5 Ways To Start a Free Zone Company in UAE and What Are Their Benefits?

in Business

UAE has transformed from a country isolated by miles of desert to one of the top business locations in the world for entrepreneurs, financiers, investors, and multinationals. The government’s attempt to construct and promote Free Zones in Dubai and other Emirates in the UAE has been a crucial element in this shift.

The most general definition of a Free Zone in the UAE economy is that they are a separate commercial region that is frequently present near a port or massive economic base. Each Free Zone has its own set of rules and regulations that differ from those that apply to onshore or Mainland enterprises in the UAE. A Free Zone provides investors with a slew of advantages, including cost-cutting and infrastructure subsidies.

5 Ways To Start A Free Zone Company In UAE

In a free zone, starting a business is much easier, as their officials require the absolute minimum of documentation and time. The following are the essential stages for starting a business in Free Zones.

1. Determine The Legal Entity’s Kind

Decide what kind of legal entity your company will be. You can establish any one of the two types of businesses provided in a free zone:

  • Free Zone Company or Free Zone Limited Liability Company
  • Free Zone Establishment

The main distinctions are the number of stockholders and whether the investor is a legal person. Not all Free Zones may accept both types of businesses. You should check with individual authorities to see what kinds of companies they can register.

2. Choose A Business Name

You should choose a trading name while deciding on the type of legal entity your company should be. In most circumstances, you should verify with the relevant free zone authority to see whether trade names are permissible and if the name you have selected is already registered.

3. Make An Application For A Business Licence

Your company’s core activity determines the sort of business license you apply for. The following is a list of the numerous business licenses issued by the Free Zones.

  • Commercial License
  • Professional License
  • Industrial License
  • General Trading License
  • Warehousing License
  • Manufacturing License

4. Select An Office Location

In Free Zones, you can either buy or lease office space. The number of employees and the nature of your firm will determine the size of your office.

5. Obtain Pre-Approvals, Register Your Company, And Obtain A Licence

Companies based in a free zone are subject to the rules of the zones in which they operate. You must apply with the required documentation to obtain the relevant approvals. The list of documents varies according to the type of commercial activity, the type of firm, and the free zone authority’s criteria.

Benefits Of Opening A Free Zone Company

Aside from allowing shareholders, directors, and workers to get resident visas in the UAE, a Free Zone offers the following advantages:

  • There is no necessity for a local partner/sponsor, 100% foreign ownership
  • 100% capital and profit repatriation
  • Exemption from business and personal income taxes
  • No currency limits
  • Abundant and low-cost energy
  • Efficiencies in logistics related to the business cluster effect
  • SMEs and start-ups can rent serviced workstations and offices
  • Excellent customer support.


Many of the UAE’s trade hubs are located within Free Zones, attracting a multitude of international investors. These zones provide investors a variety of investment options and the freedom to choose a corporate entity that best suits their needs and ambitions. Investors and business people flock to these zones because of the ease of conducting business, significant tax savings, and well-developed infrastructure.

Image Credits: trolvag

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