There are more than 60 free zones in the UAE with new ones being introduced almost every year.

The difference between free zone and mainland is that companies incorporated on mainland are licensed by the Department of Economic Development (DED) in the emirate where it has been formed. Mainland companies can also conduct their business locally and internationally without any restrictions.

On the other hand, free zone companies are incorporated and licensed by the jurisdictions where the company is formed. They have their own set of rules and regulations. They can conduct business anywhere in the UAE free zones and/or internationally. However, Business to business activities can be conducted anywhere within the UAE.

The starting price to set up your business in the UAE is approximately AED 5,700.

Free zone companies are 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.

International Free Zone Authority (IFZA) is one of the most economical free zones in Dubai.

The following are the steps to register a free zone company in the UAE.

• Choose your preferred jurisdiction
• Choose your preferred company structure
• Apply for business registration
• Obtain approvals from relevant authorities
• Submit all required documents
• Payment of license fee

There may be additional steps depending upon the free zone you choose to incorporate your company.

• 100% foreign ownership
• No personal, income, or corporate taxes
• Full repatriation of capital and profits
• Strategic location boosting opportunities
• Leasing options
• Simple and quick set up process
• World-class infrastructures
• 5% VAT exemption in all designated zones for commercial activities

It would depend on the free zone you opt for to conduct e-commerce business. For instance, DMCC free zone would require you to have a physical office in order to conduct your e-commerce business.

It takes less than a week to obtain your free zone license in the UAE.

It would depend on the jurisdiction you pick to start your free zone business. Some free zones do permit you to conduct business without an office space.

There are 23 Designated Zones in the UAE that are exempt from VAT.