Free Zone Business Setup in the UAE

What Is a Free Zone Business Setup?

A free zone, also known as a free trade zone or special economic zone (SEZ), is a designated geographic area within the UAE that offers businesses significant tax incentives, regulatory benefits, and full foreign ownership. 

These zones are strategically established to attract international investors, promote trade, and foster innovation across industries such as manufacturing, technology, logistics, and media.

Why Choose a UAE Free Zone for Your Business?

Setting up a business in a UAE free zone comes with several advantages, including:

  • 100% Foreign Ownership: Unlike mainland businesses, free zone companies can be fully owned by foreign investors.

  • Tax Exemptions: Most free zones offer 0% corporate and personal income tax and no customs duties on imports and exports.

  • Fast and Simple Setup: Hassle-free registration processes with minimal paperwork.

  • No Currency Restrictions: Businesses can transact in multiple currencies without restrictions.

  • Repatriation of Profits: Full repatriation of capital and profits with no restrictions.

  • Access to World-Class Infrastructure: State-of-the-art facilities, business centers, and networking opportunities.

  • Strategic Location: Close proximity to major airports, seaports, and business hubs, facilitating global trade.

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Learn how a free zone can benefit your business.

Talk to our experts now!

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Free Zone Jurisdictions in the UAE

1. Ajman Free Zone Business Setup

Established in 1988, Ajman Free Zone is one of the UAE’s oldest free zones, known for its cost-effective business setup solutions. It plays a crucial role in the emirate’s industrial and economic development, attracting businesses across manufacturing, trading, and services sectors.

Benefits:

  • Low-cost licensing and leasing options

  • Strategic location near Ajman Port

  • Business-friendly regulatory framework

Set up your business in Ajman Free Zone with ease. 

Get a free consultation now!

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2. DMCC Free Zone Business Setup

The Dubai Multi Commodities Centre (DMCC) is the UAE’s largest and fastest-growing free zone, specializing in precious commodities, energy, metals, and agriculture. Located in Jumeirah Lake Towers (JLT), DMCC provides businesses with world-class infrastructure and global connectivity.

Benefits:

  • Home to over 23,000 companies from various sectors

  • State-of-the-art business ecosystem

  • Flexible office solutions and licensing options

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Join the UAE’s largest free zone. 

Start your DMCC business today!

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3. Creative City Fujairah Free Zone

Established in 2007, Creative City Fujairah caters primarily to media, entertainment, and creative businesses. It provides a professional environment for freelancers, entrepreneurs, and media companies looking to establish a presence in the UAE.

 Benefits:

  • Quick and cost-effective business registration

  • No requirement for physical office space

  • 100% ownership and profit repatriation

Ideal for media and creative businesses. 

Launch your company hassle-free!

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4. IFZA – DSOA Free Zone Business Setup

The International Free Zone Authority (IFZA) in collaboration with Dubai Silicon Oasis Authority (DSOA) offers one of the most competitive business setup solutions in Dubai. Known for its flexible business activities and cost-effective licensing options, IFZA is an ideal choice for startups and SMEs.

 Benefits:

  • Affordable company formation packages

  • Global business networking opportunities

  • Easy visa processing and sponsorship

Affordable and flexible business setup in Dubai. 

Let’s get started!

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5. Meydan Free Zone Business Setup

Located within the prestigious Meydan Racecourse, Meydan Free Zone offers businesses a premium address with access to a thriving business ecosystem. Entrepreneurs benefit from an affordable setup, flexible office spaces, and world-class amenities.

 Benefits:

  • Located 15 minutes from Dubai International Airport

  • No personal or corporate income tax

  • Opportunity to connect with high-net-worth individuals

Premium business location at affordable rates. 

Talk to our experts today!

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6. RAKEZ Free Zone Business Setup

The Ras Al Khaimah Economic Zone (RAKEZ) combines two major entities—RAK Free Trade Zone (RAK FTZ) and RAK Investment Authority (RAKIA)—to provide a cost-effective, business-friendly environment. It caters to industries such as manufacturing, trading, and services.

