Business Setup in Dubai Freezone

Finding it hard to start your business in a Dubai Freezone? The rules, license options, and paperwork can get confusing, but we’re here to make it simple for you.

Overview of Business Setup in Dubai Free Zone

Dubai is home to over 26 Freezones, each tailored to industries like trade, technology, media, and finance. Zones like Dubai Multi Commodities Centre (DMCC) and Dubai International Financial Centre (DIFC) attract global investors with benefits such as:

100% foreign ownership,
Zero corporate tax, and
Full profit repatriation.

As of 2025, Freezone companies can operate in the Dubai mainland via branch licenses or permits, thanks to new regulations. This flexibility supports Dubai’s D33 vision to double its economy by 2033, making Freezone setups more powerful than ever.

Safe Ledger makes Freezone business setup easy. From choosing the right zone and securing licenses to opening bank accounts and managing visas, we handle it all. With fast processing, expert guidance, and end-to-end compliance support, SafeLedger is your trusted partner for setting a business in UAE.

Why Start a Business in a Dubai Free Zone? Key Benefits

Setting up your business in Dubai, primarily Freezone, offers clear advantages, making it a highly popular choice, especially for people investing from other countries.

100% Foreign Ownership: This is a major benefit. In Free Zones, you can fully own your company without needing a local partner from the UAE. This means you have complete control over your business.
Tax Benefits:
- 0% Company Tax: If your Freezone company follows certain rules (meaning it’s a “Qualifying Free Zone Person”), it might not pay any company tax on its main earnings.
- No Personal Income Tax: You don’t pay tax on your income in the UAE.
- No Customs Fees: For most goods brought into the Freezone and then sent out again, you usually don’t pay customs fees.
Repatriation of Profits: You get 100% repatriation of profits and capital with no restrictions or extra fees.
Quick and Easy Setup: The process to start a Freezone company is generally much faster and involves less paperwork compared to setting up a company outside these special zones.
Excellent Facilities: Dubai’s Free Zones provide modern offices, advanced technology, good storage facilities, and helpful support services for businesses.
Simple Business Rules: Freezone authorities work to make business easy, from getting your license to applying for visas.
Zones for Specific Industries: Many Free Zones focus on certain types of businesses (like technology or media). This creates a supportive environment where similar businesses can work together.
More Privacy: Freezone authorities often keep company and owner information more private and secure.
New for 2025: One Freezone Passport: This is a big new rule. If your company has a license in one Dubai Freezone, you can now work across all of Dubai’s more than 30 Free Zones with just that one license. This makes growing your business much simpler.
New for 2025: Direct Access to Mainland Dubai: Thanks to new rules (like Executive Council Resolution No. 11 of 2025), Freezone companies in Dubai can now get a special permit or branch license from the Dubai Department of Economy and Tourism (DET). This allows them to legally work and sell goods or services directly in the main areas of the UAE, opening up the entire local market.
New for 2025: Own Property Directly: Some Freezone companies (for example, in Masdar City) can now directly buy and own land and buildings in special “freehold” areas of Dubai. This is a significant change from before.

These benefits together show why starting a business in a Dubai Free Zone is a great idea for many people worldwide. However, always consult a legal or tax advisor before claiming any tax exemptions or making compliance-related decisions.

Types of Dubai Free Zones: Popular Options

Dubai has over 30 Free Zones. Each one has its own main focus, rules, and benefits. Knowing what each one is good for helps you pick the right one for your Dubai Free Zone Business Setup.

Jebel Ali Free Zone (JAFZA):

This is one of the oldest and largest Free Zones. JAFZA is considered an excellent choice for shipping, making products, buying and selling goods, and storage. It’s located very close to Jebel Ali Port and Al Maktoum International Airport.

Dubai International Financial Centre (DIFC):

A leading global hub for financial services such as banking, insurance, and asset management. Operates under a common law framework and independent regulations (DIFC Courts), making it ideal for financial institutions.

Dubai Multi Commodities Centre (DMCC):

This is the biggest Free Zone in the UAE by the number of companies. It supports a wide range of businesses, from trading to services, and is known for its vibrant business community.

Dubai World Trade Centre (DWTC) Free Zone:

This zone offers a flexible place for businesses, often connected to events and exhibitions at the DWTC. It’s suitable for consulting, event planning, and trading.

International Free Zone Authority (IFZA):

IFZA business setup is in demand for its lean, cost-effective setup, especially attractive to startups, consultancies, and solo entrepreneurs.

