: business, logistics, and social. It offers services like business setup, warehousing, last-mile delivery, and e-commerce technology support. 

6. Dubai Internet City

This freezone is a vibrant hub for innovation and technology, hosting regional offices for global tech giants. It is part of the TECOM Group. 

Check out the complete list here: List of freezones in Dubai 

Dubiz: Your partner in free zone business setup in UAE 

If you plan to start a business in UAE as a foreigner, freezones can be efficient and cost-effective choice. Free zone company formation in Dubai offers several advantages, such as lower operating expenses, greater freedom, and access to international markets. This choice not only fosters growth but also enhances the overall expansion of your business venture. However, starting a business in Dubai can be a tedious task. But no need to worry! DUBIZ is here to guide you every step of the way, from choosing the right freezone to securing your business license and beyond. 

Our customized company formation services in the UAE make the process easy: 

• Company registration 
• Trade license 
• Visa and approvals 
• PRO services 
• Emirates ID 
• Establishment card 
• Bank account assistance 
• Marketing support 
• Tax and auditing 
• Government registration and transactions 

Take the first step towards your entrepreneurial success in Dubai’s thriving markets! 

Contact Dubiz Business Setup Now: 

📞 Call: +971 56 369 5485

💬 WhatsApp: +971563695485

📧 Email: info@dubiz.co

Frequently Asked Questions (FAQs)

1. What is UAE freezone company setup? 

A free zone company setup means an entity that is established and registered in one of the free zones in UAE that can operate within that freezone and conduct business activities. Free zone companies benefit from tax benefits, amazing infrastructure, easy startup, and more. 

2. Is it mandatory to have a physical office in Dubai freezone? 

No, it is not mandatory to have a physical office in a Dubai free zone. Although most of the business activities do require to have physical presence, yet there are many license options that allow you to operate through virtual offices.

3. What are the documents needed for free zone company formation in Dubai? 

Documents needed for free zone company formation in Dubai typically include: 

• Trade name options 
• List of business activities 
• Passport copy 
• Passport photo 
• Entry stamp/visa page, if needed 
• Emirates ID, if applicable 
• Business plan 
• Memorandum of Association (MOA) and Articles of Association (AOA) 
• Bank reference 

4. Which is the cheapest freezone in UAE? 

JAFZA (Jebel Ali Free Zone) is currently the most economical free zone where you can cheapest trade license in UAE starting at just AED 5,500. 

5. Which is the cheapest freezone in Dubai? 

The cheapest free zones in Dubai include International Free Zone Authority (IFZA) and Dubai Silicon Oasis (DSA). 

6. Can freezone companies do business in Dubai? 

Yes, Some Dubai freezone companies can now do business in rest of city by establishing a branch in the mainland. But to do so they must get the approval from their respective freezone authority and fulfil legal requirements with the DED (Department of Economic Development).