 Benefits:

  • Competitive business setup packages

  • Industrial land plots and warehousing solutions

  • Business-friendly policies with minimal restrictions

Expand your business in RAKEZ Free Zone. 

Get expert advice now!

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7. SHAMS Free Zone Business Setup

Sharjah Media City (SHAMS) is a cutting-edge media and creative industry hub that offers entrepreneurs and businesses a hassle-free company formation process with minimal documentation and quick approval times.

 Benefits:

  • Wide range of business activities permitted

  • No paid-up share capital requirement

  • Cost-effective company formation packages

Perfect for media and creative professionals. 

Register your company today!

8. SPC Free Zone Business Setup

The Sharjah Publishing City Free Zone (SPC Free Zone) is a specialized free zone dedicated to publishing, printing, and media-related businesses. It is an ideal choice for companies in education, digital content, and creative industries.

 Benefits:

  • 100% foreign ownership

  • Easy business setup with quick licensing

  • Access to a global publishing network

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Set up your publishing or media business in SPC Free Zone. 

Get started today!

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9. SRTIP Free Zone Business Setup

The Sharjah Research, Technology and Innovation Park (SRTIP) was established in 2016 to promote research, technology, and innovation in various fields such as healthcare, renewable energy, and advanced manufacturing.

 Benefits:

  • Strong focus on innovation and research

  • Collaboration opportunities with universities and R&D centers

  • Business incentives and funding support

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Join an innovation-driven free zone. 

Start your business in SRTIP today!

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Key Advantages of UAE Free Zones

1. Tax Incentives

  • 0% corporate tax and 0% personal income tax in most free zones

  • No customs duties on imports and exports within the free zone

  • Tax-friendly policies that encourage global business expansion

2. Customs Benefits

  • Simplified import and export procedures

  • Access to world-class logistics infrastructure

  • No currency restrictions on international transactions

3. Full Foreign Ownership

  • 100% ownership without the need for a local sponsor

  • Full control over profits and business operations

  • Ideal for international entrepreneurs and investors

4. Simplified Regulations

  • Streamlined business setup and licensing process

  • No annual audit requirements for most free zones

  • Flexible visa options for employees and business owners

5. World-Class Infrastructure

  • High-tech business centers, office spaces, and co-working hubs

  • Dedicated industrial zones and warehousing solutions

  • Access to premium networking events and trade expos

6. Strategic Market Access

  • Proximity to major international airports and seaports

  • Gateway to Middle Eastern, African, and Asian markets

  • Free trade agreements with multiple global partners

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Get Expert Assistance for Your Free Zone Business Setup

At Consult Kumar, we specialize in hassle-free business formation services in UAE free zones. Our expert consultants will guide you through choosing the right free zone, licensing, visa processing, and company registration.

Ready to start your business in a UAE free zone? 

Contact Consult Kumar for a free consultation now!

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FAQs

ConsultKumar advises all its clients to reach out to us with your query as rules and regulations may have changed at the time of you reading this information.

Call us on 050 6577025 / 050 5527930 or email us help@consultkumar.com or you may chat with us on whatsapp. We will be sure to address your queries within 1 hour.

What is the cost of the business setup in a UAE Freezone?
The cost of the business setup varies from each Freezone authority.
The cost also depends on number of owner(s), the need for UAE resident visa for owner(s), the need for employee visa quota and application of labor permit. The kind of business activity you choose. There are several factors that go into total setup cost. We encourage you to reach out to our consultants via online form or direct call or drop in a whatsapp message. You will get an estimate within 1 hour.


Which are the most popular Freezones in the UAE?
Jebel Ali Free Zone (JAFZA), Dubai Airport Free Zone (DAFZA), Dubai Silicon Oasis (DSOA), Ajman Free Zone, Sharjah Media City, Kizad Abu Dhabi, Fujairah Creative City, Ras Al Khaimah Economic Zone & UAQ Free Zone.

