Dubai Free Zone Company Setup

A free zone company set up in Dubai means registering a business in a special economic zone with its regulatory authority. These zones offer key benefits: 100% foreign ownership, zero income tax, full profit repatriation, and streamlined licensing. Each authority issues a business licence limited to activities within the zone or international trade. To operate in the mainland, a local distributor is required. EGSH manages the entire setup process—from license application to visa coordination.

The benefits of a company in a Dubai free zone are defined by UAE regulations and the frameworks of the relevant free zone authority. Key advantages include:

— 100% foreign ownership without the need for a local partner.
— 0% personal income tax and preferential corporate tax treatment for qualifying activities.
— Full repatriation of capital and profits without restrictions.
— Simplified company registration under a single authority.
— Visa eligibility for shareholders, employees, and dependents is linked to office space quotas.
— Modern infrastructure and facilities, including offices, warehouses, and logistics services.
— Specialised sector clusters (e.g., technology, finance, media, logistics) supporting targeted business activities.

All these benefits apply within the framework of free zone regulations. Direct business in the UAE mainland is not permitted without a local distributor or an additional mainland licence. EGSH helps clients to select the most suitable free zone and licence type to maximise the available advantages.

Free zone business setup in Dubai allows 100% foreign ownership, no corporate tax (in most cases), and simplified licensing under zone-specific authorities like DMCC, DAFZA, or IFZA. Companies are limited to international operations or trading within the zone unless they appoint a mainland distributor.

Mainland registration, licenced by the Dubai Department of Economy and Tourism (DET), permits direct business across the UAE, access to government tenders, and broader visa quotas. EGSH provides a legal setup for both models and advises on the most compliant option based on your business activity.

Starting a business in a Dubai free zone follows a defined procedure under the authority of the selected zone. The main stages are:

1. Select Free Zone and Activity — Each free zone specialises in specific sectors (e.g., trade, technology, media). The chosen business activity defines the type of licence issued.

2. Decide Legal Structure and Reserve Trade Name — Common structures include Free Zone Establishment (FZE) for one shareholder and Free Zone Company (FZCO) for multiple. A compliant trade name must be reserved and approved.
3. Apply for Initial Approval — Submit the application with passport copies of shareholders and directors, business plan or CV, and other supporting documents as required by the authority.
4. Secure Business Premises — Lease an office, flexi desk, or warehouse within the free zone. The office type determines visa quotas.
5. Company Registration and Licence Issuance — Sign incorporation documents, pay the required fees, and receive the official trade licence.

Post-Registration Procedures — Apply for an establishment card, residence visas (through GDRFA), open a corporate bank account, and register for VAT if turnover exceeds AED 375,000. EGSH manages all steps directly with free zone authorities, ensuring compliance, accurate documentation, and timely licence issuance.

The exact list of documents depends on the zone, activity, and whether the applicant is an individual or a corporate shareholder. The commonly required documents are: Individuals (shareholders/managers):

 — Passport copies of shareholders and directors
 — Passport-sized photographs
 — Curriculum Vitae (CV) or business profile
 — Bank reference letter (sometimes required)
 — No-Objection Certificate (NOC) from current sponsor, if resident in the UAE Corporate shareholders:
 — Certificate of Incorporation and Memorandum of Association (notarised and attested)
 — Board resolution appointing a manager/director
 — Power of Attorney for the authorised signatory
 — Two years’ audited financial statements or bank reference

General supporting documents:

 — Completed application form and selected business activity
 — Proposed trade name
 — Business plan (required in many free zones)
 — Lease agreement for office or flexi desk space

Some free zones may also require additional approvals from external authorities depending on the activity (e.g., health, education, or financial services). EGSH reviews and prepares all documentation in line with UAE free zone registration requirements, reducing the risk of delays or rejection.

The correct free zone for your business in the UAE depends on your business activity, required infrastructure, target markets and visa needs. Each zone specialises in specific sectors and offers different licences and office solutions.

— Dubai Multi Commodities Centre (DMCC): Ideal for trading, commodities, and financial services. In Jumeirah Lakes Towers (JLT), DMCC offers advanced infrastructure, a wide range of commercial licences, and proximity to Dubai’s business districts.
— Dubai Airport Freezone (DAFZA): Suited for international trade, aviation, logistics, and technology firms. Located next to DXB airport, DAFZA provides quick customs processing and high-end office facilities for global companies.
— International Free Zone Authority (IFZA): A flexible option for professional services, consultancies, and SMEs. IFZA offers low-cost licensing, simplified documentation, and shared desk licensing options for startups and freelancers.
— Dubai Silicon Oasis (DSO): Best for tech companies, software development, and engineering. DSO is an integrated free zone and residential community with modern IT infrastructure and R&D facilities.

Other factors to consider include the free zone visa quota, the type of office (virtual, shared desk or physical space) and access to transport hubs. EGSH helps you select the optimal free zone for your business and handle your company formation in Dubai free zones from start to finish.

E-commerce activities in Dubai free zones are generally licensed under the Commercial Licence category. The exact sub-licence depends on the business model:

— Online trading of physical goods — requires an e-commerce or trading licence. Some free zones also request proof of a registered domain name.
— Digital services (software, online consultancy, applications) — usually licensed as service or consultancy activities, with e-commerce added where applicable.
— Online retail via third-party platforms — typically licensed as «e-commerce trading» or «online retail» activities.

Key free zones offer tailored e-commerce licensing options:

— DMCC — e-commerce licence with warehousing and fulfilment support.
— IFZA — flexible packages with simplified documentation, suited for SMEs.
— DAFZA — licensing for cross-border trade and logistics, with fast customs clearance.
In most cases, having an office or flexi desk within the free zone is required for the licence to be issued and for visas to be allocated. Additional approvals from UAE regulators may be required for specific product categories, including food, healthcare, and cosmetics.

EGSH determines the correct licence category, prepares the supporting documents, and submits the application to the free zone authority on behalf of the client.

Yes. 100% foreign ownership of the UAE is a key benefit of all Dubai free zones. Investors can fully own and manage their business without a local partner.

The cost of registering a company in a Dubai free zone depends on the relevant authority, the type of licence and the required office space. The cheapest free zone licence in Dubai is usually offered by smaller free zones or as part of flexi desk packages, which include a limited visa quota. Basic packages in some Dubai free zones start from around AED 12,000–15,000 per year. Larger free zones, such as DMCC and DAFZA, have higher fees, reflecting their broader facilities and infrastructure. Typically, costs cover the trade licence, registration and establishment card, while visa issuance and office rent are charged separately.

EGSH provides a transparent breakdown of the cost of a Dubai free zone licence for each jurisdiction and advises on the most cost-effective option that complies with UAE free zone registration requirements.

Residence visas are available to shareholders, employees, and dependents through a licensed free zone company. Once your company is incorporated and the licence is issued, you can apply for a free zone establishment card, which is required to access visa quotas and initiate the visa process.

Each free zone visa quota depends on the size and type of your office space. For example:

— A flexi-desk or shared desk licensing package typically allows 1–3 visas.
— A dedicated physical office may allow for a larger visa allocation.

The process involves medical testing, an Emirates ID application, and approval by the General Directorate of Residency and Foreigners Affairs (GDRFA).

Zones like Dubai Silicon Oasis (DSO), IFZA, and DMCC offer streamlined visa issuance through their respective portals.

EGSH assists with the whole visa application workflow, including quota determination, establishment card setup, and GDRFA coordination, ensuring smooth residence visa issuance after your company is formed.