Shuraa Business Setup

Thinking about starting a free zone business in Dubai? Read to learn about everything you need to know about setting up a free zone company.

How to start a business in Dubai Free Zone

Thinking about start a business in Dubai free zone but don’t know where to begin? This blog will inform you about free zone business setup in Dubai in detail.

The UAE is one of the favorite destinations for entrepreneurs from all across the globe. The country has witnessed major advancements in the field of economy benefiting locals as well as foreigners.

Dubai, in particular, is a highly developed city with numerous benefits. These benefits range from world-class infrastructures, low-taxation, global connectivity, flourishing economy, and many more. Hence, this makes the city one of the best places to run a business.

What is a free zone company?

Free zones are also commonly known as free trade zones. These jurisdictions are essentially economic zones where goods and services can be traded, usually at favourable tax and customs rates.

One of the common misconceptions is that free zones and offshore companies are the same. However, this is far from the truth. Free zone companies are onshore entities that can carry out business in Dubai while meeting certain conditions. On the other hand, offshore companies are solely set up with the aim of operating outside its registered jurisdiction or the location of its primary ownership.

There are about 67 free zones in the UAE with new ones being introduced every year. Free zones are also home to over 150,000 companies in the country. Moreover, this number is on the rise with progressing time.

The cost of setting up a business in Dubai would cost approximately AED 11,900. Although, the cost would vary depending on the free zone you opt for and as per your visa requirements.

It is also worth noting that free zone companies are now permitted to open their branch companies on mainland. In order to accomplish this, the investor needs to register his branch using the same trade name with the Department of Economic Development (DED) and Ministry of Economy. The branch company can be solely owned by the free zone entity unlike the former rule where it was a requirement to have a local partner. 

Most free zones generally deal with general trade, service and industrial sectors. However, there are free zones in the UAE that cater to specialised industries or sectors. Some such jurisdictions include:

Although these jurisdictions do specialise in a particular industry, free zones do offer other licenses too.

To know more about some of the best free zones in the UAE, click here

If you’re looking to set up a free zone company in Dubai, International Free Zone Authority (IFZA) is the ideal option. Over years, IFZA has grown to one of the most popular free zones in the UAE. This is because of the numerous advantages that investors can benefit from when setting up a company in the free zone.

IFZA is one of the few free zones in the UAE that stands out for its unique benefits and the opportunities it provides investors. These include:

Advantages of free zone business setup in Dubai

Business Setup in Dubai Free Zones: How to Guide

Setting up a business in a free zone is relatively easier. Free zone authorities require minimum paperwork and duration. Here are the key steps to set up a business in a Dubai Free Zone.

Determine the type of license and business activity

Before start a business in Dubai free zone, you will have to pick the type of license. This is because certain free zones may or may not offer the license of your choice. This is because certain free zones may or may not offer the license of your choice.

The type of license you need to apply for will depend on the nature of your business and activities you wish to conduct. The process of obtaining your license will take less than a week and renewals need to be done on a yearly basis.

Choose the ideal free zone for your business

As mentioned earlier, each free zone caters to a specific industry. Depending on the nature of your company, you can identify which free zone permits the license and all related activities.

Determine the type corporate structure

The types of legal structures that you can form in a free zone are:

  1. Free Zone Company Limited Liability Company (FZC LLC)
  2. Free Zone Establishment Limited Liability Company (FZE LLC)
  3. Branch Company
  4. Free Zone Company
  5. Free Zone Establishment

Application and submission of all required documents

Once the previous steps are complete, you must acquire the following:

  1. Application
  2. Immigration card
  3. Entry permit
  4. Stamping, medical test & Emirates ID

The various documents that you must submit to open a business in Dubai free zone are:

Depending on the free zone that you opt for, you may have additional steps and documents that you will have to submit.

Choose an office space

Most free zones will require you to have a physical office space. Depending on the nature of your company and the number of visas you require, you can opt for one that is most suitable to you.

Open a bank account

Lastly, you will need to open a free zone business bank account to keep track of your business transactions. A free zone bank account would enable the investor to track their company’s expenses, calculate tax liabilities effortlessly, and regulate cash flow more effectively.

Once all the above steps are complete and you get initial approvals from the relevant authorities, you can obtain your Dubai free zone license and move ahead with your business ventures.

Get started with your free zone company with Shuraa, now

Among the many free zones in the UAE, identifying the ideal free zone to set up your company may seem burdensome. However, we, at Shuraa can simplify the entire process for you.

We will sort out all the necessary procedures from pre-approvals to helping you obtain your trading license. Our goal is to enable you to start a company in the Dubai free zone smoothly. Contact our corporate advisors to learn more about start a business in Dubai Free Zone.

Call us at +97144081900 or send a WhatsApp message on +971507775554. Additionally, you can also drop in an email at and get answers for your queries in no time.

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