Dubai Freezone License

A Dubai Free Zone license is an official permit that allows UAE nationals and foreign investors to complete company formation in the Dubai Free Zones. These zones act as independent business hubs with separate regulatory authorities, streamlined setup procedures, and industry-focused ecosystems. Unlike the mainland, a free zone license connects your business to a specific economic zone with built-in infrastructure and sector-based networks.

Dubai has more than 30 specialized free zones , each targeting key industries and providing a strong commercial environment for businesses. For example, Dubai Multi Commodities Center (DMCC) supports commodities, trade, and crypto businesses and now hosts over 24,000 companies. Meanwhile, Jebel Ali Free Zone (JAFZA) powers logistics, manufacturing, and international trade, with more than 10,000 businesses  operating within its ecosystem.

Dubai continues to refine its free zone framework to strengthen its structured business ecosystem. In 2025, it introduced the One Freezone Passport initiative, allowing companies licensed in one participating free zone to operate in others without creating separate legal entities. As a result, a Dubai free zone license places your company in a regulated environment that supports regional and global growth.

Dubai free zones offer a wide range of license types based on the nature of business activities. These include:

Choosing the right business license in Dubai freezones depends on your business activity and long-term goals.

A Dubai Free Zone license gives entrepreneurs a structured, growth-focused environment. It reduces setup barriers and supports long-term expansion. Here’s how:

1. 100% Foreign Ownership: You can own 100% of a company in the UAE without needing a local sponsor or partner. This gives you full control over decision-making, profit distribution, and business strategy.
2. Tax-Efficient Structure: Dubai free zone companies can pay 0% corporate tax on profits up to AED 375,000, while profits above this threshold are taxed at 9%. Qualifying free zone businesses may also benefit from 0% tax on eligible income, allowing them to retain more profit for reinvestment and business growth.
3. Full Repatriation of Profits: You can transfer 100% of your profits and capital abroad without major restrictions. This flexibility makes Dubai attractive for international investors and global trading companies.
4. Fast Setup: Free zone authorities follow simplified company formation procedures. Many businesses receive approvals within days, depending on documentation and activity. Authorities also offer digital portals to speed up applications and renewals.
5. Strong Global Trade Access: A Dubai Free Zone license makes it easier to trade internationally. It simplifies import, export, and cross-border operations through streamlined regulations, dedicated logistics support, and ready-to-use infrastructure. This gives businesses a practical advantage in reaching global markets quickly.
6. Flexible Office Solutions: Free zones offer scalable workspace options. You can start with a flexi-desk or virtual office and upgrade to a private office or warehouse as your business grows. This flexibility reduces upfront costs and supports lean operations.
7. Simplified Visa Processing: Most free zones manage visa quotas and immigration support directly. This makes it easier to sponsor owners, employees, and dependents without navigating multiple authorities.
8. Stable and Regulated Environment: Free zones operate under clear regulatory frameworks. Authorities provide transparent compliance systems and business support services. This creates confidence for investors, partners, and financial institutions.

Overall, a Dubai free zone company license provides the flexibility and regulatory ease needed to starta business with confidence in the UAE.

Getting a Dubai free zone license follows a structured process designed to make company setup simple and efficient. Here’s the step-by-step process:

Step 1: Choose the Right Dubai Free Zone

• Select a free zone based on your business activity, target market, and operational needs.
• Each free zone supports specific industries and activities, so alignment is important.

Step 2: Select the License Type and Business Activity

• Decide whether you need a commercial, professional, industrial, or other license.
• Ensure the chosen business activities match the free zone’s approved activity list.

Some zones allow multiple activities under one license, while others may require separate approvals.

Step 3: Reserve a Company Name and Obtain Initial Approval

• Choose a unique company name that follows UAE naming guidelines.
• Avoid restricted words like “bank” or “government.”
• Submit the name for approval, along with basic business details, to the free zone authority.

Step 4: Prepare and Submit Required Documents

• Collect essential documents, including passport copies, visa details (if applicable), and completed application forms.
• Submit everything to the free zone authority for verification.

