Business Setup in Dubai Freezone

Dubai is home to over 30 Freezones, offering investors a range of opportunities to set up business in Dubai free zone, with benefits like 100% foreign ownership and zero corporate tax. Each tailored to industries like trade, technology, media, and finance. Zones like Dubai Multi Commodities Centre (DMCC) and Dubai International Financial Centre (DIFC) attract global investors with benefits such as:

• 100% foreign ownership,
• Zero corporate tax, and
• Full profit repatriation.

As of 2025, Freezone companies can operate in the Dubai mainland via branch licenses or permits, thanks to new regulations. This flexibility supports Dubai’s D33 vision to double its economy by 2033, making Freezone setups more powerful than ever.

Safe Ledger, one of the leading business setup consultants in Dubai Free Zone, makes Freezone business setup easy. From choosing the right zone and securing licenses to opening bank accounts and managing visas, we handle it all. With fast processing, expert guidance, and end-to-end compliance support, Safe Ledger is your trusted partner for setting a business in UAE.

Setting up your business in Dubai, primarily Freezone, offers clear advantages, making it a highly popular choice, especially for people investing from other countries.

• 100% Foreign Ownership: This is a major benefit. In Free Zones, you can fully own your company without needing a local partner from the UAE. This means you have complete control over your business.
• Tax Benefits:
  • 0% Company Tax: If your Freezone company follows certain rules (meaning it's a "Qualifying Free Zone Person"), it might not pay any company tax on its main earnings.
  • No Personal Income Tax: You don't pay tax on your income in the UAE.
  • No Customs Fees: For most goods brought into the Freezone and then sent out again, you usually don't pay customs fees.
• Repatriation of Profits: You get 100% repatriation of profits and capital with no restrictions or extra fees.
• Quick and Easy Setup: The process to start a Freezone company is generally much faster and involves less paperwork compared to setting up a company outside these special zones.
• Excellent Facilities: Dubai's Free Zones provide modern offices, advanced technology, good storage facilities, and helpful support services for businesses.
• Simple Business Rules: Freezone authorities work to make business easy, from getting your license to applying for visas.
• Zones for Specific Industries: Many Free Zones focus on certain types of businesses (like technology or media). This creates a supportive environment where similar businesses can work together.
• More Privacy: Freezone authorities often keep company and owner information more private and secure.
• New for 2025: One Freezone Passport: This is a big new rule. If your company has a license in one Dubai Freezone, you can now work across all of Dubai's more than 30 Free Zones with just that one license. This makes growing your business much simpler.
• New for 2025: Direct Access to Mainland Dubai: Thanks to new rules (like Executive Council Resolution No. 11 of 2025), Freezone companies in Dubai can now get a special permit or branch license from the Dubai Department of Economy and Tourism (DET). This allows them to legally work and sell goods or services directly in the main areas of the UAE, opening up the entire local market.
• New for 2025: Own Property Directly: Some Freezone companies (for example, in Masdar City) can now directly buy and own land and buildings in special "freehold" areas of Dubai. This is a significant change from before.

These benefits together show why starting a business in a Dubai Free Zone is a great idea for many people worldwide. However, always consult a legal or tax advisor before claiming any tax exemptions or making compliance-related decisions.

Dubai has over 30 Free Zones. Each one has its own main focus, rules, and benefits. Knowing what each one is good for helps you pick the right one for your Dubai Free Zone Business Setup.

• Jebel Ali Free Zone (JAFZA):

This is one of the oldest and largest Free Zones. JAFZA is considered an excellent choice for shipping, making products, buying and selling goods, and storage. It's located very close to Jebel Ali Port and Al Maktoum International Airport.

• Dubai International Financial Centre (DIFC):

A leading global hub for financial services such as banking, insurance, and asset management. Operates under a common law framework and independent regulations (DIFC Courts), making it ideal for financial institutions.

• Dubai Multi Commodities Centre (DMCC):

This is the biggest Free Zone in the UAE by the number of companies. It supports a wide range of businesses, from trading to services, and is known for its vibrant business community.

• Dubai World Trade Centre (DWTC) Free Zone:

This zone offers a flexible place for businesses, often connected to events and exhibitions at the DWTC. It's suitable for consulting, event planning, and trading.

• International Free Zone Authority (IFZA):

IFZA business setup is in demand for its lean, cost-effective setup, especially attractive to startups, consultancies, and solo entrepreneurs.

Free Zones for Specific Industries

Dubai’s Free Zones are often grouped by what they specialize in. This helps create a useful environment for similar businesses:

If you’re looking to minimize expenses, you can explore the cheapest free zone in UAE to see which Free Zone best fits your budget.

With over 30 Free Zones in Dubai, picking the best one for your Dubai Free Zone Business Setup is a very important decision. Here’s a simple guide to help you choose:

1. What Will Your Business Do?

• • This is the most important thing. What services or products will your company offer?
  • What to do: Make a clear list of what your business will do. Check if the Free Zone allows these specific activities. Some Free Zones are best for certain jobs (e.g., Media City for media, DIFC for finance).