Free Zones for Specific Industries

Dubai’s Free Zones are often grouped by what they specialize in. This helps create a useful environment for similar businesses:

Category	Freezone Name	Focus/Key Industries
Technology & New Ideas	Dubai Internet City (DIC)	Tech firms, software development, IT services, e-commerce
	Dubai Silicon Oasis (DSO)	Innovation, smart city tech, chip development, tech-living integrated space
	Dubai CommerCity	E-commerce businesses; full online retail support
Media & Creative Work	Dubai Media City (DMC)	Media, PR, publishing, advertising, broadcasting
	Dubai Studio City (DSC)	Film, TV, music, video production
	Dubai Design District (d3)	Fashion, luxury design, art, and creative industries
Shipping & Trading	Dubai Airport Free Zone (DAFZA)	Air cargo, high-value goods, electronics, fast logistics
Shipping & Trading	International Free Zone Authority (IFZA)	Cost-effective trading, consultancy, e-commerce
General Business & Services	Meydan Free Zone	Consulting, trading, startups; flexible licensing
General Business & Services	Dubai South Freezone	Aviation, logistics, e-commerce, trading (close to Al Maktoum Airport & Jebel Ali Port)

How to Choose the Right Free Zone in Dubai?

With over 30 Free Zones in Dubai, picking the best one for your Dubai Free Zone Business Setup is a very important decision. Here’s a simple guide to help you choose:

1. What Will Your Business Do?

This is the most important thing. What services or products will your company offer?
What to do: Make a clear list of what your business will do. Check if the Free Zone allows these specific activities. Some Free Zones are best for certain jobs (e.g., Media City for media, DIFC for finance).

2. How Much Capital Do You Have?

The cost of Dubai Free Zone Business Setup is very different from one zone to another.
What to do: Find out the total cost for setting up, licensing, and yearly renewals in different Free Zones. Think about how much money you have for the long term. (e.g., IFZA, Meydan are often cheaper, while DMCC, DIFC are more costly).

3. What Office Space & Visa Do You Need?

Office Space: Do you need a real office, or is a shared desk/virtual office enough? Do you need a warehouse?
Visa Limit: How many visas do you think you’ll need for owners and employees? Visa numbers often depend on the size of your office.
What to do: Match what you need with the types of offices and visa plans offered by different Free Zones.

4. Think About Location & Connections:

Do you need to be near an airport (like DAFZA, Dubai South), a port (JAFZA), or in a specific part of Dubai for customers or similar businesses (like Internet City for tech)?
What to do: Consider how important the Freezone’s location is for your business operations and getting supplies.

5. Understand the Rules:

While all Freezones offer full ownership and tax benefits, some have special rules (e.g., DIFC has its own common law system).
What to do: Learn about the Freezone’s specific rules, what you need to do to follow them, and any rules for your specific industry.

6. Think About Growing Your Business:

How easy will it be to grow your business within the Freezone or use new options like the “One Freezone Passport” for working in many Freezones in Dubai, or getting direct access to the mainland market?
What to do: Choose a Freezone that supports your plans for growth in the long run.

7. Ask Experts for Advice:

A Business Setup consultant in Dubai Free Zone can give you special advice based on your needs, market insights, and the latest rules.
What to do: Talk to professionals who can compare options and guide your choice.

By thinking carefully about these points, you can pick the right Free Zone in Dubai that fits your business goals and helps you succeed.

Business Activities & License Types in Dubai Free Zone

When setting up your business in a Dubai Free Zone, the type of license you need depends on your business activity.

Commercial License (Trading License): For companies that buy, sell, bring in, and send out goods. This can be for specific items (like electronics) or general trading.
Professional/Service License: For businesses that offer services, such as advice (management, IT, marketing), accounting, legal help, training, or event planning.
Industrial License: For businesses that make, put together, process, or pack goods within the Free Zone.
E-commerce License: E-commerce License: For online businesses and digital services. If selling physical goods, arrange a proper warehouse or fulfillment setup, especially for mainland delivery.
Freelance Permit: Some Dubai Free Zones (like Twofour54, Dubai Media City, GoFreelance in Dubai South) offer this for people who work for themselves in creative, tech, or media fields.
Branch License: For existing companies (from the UAE or other countries) that want to open an office of their existing business in a Dubai Free Zone.
Dual License: Since 2025, Free Zone companies can get a special permit from the Dubai Economy and Tourism Department (DET) to operate in the mainland. However, it’s subject to DET approval and may not cover all activities like food services or retail outlets.

It’s very important to pick the right activity and license type. Doing business not allowed by your license can lead to fines. Many Free Zones let you do several related activities under one license.

