Free Zone Company Formation in Dubai

What Are Dubai and UAE Free Zones?

Free zones are special areas designed to attract foreign investors with tax benefits, full foreign ownership, and streamlined regulations. Each free zone has its own authority for licensing and business oversight.

Dubai’s 26 free zones support industries like technology, media, healthcare, and logistics, helping drive global trade and economic growth. Across the UAE, free zones simplify business setup and encourage foreign investment in targeted sectors.

100% Foreign Ownership
Full Profit Repatriation
Tax-Free Business Environment
Simplified Licensing Process
Strategic Global Market Access

Mainland Company

Free Zone Company

Offshore Company

Bank Account Opening

Types of Company Setup for Free Zone Business in Dubai

Free Zone Company (FZCO)

Structure: Two or more shareholders, which can be individuals or corporate entities.
Best For: Partnerships, joint ventures, and businesses that require multiple investors.
Benefits: Similar to FZE but allows for shared ownership, which can facilitate larger investments and risk-sharing.

Free Zone Establishment (FZE)

Structure: Permitted in Free Zones with specific regulations.
Best For: Businesses looking for limited liability protection and operational flexibility.
Benefits: Combines the benefits of a corporate structure with limited liability and allows for diverse ownership structures.

Branch of a Foreign Company

Structure: A branch of an existing foreign company.
Best For: Established companies aiming to expand in Dubai without creating a new entity.
Benefits: Leverages the reputation and resources of the parent company, simplified registration process, no additional capital requirement.

Step by Step Process for Freezone Company Formation in Dubai, UAE

Selecting the Appropriate Free Zone

Choose the best Free Zone that aligns with your business activities. Dubai has over 26 Free Zones, each catering to specific industries like technology, media, healthcare, and logistics. Evaluate the specific advantages, industry focus, and incentives offered by each Free Zone.

Determining Business Activity and License Type

Define the nature of the business activities to determine the appropriate license type. Common licenses include:

  • Trading License: For import, export, and distribution.
  • Service License: For consultancy and service-oriented businesses.
  • Industrial License: For manufacturing and production activities.

Selecting a Company Name

Ensure the chosen name complies with the Free Zone’s naming conventions. The name should be unique, not violate any trademark laws, and avoid religious or political terms.

 

Preparing Documentation

Gather the necessary documents to register your company, which typically include:

  • Passport copies of shareholders and managers.
  • Passport-sized photographs.
  • Proof of residence (e.g., utility bills).
  • Business plan.
  • No Objection Certificate (NOC) from the current sponsor if applicable.
  • Lease agreement for office space within the Free Zone.

Submitting the Application

Complete and submit the application form provided by the Free Zone authority. This form will include details about the business setup in UAE, shareholders, and managers. Submit it along with the required documentation.

 

Initial Approval and Payment

The Free Zone authority will review your application. Upon approval, pay the relevant fees, including registration, license, and administrative fees. Initial approval signifies that your business can proceed with further steps.

 

Signing the Lease Agreement

Secure office space within the Free Zone according to your business needs and budget. Options range from flexi-desks to full offices. Sign the lease agreement and submit it to the respective Free Zone authority.

 
 

Receiving the Business License

Once the lease agreement is signed and submitted, the Free Zone authority will issue your business license. Obtaining a business license allows you to legally operate your business within the Free Zone.

 

Opening a Corporate Bank Account

Choose a local bank and open a corporate bank account. Provide the bank with necessary documents such as the business license, passport copies, and any additional paperwork required by the bank.

 

Visa Processing

Apply for visas for shareholders, employees, and dependents as required. The Free Zone authority typically assists with visa processing. Complete the medical fitness test and apply for Emirates ID cards for all visa holders.

 

Compliance and Renewal

Ensure compliance with all regulatory requirements of a chosen free zone, including financial reporting, audit, and license renewal. Free Zone licenses typically need to be renewed annually. Submit renewal applications and pay the annual renewal fees on time.

 
 

Freezone Company Formation Packages

Forming a company in a UAE Free Zone comes with specific requirements and costs, determined by the authorities in each free zone. At RIZ & MONA CONSULTANCY, we offer a range of options for entrepreneurs looking to establish their businesses. You can start your free zone company formation with costs ranging from as low as AED 5,750* to as high as AED 50,000*. The UAE market provides numerous free zone company formation opportunities, with some of the most cost-effective and affordable options are:

IFZA Free Zone

Price Starting from AED 12,900

RAKEZ Free Zone

Price Starting from AED 6010

SRTIP Free Zone

Price Starting from AED 5750

shams-free-zone

Price Starting from AED 5750

SPC Free Zone

Price Starting from AED 5750

Ajman Free Zone

Price Starting from AED 6000

DAFZA Free Zone

Price Starting from AED 25,000

DMCC Free Zone

Price Starting from AED 33,000

JAFZA Freezone

Price Starting from AED 9000

DIFC Freezone

Price Starting from AED 30,000

Meydan Freezone

Price Starting from AED 12,500

DUQE Freezone

Price Starting from AED 12,500

Benefits of Business Setup in Dubai Free Zone

100% Foreign Ownership

Full Profit Repatriation

Tax Exemptions

Advanced Infrastructure

Industry-Specific Zones

Prime Strategic Location

Skilled Workforce Access

Simplified Setup

Free Zone Company Formation Consultants in Dubai

How MKB Leaders HUB Can Help?

MKB Leaders HUB is renowned as one of the top business setup consultants in Dubai, with over 15 years of experience facilitating a wide range of businesses throughout the UAE. Our deep connections with government officials and key authorities, combined with our extensive expertise in consultancy, streamline the process of establishing your business in Dubai. Additionally, we offer comprehensive financial, legal, and corporate services to support our clients throughout their business endeavors.

We are here to provide comprehensive support for your Free Zone Company Formation, from preparing your documents to completing the process. Connect with us now to begin your journey with a FREE consultation!

ASK WHAT YOU WANT TO KNOW

FAQS (Frequently Asked Questions)

What is the cheapest Free Zone license in Dubai?
The International Free Zone Authority (IFZA) offers the most affordable Free Zone license at AED 12,900.


What is the difference between a Free Zone Company and a Free Zone Establishment?
An FZE is formed with a single shareholder, while an FZCO requires two or more shareholders, similar to an LLC.
Are there any restrictions on business activities within the Free Zone?
Registered in a Free Zone cannot conduct business directly on the mainland without specific permissions.
Are there any restrictions on ownership in Dubai Free Zones for foreign investors?
No, foreign investors can have 100% ownership of their businesses in Dubai Free Zones.

Can businesses in Dubai Free Zones own property?
Yes, businesses can own property in specific Designated Areas within Dubai Free Zones.
Can I transfer my license from the mainland to a Free Zone?
Yes, you can transfer your trade license from the mainland to a Free Zone by following the required procedures and obtaining necessary approvals.
How long does it take for the company registration to complete?
Trade license validity in Free Zones typically ranges from 1 to 5 years, depending on the Free Zone Authority’s regulations.

What is the validity of a license in the Dubai Free Zone?
Trade license validity in Free Zones typically ranges from 1 to 5 years, depending on the Free Zone Authority’s regulations.

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