Question 1

Q-1. What are the main good things about starting a business in a Dubai Free Zone?

Accepted Answer

The main good things are that you own 100% of your business, usually pay 0% company tax (for qualifying income), can send all your profits home, the setup is easy, and you get great facilities. Plus, new things like the "One Freezone Passport" and easy access to mainland Dubai are now available.

Question 2

Q-2. How much does it cost to start a business in a Dubai Free Zone?

Accepted Answer

The first cost can be from AED 8,000 to AED 50,000+ or more. It depends on the Free Zone, the type of license, what your business does, and the office space you pick. You also pay yearly renewal fees.

Question 3

Q-3. Can a Free Zone company sell to businesses in mainland Dubai?

Accepted Answer

Yes, since 2025, Dubai Freezone companies can now work and sell directly in mainland UAE. They need to get a special permit or branch license from the Dubai Economy and Tourism Department (DET).

Question 4

Q-4. What is the "One Freezone Passport" in Dubai?

Accepted Answer

The "One Freezone Passport" is a new rule from 2025. It means if your company has a license in one Dubai Free Zone, it can work in all other Dubai Free Zones with just that one license. This makes expanding much simpler.

Question 5

Q-5. Do I need a local partner to set up a Free Zone company in Dubai?

Accepted Answer

No, a big benefit of a Dubai Free Zone company is that you can own 100% of it yourself. You don't need a local partner from the UAE.

Question 6

Q-6. How long does it take to set up a Dubai Free Zone company?

Accepted Answer

The process is usually very fast, often taking 3 to 10 working days if you have all your papers ready and don't need special approvals. Some simple setups can be even quicker.

Question 7

Q-7. Do Dubai Free Zone companies pay company tax?

Accepted Answer

Companies that qualify ("Qualifying Free Zone Persons") can get a 0% company tax rate on their main earnings. But all Freezone companies must register for company tax with the FTA and send in yearly reports. Other types of income are taxed at 9%.

Question 8

Q-8. Can I open a bank account for my Dubai Free Zone company from afar?

Accepted Answer

Most of the company setup can be done remotely. However, to open a company bank account, the person who signs for the company usually needs to be in the UAE in person to confirm their identity. But some new online banks offer fully online account opening.

Question 9

Q-9. Do I need to get my Free Zone company's financial reports checked by an auditor?

Accepted Answer

Yes, a new rule from 2025 says that all Freezone companies in Dubai must give their yearly financial reports, checked by an auditor, to their Freezone authorities.

Question 10

Q-10. What types of businesses are best for a Dubai Free Zone setup?

Accepted Answer

Dubai Free Zones are great for international trading, online shopping, consulting and other service businesses, media, shipping, tech companies, and light manufacturing. They are perfect for businesses that mostly deal with international markets.

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