Legal Requirements for Company Formation in Dubai Free Zone

Even though Dubai Free Zones make things simpler, there are important legal rules for forming a business in a Dubai Free Zone that you must follow to keep your company running smoothly.

Economic Substance Regulations (ESR): If your company does certain “Relevant Activities” like holding shares or providing logistics services, it must prove it has a real business presence in the UAE, like office space, staff, and equipment. Holding companies, however, often have easier or reduced ESR requirements.
Ultimate Beneficial Owner (UBO) Details: All companies must disclose and register the details of their real (ultimate) owners with the Free Zone authority.
Anti-Money Laundering (AML) & Fighting Terrorism Financing (CTF): Companies must have strong plans to stop money laundering (illegal money transfers) and terrorism financing. They must also report any suspicious dealings.
Company Tax Registration & Filing: As of June 2023, the UAE introduced a 9% corporate tax on business profits above AED 375,000. All Free Zone companies must register with the Federal Tax Authority (FTA) and file annual tax returns. However, some Free Zone businesses may still qualify for 0% tax if they meet the conditions of a “Qualifying Free Zone Person.
VAT Registration (if needed): If your Free Zone company earns more than AED 375,000 annually, it may be required to register for 5% Value Added Tax (VAT). VAT typically applies when your business deals with the UAE mainland or crosses the revenue threshold through taxable supplies. Regular VAT filings are mandatory once registered.
Audited Financial Reports (New for 2025): A big change for 2025 is that all Freezone companies in Dubai must give their yearly financial reports, checked by an auditor (an independent financial expert), to their Freezone authorities.
Yearly License Renewal: All licenses must be renewed every year. This usually means keeping your office space and paying any fees.
Visa & Immigration Rules: You must follow UAE rules when applying for visas for yourself, employees, or family. Most Free Zones have their own visa quota limits. Also, UAE residence visas must be renewed regularly and are only valid if you pass medical tests and update your Emirates ID.

Company Types You Can Choose in Dubai Free Zones

Dubai Free Zones usually offer three main types of company structures:

Free Zone Establishment (FZE): This is for a company with only one owner. This owner can be a person or another company. The FZE is seen as its own legal business, separate from its owner.
Free Zone Company (FZCO / FZ-LLC): This is the most common type for companies with two or more owners (up to 50). The owners can be people, companies, or both. Like a Limited Liability Company, it means the owners are only responsible for the money they put into the company, not its debts beyond that.
Branch of a Local or Foreign Company: This is like an extension of an existing company (either from the mainland UAE or another country). The branch does the same business as the main company and is not a separate legal business itself.

Documents Needed for Dubai Free Zone Business Setup

Having all the necessary documents required for Dubai Free Zone Business Setup ready will make the process much faster.

For Owners/Managers Who Are Individuals:

Passport Copy (must be valid for at least 6 months)
UAE Visa Copy (if you live in the UAE)
Emirates ID Copy (if you live in the UAE)
Passport-sized Photos (with a white background)
Proof of Home Address (like a utility bill from the last 3 months)
Resume/CV (sometimes needed for managers/owners)
Bank Reference Letter (sometimes asked for certain jobs or nationalities)

For Owners Who Are Companies (if another company owns shares in your new Freezone company):

Company Registration Paper of the Main Company
Main Legal Papers (like the company’s rulebook) of the Main Company
Board Decision from the Main Company saying it agrees to set up in the Dubai Free Zone and names the manager/person who can act for it.
Paper showing current directors and owners (Certificate of Incumbency)
Trade License/Registration Paper of the Main Company
Good Standing Certificate (sometimes asked for)

For the New Dubai Free Zone Company:

Filled-out Application Forms (given by the Free Zone)
Suggested Company Names (in order of preference)
Clear description of what the business will do
Simple Business Plan (needed for some Free Zones/activities)
Sample Signature of Owner(s) and Manager
Office Lease Agreement (given by the Free Zone after approval)

Note: Any papers not in Arabic or English might need to be officially translated and checked by the UAE Embassy in your home country and the Ministry of Foreign Affairs in the UAE.

How to Form a Free Zone Company in Dubai?

The process for Dubai Freezone company formation is designed to be quick and easy:

Step 1. Pick Your Business Activity & Free Zone:

What to do: Clearly decide what your business will do (its activities). Choose the best Dubai Free Zone based on your activities, budget, office needs, and who you want to sell to. This is also the step where companies decide on the business structure, whether to go for a Sole Proprietorship or a Limited Liability Company Formation in the UAE.
What you get: A clear plan for your business and a chosen Free Zone.

