Home BUSINESS How to Start a Free Zone Company in Dubai

How to Start a Free Zone Company in Dubai


Investors from the world choose Dubai for investment. The prime location of Dubai attracts them to start a business here and enjoy the most profitable outcomes. Dubai enables investors to expand their trade worldwide due to the universal accessibility it offers. Hence, a business setup in Dubai is the favorite choice of investors.

The preferred jurisdictions of Dubai include Mainland and Free zones. But the advantages and opportunities free zones offer are matchless! Let’s discuss some of the most engaging features of a free zone.

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Free Zones in Dubai

The Dubai Freezone is one of the greatest places to conduct any business. It provides several opportunities for investors and businesses. As a result, whether you want to expand your business or establish a new one, the Dubai free zone is the greatest area to start. Free zones aim to increase regional international business by providing various investment perks.

The Dubai Free Zones Authority is the government organization in charge of registering and giving operational licenses to non-resident or foreign enterprises that want to establish free zone businesses in Dubai. Opening a Dubai Free Zone business allows networking, cooperation, and considerable commercial growth. Dubai is the most popular site for an investor to establish a company due to its attractive tax structure and perks granted by the free zone authorities.
The free zone jurisdiction of the Dubai market is a major appeal for many businesses. A businessman may establish a company in this jurisdiction and own 100% of it.

Before establishing a company in Dubai, it is vital to understand how companies in Dubai work. We hope you agree with us since everyone wants to be successful in their business. So, before starting a small or large business, it is essential to grasp the complete knowledge correctly. Following are some of the main advantages of having a business set up in the free zone jurisdiction of Dubai:

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  • 100% ownership of the company
  • There is no need for a regional sponsor’s assistance
  • Personal income and capital gains taxes are not charged
  • Import and export duties are at the very least covered
  • The administration receives a 0% corporation tax.
  • One of the world’s lowest value-added taxes (at 5%). All of Dubai’s free zones allow for unfettered profit repatriation.
  • Access to the UAE’s extensive network of anti-duplicate taxation agreements

Procedures for Starting a Free Zone Company

A free zone authority is an independent body that regulates the activities of a free zone corporation. Your business activity should fall inside the category of business activities designated in the Free zone. As a result, thoroughly study the free zone jurisdiction and choose the one that best meets your needs.

  • The rules for a company formation in Dubai are the following:

Determine The Company’s Legal Structure

Choose your preferred legal structure for the firm. Some free zone jurisdictions have a minimum capital requirement. The qualification varies according to the type of free zone. This minimum capital requirement does not apply to certain free zones owned by other Emirates.

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Choose a Trading Name

Finding the most acceptable and relevant trade name for your firm is vital to company registration in Dubai. You are not permitted to choose names that have already been registered.  After verification, you may register the trade name on the FZA website.

Get a Trade License

After registering your business name, you may apply for a trade license. The trade license is now granted depending on the type of activity. The Free Zones grant a variety of business permits, which are detailed below.

  1. Commercial License
  2. Industrial License
  3. Professional License
  4. General Business License
  5. Manufacturing License
  6. Warehousing License

Choose an Appropriate Office Location

Businesses can buy office space based on their needs. To make a choice, examine the company activity and the labor required.

Get the Initial Approval and Registration

The Initial approval is provided after more investigation. After receiving the Initial Approval, you may register the firm on the FZA’s website.

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Get a Business License

A business license is issued upon registration. You can begin operations once you have obtained a business license.

Open a Corporate Bank Account

The most important step after completing the registration process is to open a corporate bank account in Dubai. It is an essential component of your Dubai company setup since your tax requirements, payment transparency, and quick currency conversion are all at your fingertips once you create a business bank account in.


Dubai is the Emirate with the maximum free zones in the UAE. Because offers a logistical and infrastructure edge over other free zones, many investors and entrepreneurs worldwide choose Dubai as their base.

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