Guide
A Guide to Setting Up a Business in Dubai’s Free Zones
- UAE has prided itself on being a premier global business hub
- This can be partly attributed to it’s network of freezones
- Being a cornerstone of UAE’s economic strategy, UAE freezone fosters a dynamic environment for business innovation and international trade
- By offering strategic advantages, UAE’s freezone allows businesses to thrive in a supportive and flexible setting
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Overview
An Overview of Free Zone Business Setup in Dubai and UAE
UAE Free Zone explained
The free zone, also known as a special economic zone, in the UAE and Dubai is a designated free trade and economic area established by individual emirates. Designed to attract more foreign investment, Freezone in UAE offers tax and regulatory exemptions for specific businesses operating within the free zone boundaries.
Over half of Fortune 500 companies registered within the UAE free zone enjoy regulatory exemptions and access to world-class infrastructure while ensuring their worldwide presence and operations. With more than 200,000 companies registered within the free zones, the market is still open for different industries to gain and increase their capital.
List of free-zones in the United Arab Emirates
In the United Arab Emirates, there are roughly 44 free zones that have drawn 200,000 business entities in the form of foreign direct investment.
The major free zones in UAE for setting up a new business venture include the following.
Dubai
- Dubai Academic City
- Dubai Airport Free Zone
- Dubai Biotechnology & Research Park (Dubiotech)
- Dubai Car and Automotive City Free Zone (DUCAMZ)
- Dubai Design District
- Dubai Gold and Diamond Park
- Dubai Healthcare City
- Dubai Industrial City (DIC)
- Dubai International Academic City
- Dubai International Financial Centre
- Dubai Internet City (DIC)
- Dubai Knowledge Village
- Dubai Media City
- Dubai Multi Commodities Centre
- Dubai Outsource Zone
- Dubai Silicon Oasis
- Dubai Studio City
- Dubai Techno Park
- Dubai Textile Village
- International Media Production Zone
- Dubai South or DWC
- Dubai Science Park
Abu Dhabi
- Abu Dhabi Airport Free Zone (ADAFZ)
- Twofour54
- Abu Dhabi Ports Company (ADPORTS) Free Zone
- Abu Dhabi Global Market (ADGM)
- Masdar Free Zone
- Industrial City of Abu Dhabi
- Higher Corporation for Specialized Economic
- Zones (ZonesCorp)
- Masdar City Free Zone
- Khalifa Industrial Zone Abu Dhabi (KIZAD)
Ras Al Khaimah
- Ras Al Khaimah Economic Zone (RAKEZ)
- RAK Maritime City Free Zone Authority (RMCFZA)
- Ras Al Khaimah Investment Authority
- Ras Al Khaimah Free Trade Zone
- Ras Al Khaimah Media Free Zone
Umm Al Quwain
- Umm Al Quwain Free Trade Zone (UAQFTZ)
Fujairah
- Fujairah Free Zone
- Fujairah Creative City
- International Free Zone Authority (IFZA)
Ajman
- Ajman Free Zone
- Ajman Media City Free Zone
Sharjah
- Hamriyah Free Zone
- Sharjah Airport International Free Zone
- U.S.A. Regional Trade Center (USARTC) Free Zone
- Sharjah Publishing City Free Zone
- Sharjah Publishing City Free Zone
- Dubai Academic City
- Dubai Airport Free Zone
- Dubai Biotechnology & Research Park (Dubiotech)
- Dubai Car and Automotive City Free Zone (DUCAMZ)
- Dubai Design District
- Dubai Gold and Diamond Park
- Dubai Healthcare City
- Dubai Industrial City (DIC)
- Dubai International Academic City
- Dubai International Financial Centre
- Dubai Internet City (DIC)
- Dubai Knowledge Village
- Dubai Media City
- Dubai Multi Commodities Centre
- Dubai Outsource Zone
- Dubai Silicon Oasis
- Dubai Studio City
- Dubai Techno Park
- Dubai Textile Village
- International Media Production Zone
- Dubai South or DWC
- Dubai Science Park
- Abu Dhabi Airport Free Zone (ADAFZ)
- Twofour54
- Abu Dhabi Ports Company (ADPORTS) Free Zone
- Abu Dhabi Global Market (ADGM)
- Masdar Free Zone
- Industrial City of Abu Dhabi
- Higher Corporation for Specialized Economic
- Zones (ZonesCorp)
- Masdar City Free Zone
- Khalifa Industrial Zone Abu Dhabi (KIZAD)
- Ras Al Khaimah Economic Zone (RAKEZ)
- RAK Maritime City Free Zone Authority (RMCFZA)
- Ras Al Khaimah Investment Authority
- Ras Al Khaimah Free Trade Zone
- Ras Al Khaimah Media Free Zone
- Umm Al Quwain Free Trade Zone (UAQFTZ)
- Fujairah Free Zone
- Fujairah Creative City
- International Free Zone Authority (IFZA)
- Fujairah Free Zone
