Free Zone Company Formation in Dubai

Free Zone Company Formation in Dubai

Free zone

Free Zone Company Formation in Dubai, UAE

If you plan to start a Free Zone company in Dubai UAE, you are on the right track. A significant advantage was that 80 percent of the UAE population was expatriates. To scale up foreign investment, the UAE government set up special zones, making doing business easier.
A free trade zone, another name for a free zone, is a special economic zone that gives many advantages to businesses, including tax exemptions and concessions in regulatory fees. Free zone jurisdictions have their regulations and have a government regulatory body called the Free Zone Authority.



Free Zone Company Formation in Dubai, UAE

What is a Free Zone Company?

A free zone company can be LLC which is allowed only in a special jurisdiction under a particular Emirate. Companies registered in free zones are considered offshore companies. They are exempt from dealing with customs authorities and the ministry of economy. They only have to deal with the authorities responsible for a specific free zone. A foreign investor can also have 100 percent ownership in companies here. A free zone company can operate only within the free zone and not in the Mainland.

Benefits of Free zone Company Setup in Dubai


  • Free zone business setup allows 100 percent ownership in a company. There is no mandatory requirement for a Dubai local sponsor or service agent.
  • Waiver of Corporate taxes.
  • Exemptions of personal tax, export, and import tax
  • Long term lease options up to 25 years available to investors at attractive terms
  • Easy and faster recruitment process of workforce
  • Faster registration and commencement of business in the Free zone compared to other areas.
  • Easy access to housing, immigration, labour, and legal services.
  • One hundred percent free repatriation of funds.

There’s differences between the UAE Free Trade Zones also known as the FTZ and the UAE mainland in terms of location, restrictions, bureaucratics, pre-requisis and taxes.
For foreigners, starting a business in a free trade zone is very attractive because of all the benefits and advantages. The complexity is which area in the free zone is the best for your business?
For that it’s best to check with Business Setup Services to guide you better with that decision making process. Currently there are over 45 different zones where you can launch your business in the UAE free zone. With Absher, you don’t need to worry about making the wrong choice. We recommend the right zone, depending on your requirements and business conditions. We also take into consideration other factors that we share with you upon consultation. Absher offers the best Pro Services in Dubai to successfully launch your business.


Businesses Established

Types of Free Zones in UAE

Presently, there are 45 free zones in the UAE spread across all the emirates. Some of them are

    Dubai Airport Free Zone
    Dubai cars and Automotive Zone
    Dubai Gold and Diamond Park
    Dubai Industrial City
    Abu Dhabi Airport Business City
    Industrial City of Abu Dhabi
    Sharjah Airport Free Zone Authority

Apart from the above, there are many more free zones in other emirates like Ras al Khaimah, Ajman, and Umm Al Quwain. The voice of these zones also depend on the share capital you can offer. The amount varies from one zone to another.

What are the advantages of starting your business in UAE’s freezone?

You will get a resident visa

100 % repatriation of capital

100 % ownership of the company

100 % repatriation of profits

No trade barriers

Reduced policies in terms of import/ Export

No trade quotas

Simple Import, Export Policies

Less restrictions

You can hire expatriates

No income taxes


How to go ahead and set up a Free Zone Company?

To set up a business in a free zone an investor is required to do the following:

  1. Choose a name for the business
  2. Apply for a Business License in UAE
  3. Select an office space
  4. Get pre-approvals, register the company and get a business license
  5. Apply for a Visa Services in Dubai: You will need to apply for a residence visa
  6. Open a bank account

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The steps to register a business in a UAE Free Zone

The first important step is getting the business license as everyone is required to have it. This business license is also called a trade license. It is usually valid for one year and it must be renewed on a yearly basis.


Every business activity falls under a specific license type that you need to respect. The rules of these business activities and licenses change a bit from a free zone to another but the concept remains the same. The main concept is that a commercial activity can’t at any cost be registered and mixed with service activities under one license. So you either apply for a Trading/Commercial License or a Service License.


As we mentioned, there’s more than 45 zones you can choose from. We as business consultants will give you recommendations on the best choice for your business type.


A corporate structure can mean of the following:
Company with individual shareholder(s)
Company with corporate shareholder(s)
Company with a mix of individual and corporate shareholders
Branch of a a Foreign Company


A trade name is the future name of your company. You are required to give three trade name proposals with the order of preference. Each of these names must respect certain rules and guidelines that are appropriate to the rules set by the UAE government.


The standard list includes: Valid visa, Valid passport, NOC (if you’re a UAE resident), Proof of residency, CV.


The next step is now to apply for an Initial approval. This approval usually covers the trade name and your corporate company structure


Now that you have decided on what zone you want and started with the initiation project you need to find a physical location. Here is where you need to sign a tenancy contract and get the ejari certificate



Let us Help you!

With Dubai offering the maximum number of Free zones, it would be good to hire a business consultant like Absher Business consultancy
We are one of the best Business Setup companies in the UAE. We know the legal and statutory rules and regulations required to set up a company in a Free zone. We can also guide in which business segment one should venture out. We ensure documentation, getting necessary approvals, helping in identifying office space, getting workforce visas.

Services you need to check: 

  • Product Registration in Dubai

  • Mainland Business Setup Dubai

  • Feasibility study UAE

  • Bank account opening assistance

  • Business Setup Consultants in Dubai

  • Trademark Registration in Dubai