Free zone companies

Dubai's free zones offer multiple opportunities for businesses, providing dedicated support for specific industries, tax-free profits, and 100% foreign ownership.

While these free zones specialise in specific industries with tailored support depending on the sector, it’s important to note that companies set up in the free zone cannot trade within the UAE without a specific mainland licence.

We take you through the steps involved in setting up a free zone company:

Choosing a free zone comes down to what your business goals are, as well as the practical needs of your company. Many of Dubai's free zones allow standard trading enterprises across a range of sectors, but some are focused on just a few specialist areas – and offer dedicated and knowledgable support to companies within the zone.

Some of the most popular free zones include Jebel Ali Free Zone (JAFZA), Dubai International Financial Centre (DIFC), Dubai Internet City and DMCC. It's worth spending time getting to know the city's free zones before deciding which one to choose for your company.

The most common free zone legal forms include: 

Free Zone Establishment (FZE):
A legal entity incorporated/registered by a single shareholder, who can either be an individual or a corporate entity.

Free Zone Company (FZCO):
A legal entity incorporated/registered with a minimum of two shareholders, who can be either individuals or corporate entities.

Public Limited Liability Company (PJSC):
A corporate entity with multiple shareholders that can offer its shares to the public for trading on the stock exchange.

Private Limited Liability Company (LLC):
A corporate entity with limited liability, formed by a minimum of two and a maximum of 50 shareholders, not open to public subscription or trading of shares.

Branch of a Local or International Company:
An extension of an existing local or international company, allowing it to conduct business in Dubai while remaining legally dependent on its parent company.

For detailed information on company structure in a particular free zone, please see that zone's website, or contact their support team.

Typical costs can range from US$1,360-2,040 for a freelancer, US$4,085 for a one-person operation, and from around US$17,000 for a company with an office space for four people – although these can vary widely. Most free zones link visa quotas to the size of the space being rented, so make sure to factor this in.

You can find information on costs for typical set-ups across many free zones in the link below - but verify any costs with your chosen free zone before making any decisions, as all figures are subject to change. If you have particular needs – for example a requirement for a particular type of facilities or location – you should contact your prospective free zone to discuss this.

Fees and costs for Dubai's free zones >

Free zones make the process of setting up a company as smooth as possible, but make sure you have everything you'll need to complete the process – including all relevant paperwork, business plans, and anything else the free zone will need.

Every free zone is different, so check your chosen zone's specific requirements and timelines before starting.

Typical steps include: 

• Registering the company, for which the owner needs to provide a copy of their passport, plus the original company documents if setting up a branch office in Dubai.
• Leasing business premises.
• Obtaining a business licence, which takes, on average, 3-5 working days.
• Setting up additional business services, such as setting up a bank account and arranging visas for foreign employees.