Step 5: Finalize Office Space or Flexi-Desk Requirements

• Choose a workspace that fits your needs, with options ranging from flexi-desks and virtual offices to private offices or warehouses.
• Sign the lease agreement if required as part of the registration process.

Many free zones offer flexible solutions for startups and small businesses to reduce initial costs.

Step 6: Pay License and Registration Fees

• Pay the applicable fees for license issuance, registration, and office facilities.
• Fee structures vary depending on the free zone and license type.

Confirm the cost breakdown in advance to avoid surprises.

Step 7: Receive the Dubai Free Zone License

• Once approved, the free zone authority issues your business license.
• Certain regulated activities, like healthcare, education, or media, may require additional approvals from the Dubai Health Authority (DHA), the National Media Authority (NMC), etc.

With your license, you can legally operate within the free zone.

Step 8: Apply for Visas and Complete Post-Setup Formalities

• Post license-issuance, apply for visas for owners, employees, and dependents if required.
• After that, open a corporate bank account and complete other operational formalities.

Note that some banks may require physical presence and additional documents.

In most cases, a Dubai free zone license can be issued within a few days to two weeks, depending on the selected free zone, license type, and document readiness.

Want to set up your Dubai free zone business without delays? SafeLedger brings years of hands-on experience in UAE company formation. Our experts manage documentation, approvals, and compliance, so you get your free zone license in Dubai faster and start with confidence. Contact us today!

Preparing the correct documents is key to a smooth Dubai free zone license application. Requirements may vary by free zone and business activity, but they generally fall into two categories.

1. Essential Documents

These documents are required for most Dubai free zone license applications and form the basis of the approval process.

• Passport copy of the business owner(s), shareholders, and directors
• Passport-size photograph of each applicant
• Completed license application form
• Proposed company name options
• Brief description of the business activities
• Shareholder and director details
• Lease agreement or flexi-desk confirmation from the free zone

Submit these documents accurately so the free zone authority can process your application quickly.

2. Additional Documents

Some applications require extra documents depending on the activity or ownership structure.

• Copy of the UAE entry stamp or visit visa, if the applicant is in the UAE
• Emirates ID copy, if available
• Business plan or project brief for regulated or specialized activities
• Board resolution for corporate shareholders
• Certificate of incorporation and MOA of the parent company, if applicable
• Power of attorney, if a representative submits the application
• Educational or professional certificates for specific service activities
• No Objection Certificate, if applicable

Confirming additional requirements early ensures a smoother process and prevents last-minute delays during license approval.

The cost of a Dubai free zone license typically ranges from AED 7,500 to AED 40,000 per year. It varies based on the free zone you choose, the license type, and the facilities included in your setup. Some free zones offer budget-friendly starter packages, while others cater to specialized or premium business requirements.

Key factors that affect the cost are:

• Free zone selection and fee structure
• License type and business activities
• Number of residence visas included in the package
• Office solutions, such as a flexi-desk, office space, or warehouse
• Registration, administration, and renewal fees

For updated figures and a detailed, free zone–wise breakdown, refer to our in-depth guide on Dubai Free Zone License Cost.

Businesses in Dubai can choose between a free zone license and a mainland license, each designed for different business models, ownership structures, and target markets. The table below highlights the key differences between the two licenses:

By comparing both options carefully, you can select the license structure that aligns best with your operational needs and long-term business goals in the UAE.

Choosing the right partner can make your Dubai free zone company setup faster and smoother. SafeLedger offers dedicated expertise and personalized support at every step. Here’s how:

• Deep UAE business setup experience: Our team has years of hands-on experience with Dubai free zones, regulations, and approval processes.
• End-to-end support: We handle documentation, submissions, approvals, and follow-ups so you can focus on your business.
• Faster turnaround: With our knowledge of free zone procedures, we help reduce delays and speed up your license approval.
• Customized solutions: Whether you’re a startup, freelancer, or established company, we tailor services to your needs.
• Transparent process and pricing: You get clear guidance on costs, requirements, and timelines upfront.

Partnering with SafeLedger means working with experts who know the UAE market and make your Dubai free zone license process simple.