How to Set Up a Company in Dubai Free Zone: A Complete Guide

Dubai is one of the world’s most attractive business destinations, offering various opportunities for entrepreneurs and investors.

Setting up a company in a Dubai-free zone provides multiple benefits, including 100% foreign ownership, tax advantages, and streamlined business setup procedures.

Whether you are an individual entrepreneur or a multinational corporation, establishing a company in a Dubai free zone is a strategic decision.

Why Choose a Dubai Free Zone for Business Setup?

Dubai free zones offer numerous advantages that make them ideal for business setup:

• 100% foreign ownership—no need for a local sponsor.
• Zero Personal and Corporate Tax: Enjoy tax-free profits.
• Full Repatriation of Profits and Capital No restrictions on fund transfers.
• No Import or Export Duties—cost-effective trade operations.
• Quick and Easy Setup: Hassle-free registration and licensing.
• World-Class Infrastructure: Advanced logistics, office spaces, and connectivity.
• Visa Sponsorship: Easy access to UAE residency for business owners and employees.

Set up a company in the Dubai zone

Types of Free Zones in Dubai

Dubai has over 30 free zones, each catering to specific industries. Here are some of the most popular ones:

1. Dubai Multi Commodities Centre (DMCC)

• Ideal for trading, commodities, and financial services.
• Award-winning free zone with global recognition.

2. Jebel Ali Free Zone (JAFZA)

• Best for logistics, manufacturing, and export-oriented businesses.
• Offers proximity to Jebel Ali Port, the largest shipping hub in the region.

3. Dubai Silicon Oasis (DSO)

• Focuses on tech startups, IT firms, and electronic industries.
• Provides incentives for research and development.

4. Dubai Airport Free Zone (DAFZA)

• Ideal for aviation, logistics, and trading companies.
• Located next to Dubai International Airport for seamless global connectivity.

5. Dubai Media City (DMC)

• Designed for media, advertising, and entertainment businesses.
• Home to major international media organizations.

Step-by-Step Process to Set Up a Company in a Dubai Free Zone

1. Choose a Business Activity

Select a business activity that aligns with your company’s objectives. Free zones support various sectors, including:

• Trading & E-commerce
• Technology & IT Services
• Manufacturing & Industrial Production
• Consulting & Professional Services

2. Select a Free Zone

Each free zone is tailored to specific industries, so choosing the right one is crucial for your business success.

3. Decide on a Company Structure

You can set up different types of business entities in a Dubai free zone, including:

• Free Zone Establishment (FZE): A single-stakeholder company.
• Free Zone Company (FZC/FZCO): A company with multiple shareholders.
• Branch Office: An extension of an existing company.

4. Choose a Company Name

Your trade name should comply with Dubai’s naming guidelines and be unique to avoid duplication.

5. Apply for a Business License

Based on your activity, you will need one of the following licenses:

• Trading License: For import/export and general trading businesses.
• Service License: For consulting, marketing, and professional services.
• Industrial License: For manufacturing and production activities.
• E-commerce License: For online businesses and digital platforms.

6. Lease an Office or Business Space

Many free zones offer flexible office solutions, including virtual offices, flex desks, and dedicated office spaces.

7. Obtain Initial Approvals

Submit the required documents, such as:

• Passport copies of shareholders and directors.
• Business plan (if applicable).
• Memorandum of Association (MOA) and Articles of Association (AOA).

8. Open a Corporate Bank Account

Choose from reputable UAE banks like Emirates NBD, Mashreq Bank, or Abu Dhabi Commercial Bank to manage your business finances.

9. Apply for Residence Visas

Company owners and employees can apply for UAE residence visas under the free zone sponsorship.

Set up a company in the Dubai zone

Cost of Setting Up a Business in a Dubai Free Zone

The cost of setting up a free zone company depends on the free zone, business activity, and office space requirements. Here’s a rough estimate:

• Free Zone Business License: AED 10,000 – AED 25,000
• Office Space & Business Center Fees: AED 5,000 – AED 20,000
• Visa Fees & Immigration Costs: AED 3,000 – AED 7,000 per visa

Setting up a company in a Dubai free zone provides unparalleled benefits, including full foreign ownership, tax advantages, and simplified procedures.

With world-class infrastructure and a strategic location, Dubai free zones are the perfect launchpad for business success.