How many activities can I perform under the single license in UAE Freezone?
In most Freezones you can have two activities under one license contact our staff, and they will guide for the best options that suit your needs.


Do I need a local agent or a local sponsor for my license in Freezone?
No, as a foreign owner you are 100% owner of your company

What are the different type of activities in UAE Freezone?
There are three types of activities in UAE Freezones known as the commercial, professional and industrial activities.

The activities that require capital like retail, real estate, wholesale, transportation and many others come under the commercial activities. Mining, water, electricity, gas and many other services fall under the industrial activities and social and personal services, health, education and consultants are regarded as the professional activities.

How long will it take to setup a Freezone company?
In the UAE, Freezone company incorporation can be completed within 4 hours to a maximum of 31 days. It all depends on the Freezone wherein you would like to incorporate your company.

What are the types of companies that I can setup in UAE Freezones?
Apart from the kind of business and the requirements, it is important that you be aware of the business companies that you can setup in the Freezone area. Here is the list of the type of companies that you can have in the UAE Freezones.

Private Freezone company owned by individual

Partnership company in a Freezone (more than 1 maximum 4)

Branch of an international company

Branch of the company already operating in Mainland

What type of business setup can you have in UAE Freezones?
In the UAE Freezones, you can start any business that you prefer. There is no need to have a local sponsor and you are 100% owner of your business. However, you can only operate in the geographical available for the Freezone.

Why should I start my business in Dubai or UAE?
UAE is a global business hub. With best connectivity with the world through its world class airport and port facility. Centrally located connecting key markets between Asia Europe and Africa. A stable and progressive government with rules that support ease of doing business, free access to global human resource, excellent banking system of over 40 national and international banks. There is no corporate or income tax, no tax on repatriation of your income of corporate profits.

UAE is a testament to the world how strong leadership, values and progressive thinking can turn around a young country into a dominant economic power.

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ConsultKumar advises all its clients to reach out to us with your query as rules and regulations may have changed at the time of you reading this information.

Call us on 050 6577025 / 050 5527930 or email us help@consultkumar.com or you may chat with us on whatsapp. We will be sure to address your queries within 1 hour.

What is the process of Trade Name Registration in the Mainland?
Consult Kumar will apply for the registration of your Trade Name in the related Department of Economics for the related emirates.  The booking will take one day, and it is validated for six months even if you are prepared to start the process of establishing your company.

How many activities can I perform under the single license in the Mainland?
Under the single license, you can manage 10 activities of the same group. However, you must ensure that you engage yourself in the activities that have been labelled in the DED standards.

What are the different services provided by the local agent and local partner?
When you are providing the professional services, you will require the local agent. The Local partner has no interaction with your company or organization, he is only the ambassador of your company who will sign the local agent contract and there is no financial involvement.

On the other hand, the legal partner is required for the commercial activities. He has a share in your organization because he will sign the memorandum and will be responsible for the activities of your organization. Read more


Do I need a local agent or a local sponsor for my license in Mainland?
If you are planning to start a mainland company that you will have to use a UAE national as your local agent or local sponsor. Check our Sponsor services for more information.

Which department will issue the trade license in Mainland Dubai?
The Department of the Economic Development is responsible to issue the trade license of all the three categories. It will depend on the type of your business and the activities that you will be performing. To get the Dubai license for your business you have to ensure that you submit the required and legal documents.

What are the requirements for the trade license in Mainland?
To get the trade license, you have to submit the following information:

  1. Enlist the category of your business
  2. Enlist the type of activities that you will be performing
  3. Enlist all the activities that fall under your business license and you might consider use them
  4. Ensure that there are only 10 activities listed
  5. The nationalities and number of business owners must be included with the legal undertakings
  6. The conditions and requirements that falls under the license must be included
  7. Trade Name of the business should be mentioned
  8. For the initial approval you will have to submit the application to the department
  9. Once you have the approval register your Trade Name immediately
  10. Rent the business premises
  11. The conditional documents to your business must be prepared. It includes certification from authorities, memorandum of association.