- Fujairah Creative City
- International Free Zone Authority (IFZA)
- Hamriyah Free Zone
- Sharjah Airport International Free Zone
- U.S.A. Regional Trade Center (USARTC) Free Zone
- Sharjah Publishing City Free Zone
- Sharjah Publishing City Free Zone
List
List Of The Best UAE Free Zones
The Dubai Multi Commodities Centre (DMCC) was named the best free zone in the world by FDI Intelligence’s Global Free Zone of the Year Awards
Benefits of Setting Up in a Free Zone
The wide range of benefits and features offered by UAE Free Zones make them attractive for prospective business owners and entities worldwide. Some of the key features you should know about include:
1. 100% Foreign Ownership
- This is permitted if the business operations and practices do not constitute critical sectors of the UAE economy.
- This is a big attraction for companies from outside the UAE.
- Without the need for a local partner, you have complete control over your business in UAE.
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2. Corporate Tax Exemption
- As of October 2023, under the UAE Corporate Tax Regime, Qualifying Free Zone persons can avail of a preferential 0% Corporate Tax rate on their Qualifying Income.
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3. No Personal Income Tax
- There is no income tax for employees.
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4. Import/Export Duty Exemptions
- Goods imported into FTZs are exempt from duties.
- Additionally, re-exports from UAE FTZs to third market destinations beyond the GCC Customs Zones are also exempted from any duty, promoting cost-effective international trade.
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5. 100% Repatriation of Profits and Capital
- There are no restrictions on the transfer of profits and capital back home.
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6. Easy, Quick Company Formation
- Set up your company within 4 days instead of 10-20 days in other developed countries.
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7. Independent laws and regulations
- Allow you to implement different hiring practices and policies to adapt to the changing market and diversify business operations.
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8. Infrastructure
- Freezone entities and organizations have access to world-class infrastructure.
- Your organization can benefit from this by improving its performance and providing better service to your customers.
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9. Geographical Significance
- The UAE’s strategic geographic location at the crossroads of Europe, Asia, and Africa makes its free zones ideal hubs for international trade and commerce.
- Businesses can easily access global markets and establish connections with key trading partners.
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- This is permitted if the business operations and practices do not constitute critical sectors of the UAE economy.
- This is a big attraction for companies from outside the UAE.
- Without the need for a local partner, you have complete control over your business in UAE.
- As of October 2023, under the UAE Corporate Tax Regime, Qualifying Free Zone persons can avail of a preferential 0% Corporate Tax rate on their Qualifying Income.
- There is no income tax for employees.
- Goods imported into FTZs are exempt from duties.
- Additionally, re-exports from UAE FTZs to third market destinations beyond the GCC Customs Zones are also exempted from any duty, promoting cost-effective international trade.
- There are no restrictions on the transfer of profits and capital back home.
- Set up your company within 4 days instead of 10-20 days in other developed countries.
- Allow you to implement different hiring practices and policies to adapt to the changing market and diversify business operations.
- Freezone entities and organizations have access to world-class infrastructure.
- Your organization can benefit from this by improving its performance and providing better service to your customers.
- The UAE’s strategic geographic location at the crossroads of Europe, Asia, and Africa makes its free zones ideal hubs for international trade and commerce.
- Businesses can easily access global markets and establish connections with key trading partners.
How Foreign Investors Can Maximize Free Zone Benefits?
