Freezone Company Formation in Dubai: Simplify Your Business Setup in the UAE

List of the best free zones in the UAE:

• Jebel Ali Free Zone Authority (JAFZA);
• Dubai Multi Commodities Centre (DMCC);
• International Free Zone Authority (IFZA);
• Fujairah Creative City Free Zone;
• Sharjah Media City Free Zone (Shams);
• Sharjah Publishing City Free Zone (SPCFZ);
• Ras Al Khaimah Economic Zone (RAKEZ).

The main advantages of Dubai's free zones:

• Up to 100 % foreign ownership.
• 100 % repatriation of capital and profits.
• From 0 to 5% customs tariff for almost all goods.
• "Qualifying Free Zone Persons" are subject to a preferential corporate tax rate of 0% on their "Qualifying Income" only. Taxable Income that does not meet the "Qualifying Income" definition or comes from a "Non-Qualifying Free Zone Person" will be taxed at a rate of 9%. For more information, see here.

Free economic zones are economic zones where goods and services can be traded. These regions are also known as free trade zones, they provide low tax rates subject to certain requirements, preferential rates of customs duties and low taxes on imports and exports.

The cheapest free zones in the UAE are IFZA, UAQ, Meydan, DUQUE and DSO. Opening a company and license here is inexpensive, you will obtain Memorandum and Articles (MOA), share certificates, Establishment Card and a Company License. Learn more from Atton Accounting & Consulting consultants in Dubai.

A free zone company (freezone company) is a company established under a special jurisdiction that falls under the jurisdiction of a certain Emirate. At the moment, there are more than 50 free zones in the UAE as a whole. Free zone jurisdictions have their own rules and have a state regulatory body called the free zone Authority. The Atton Accounting & Consulting team will help you with registering a business and license in freezone Dubai, we are well familiar with the requirements of the FZE administrations and will provide you with comprehensive information about doing business in different jurisdictions of the UAE.

If you are dealing with a local UAE company, you can check it on the website of the DE (Department of Economics) of the respective Emirates. As for the free zone companies, you can check it directly on the free zone website in the company directory.

LLC is only the legal form of a company, which means a limited liability company. The difference should be whether the company is a local company - Dubai / Abu Dhabi / Sharjah, as well as any other of the 7 Emirates, or a free zone company. Regulatory authorities differ for local companies and free zone companies.

If the company is local or mainland, the maximum share of a foreigner for specific types of business activities can be 49%. The remaining 51% should belong to a local partner. However, this requirement does not apply to all types of business activity and licenses.

A free zone establishment (FZE) is a limited liability company with one shareholder that can be registered in all free zones of the UAE. However, a free zone company (FZC) will be a similar firm with several shareholders (maximum 5 shareholders).

There is no cheapest way – the government costs and fees remain the same. You can save some money if you do the paperwork yourself, rather than hiring a consultant/agency. However, this is quite difficult, thus it is recommended to apply for registration procedures to professionals such as Atton Accounting & Consulting.

The costs of registering a company on the mainland is usually slightly higher than a company in a free zone. The RAK and Ajman free zones, and also the south of the Emirates are considered the cheapest among freezone.

The location of the FZE is of great importance, for example, the proximity of the airport. The most popular is the silicon oasis, where open business related to trading, sale, and e-commerce. Set up offshore companies and freelance licenses is very popular, in order to obtain some types of business activity, a general licence is required.

To learn more about the possibilities of starting a business in the Emirates, contact the experienced experts of Atton Accounting & Consulting!

A Free Zone Company is a legal entity registered in one of the UAE's special economic zones. These zones are designed to stimulate investment inflows and foster the development of specific economic sectors. These investors get special tax and administrative benefits. The management and regulation of activities in these areas are carried out by a single government body – the Free Zone Authority.

The main benefits of registering a company in a Free Zone include:

• full foreign ownership,
• tax incentives (zero corporate tax subject to QFZP conditions),
• simplified registration and licensing,
• access to infrastructure and business ecosystem,
• residence visas for owners and employees.

Additionally, foreigners gain access to local medicine, education, and, in general, the entire local market and infrastructure.

There are over 40 free zones in the UAE. They have many free zones without any specialization, offering extensive opportunities for industrial, trade, and service companies of various profiles, for example, JAFZA or RAKEZ. Additionally, there are areas specializing in specific industries, such as logistics, IT, medicine, media, and finance, including the DIFC and Dubai Internet City. The choice of the optimal place of registration depends on the business's goals. Contact us today, and our consultants will help you make the right decision.

The main difference between a free zone company and a mainland LLC is the access to the local market. A mainland company can conduct its business freely throughout the UAE without restrictions. In contrast, companies in free zones are limited to operating within their designated zones and on the international market. However, operating costs on the mainland are higher; as a result, such a company requires a physical office and more complex bureaucratic procedures. In a free zone, the registration conditions are more flexible and the costs of maintaining a business are lower.

