A Detailed Guide on Business Setup in Dubai Free Zone

There are lots of people who wants to start a zero tax company or low tax company and for all those investors Dubai is the best place. A beautiful emirate situated at the coast of persian gulf . It is the most populous city of UAE. se this Articles, We will talk about Dubai Free zone. Many a times clients may have a misconception about UAE, as it is a muslim country.There are many myths about UAE and we will break it in our next blog. In this blog, let’s stick to the free zone and why it’s so popular and how to apply for free zone license in Dubai.

There are about 45 different types of free zones in UAE. Before moving forward, let’s do a quick recap on different types of companies in UAE.

  1. Mainland Companies
  2. Free Zone Companies
  3. Offshore Companies

Its not easy for an investor to chose a right free zone because of the complication involved in it. Every free zone has its own USP as they are also restricted to certain business activities. Each freezone has a different setup cost and are different in nature. To name a few, We are mentioning some of our popular free zone of UAE.

Popular Options for Business Setup in Dubai Free Zone

  • Dubai Multi Commodity Center (DMCC) – DMCC is one of the fastest growing freezone in UAE. It started in the year 2002. It has around 21,000 registered companies. The title “Global Free Zone of the year” has been rewarded to DMCC seven times. It’s also known as trades hub and considered best for trading companies.
  • International Free Zone Authority (IFZA) – IFZA was started in the year 2018 at Fujairah. Company moved to Dubai in 2020 at Dubai silicon oasis. In few years IFZA has gained popularity as one of the best freezone authority in Dubai.
  • Dubai Internet City Freezone – Dubai Internet city is one of the popular free zone in Dubai and is hub for IT companies. They provide best package for tech community.
  • Dubai World Trade Centre Free Zone (DWTC) – Dubai world trade centre free zone was started in the year  2015. They are strategically positioned themselves in Dubai’s central business district and this freezone authority is best for startups & SME’s.
  • Jebel Ali Free Zone (JAFZA) – Jebel Ali Free Zone is one of the largest free zone in the world and under JAFZA, industries likes logistics, e-commerce, petrochemicals and 14 other business activities thrive.
  • Dubai Airport Free Zone Authority (DAFZA) – DAFZA was started in the year 1996. They have registered more than 2000 businesses from over 20+ sectors.

Benefits of Free Zone license in Dubai.

There are several factors due to which free zone license in Dubai is favorite for corporates houses, traders & service providers. Due to these benefits, there is rise in numbers of business setup in Dubai free zone.

  • 100% foreign ownership in company. Under free zone license foreigners have full ownership on their business.
  • No personal tax, income tax or any corporate tax on business. it means its a complete tax free.
  • Full repatriation of capital and profits.
  • World class infrastructure and businesses can take its advantage.
  • Get exemptions from any kind of import and export duties.
  • Get three years residence Visa & multi year license
  • Zero custom duty on imports for free zone companies. This make Free zone all time favourite for traders working locally and globally.

Steps to Start Company in Dubai Freezone.

It’s easy to start business in Dubai Free zone because of minimum paperwork.

  • First of all, Select the business activity. Decide the type of business entity and regulatory structure of the business.
  • Selection of a trade name is a very important step. Under this step investor will share the trade name with authority and they will check the name in their database. As per bylaws authority will confirm the availability of trade name.
  • Apply for free zone business license in Dubai.
  • As per your requirement, choose office space for business.
  • Final Step is to obtain pre approvals, registration of business, and obtaining of license.

Documents Required for Free zone License in Dubai.

General documents required for free zone license approval.

  • First of all fill the application form and submit to the authority.
  • Document of detailed business plan has to be submitted by the shareholder.
  • Submit coloured passport copies of company’s shareholders/managements.
  • Submit coloured passport size photographs of shareholders.
  • Share specimen signature of company’s shareholder for the new company.

Types of Business Entities in Free Zone in Dubai

Its very important to chose the right business entity before you start business in Dubai. There are three types of business entities in free zone in Dubai.

  • Free Zone Establishment (FZE)
  • Free Zone Company (FZCO)
  • Branch Office of Foreign Company

Different Types of License Available for Business Setup in Dubai Free Zone

You can’t start business in Dubai without trading license. There are many free zone license available in Dubai.

  1. General Trading License – Under general trading license, companies can do general trading of any unrelated products.
  2. Service License – Under these license, companies to do activities like law related, consultation, accounts related, translation services etc.
  3. Industrial License – Companies can do import-export of raw materials, manufacturing goods across borders.
  4. Warehouse License – Companies can store, package and distribute goods under this license.
  5. Manufacturing License – Under this license, any companies can manufacture goods or any products.

Frequently Asked Questions About Free Zone License in Dubai

  1. Can foreigners apply for free zone license in Dubai?

Answer – Yes, foreigners can apply for free zone license in Dubai. Foreigners have 100% ownership in their firm under free zone license.

2. What is cheapest free zone license in Dubai?

Answer – Free zone license cost depends on many factors like, business activity, number of Visa etc. time to time free zone authority came up with some offer and customer can take advantage of those offers.

3. Can free zone sell to mainland?

Answer – A company registered under free zone license in Dubai can’t sell in mainland zone.


Dubai is favorite destination for investors and foreigners because of its geographical location, tax policies or government policies. One can start business in Dubai by free zone trade license. You can get free zone trade license at an affordable price. Get a  good business setup consultant in Dubai which can guide you through the whole journey of business setup in Dubai.

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