Effective Business Planning for Free Zone Operations
Conducting thorough research and understanding the perspectives and opportunities within your industry can help you formulate a creative business plan to maximize the benefits while effectively and efficiently conducting business operations.
Establishing Local Networks and Partnerships
Engaging with local businesses and associations can help you create longstanding networks and partnerships that can be leveraged to maximize the business potential and opportunities within the market.
Utilizing Local Resources and Talents
Finding and focusing on utilizing the local infrastructure, resources, and talents can help you maximize the effectiveness and improve the organizational appeal. This can help you create goodwill with the local entities, and this in turn can be crucial in creating a positive outlook and brand image within the community.
Company Formation Process
Businesses looking to start operating in the UAE, you’ll need to set up a formal legal entity here.
Step by Step process to set up a legal entity in Free Zone
Selecting a suitable free zone for establishing a business establishment involves identifying the appropriate business nature that aligns with the company’s requirements.
Proper business activity identification requires thorough market research and analysis for regulatory compliance and long-term success.
Types of Licenses Available in the UAE Free Zones
- Commercial trade
- Consultancy services
- Professional
- Industrial
- Educational
- eCommerce
- Media
- Freelancer
- Warehousing
- Manufacturing
- Innovation
The business nature and requirements are vital for the legal structure. They determine the appropriate legal form for the company.
There are mainly 4 legal forms of business in the UAE Free Zone
- Free Zone Establishment (FZE): An FZE is a company with a single shareholder, individual or corporate entity. It offers 100% foreign ownership, allowing the shareholder full control over the company.
- Free Zone Company (FZCO): An FZCO is similar to an FZE but allows for multiple shareholders, up to a maximum of five. Like an FZE, it offers shareholders 100% foreign ownership and limited liability protection.
- Limited Liability Company (LLC): An LLC has a minimum of two and a maximum of 50 shareholders. It offers limited liability protection for shareholders and enables flexible ownership and management structures. LLCs are commonly used for small to medium-sized enterprises operating within free zones.
- Limited liability establishments (LLE):LLE is a hybrid structure combining features of an FZE and an LLC. It allows a single shareholder to establish a limited liability company with 100% foreign ownership. LLEs are suitable for individual entrepreneurs who want the benefits of limited liability protection and full ownership control.
What is a Trade Name?
- A trade name is the official name under which your business operates.
- It must be unique and cannot be the same as another registered business.
How to Register a Trade Name
- Check Availability: Ensure your desired trade name is not already in use. You can search the Department of Economic Development’s database.
- Apply: Submit an application to the concerned free zone licensing authority also referred to as the registry (online or via their smart app).
- Adhere to the Rules: Your trade name must meet the criteria listed below.
Rules and Criteria for Trade Names
- Include Legal Suffix: Add an abbreviation indicating your company’s legal structure (e.g., FZ- LLC, FZ-LLE, FZCO or FZE.).
- Maintain Appropriateness: Avoid offensive or inappropriate language.
- Align with Activities: The name should reflect your business activities.
- No Government References: Do not include names of rulers, government agencies, or external government bodies.
- Ensure Uniqueness: The name cannot already be registered by another company.
- Obtain Approvals: The concerned free zone licensing authority must approve the trade name before processing the application for the new incorporation of a free zone company.
Apply for a Business License
A. Initial Approval
- Completed application form
- Business plan
Documents required
For Individual Shareholders/Beneficial Owners:
- Copy of valid passport
- Proof of residence (utility bill, tenancy agreement, bank statement)
For Corporate Shareholders:
- Certificate of Incorporation/Registration and trade license
- Memorandum & Article Of Association(MOA&AOA)
- Certificate of Incumbency/Register Extracts
- Certificate of Good Standing
- Authorized signatory’s passport copy
- Shareholders/beneficial owners list
- Specimen signature of the company’s shareholder and the appointed Manager/Director for the new company
- NOC from current sponsor ( for Individuals)
B. For freelancers, you need to submit the follow documents:
- Application for registration
- CV
- Bank reference letter
C. Licensing and Visa process:
- Lease agreements will be prepared by the authority
- Then trade license will be issued
- Apply for visat
*Apply for Additional Government Approvals for certain business activities:
For certain economic activities, you must get extra approvals from governing authorities:
- Transport activities like driving schools, car rentals, etc. – Approval from Ministry of Interior
- Architectural and engineering – Approval from Local Municipal department.
