Business Setup in Dubai Free Zone

For Maximum Profit, Set Up Your Business In The Dubai Free Zone.

A free zone is a geographical area with its own set of laws that do not apply outside the zone. It is often referred to as a free trade zone or a free zone authority. The Free Zone Authority is responsible for handling the registration procedures and granting business licences to non-resident corporations or corporations with foreign ownership in Dubai’s free zones.

Those companies that register with Dubai free zones get several benefits, such as tax exemption and attractive financial schemes. Free zones also bring a wealth of networking, teamwork, and, most importantly, economic growth opportunities.

How May A Business be set up in Dubai?

After considering in which area of the free zone you wish to operate a business, start considering the following steps for a business set up in Dubai:

Choose The Business Activity


Choosing the business activity is the crucial step on which the entire empire depends. There are several options available on the DED-approved list. Entrepreneurs can invest in a Free Zone Establishment and a Free Zone Company (FZC), with the primary distinction between them being the number of shareholders. Both fall under the umbrella of the Limited Liability Company (LLC) classification and are controlled by free zone legislation rather than the UAE Commercial Companies Law (CCL).

Choose The Name Of The Company


The next step, after considering the business structure, is the trade name. Choose a unique yet simple name, as it will represent your brand and identity.


Make sure the name you pick shouldn’t be matched with registered names and also aligns with the DED guidelines. The trade name shouldn’t be offensive to any religion, caste, or violation of public morals. The legal form of the entity (LLC, FZE, or FZC) may be added as part of some name standards.

Registration Of A Business Licence


For setting up a business in Dubai, Obtain a business licence to run a business officially without any legal intervention in the UAE. This procedure is crucial since it establishes the main sources of income for your business.


The type of trade licence you require will directly depend on the goods or services you want to sell. There is a chance of getting a licence for up to 10 years in the free zone of Dubai.

Registration Of A Business


In Dubai, starting a business is an easy process. Submit your application together with the required trade licence, documentation, and paperwork when setting up a business in a free zone. The registration and licencing fees must then be paid.


Once all the documents are examined and approved by the concerned government authorities, you will get your business registered officially.

Open A Bank Account


Well, after completing the above points, you will need to open a corporate bank account to run smooth business transactions domestically or internationally. Make sure you have a business account that is exclusive to your activities in the free zone of Dubai and is distinct from a personal account.


It is not always simple to open a business bank account in the UAE, and there are several things to bear in mind, not the least of which is each bank’s qualifying requirements.

Searching For An Office Space


Selecting office space is a key component of arranging a company setup in Dubai. Free zones give business owners the freedom they need to meet their needs in terms of office space. Whether you prefer to rent or own a property, free zones provide a variety of office spaces.


These choices range in size and feature availability, letting you customise your office space to meet the unique requirements of your company.

Types Of Business licences in the Dubai Free Zone


Obtaining a business licence in the Dubai Free Zone is necessary to run your business officially. Several options are available, which are as follows:


Commercial Licence
This licence allows businesses to trade goods and services freely in the free zone. Such activities include postal, retail, medical, real estate consulting, etc.


Professional Licence
This licence allows the provision of professional services to individuals or corporations freely in the free zone. Such activities as business, legal, accounting, etc.


Industrial Licence
This licence allows businesses to perform industrial activities. Such activities as manufacturing, aerospace, pharmaceuticals, etc.


E-Commerce Licence
This licence allows businesses to operate activities electronically in the free zone. Such activities as portals, licences, virtual companies, E-trade activities, etc.


General Trading Licence
This licence allows businesses to run smoothly in the free zone by carrying out activities such as retail and wholesale sales of goods and services.

List Of Free Zones In Dubai For Company Setup

Here is the list of free zones in Dubai for company formation. Choose your place as per your needs.
  • Dubai Logistics City and Dubai South Free Zone
  • Dubai International Financial Centre (DIFC)
  • Design District and Dubai Gold and Diamond Park
  • Dubai Biotechnology and Research Park (DuBiotech)
  • Jebel Ali Free Zone and Dubai Textile City Free Zone
  • Dubai Science Park Free Zone and Dubai Techno Park Free Zone
  • Dubai Science Park Free Zone and Dubai Techno Park Free Zone
  • International Free Zone Authority (IFZA) and Dubai Airport Free Zone Authority (DAFZA)
  • Dubai Industrial City (DIC) and Dubai International Academic City
  • Dubai Silicon Oasis (DSO) and Dubai Outsource Zone

Documents Mandatory For Business Setup in the Dubai Free Zone

The following are Documents required for company formation in the Dubai Free Zone:
  • A copy of the visa and passport of the shareholders and the owner.
  • The filled-out application form
  • Detailed PDF on a business plan
  • Board resolution authority
  • Article and memorandum of association
  • The Emirates ID and Address proof of the shareholders
  • The detailed shareholders’ information and contact details

Various Advantages Of Business Startup In Dubai Free Zone:

  • Tax benefits exist in free-zone areas. They are free of personal, corporate, and income taxes.
  • Processes for hiring employees that are hassle-free.
  • Many well-equipped communication options.
  • Companies in free zones are excellent for foreign investors looking for 100% foreign ownership.
  • There are no limitations on foreign exchange in free-zone countries.
  • Entities located in a free zone are exempt from export and import taxes.