Yes, foreign investors can own 100% of any company in all free zones, without exception. Until recently, this was one of the main advantages of the UAE free zones. However, in 2021, they carried out a reform allowing foreigners to fully own businesses on the mainland (except for some industries, such as oil, gas, finance, and defense). Thus, 100% foreign ownership is now available virtually throughout the whole country.

With such a wide variety of options, the first step is to choose the best place to register. Next, to register a company, you need to fill out an application and collect and provide a package of documents. The entire process goes through the administration of the selected free zone. Once approved, you need to register the company name, obtain a license, open a bank account, rent an office, and apply for visas for the owners and future employees. Depending on the nature of the business, the registration process can take from a few days to several weeks. To ensure that everything proceeds quickly and smoothly, it is worthwhile to consider hiring the services of business consultants. Our specialists will help you at every stage and ensure full compliance with all local laws and regulations.

The set of documents for company registration differs, depending on the circumstances, but in any case, you will need:

• copies of the passports of the business owner(s),
• passport-size photos of owner(s),
• CV of owner(s),
• statutory documents of the owner company (if the owner is a legal entity),
• business plan (not always).

The specific package depends on the nature of your future business and the free zone you select. Sign up for a consultation with our specialists, and we will determine the required documents and assist with their preparation and submission.

On average, for a small business — for example, a trade or service company — the process takes 3 to 10 business days and can sometimes be completed within 48 hours. If you register an industrial company, some additional approvals are required, and the period is extended (up to several months). In general, it depends on the selected zone, the type of business, and the correctness of your actions (with our professional support, everything proceeds quickly and smoothly). Opening a bank account and obtaining visas will also take some time.

Yes, you can register a company in a free zone entirely online. Documents can be submitted electronically, and the license is issued remotely. However, you will still have to come to the UAE, at least for a few days. This is necessary to open a bank account and obtain visas.

No, a local sponsor is not required in free zones. As for the mainland, after the 2021 reform, such a requirement remained only for a limited number of activities; however, in general, no local sponsors are required on the mainland either. All functions of the state registrar are performed by free zone administrations, which significantly simplifies business management.

You can verify the company's information on the official state register. Data on the place of registration can be checked for any company. Besides, you can find this information in a company's license. The document features the logo and seal of a specific zone, confirming the legality of the activity in the UAE.

The main types of licenses that are available in most free zones are:

• trading – may include one group of goods, or a wide range – general trade license,
• service – contains information about the types of services a company can provide),
• professional – for private entrepreneurs and self-employed individuals,
• industrial – for industrial production.

Some zones have specialized licenses, such as those for financial, media, and IT sectors. The license determines the type of activity in which the company is engaged. You can choose one or more categories. The cost of the license depends on its type.

There is no single answer to this question. The choice depends on your goals and the nature of your business. For example, trading and logistics companies often choose JAFZA and DMCC; IT companies and startups – Dubai Internet City; financial businesses – DIFC or ADGM; medical companies – Dubai Healthcare City; and media – Dubai Media City. For small businesses, low-cost zones such as IFZA or RAKEZ are suitable.

Direct business with the mainland is not allowed under the regulations of the UAE free zones. In a free zone, a company can only operate within the zone and engage in export activities. To operate on the mainland, you need either local distributors or separate subsidiaries on the mainland. However, in practice, this rule can be circumvented —for example, service companies may specify the place of service provision as their free zone, and trading companies may open stores, shipping their goods throughout the UAE. Many companies operate in a free zone and on the mainland simultaneously. This is legal if structured correctly. Contact us today to find out more.

Yes, many zones allow you to combine several types of activities in a single license, but they must be similar. If the kinds of activities are different (for example, trade and IT services), you need to apply for another license. A company can obtain as many licenses as it wants.

The specific cost of registration depends on the chosen area, license, number of visas, and any additional approvals required. The cost includes the registration procedure itself, obtaining a license, and additional services (such as document certification and professional assistance). Offices, visas, and a bank account are paid additionally. The simplest option will cost 6,000-8,000 AED (for a trading company without a physical office, without visas, and a license to trade in a single group of goods).

Many free zones have requirements for a minimum authorized capital. However, this is a purely formal requirement, and often when registering, you only need to declare it without actually contributing any money. However, for some licenses, the authorized capital is mandatory and must be verified, for example, for financial and investment companies. For most trade and service licenses, you can use these funds at your own discretion.

After registration is complete, the company is required to pay an annual fee for license renewal and office rent. It is also necessary to regularly renew visas for owners and employees (usually every 2 years). Many free zones require companies to undergo an annual audit. In any case, all payments are transparent and fixed in amount. Our specialists will consult with you in detail about the expenses in your case.