2. How Much Capital Do You Have?

• • The cost of Dubai Free Zone Business Setup is very different from one zone to another.
  • What to do: Find out the total cost for setting up, licensing, and yearly renewals in different Free Zones. Think about how much money you have for the long term. (e.g., IFZA, Meydan are often cheaper, while DMCC, DIFC are more costly).

3. What Office Space & Visa Do You Need?

• • Office Space: Do you need a real office, or is a shared desk/virtual office enough? Do you need a warehouse?
  • Visa Limit: How many visas do you think you'll need for owners and employees? Visa numbers often depend on the size of your office.
  • What to do: Match what you need with the types of offices and visa plans offered by different Free Zones.

4. Think About Location & Connections:

• • Do you need to be near an airport (like DAFZA, Dubai South), a port (JAFZA), or in a specific part of Dubai for customers or similar businesses (like Internet City for tech)?
  • What to do: Consider how important the Freezone’s location is for your business operations and getting supplies.

5. Understand the Rules:

• • While all Freezones offer full ownership and tax benefits, some have special rules (e.g., DIFC has its own common law system).
  • What to do: Learn about the Freezone's specific rules, what you need to do to follow them, and any rules for your specific industry.

6. Think About Growing Your Business:

• • How easy will it be to grow your business within the Freezone or use new options like the "One Freezone Passport" for working in many Freezones in Dubai, or getting direct access to the mainland market?
  • What to do: Choose a Freezone that supports your plans for growth in the long run.

7. Ask Experts for Advice:

• • A Business Setup consultant in Dubai Free Zone can give you special advice based on your needs, market insights, and the latest rules.
  • What to do: Talk to professionals who can compare options and guide your choice.

By thinking carefully about these points, you can pick the right Free Zone in Dubai that fits your business goals and helps you succeed.

Free Zone Setup Options Across the UAE

Each emirate offers unique free zone advantages. Here’s a quick look at what makes each special and how Safe Ledger can help:

• IFZA Free Zone (Dubai) — Known for its cost-efficiency and flexibility, enabling investors to set up business in IFZA with minimal capital and fast approvals.

• Abu Dhabi Free Zone — Strategic for energy, tech and government-linked sectors; explore business setup in Abu Dhabi Free Zone.

• Ras Al Khaimah Free Zone (RAK FTZ / RAKEZ) — Ideal for industrial, logistics or lower-cost operations; see business setup in Ras Al Khaimah Free Zone.

• Sharjah Free Zone — Strong in trade, manufacturing, media; visit business setup in Sharjah Free Zone to learn benefits.

• Ajman Free Zone — Cost-effective, good for SMEs and startups; read more on business setup in Ajman Free Zone.

When setting up your business in a Dubai Free Zone, the type of license you need depends on your business activity.

• Commercial License (Trading License): For companies that buy, sell, bring in, and send out goods. This can be for specific items (like electronics) or general trading.
• Professional/Service License: For businesses that offer services, such as advice (management, IT, marketing), accounting, legal help, training, or event planning.
• Industrial License: For businesses that make, put together, process, or pack goods within the Free Zone.
• E-commerce License: E-commerce License: For online businesses and digital services. If selling physical goods, arrange a proper warehouse or fulfillment setup, especially for mainland delivery.
• Freelance Permit: Some Dubai Free Zones (like Twofour54, Dubai Media City, GoFreelance in Dubai South) offer this for people who work for themselves in creative, tech, or media fields.
• Branch License: For existing companies (from the UAE or other countries) that want to open an office of their existing business in a Dubai Free Zone.
• Dual License: Since 2025, Free Zone companies can get a special permit from the Dubai Economy and Tourism Department (DET) to operate in the mainland. However, it's subject to DET approval and may not cover all activities like food services or retail outlets.

It's very important to pick the right activity and license type. Doing business not allowed by your license can lead to fines. Many Free Zones let you do several related activities under one license.

Once you’ve chosen your Free Zone and office type, you’ll need to obtain a trade license and other legal documents. Learn more about a business registration certificate and why it’s essential for starting your company.

Even though Dubai Free Zones make things simpler, there are important legal rules for forming a business in a Dubai Free Zone that you must follow to keep your company running smoothly.

