Dubai’s free zones make it faster and more cost efficient to start and scale a business in the UAE. This guide shows you how to set up a Free Zone Company. It covers picking the right zone, choosing a structure, and handling licensing, banking, and visas. It also covers when a Freelance permit is the smarter alternative.
Why choose a Free Zone Company in Dubai
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100% foreign ownership with no local sponsor required
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0% personal and corporate income tax in free zones, subject to authority updates
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100% profit repatriation with no currency restrictions
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Fast setup with simplified approvals and digital paperwork
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Industry clusters for tech, media, trading, logistics, healthcare, and finance
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Strategic location near ports and airports for global trade
Need a quick eligibility check? Contact Freelance Visa Dubai for a 10 minute assessment and a tailored recommendation.
Understanding free zones in Dubai
Free zones are special economic areas regulated by dedicated authorities. Each zone has specific activities. It also offers its own fees, office needs, and licensing options.
Popular examples:
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DMCC, Dubai Multi Commodities Centre: Trading, commodities, web3 services approved by DMCC
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Dubai Internet City: Software, SaaS, IT services
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Dubai Media City: Marketing, production, digital media
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Dubai Design District d3: Design, fashion, creative studios
Tip: Start with your primary business activity, then select the free zone that best supports it. Consider licence types, office options, visa quotas, and banking reputation.
Legal structures for a Free Zone Company
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FZ LLC, Free Zone Limited Liability Company: Multiple shareholders, individuals or corporates
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FZE, Free Zone Establishment: Single shareholder
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Branch of a foreign or local company: Mirrors the parent, no share capital
How to choose: Solo founders often pick FZE for simplicity. Multi founder or investor backed ventures usually select FZ LLC. Existing overseas companies can open a branch to test the market.
Step by step setup for a Free Zone Company
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Define your activity and zone. Specify exact activities, like Software Development or General Trading. Shortlist two or three areas that allow those activities. Also, check for support for future growth, like more visas or warehouse space.
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Choose a company name Follow UAE naming rules, avoid offensive or religious terms, ensure activity alignment. Prepare two or three options.
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Get initial approval Submit basic documents:
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Passport copies for shareholders and directors
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Passport size photo or photos
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Business profile or brief plan
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Proof of address
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NOC if required for UAE residents
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Select an office solution Choose a flexi desk, shared office, dedicated office, or warehouse, as required by the zone and your visa quota.
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Get your trade license: Pay the authority fees to obtain it. This could be for professional, commercial, industrial, or e-commerce purposes.
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Collect incorporation documents.
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Get Articles or Memorandum.
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Obtain Share Certificates.
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Gather Establishment Card, if needed.
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Retrieve Company Registry documents.
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Open a corporate bank account Use your licence and incorporation pack. Bank requirements vary, prepare KYC, invoices, and contracts.
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If needed, apply for visas and an Emirates ID.
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Submit applications for owner and employee visas.
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Finish the medical and biometrics steps.
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After that, you’ll get your Emirates ID.
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Documents checklist
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Passport copies of shareholders and manager, valid at least six months
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Passport photos with white background
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Proof of address, utility bill or bank statement
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CV or business profile for some professional activities
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Board Resolution or Power of Attorney for corporate shareholders
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Attested corporate documents for branches or corporate shareholders
Costs and timelines, what to expect
Item What it covers Notes
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Authority fees Licence and registration vary by zone and activity.
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Office or facility Options include flexi desk, shared, dedicated, or warehouse. This impacts visa quota.
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Establishment card Necessary for immigration files if applicable for visas.
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Visa package Includes entry permit, medical, Emirates ID, and stamping per person.
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Bank account Corporate banking with KYC and average balance requirements.
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Timeline Typical processing time is five to fifteen working days, depending on zone and compliance.
Important: Fees and requirements can change. Freelance Visa Dubai will provide a current, itemized quote before you proceed.
Free Zone Company or freelance permit, how to decide
Choose a Free Zone Company if you need:
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Multiple visas and staff hiring
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Larger contracts, tenders, or warehousing
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Imports and exports or multi activity trading
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Clear separation of liability and ownership structure
Choose a Freelance visa or permit if you want:
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The lowest operational costs for a solo practice
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Speed to start billing clients quickly
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Service based activities such as design, development, marketing, or consulting
We manage both options. If you are unsure, we will map your revenue model to the right licence to reduce costs in year one.
Banking and compliance tips
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Prepare invoices, contracts, and a simple business plan. Banks will ask for them.
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Keep proper bookkeeping from day one. It helps with banking, audits, and renewals.
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Understand economic substance and UBO declarations where applicable.
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Renew your licence and visas on time to avoid penalties.
FZE and FZC, quick comparison
Feature FZE, single owner FZ LLC or FZC, multiple owners Owners One Two or more Capital As per zone As per zone Governance Simple Board and resolutions Ideal for Solo founders and consultants Multi founder startups and investor backed companies
When to add a mainland presence
If you need to sell directly to the UAE mainland, such as a retail shop, on site services, or government tenders, consider:
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A mainland subsidiary, or
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A local distributor or agent arrangement from the free zone
We will outline compliant structures that avoid unnecessary overhead.
FAQs, Free Zone Company in Dubai
1) Can I own 100% of my Free Zone Company?
Yes. Free zones allow full foreign ownership.
2) Do I pay corporate tax?
Free zones offer tax incentives. Rules can vary by activity and qualifying income. We will brief you on the latest guidance before incorporation.
3) How long does setup?
With documents ready, five to fifteen working days is typical for licence issuance. Banking timelines vary by case.
4) Can I hire employees?
Yes. Your office type and licence determine visa quotas.
5) Can a Free Zone Company trade on the UAE mainland?
You can contract with mainland clients. Certain activities and retail operations may require a mainland entity or an agent.
6) What if I only need a solo permit?
Consider a freelance visa or permit for lean operations with lower yearly costs.
Work with Freelance Visa Dubai
We focus on Free Zone Company setup and Freelance permits. This includes choosing the right zone, getting licenses, visas, and corporate banking.
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Free 10 minute eligibility check
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Side by side zone comparison, fees, visas, office options
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End to end handling, applications, medical, Emirates ID, PRO services
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Transparent costs with no surprise add ones
Ready to start WhatsApp or Call, Freelance Visa Dubai for your tailored quote and timeline today.