Step 2. Choose & Reserve Your Company Name:

What to do: Suggest a few unique company names to the Freezone to check if they are available and get approval. The name must follow UAE rules (e.g., no bad words, must show the company type).
What you get: An approved company name and an initial “go-ahead” to continue.

Step 3. Send in Your Documents & Get Legal Papers Ready:

What to do: Give all the needed personal and company papers (like passport copies). The Freezone (or your helper) will then prepare the main legal papers for your company (like the company’s rulebook).
What you get: Legal papers ready for signing, and a full application package.

Step 4. Get Office Space:

What to do: Select the type of office that fits your business needs. Options usually include flexi-desks, shared offices, or private offices. A physical presence in the Free Zone is mandatory.
What you get: An official office lease agreement and a registered business address within the Free Zone.

Step 5. Make Payment & Get License:

What to do: Pay all fees for registration, your license, and office rent.
What you get: Your Trade License, your company’s registration paper, and other key company documents. Your company is now officially set up!

Step 6. Open Company Bank Account:

What to do: Use your company documents to apply for a UAE business bank account. Note that banks now require strict KYC checks, and approval may take 2–6 weeks, especially for companies with foreign shareholders.
What you get: A fully functional UAE bank account to manage your company’s financial transactions.

Step 7. Apply for Visas:

What to do: Once your company is registered, apply for visas for owners and staff. This includes a medical test, Emirates ID process, and passport visa stamping. Free Zone companies usually get a fixed visa quota (starting from 1–2), based on office size.
What you get: Valid UAE residence visas and Emirates ID cards, allowing legal stay and work.

How long it takes: The whole process for Dubai Freezone company formation usually takes 3 to 10 working days, if all your papers are ready and approvals are fast. If your business is complicated or needs extra checks, it might take a bit longer.

How to Start a Dubai Free Zone Company From Far Away?

Many Freezones and Business Setup experts offer services that let you finish the whole registration process without being in the UAE yourself.

Online Steps: Most Freezones have online systems where you can send in applications and manage paperwork.
Online Meetings: Meetings and signing papers can be done through video calls or by giving a local agent the power to act for you.
Sending Documents: Required papers (like passport copies) can be sent by mail or submitted online after they are officially checked in your home country.
Opening Bank Account: While you can start the setup from afar, opening a bank account often needs the person who signs for the company to be in the UAE at some point to confirm their identity in person. However, some new online banks let you open accounts completely online, even for Freezone companies.

Hiring a good Business Setup consultant in Dubai Free Zone is highly recommended for setting up remotely. They can handle all the paperwork, talk to authorities for you, and guide you smoothly through each step. Contact Safe Ledger to set up your business now!

Dubai Freezone Business Setup Costs

The fee to set up a business in the Dubai Free Zone can change a lot. It depends on which Free Zone you pick, the type of license, what your business does, and what kind of office space you need.

Cost Factor	Details	Estimated Cost (AED)
License Fees	Varies by Freezone and license type (trading, service, freelance, etc.)	5,000 – 30,000+ per year
Company Registration	One-time setup fee charged by the Freezone	1,500 – 5,000 (one-time)
Office Space	Depends on type:
– Flexi-Desk	Shared desk, limited hours	5,000 – 15,000 per year
– Dedicated Desk	Semi-private workspace	12,000 – 20,000+ per year
– Private Office	Small to large offices	25,000 – 100,000+ per year
– Warehouse	For trading/manufacturing businesses	Varies by size/location
Visa Quota	Most packages include 0–2 visas. Extra visas cost more	3,500 – 7,000 per visa
Immigration/Establishment Card	Required to sponsor visas	500 – 2,000 (yearly or one-time)
NOC from Previous Sponsor	Needed if switching companies or setups	1,000 – 2,000 (if required)
Official Translation/Attestation	Based on documents	Varies
Consultant Service Fees	If hiring a Business Setup expert	Additional
Minimum Share Capital	Required on paper only (usually not deposited)	50,000 – 150,000 (declared only)

What to Do After Getting Your License for a Free Zone Business in Dubai: Post Compliance

Getting your license is a big step, but a Free Zone Business Setup in Dubai also means you need to keep up with ongoing rules and tasks to make sure your company stays in good standing.

Renew Your License Yearly: Your business license must be renewed every year before it expires. This usually includes paying renewal fees (typically starting from AED 10,000, depending on the Free Zone), renewing your office rent, and updating any company details.

Note: Fees vary based on business activity, Free Zone, and office type.