• Economic Substance Regulations (ESR): If your company does certain “Relevant Activities” like holding shares or providing logistics services, it must prove it has a real business presence in the UAE, like office space, staff, and equipment. Holding companies, however, often have easier or reduced ESR requirements.
• Ultimate Beneficial Owner (UBO) Details: All companies must disclose and register the details of their real (ultimate) owners with the Free Zone authority.
• Anti-Money Laundering (AML) & Fighting Terrorism Financing (CTF): Companies must have strong plans to stop money laundering (illegal money transfers) and terrorism financing. They must also report any suspicious dealings.
• Company Tax Registration & Filing: As of June 2023, the UAE introduced a 9% corporate tax on business profits above AED 375,000. All Free Zone companies must register with the Federal Tax Authority (FTA) and file annual tax returns. However, some Free Zone businesses may still qualify for 0% tax if they meet the conditions of a “Qualifying Free Zone Person.
• VAT Registration (if needed): If your Free Zone company earns more than AED 375,000 annually, it may be required to register for 5% Value Added Tax (VAT). VAT typically applies when your business deals with the UAE mainland or crosses the revenue threshold through taxable supplies. Regular VAT filings are mandatory once registered.
• Audited Financial Reports (New for 2025): A big change for 2025 is that all Freezone companies in Dubai must give their yearly financial reports, checked by an auditor (an independent financial expert), to their Freezone authorities.
• Yearly License Renewal: All licenses must be renewed every year. This usually means keeping your office space and paying any fees.
• Visa & Immigration Rules:  You must follow UAE rules when applying for visas for yourself, employees, or family. Most Free Zones have their own visa quota limits. Also, UAE residence visas must be renewed regularly and are only valid if you pass medical tests and update your Emirates ID.

Setting up in a Free Zone is much faster and simpler than elsewhere in the UAE. Costs vary depending on your chosen zone and license types . If you want to explore Dubai as well check our Dubai License Cost breakdown to plan your budget effectively.

Having all the necessary documents required for Dubai Free Zone Business Setup ready will make the process much faster.

For Owners/Managers Who Are Individuals:

• Passport Copy (must be valid for at least 6 months)
• UAE Visa Copy (if you live in the UAE)
• Emirates ID Copy (if you live in the UAE)
• Passport-sized Photos (with a white background)
• Proof of Home Address (like a utility bill from the last 3 months)
• Resume/CV (sometimes needed for managers/owners)
• Bank Reference Letter (sometimes asked for certain jobs or nationalities)

For Owners Who Are Companies (if another company owns shares in your new Freezone company):

• Company Registration Paper of the Main Company
• Main Legal Papers (like the company's rulebook) of the Main Company
• Board Decision from the Main Company saying it agrees to set up in the Dubai Free Zone and names the manager/person who can act for it.
• Paper showing current directors and owners (Certificate of Incumbency)
• Trade License/Registration Paper of the Main Company
• Good Standing Certificate (sometimes asked for)

For the New Dubai Free Zone Company:

• Filled-out Application Forms (given by the Free Zone)
• Suggested Company Names (in order of preference)
• Clear description of what the business will do
• Simple Business Plan (needed for some Free Zones/activities)
• Sample Signature of Owner(s) and Manager
• Office Lease Agreement (given by the Free Zone after approval)

Note: Any papers not in Arabic or English might need to be officially translated and checked by the UAE Embassy in your home country and the Ministry of Foreign Affairs in the UAE.

The fee to set up a business in the Dubai Free Zone can change a lot. It depends on which Free Zone you pick, the type of license, what your business does, and what kind of office space you need.

For a detailed breakdown of Free Zone license costs, visit our Free Zone License Cost in Dubai guide.

Getting your license is a big step, but a Free Zone Business Setup in Dubai also means you need to keep up with ongoing rules and tasks to make sure your business stays in good standing.

• Renew Your License Yearly: Your business license must be renewed every year before it expires. This usually includes paying renewal fees (typically starting from AED 10,000, depending on the Free Zone), renewing your office rent, and updating any business details.

Note: Fees vary based on business activity, Free Zone, and office type.

• Yearly Financial Checks (Mandatory from 2025): A big change for 2025 is that all Freezone companies in Dubai must give their yearly financial reports, checked by an auditor (an independent financial expert), to their Freezone authorities. Make sure you hire a proper auditor.
• Tax Rules:
  • Register: All Freezone companies in Dubai must register for Tax with the Federal Tax Authority (FTA).
  • Tax Reports: Even if you pay 0%  tax, you must send in annual Corporate Tax reports within nine months of your financial year-end.
  • Keep Records: Keep clear financial records for at least 7 years.
• VAT Rules (if needed): If your business is registered for VAT (Value Added Tax), you must send in regular (usually every three months) VAT reports and pay any VAT collected to the FTA.
• Economic Substance Regulations (ESR) Reporting: If your Freezone business does certain "Relevant Activities" as per ESR rules, you must send in a yearly ESR Notification and, if needed, an ESR Report. This shows your business has real operations in the UAE.
• Ultimate Beneficial Owner (UBO) Rules: Keep your UBO records (who the true owners are) up to date and report any changes to the Freezone authority.
• Visa Renewals: Employee and investor visas usually need renewal every 2-3 years. This means new health checks, Emirates ID applications, and visa stamping.
• Follow Free Zone Rules: Stay informed and follow any specific rules or changes made by your chosen Dubai Free Zone.
• Closing Your Business: If you decide to stop your business, there's a special multi-step process to close the business properly to avoid future problems.

Ready to set up your business in a Dubai Free Zone? Safe Ledger makes it simple to start a business in Dubai Free Zone with end-to-end support from choosing the right Free Zone and obtaining your business license in Dubai Free Zone to opening a UAE bank account and managing your visas. Contact US to Get Started Now