- Legal activities and consultancy – Approval from Ministry of Justice.
- Telecommunication activities – Approval from TDRA.
- Travel, tourism, shipping, foreign company branches – Approval from Executive Council.
- Health-related activities – Approval from local health departments.
- Insurance and consultancy – Approval from Ministry of Economy.
- Oil/gas drilling, field services – Approval from Supreme Petroleum Council.
The UAE has over 40 free zones. Choose one matching your business activity.
Businesses must have a physical location. Free zones provide options:
- Flexi-desk office service for startups
- Buy or lease office spaces
Consider these factors to choose your office space or warehouse:
- Free zone regulations for your industry
- Infrastructure and facilities
- Proximity to transportation, logistics
- Cost of setup and operations
To collect the license, pay the fees and collect the license from the relevant Freezone authorities.
The company can be registered in the same emirate in which it was incorporated. The chambers for different emirates are:
- Federation of UAE Chambers of Commerce & Industry
- Dubai Chamber of Commerce and Industry
- Abu Dhabi Chamber of Commerce and Industry
- RAK Chamber of Commerce & Industry
- Sharjah Chamber of Commerce and Industry
- Ajman Chamber of Commerce and Industry
- Fujairah Chamber of Commerce and Industry
- UAQ Chamber of Commerce and Industry
Company Registration Fees For Joining And Operating In A Free Zone
| Freelance Packages | Company Setup (Standard) | |
|---|---|---|
| Ideal for | Independent Professionals And Solopreneurs | Small To Medium Businesses |
| Without Visa | With One Visa | |
| Price | Starting From AED 5,000 | Starting From AED 10,000 |
| Get Started | Get Started | |
| Services Included | ||
| License Application |  |
|
| Trade Name Reservation | |
|
| Initial Approval | |
|
| Visa Eligibility & Processing |  |
|
| Office space | included* | included* |
| Admin Face | |
|
Timeline
Timeline For Setting Up A Company In A Free Zone
Week 1:
- Choose the free zone suitable for your business activity.
- Decide the business activity and the type of company you want to establish.
- Select a company name and check its availability
- Gather all the required documents, such as passport copies, proof of address, business plan, and any other documents requested by the free zone authority.
Week 2:
- Submit the company registration application along with the required documents and pay the applicable fees
- The free zone authority will review your application and documents
- Obtain approval for your company registration.
- Apply for and obtain necessary licenses and permits for your business activity.
Week 3:
- Open a corporate bank account for your company.
- Register for Value Added Tax (VAT) if your business activity requires it.
- Complete any remaining formalities or requirements specific to the free zone.
In Free Zones like Fujairah, Ajman, Sharjah, Umm Al Quwain, and Ras Al Khaimah. A company can be formed within 2-3 days due to their streamlined processes.
Note: This is a general timeline, and the actual duration may vary depending on the specific free zone, business activity, and the efficiency of the registration process. The timeline provided is general and may vary depending on the specific free zone, business activity, and registration process efficiency. Consult with Juriszone for accurate timelines and guidance specific to your requirements.
Why Choose Us
Why Choose Juriszone?
If you are considering applying for a Dubai Golden visa, hiring a visa consultancy for help is best, ensuring a seamless visa process.
Save Time and Effort
Streamlined process, expert handling of paperwork, and quick turnaround times
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Maximize Opportunities
Strategic advice to find the perfect free zone for your business goals and niche
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Minimize Risk
Ensure legal compliance, avoid costly errors, and protect your business interests
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Gain a Competitive Edge
Leverage our knowledge and connections for a smooth start and long-term success
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Testimonials
What Our Clients Have To Say
I want to thank the team at Juriszone for their exceptional service and guidance. Their high level of professionalism helped me understand the business landscape of Dubai and helped me set up my company in the Dubai mainland. The team created a comfortable and trusted environment while they addressed my concerns and questions. I recommend Juriszone for any of your business development and UAE market research.