Yearly Financial Checks (Mandatory from 2025): A big change for 2025 is that all Freezone companies in Dubai must give their yearly financial reports, checked by an auditor (an independent financial expert), to their Freezone authorities. Make sure you hire a proper auditor.
Company Tax Rules:
- Register: All Freezone companies in Dubai must register for Company Tax with the Federal Tax Authority (FTA).
- Tax Reports: Even if you pay 0% company tax, you must send in annual Corporate Tax reports within nine months of your financial year-end.
- Keep Records: Keep clear financial records for at least 7 years.
VAT Rules (if needed): If your business is registered for VAT (Value Added Tax), you must send in regular (usually every three months) VAT reports and pay any VAT collected to the FTA.
Economic Substance Regulations (ESR) Reporting: If your Freezone company does certain “Relevant Activities” as per ESR rules, you must send in a yearly ESR Notification and, if needed, an ESR Report. This shows your business has real operations in the UAE.
Ultimate Beneficial Owner (UBO) Rules: Keep your UBO records (who the true owners are) up to date and report any changes to the Freezone authority.
Visa Renewals: Employee and investor visas usually need renewal every 2-3 years. This means new health checks, Emirates ID applications, and visa stamping.
Follow Free Zone Rules: Stay informed and follow any specific rules or changes made by your chosen Dubai Free Zone.
Closing Your Company: If you decide to stop your business, there’s a special multi-step process to close the company properly to avoid future problems.

Taking care of these tasks after getting your license is key to long-term success and avoiding fines.

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Frequently Asked Questions (FAQs)

Q-1. What are the main good things about starting a business in a Dubai Free Zone?

The main good things are that you own 100% of your business, usually pay 0% company tax (for qualifying income), can send all your profits home, the setup is easy, and you get great facilities. Plus, new things like the “One Freezone Passport” and easy access to mainland Dubai are now available.

Q-2. How much does it cost to start a business in a Dubai Free Zone?

The first cost can be from AED 8,000 to AED 50,000+ or more. It depends on the Free Zone, the type of license, what your business does, and the office space you pick. You also pay yearly renewal fees.

Q-3. Can a Free Zone company sell to businesses in mainland Dubai?

Yes, since 2025, Dubai Freezone companies can now work and sell directly in mainland UAE. They need to get a special permit or branch license from the Dubai Economy and Tourism Department (DET).

Q-4. What is the "One Freezone Passport" in Dubai?

The “One Freezone Passport” is a new rule from 2025. It means if your company has a license in one Dubai Free Zone, it can work in all other Dubai Free Zones with just that one license. This makes expanding much simpler.

Q-5. Do I need a local partner to set up a Free Zone company in Dubai?

No, a big benefit of a Dubai Free Zone company is that you can own 100% of it yourself. You don’t need a local partner from the UAE.

Q-6. How long does it take to set up a Dubai Free Zone company?

The process is usually very fast, often taking 3 to 10 working days if you have all your papers ready and don’t need special approvals. Some simple setups can be even quicker.

Q-7. Do Dubai Free Zone companies pay company tax?

Companies that qualify (“Qualifying Free Zone Persons”) can get a 0% company tax rate on their main earnings. But all Freezone companies must register for company tax with the FTA and send in yearly reports. Other types of income are taxed at 9%.

Q-8. Can I open a bank account for my Dubai Free Zone company from afar?

Most of the company setup can be done remotely. However, to open a company bank account, the person who signs for the company usually needs to be in the UAE in person to confirm their identity. But some new online banks offer fully online account opening.

Q-9. Do I need to get my Free Zone company's financial reports checked by an auditor?

Yes, a new rule from 2025 says that all Freezone companies in Dubai must give their yearly financial reports, checked by an auditor, to their Freezone authorities.

Q-10. What types of businesses are best for a Dubai Free Zone setup?

Dubai Free Zones are great for international trading, online shopping, consulting and other service businesses, media, shipping, tech companies, and light manufacturing. They are perfect for businesses that mostly deal with international markets.

Q-11. Can a free zone company open a bank account in Dubai?

Yes. A free zone company can open a corporate bank account in Dubai, but the process may take a few weeks due to strict compliance checks. Banks typically require the company’s trade license, incorporation documents, shareholder passports, and proof of business activity.

The approval also depends on the business type, the free zone chosen, and the bank’s internal due diligence policies.

Q-12. Do free zone companies pay tax in Dubai?

Free zone companies in Dubai can enjoy 0% corporate tax if they meet specific conditions, such as conducting business only within the free zone or outside the UAE and complying with economic substance rules.

However, if a free zone company earns income from the UAE mainland (outside permitted activities), that income is subject to the standard 9% corporate tax on profits above AED 375,000. Additionally, VAT at 5% applies to most goods and services regardless of the free zone location.

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