How can I renew my business license in Mainland?
If you want the renewal of your commercial license, you will have to submit the DED registered certificate with the approval that you had from the Ministry of Economy and National Media Company. To renew the trade license, you will have to submit the valid EJARI certificate and your lease contracts.


What are the types of licences that I should apply for to setup a business in UAE Mainland?
There are three different types of license that you will need according to your business activities:

  1. A commercial license will be required if you are engaged in the trading business
  2. Professional license if you will be providing the professional services
  3. If you have a manufacturing or industrial business, then you must apply for the industrial license.


Do I need to rent an office in Dubai Mainland to start a business?
No, ConsultKumar can assist you in starting your business without the actual need to take up an office. Our virtual lease offers start from AED7,500.00. This will enable to you start your operations. Should you require Micro office such as Desk space for one, with meeting rooms facility, dedicated call lines and mail management with parking, please do get in touch with one of our business advisors or fill in the online form, call us or drop in a whatsapp text. We will respond to you within 1 hour.


What are the various categories of incorporation in UAE Mainland?
There are different types of business incorporation categories in UAE. They differ by the terms and conditions, the amount of paid up or share capital, number of shareholders required and the incorporation procedure, namely are:

  1. General partnership company
  2. Share partnership company
  3. Limited liability company
  4. Joint venture company
  5. Private shareholding company
  6. Public shareholding company


What happens if my Local Service agent or 51% UAE shareholder passes away?
In such unfortunate circumstance the will created by the deceased will come into effect and who inherits becomes the new nominee shareholder. He/she may or may not operate as the previous nominee shareholder.

With ConsultKumar all our structures are created in a manner that ensures continuous functioning of business without any hurdles during such transition period

Can I change my Local sponsor, are there any exit clause, will ConsultKumar assist in this process?
There is minimum 30day notice period to be provided prior to license expiry date. In the absence of such notice, the agreed fee of nominee shareholder will be applicable. You may change your Local service agent / sponsor at your willingness. We will assist you in this process.

Why should I start my business in Dubai or UAE?
UAE is a global business hub. With best connectivity with the world through its world class airport and port facility. Centrally located connecting key markets between Asia Europe and Africa. A stable and progressive government with rules that support ease of doing business, free access to global human resource, excellent banking system of over 40 national and international banks. There is no corporate or income tax, no tax on repatriation of your income of corporate profits.

UAE is a testament to the world how strong leadership, values and progressive thinking can turn around a young country into a dominant economic power.

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Consult Kumar advises all its clients to reach out to us with your query as rules and regulations may have changed at the time of you reading this information.

Call us on 050 6577025 / 050 5527930 or email us help@consultkumar.com or you may chat with us on whatsapp. We will be sure to address your queries within 1 hour.

What are the limitations of an Offshore Company Setup?
Offshore Company Formation in UAE has few limitations such as – No provision to issue residency visa, no trade within UAE, no leasing or renting a Local Premise in the UAE.

Can an Offshore Company Open a Bank Account in the UAE?
Yes, an Offshore Company can open a Bank Account in the UAE. The company owner will have to visit the UAE to do the paperwork with the bank. The bank will be assessing business activity, company profile, fund flow, etc. UAE has strict Know-your-Customer (KYC) Norms for Offshore Company Bank Accounts.

How much time will it take to Register an Offshore Company in the UAE?
Offshore Company can be incorporated in less than 2 Working Days. Offshore Company registration is relatively easy by applying through an online registration form along with the right documents. In normal circumstances, the company registration will happen even without the physical presence of the company owner.

Can Offshore Company buy Property in Dubai?
Yes, Offshore Company registered in RAKICC and Jebel Ali Free Zone (JAFZA) are eligible to purchase residential property in the Offshore Company’s name from designated freehold areas in Dubai. However, there are certain restrictions in terms of usage and disposal of the property. Offshore Company is not eligible by UAE Legal Laws to purchase any commercial property in the UAE.

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United Arab Emirates

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