A Dubai Free Zone Company is a business entity established within one of Dubai’s 40+ Free Zones, offering 100% foreign ownership, tax exemptions, and a simplified setup process.
It is an ideal choice for startups, SMEs, and international investors seeking a cost-effective and efficient company formation solution in the UAE.
Benefits of a Dubai Free Zone Business Setup
100% Foreign Ownership – No need for a local sponsor or UAE national partner.
Tax-Free Environment – Enjoy zero corporate and personal income taxes.
Quick Setup Process – Get your business registered in as little as 2–5 days.
Easy Visa Processing – Obtain Dubai Free Zone visas for yourself and your employees with ease.
Full Profit Repatriation – Freely transfer your profits and capital abroad without restrictions.
No Import or Export Duty – Perfect for trading and international business activities.
Business-Friendly Policies – Experience minimal bureaucracy and simplified documentation procedures.
Steps for Dubai Free Zone Business Setup
1. Choose the Right Free Zone
Dubai is home to over 40 Free Zones, each designed to support specific industries and business activities. Selecting the right one is the first step toward a successful setup.
Dubai Multi Commodities Centre (DMCC) – Ideal for trading and commodity-based businesses.
Dubai Internet City (DIC) – Perfect for IT, software, and technology companies.
Dubai Media City (DMC) – Best suited for media, marketing, and creative agencies.
Jebel Ali Free Zone (JAFZA) – Excellent for logistics, manufacturing, and industrial operations.
2. Select a Business Activity
Dubai Free Zones offer over 2,000 approved business activities, allowing flexibility for entrepreneurs across various sectors. Choose the activity that best matches your business goals. Common options include:
Trading & E-commerce
Consulting & Professional Services
IT & Technology
Manufacturing & Industrial
3. Register a Trade Name
Choose a business name that aligns with the Dubai Free Zone Authority guidelines. Ensure it is unique, appropriate, and clearly represents your business activity.
4. Apply for a Dubai Free Zone Business License
Once your trade name is approved, the next step is to apply for the relevant business license based on your activity type. Types of Licenses:
Trading License – For import, export, and general trading businesses.
Service License – For consulting, IT, marketing, and other professional services.
Industrial License – For manufacturing, packaging, and production-related businesses.
5. Obtain Initial Approval & Submit Documents
After selecting your Free Zone and license type, you’ll need to secure initial approval by submitting the required documentation.
Required Documents:
Passport copies of shareholders and managers
Visa copies (if applicable)
Business plan (for certain Free Zones)
NOC (No Objection Certificate) if currently employed in the UAE
6. Choose Office Space or Flexi-Desk Option
Dubai Free Zones offer a variety of workspace solutions, including virtual offices, shared (Flexi) desks, and physical office spaces.
Select the option that best suits your business requirements, team size, and budget.
7. Pay Fees & Collect Your Business License
Once all your documents are reviewed and approved, proceed to pay the Free Zone company setup fees.
After payment, you’ll receive your official trade license, allowing you to begin operations legally within the chosen Free Zone.
Dubai Free Zone Visa – How to Apply?
A Dubai Free Zone Visa allows business owners and employees to live and work legally in the UAE.
Types of Dubai Free Zone Visas:
Investor/Partner Visa – For company owners and shareholders.
Employment Visa – For employees working within the Free Zone.
Dependent Visa – For family members of business owners or employees.
Dubai Free Zone Visa Process:
Step 1: Apply for an Entry Permit
Step 2: Complete the Medical Test & Emirates ID Registration
Step 3: Obtain the Residency Visa and Work Permit
Processing Time: Typically 5–10 working days, depending on the Free Zone and documentation.
Dubai Free Zone Company Setup Cost (2025)
The cost of setting up a Dubai Free Zone Business Setup depends on:
Free Zone Selection – Some zones are more affordable than others.
License Type – Trading, service, and industrial licenses have different pricing.
Office Space Requirement – Flexi-desk vs. private office.
FAQs
Dubai Free Zone Company & Dubai Free Zone Business Setup
How long does it take to set up a Dubai Free Zone Company?
Setting up a Dubai Free Zone Company typically takes 2–5 business days, depending on the chosen Free Zone and business activity.
The Dubai Free Zone business setup process is designed to be quick and efficient — with some Free Zones even offering same-day registration when all required documents are prepared and submitted correctly.
Can I get a residence visa through a Dubai Free Zone Company?
Yes, in 2025, you can easily obtain a UAE residence visa by setting up a Dubai Free Zone Company. Most Free Zones offer visa packages based on the type of office space you choose:
Flexi-desk or Virtual Office: Typically allows 1–3 visas
Executive Office: Allows 4–6 visas
Warehouse or Larger Facility: May allow up to 15 or more visas
The UAE residence visa is usually valid for 2 years and includes the following steps:
Entry Permit
Medical Fitness Test
Emirates ID Registration
Visa Stamping
Free Zone visas are available for investors, employees, and their family members, making it a convenient option for business owners planning to live and work in the UAE.
Is a physical office required for a Free Zone business?
No. Many Free Zones offer Flexi-desk or virtual office options, making them cost-effective for startups and freelancers. These options fulfill the minimum legal requirements for obtaining a Free Zone license and visa.
What is the cheapest Free Zone in Dubai?
Some of the most affordable Free Zones in Dubai include:
IFZA (International Free Zone Authority)
RAKEZ (Ras Al Khaimah Economic Zone)
Dubai South Free Zone
These Free Zones offer low-cost license packages ideal for startups and SMEs.
Can a Dubai Free Zone Company do business in Dubai Mainland?