When planning expenses, it is important to consider not only the actual cost of services, but also their availability in the selected zone (e.g., the presence of ports, warehouses, and other infrastructure), so the question should be formulated more like "What is the cheapest free zone for my business in the UAE?". In general, Fujairah Creative City, RAKEZ, and SHAMS are considered the most affordable options. They offer packages ranging from 6,000 to 8,000 AED, but these do not include an office or visas; only a license is provided. For startups and freelancers, this is a suitable solution; however, for larger businesses, it may not be the best fit.

In Dubai, the cheapest are IFZA and Meydan Free Zone. They offer packages ranging from 12,000 to 15,000 AED, which include licenses and a few visas. That, however, is not always the answer. This is sometimes less expensive than forming a company in an adjacent emirate (Ras Al Khaimah, or Sharjah) and working from there. There’s no one-size-fits-all solution, depending on your goals and budget. Book a consultation today, and our experts will guide you to the best solution for your needs.

Yes, free zone business owners are eligible for a residency visa for themselves, their family members, and their employees. A residency visa allows you to live in the UAE and travel freely. Typically, a visa is valid for 2 years and can be extended an unlimited number of times as long as the applicant complies with the visa rules. Read more about how to get a residency visa and the benefits it provides.

Generally, the number of visas depends on the license package and the office's size. On average, a small business requires 1–3 visas for a small office and one visa for every 9 square meters of office space. When registering, the zone administration indicates a visa limit for your company, which can later be increased by renting a larger office.

No, it depends on the nature of your business. Free zones often offer registration with a virtual office, a "flexi desk," or a "shared office." This is suitable for small startups, but later on, to expand and obtain additional visas and licenses, you will need a full-fledged office. Read more about how to make changes to an existing license.

In the UAE free zones, in addition to regular physical offices, companies get access to: virtual addresses, workplace (flexi desk), coworking, private offices, as well as warehouses and free land plots (for industrial companies). Initially, small businesses opt for a virtual office or coworking space, as it is more cost-effective. Large companies rent full-fledged premises or warehouses. Free zones offer flexible rental terms that are suitable for most cases.

This requirement depends on the specific zone. In many popular free zones, such as DMCC, JAFZA, etc., an annual audit is a mandatory requirement. In some cases, filing an internal income tax return is sufficient. It is essential to understand the specific rules of a particular zone, and our specialists will assist you with this.

In 2023, the UAE introduced a corporate tax with a basic rate of 9%, which also applies to companies in free zones. However, there are still specific preferences. For example, companies in a free zone can obtain the status of Qualifying Free Zone Person (QFZP) and receive a preferential corporate tax rate of 0%, subject to certain conditions. The key requirement is to conduct business outside the main territory of the UAE and with non-residents. Read more about corporate tax and QFZP here.

Yes, Free Zone companies in the UAE are subject to VAT, with a standard rate of 5%. Companies are required to register for VAT if their annual turnover exceeds AED 375,000. However, there are exemptions for international transactions (exports are exempt at 0%). Read more about VAT and tax reporting here.

Yes, free zone companies can open a corporate account in any local or international bank. This requires a package of incorporation documents and a license. If approached correctly, the process will take between 1 and 4 weeks, and the personal presence of the owner(s) will be required during this time to comply with KYC/AML procedures.

Yes, the company can issue work visas for its employees. The number of visas depends on the size of the office and the type of license. The company can also sponsor family members of the owners and their employees, opening up opportunities for easy and quick relocation.

FZE (Free Zone Establishment) is a free zone company with a single founder. It has the status of a separate legal entity and limited liability. If there are several founders, the company is referred to as an FZC (Free Zone Company). Both types are widely used for small and medium businesses. Within a single free zone, the company can easily adjust its structure. Read more about this here.

LLC is registered on the mainland and can conduct business throughout the UAE. Until 2021, a local partner was required to form an LLC; however, in most cases, this requirement is no longer necessary. A free zone company is limited to activities within its zone, but at the same time, it is simpler and cheaper to maintain.

You can make changes to the company structure after registration, including updating your license, company name, address, and shareholders. However, it is not possible to move from a free zone to the mainland. If you need to establish a presence on the mainland, it is better to open a new subsidiary or branch. Our specialists will help you with this issue.

Trademark registration occurs through the Ministry of Economy. As a result, you receive protection of your brand's rights throughout the country (not only in your zone) or in the GCC region. Ownership also extends to international markets when applications are made through WIPO. Generally, the registration process takes 4-6 months.

Free zones with low registration and business costs are popular among small and medium-sized businesses, including IFZA, RAKEZ, SHAMS, and Meydan Free Zone. Trading and service companies often choose the DMCC, while logistics companies typically opt for JAFZA. Media companies often register in Dubai Media City and Fujairah Creative City. The specific choice depends on the industry and budget.