BusinessWhy You Choose Dubai Free Zone for Your Company...

Why You Choose Dubai Free Zone for Your Company Registration


Dubai is one of the Middle East’s most popular and investor-friendly cities. Its proximity and easy access to Asia and other countries make it an excellent investment hub.

The UAE has many free zones, most of which are in Dubai. The Dubai Free Zone’s high quality of life and excellent infrastructure attract investors to this future-oriented city. Dubai’s Free Zone allows for licensing a wide range of business activities in a regulated and stable business environment. These free zones pave the way for free zone companies in Dubai to revitalize the economy, encourage foreign investment, and accelerate business expansion for investors and entrepreneurs.

Free zones in Dubai are business zones exempt from all types of taxes, including VAT, income tax, corporate tax, and customs duties. These zones aim to incentivize foreign investment and improve the city’s economic activity.

Benefits of doing business in the Dubai Free Zone

Every free zone has an independent free zone authority responsible for maintaining the free zone’s license to operate and assisting companies in setting up operations in the area.

Benefits of free zones include:

  • Refund of capital and profits
  • Corporate tax and personal income tax exemptions
  • Easy immigration and worker recruitment procedures
  • A wide range of activities can be licensed
  • Unlimited and low-cost energy
  • Efficient logistics
  • 100% investor-owned
  • 100% tax exemption on personal and corporate income
  • Exemption from all import and export duties
  • Convenient warehouse equipment
  • Private company option
  • Absolute privacy of operation
  • Flexible response to global business
  • low renewal fee
  • Own a property in Dubai and be able to participate in many activities
  • Possibility of liquidation at any time

Types of licenses required to set up a business in the Dubai Free Zone

For example, the International Free Zone Authority Dubai allows a combination of up to 7 activities belonging to one license or different license types.

The following licenses are granted by the Ajman Free Zone Authority to establish a company in the Dubai Free Zone:

  • Industrial license

Industrial licenses are obtained for manufacturing equipment and production activities.

  • Trading license

This license is issued for import/export, distribution, and storage operations and can also be applied when selling products within the UAE market through local agents.

  • Service license

This license describes the services to which it applies and permits the licensee to perform these services within Dubai’s free zones and throughout the UAE.

  • Aggregate trading activity

License allows trading in all types of goods but is exempt from some prohibited goods requiring special authorization.

Types of Entities Eligible for Dubai Free Zone

The UAE’s free zones are the most important platform for the country’s continued economic growth, and three types of companies can be set up in the free zones.

  • Free Zone Establishment (FZE)

This is a limited company with one shareholder.

  • Freezone Limited Liability Company (FZ LLC)

It is a limited company with a maximum of 5 shareholders.

  • Branch office

Businesses incorporated in the UAE or abroad can set up branches in any of Dubai’s free zones.

Starting a business in a free zone is relatively easy as the authorities only require the minimum required documents and time.

How to set up a company in Dubai Free Zone?

As setting up a business in the Dubai Free Zone can be cumbersome, it is highly recommended that you seek professional guidance and advice on some of the incorporation and registration requirements.

Dubai offers attractive company formation consultants in uae options for investors, and businesses can be set up anywhere in the UAE, depending on the type of business, location, budget, owner preferences, etc. Starting a business in Dubai’s free zones requires special formalities and formalities. And these procedures require careful planning, an understanding of local cultures and government standards, and detailed decision-making through the various stages of starting a business. Dameron experts are always ready to help.

Procedures for setting up a business in the Dubai Free Zone

The procedures required to start a business in a free zone are as follows.

  • Concretely indicate the business activities of the corporation.
  • Find a target free zone
  • Select the activity’s business name.
  • Collect the necessary documents
  • Opening a business bank account

The procedure is described below.

  • Concretely indicate the business activities of the corporation.

The license you apply for depends on the type of business activity, so please decide the business activity you want to carry out. Many of Dubai’s free zones allow multiple business activities, so many options exist.

  • Find a target-free zone.

Once you have decided on your business, the next step is to agree on which free zone is right for you. Research before choosing a particular zone.

  • Select the activity’s business name.

Before deciding on a name, you need to ensure that it is a registerable business name on the portal of the Free Zone Authority in Dubai. Some standards must be adhered to, such as avoiding irreverent words and references to religious or political groups.

  • Collect the necessary documents

Once you have decided on your business and registered your trade name on the portal site, applying for a license is next important. The type of license you apply for depends on your business activity. To apply for a license, you must complete an application form and collect the required documents cited therein. You can also apply for a visa during this process.

  • Opening a corporate bank account

Opening a bank account is easy. But to do so, you will need to collect documents and a business license and submit them to the financial institution of your choice.

Documents Required for Dubai Free Zone Incorporation

for a business license.

  • A color copy of the shareholder’s passport and visa (if applicable)
  • Completed application form and motivation letter
  • Business strategy
  • Board Resolution
  • Memorandum and Articles of Incorporation

For opening a bank account.

  • Corporate account opening form
  • Resolution of the board of directors authorizing the account’s opening and the account’s signatories.
  • Copy of company establishment license
  • Copy of stock certificate
  • Copy of company articles of incorporation
  • Copies of passports of all partners

Dubai Free Zone License Fee

Dubai Free Zone offers special packages to help business owners. The cost of setting up a business in Dubai depends on many factors, but free zones are relatively inexpensive. As such, the cost of setting up a Dubai Free Zone company cannot be easily added as the last figure comprises many factors. Also, you need to consider not only the cost of the free zone license itself but also the cost of the premises and the cost of the visa, if necessary.

What are the benefits of setting up a company in the Dubai Free Zone?

Setting up your business in Dubai’s free zone has many advantages. The biggest is 100% ownership of the business and 100% tax exemption. This tax exemption is a good option for foreign companies and business owners wishing to use the UAE as a regional manufacturing and distribution hub.

Dubai’s Free Zone is a duty-free zone with a free trade port and a reputation for exclusive ownership by the founder, making it very popular for company formation among entrepreneurs and business owners. Also, setting up a company in Dubai’s free zone has no restrictions requiring the presence of a local sponsor, which is another motivation for increasing foreign investment. The process of registering a company in the Dubai Free Trade Zone is very smooth, and all you have to do is arrange the share capital before applying for a license.

Business freedom, significant tax savings, and good government policies encourage investors and businessmen to move into the Dubai Free Zone.

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