Yes. As per Executive Council Resolution No. (11) of 2025, Free Zone companies can now expand into the mainland by opening branches.
These branches can operate in the mainland market if they meet licensing conditions and UAE commercial and tax regulations, giving Free Zone businesses broader market access.
Can I open a corporate bank account with a Dubai Free Zone Company?
Yes, you can open a corporate bank account with your Free Zone Company. You’ll need to provide:
Trade License
Shareholder Passports
Memorandum & Articles of Association
Proof of Office Address
6 Months of Bank Statements
Usually, all shareholders must be present, and at least one should hold a UAE residency visa.
What types of business activities are allowed under a Dubai Free Zone Company license in 2025?
Free Zones allow a wide range of activities including:
Trading, Consulting, IT Services, Logistics, Manufacturing, Media, E-commerce, and more.
Under the “One Free Zone Passport” scheme (2025 update), companies licensed in one Free Zone can expand operations into other Free Zones across Dubai without needing a new license.
How many shareholders can a Dubai Free Zone Company have?
A Free Zone Establishment (FZE) can have 1 shareholder (individual or corporate).
A Free Zone Company (FZCO/FZ-LLC) can have 1–50 shareholders.
All Free Zone companies allow 100% foreign ownership.
Does Emiratisation apply to Free Zone companies?
No. The Emiratisation policy applies only to UAE Mainland private sector companies. Free Zone entities are exempt from Emiratisation requirements as of 2025.
Do Dubai Free Zone Companies pay VAT in the UAE?
Yes, Free Zone companies must register for VAT as per UAE VAT Law.
However, transfers of goods within designated Free Zones remain tax-free. Companies may also choose group VAT registration for simplified compliance.
What are the disadvantages of a Dubai Free Zone Company?
While Free Zone businesses offer major benefits, there are some limitations:
Cannot trade directly in the UAE mainland without a local distributor.
Office space and visa quotas are regulated by each Free Zone.
Renewal fees may be higher than mainland setups.
Some Free Zones limit specific activities.
Despite these, the tax advantages, global access, and ownership flexibility make Free Zone setups highly attractive for entrepreneurs.
How much does it cost to open a Dubai Free Zone Company?
The cost typically ranges from AED 12,000 to AED 25,000, depending on:
Free Zone authority
Type of business activity
License category
The cost usually covers trade license, registration, name reservation, and visa processing. Additional fees may apply for office space or shareholder visas.
Partnering with Free Zone setup experts ensures a smooth, compliant, and fast process for launching your business in Dubai.
Connections+ offers assistance in Free Zone Company formation in the following UAE jurisdictions.
Free Zone Company Formation in Ajman
Ajman Free Zone offers a cost-effective and flexible setup option for entrepreneurs. With affordable licenses, quick approvals, and business-friendly regulations, it is ideal for startups and SMEs entering the UAE market.
Free Zone Company Formation in Ras Al Khaimah (RAK)
Ras Al Khaimah (RAK) Free Zone is known for its competitive pricing and efficient setup processes. Its strategic location and wide range of license options make it a preferred choice for international investors.
Free Zone Company Formation in Meydan
Meydan Free Zone in Dubai provides a premium business environment with a prestigious address, seamless digital processes, and fast company formation — perfect for entrepreneurs seeking a Dubai identity without high costs.
Free Zone Company Formation in Sharjah Media City ( Shams )
Sharjah Media City (Shams) offers one of the UAE’s most modern and creative free zone environments. With low setup costs and flexible business activities, it is suitable for startups, freelancers, and growing businesses.
Free Zone Company Formation in IFZA
IFZA Free Zone in Dubai offers affordable company setup packages, quick approvals, and flexible business activities. With a strategic location in Dubai Silicon Oasis and streamlined digital processes, it is an ideal choice for startups, SMEs, and international investors looking for a cost-effective Dubai presence.
Why Choose a Free Zone Visa in Dubai?
A Free Zone Visa in Dubai is one of the most popular options for entrepreneurs, investors, freelancers, and remote professionals who want to live and work legally in the UAE. It offers unmatched flexibility, freedom, and financial advantages, making it an ideal choice for both startups and established businesses. Here’s why thousands of business owners choose a Dubai Free Zone Visa:
100% Foreign Ownership
A Free Zone Visa allows you to fully own your company without the need for a local Emirati sponsor. This gives you complete control over your operations, finances, and business growth strategy.
Tax-Free Income and Profits
Enjoy zero personal and corporate income tax with a Dubai Free Zone Visa. You can also repatriate 100% of your capital and profits, making it an excellent option for global entrepreneurs.
Quick and Easy Setup
Company registration and Free Zone visa processing can be completed within 5 to 7 working days. With minimal paperwork and expert assistance from Connections+, the entire process is simple, fast, and hassle-free.
Multiple Visa Quotas
Dubai Free Zones offer flexible visa packages, allowing you to apply for multiple Free Zone visas under your company license. As your business grows, you can easily sponsor partners, employees, and family members.
Strategic Business Location
Holding a Free Zone Visa in Dubai places you at the heart of one of the world’s most connected business hubs. With world-class infrastructure, seaports, and airports, Dubai provides direct access to key markets across Asia, Europe, and Africa.
Whether you’re launching a tech startup, opening a consultancy, or working as a freelancer, a Free Zone Visa provides the legal foundation and operational freedom needed to thrive in the UAE.
From affordability to complete ownership and flexibility, the Free Zone route is the perfect choice for anyone looking to build a sustainable, long-term business presence in Dubai.
