Freezone Company Setup in Dubai

Free zones are specific areas that offer specific tax and customs incentives to encourage trade. These zones are designed to stimulate foreign trade and provide benefits such as the unrestricted transfer of capital and 100% foreign ownership. Managed by government bodies or relevant authorities, these zones are designed to support various industries, including manufacturing, trade, technology, logistics, and other sectors, thereby contributing to broader economic growth and development.

The UAE has more than 50 free zones, including general-purpose zones that serve a variety of industries and specialised zones tailored to specific sectors.

What Are the Benefits of Setting Up a Freezone Company in UAE?

  • Allows 100% foreign ownership without any restrictions
  • Does not require a No Objection Certificate (NOC) from the current employer
  • Has no minimum paid-up share capital requirement for company formation
  • Provides the option to incorporate a company under common law
  • Allows flexibility to operate the business 24/7 without restrictions
  • Tax free income – Offers 0% corporate and income tax (T&Cs apply)
  • Allows to incorporate in where employee health insurance is not required
  • Offers abundant and affordable energy resources
  • Provides a fast and simple business start-up process with minimal documentation
  • Grants a 2-year residency visa and multi-year licence for business continuity
  • Exempts VAT in several UAE free zones, meaning VAT is not applied to business operations within these areas
  • Offers dedicated customs posts within most free zones, allowing easy transit of goods
  • Allows duty-free imports into free zones, ideal for traders operating in local and international markets
  • Provides access to fully furnished offices, 24/7 security, and high-quality infrastructure
  • Located near major airports and seaports for efficient trade logistics
  • Offers global connectivity with direct connections to over 180 countries
  • Facilitates business growth through networking events and business meetups within the free zones

What is the Process for obtaining a Freezone License in UAE?

Step 1: Select the business activity that best matches your company’s operations.
Step 2: Determine the appropriate company structure that aligns with your business needs within the free zone.
Step 3: Submit your proposed company name for approval, ensuring it adheres to free zone guidelines.
Step 4: Complete the required incorporation paperwork and submit it to the free zone authority for processing.
Step 5: Await the issuance of the free zone licence after the review of your documentation.
Step 6: Open a corporate bank account to handle business transactions and financial operations.
Step 7: Receive the immigration card for your company, upon completion of all formalities.
Step 8: Apply for residence visas for owners, partners, and employees as necessary.

How Can UAE Freezones Help You Maximise Tax Benefits?

UAE free zones offer affordable business licence packages, making it easy for investors to establish companies. For service professionals—such as consultants, marketers, and lawyers—the cost of a one-visa service licence is approximately starts at USD 3200 (excluding additional fees).
Setting up in the UAE free zone offers not only tax efficiencies but also world-class services, simple regulations, and global market access. Here’s how they can help you maximise tax benefits:

  • Zero Corporate Tax ( T&C apply): Companies operating outside the UAE are often exempt from corporate tax for a certain period, making these destinations attractive to start-ups and established businesses.
  • No Import and Export Duties:
    Free zones eliminate customs duties on imports and exports, which reduces the cost of trading goods and improves profitability.
  • Full Repatriation of Profits: You are able to transfer the entirety of your profits or capital return to your home country without limitations so that you can keep your maximum gains in terms of money.
  • Exemption from VAT in Certain Activities:
    Although VAT is not applicable in the UAE free zone, companies operating in specific sectors or transactions can receive VAT exemptions or lower liability.
  • Personal Income Tax-Free Environment: UAE Free zones assure an income tax-free environment for employees, which makes it easier to find and retain the best talent.
  • Double Taxation Agreements (DTAs): Through the UAE’s DTA network with more than 100 countries, businesses in free zones can avoid being taxed twice on the same income.

How Can You Benefit from Low-Cost Freezone Licences in the UAE?

UAE free zones offer affordable business licence packages, making it easy for investors to establish companies. For service professionals—such as consultants, marketers, and lawyers—the cost of a one-visa service licence approximately starts at USD 3200 (excluding additional fees).

 

The total cost varies based on licence type, business nature, office size, location, and other factors, with competitive options across 50+ free zones.

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Dubai Freezone Company Licence

Dubai Free Zone company licences are popular with foreign investors because of their affordability and ease of setup. Dubai’s open spaces offer a variety of business activities and a complex infrastructure to support the company’s growth. The straightforward licensing process enables quick company registration and helps investors achieve their business objectives in the UAE.

Starting costs for a Dubai Free Zone licence starts at USD 3200 for a zero-visa quota, with options for scale-up depending on visa, workplace, and other requirements.

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Licence Types & Activities of UAE Freezone License

The UAE free zones offer a list of over 3,000 business activities. For detailed information on specific activities, consult with our company setup advisors.

A Commercial License is mandatory for businesses engaged in the distribution, or trading of goods in the UAE. This licence includes activities such as:

  • Computer software trading
  • Agricultural pesticides, perfumes & cosmetics trading
  • Wooden products, pipes & fittings trading
  • Audio-visual, recording equipment & accessories trading
  • Food & beverages, plastic bags & containers trading
  • Medical gas, acids & alkaline trading

An Industrial License is needed for companies engaged in manufacturing or other industrial operations. Some examples include:

  • Garments, carpets, uniforms manufacturing
    Pastry & sweets manufacturing
  • Fabrics & textiles embroidery
  • Mineral water bottling
  • Plastic bottles & containers manufacturing

A Professional License is required for individuals or businesses offering specialised services to clients. This includes fields such as:

  • Electronic, mechanical engineering consultancies
    Science & technology consultancy
  • Immigration, educational consultancies
  • Health awareness, project management consultancies
  • Marketing research, media consultancies, corporate services provider

Legal Structures for Freezone

The Free Zones offer various business structures to meet a variety of requirements. Selecting the ideal structure is vital for establishing a strong foundation and ensuring long-term growth for your Free Zone company in the UAE. Every structure brings distinct advantages, such as flexibility and strategic access to key locations throughout the UAE. Companies enjoy streamlined operations, tax benefits, accelerated growth prospects, and a competitive advantage in a supportive environment. Selecting the appropriate structure is crucial for attaining your business goals.

Free Zone Limited Liability Company (FZ LLC)

A Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.) operates as a limited liability business structure. It is established as a distinct legal entity where the liability of shareholders is restricted to the value of their shares and assets within the company.

Free Zone Establishment (FZE)

This structure is well-suited for single owners who desire full control over their business. It allows you to operate and manage your business independently within the Free Zone, according to your preferences.

Branch

The branch office is an extension of the existing company, which allows both international and local businesses to grow and strengthen their market presence.

Best UAE Freezone Locations

Meydan Free Zone

Dubai World Trade Centre (DWTC)

Dubai South ( DWC)

Dubai CommerCity

TECOM Group Free Zone

Dubai Internet City (DIT)

Jebel Ali Free Zone (JAFZA)

Umm Al Quwain Free Trade Zone

Ras Al Khaimah Economic Zone (RAKEZ)

Dubai Airport Freezone (DAFZA)

Fujairah Creative City (FCC)

Dubai Multi Commodity Center (DMCC)

SPC Free Zone

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