Setting up a company in Dubai Free Zone

Dubai Free Zones are lucrative business spots for investors and entrepreneurs because these zones are free of corporate and personal tax. Once you set up business in a Free Zone, you get some additional benefits such as import duty exemption.

All Free Zones provide top quality infrastructure and facilities to explore the luxury of life and business. So, if you want to know how about setting up a company in Dubai Free Zone then I have brought a comprehensive guide for you.

What is a freezone company?

It’s a company located in the Free Zone in Dubai. Free Zones are basically a kind of economic jurisdiction in the UAE. Each Free Zone offers specific benefits to certain kinds of business.

For example, if you are planning for setting up a company in Dubai which is related to IT, Dubai Internet city offers tons of benefits to tech companies. On the flip side, when you plan to run a logistic company in Dubai, the most suitable area is Dubai Airport Free Zone.

Know about difference between Dubai free zone and Dubai mainland

What are the benefits of setting up a company in Dubai Free Zone?

Here are some benefits that Dubai Free Zone companies can obtain:

• Whether you are a local or a foreigner, you will get 100% ownership of your business. The best part is you won’t have to arrange a local sponsor or agent.
• In case you want to do transactions of foreign currency, there won’t be any restrictions.
• Import/export and logistic business can get exceptions from import/export duties.
• No matter what kind of business you run in the Free Zone, you are eligible for 100% exemptions from taxes on corporate and personal income.
• There are 100% repatriation benefits of profits and all financial assets.
• Tons of workspace options are options such as coworking spaces, virtual places, etc.
• When it comes to hiring staff, you can find tons of skilled labor. Besides, the recruitment process is simple and easy.

I shared all the benefits of setting up a company in Dubai Free Zone. You must know that there are some special benefits for startups, investors, freelancers, entrepreneurs, and investors in each Free Zone.

How to set up a company in Dubai Free Zone?

Here are some steps you need to follow for company formation in the Free Zone.

1. Select a Free Zone

Every Free Zone offers specific benefits to a certain business. In the first step, you will decide where you plan to set up your company. Here is a list of Free Zones in the UAE:

1. Jebel Ali Free Zone
2. Dubai Multi Commodities Centre
3. Dubai Airport Free Zone
4. Dubai International Financial Centre
5. Dubai Media City
6. Dubai Production City
7. Dubai Design District
8. Dubai Internet City
9. Dubai Science Park
10. Dubai Silicon Oasis
11. Dubai Healthcare City
12. Dubai South
13. Dubai Academic City
14. Dubai Outsource City
15. Dubai Studio City
16. Dubai Knowledge Park
17. International Humanitarian City
18. Sharjah Airport International Free Zone
19. Fujairah
20. Gold & Diamond Park
21. Hamriyah Free Zone
22. Free Zone
23. Dubai World Trade Centre
24. Masdar City
25. Dubai Auto Zone
26. Dubai Flower Centre
27. Dubai Wholesale City
28. Dubai Logistics City
29. Dubai Textile City
30. Dubai car and auto zone

Since you need to explore tons of Free Zones, it’s going to be quite overwhelming to read and understand the jurisdiction and benefits of each Free Zone. So, it’s always a great idea to contact Prospr, one of the best business consultants in Dubai. Our experts will help you choose the best Free Zone as per your business requirements. The purpose of involving experts in this process is to select a Free Zone where you can avail maximum benefits after setting up a business.

Also read the guide about setting up a company in Dubai Mainland

2. Choose trade license and business structure

There are different types of trade licenses in Dubai. In the next step you will choose a business license according to your economic activities. Prospr will help you in the UAE company registration process.

Besides, you need to choose a specific business structure such as sole proprietorship, partnership, corporation, and S corporation. Trade licenses vary from one Free Zone to another. It’s a good idea to get help from a Prospr expert to pick the right trade license.

Read bout different types of trade license in Dubai

3. Register a business in Free Zone

Each Free Zone has a specific business registration process and requirements. If you want to enjoy a hassle-free UAE company register process, get help from our business consultants. All you need to do is to arrange specific documents and the rest of the process will be handled by us. You also need to select a specific trade name for your business. Once you provide all the documents, the application process begins. You need to sign incorporation documents after initial business approval.

4. Set up business location

Before you get a trade license and officially start your business, it’s vital to find the best business location. Prospr helps you pick the most suitable and economical place for setting up a company in Dubai, UAE. Our business consultants will be there for you every step of the way from applying for a trade license to its final approval.

Read the guide about changing or removing local sponsor in Dubai

Frequently asked questions about setting up a company in Dubai Free Zone

Can freezone companies do business in Dubai?

When you set up a Free Zone company in Dubai then you can enjoy multiple perks for doing business in this specific zone. However, you can’t do business outside the Free Zone. Contrary to this, when you set up a business in mainland Dubai, then you can do business everywhere in Dubai including the Free Zone. If a Free Zone company wants to do business in a non-Free Zone then it must consult with a local agent.

What is a Free Zone employment visa?

It’s a visa that allows you to continue doing business in a specific Free Zone you choose to work in. This visa is valid for up to 3 years, after that you can renew it. This visa is applicable to those who are employed in the UAE. It won’t be useful as a kind of residence permit.

What is the cheapest Free Zone in the UAE?

If you want to set-up a cost-effective business in the UAE then the cheapest Free Zone is Sharjah Media City (SHAMS). You can get a basic trade license for AED 8000 in this zone.