Setting up a business in one of the UAE's numerous free zones offers exciting opportunities for entrepreneurs. There are over 40 free zones, each with unique benefits and regulations. It is crucial to decide where to establish your company. This comprehensive Free Zone Company Setup guide will walk you through the key factors to consider.
It will help you select the ideal free zone that aligns with your business goals and maximises your potential for success.What is a Free Zone Company?
A Free Zone Company is a business set up in one of the UAE's special free zones. It offers several benefits for foreign investors. These zones allow you to own your company fully without needing a local partner.
They also provide tax breaks, such as no corporate or personal income taxes, and make the setup process quicker and easier.You can take all your profits and capital out of the country. Free zones also offer various office spaces and facilities to suit business needs and simplify import and export activities.
Top 18 Free Zones in the UAE
The top 18 free zones in the UAE are as follows:1. Dubai World Trade Center (DWTC)
Dubai World Trade Centre (DWTC) is a leading event and exhibition venue in the UAE. It hosts global conferences, trade shows, and business events. It is a central hub for international commerce and innovation, attracting industry professionals.
2. International Free Zone Authority (IFZA)
IFZA is known for its business-to-business focus, offering scalable solutions and a straightforward setup process. Shuraa partners with IFZA to provide quick and cost-effective company formation.
3. Jebel Ali Free Zone (JAFZA)
The first free zone in the Middle East, JAFZA, is strategically located near major ports and airports. It’s perfect for trading and importing businesses.
4. Ras Al Khaimah Economic Zone (RAKEZ)
RAKEZ offers flexible and affordable business setups in Ras Al Khaimah. It supports diverse industries with modern infrastructure and streamlined processes.
5. Dubai Silicon Oasis (DSO)
Dubai Silicon Oasis is a government-owned free zone that combines residential, commercial, and industrial spaces. It’s suitable for the technology and engineering sectors.
6. Dubai South Free Zone (DSF)
Conveniently situated near Jebel Ali Port and Al Maktoum International Airport. Dubai South offers an ideal business setup with its extensive trade opportunities and efficient setup process.
7. Dubai Internet City (DIC)
As a tech hub, Dubai Internet City supports various businesses, including Fortune 500 companies and startups. Shuraa simplifies the setup process for this dynamic zone.
8. Dubai Airport Free Zone (DAFZA)
Ideal for logistics and transport businesses, DAFZA offers proximity to Dubai International Airport, efficient cargo handling, and 24-hour customs clearance.
9. Dubai International Financial Centre (DIFC)
DIFC is a leading financial hub with its court and regulator, attracting global financial services firms. It’s a top choice for setting up finance-related businesses.
10. Dubai Healthcare City (DHCC)
The world’s largest healthcare-free zone, DHCC, supports many healthcare businesses with top-quality facilities and services.
11. Dubai Cars and Automotive City (DUCAMZ)
Established for high-end used car re-exports, DUCAMZ offers excellent networking opportunities within the automotive industry.
12. Dubai Knowledge Village (DKV)
Part of the TECOM Group, DKV focuses on knowledge-based industries and provides a conducive environment for educational and research institutions.
13. Dubai Multi Commodities Centre (DMCC)
Ranked as the world’s top free zone, DMCC is ideal for retail, commerce, and crypto-commodities trading. It has a diverse business environment.
14. Dubai Studio City (DSC)
Dubai Studio City, a key player in the media industry, supports film and TV production with state-of-the-art facilities and infrastructure.
15. Dubai Maritime City (DMCA)
As the UAE’s specialised maritime hub, DMCA is dedicated to enhancing the marine sector with its strategic location and industry-focused facilities.
16. Dubai Science Park (DSP)
Dedicated to life sciences and knowledge-based industries. Dubai Science Park offers specialised infrastructure and supportive scientific research and development facilities.
17. Dubai Outsource City (DOC)
Part of Internet City, DOC caters to outsourcing firms with top-notch infrastructure. It includes call centres, data centres, and comprehensive support services.
18. Sharjah Media City (SHAMS)
SHAMS focuses on media and creative industries in Sharjah. It provides flexible licensing and a supportive environment for tech and media businesses.
To establish your business in any of the free zones listed, reach out to Shuraa Business Setup today.
Benefits of Free Zone Company Setup in Dubai
Setting up a business in a Dubai-free zone offers many advantages. It includes full foreign ownership, significant tax benefits, and a streamlined setup process.
- 100% Foreign Ownership: You can fully own your business without needing a local partner.
- Tax Exemptions: Enjoy 100% exemption from personal income taxes and often customs duties.
- Easy Setup: Streamlined and efficient setup process with minimal bureaucracy.
- Repatriation of Profits: Full freedom to repatriate 100% of your profits and capital.
- Booming Location: Proximity to major ports, airports, and business hubs enhances trade and connectivity.
- Office Facilities: Access to various office solutions, from virtual offices to fully serviced spaces.
- Supportive Environment: Benefit from various support services, including legal and administrative assistance.
- Networking Opportunities: Connect with other businesses and professionals in your industry within the free zone.
Key Points for Free Zone Company Setup in the UAE
- Physical Presence: No physical presence is needed for company formation in many free zones; it’s only required for visa processing.
- Government Interaction: Direct dealings with government agencies are minimal.
- VAT Benefits: Transactions outside the UAE are exempt from VAT.
- Corporate Tax: Companies must file tax returns even if exempt from corporate tax.
- Business Flexibility: Engage in B2B activities across the UAE and B2C operations within the free zone and internationally.
Types of business licenses in the Free zones
There are four types of business licenses in the Free zone. They are mentioned below:- General Trading License: Allows investors to trade a diverse range of products.
- Commercial License: Enables the import of raw materials, , and export of finished products globally.
- Service License: Permits service-based businesses, such as law, accounting, and consultancy firms, to operate.
- Industrial License: Authorises the establishment and operation of facilities for producing goods, manufacturing of goods.
Steps for Free Zone Company Setup
Below are the steps which will help you to set up a business in the free zone:
Step 1: Choose a Free Zone
The first step is to choose a free zone where you will set up your company. You must identify your business activity, consider your industry, do market research, and select a free zone.
Step 2: Select a legal structure
Once you have selected a free zone, the next step is to choose a legal structure. If you have any issues while picking a legal structure, you can contact our Shuraa business setup experts. The legal structure in the free zones is mostly an LLC.
Step 3: Select a Trade Name
You must choose a trade name. You can go through the DED naming guidelines to choose a name. Ensure you don't choose a name that another company has already selected. If you need help choosing a trade name, you can contact Shuraa.
Step 4: Apply for a Business License
You submit all required documents and select the business license that best matches your company's primary activities to ensure compliance and operational efficiency.
Step 5: Opening a Corporate Bank Account
This is the last step; you must open a corporate bank account for your business. It ensures smooth management of your business's cash flow. Additionally, it helps to keep track of your company's transactions. Below are the documents you will require to open a corporate bank account:
- Passport copy
- Emirates ID
- Visa copy
- Business License
Documents required for Company Setup in free zone
Below are the essential documents required for Free Zone company formation in the UAE:- Application form
- Passport copies
- 2 Photographs (white background)
- Trade names
- Business Plan
Cost of Free Zone Company Setup in the UAE
The cost of setting up a Free Zone company in the UAE starts at AED 10,000*. However, the total cost can be based on several factors. Different types of licenses come with varying fees, and specific activities within each type may incur additional charges.
The number of visas required for employees and sponsors also impacts the overall cost. To learn the exact cost of your business setup in the free zone, you can contact our Shuraa experts.
Start your company formation with Shuraa!
Setting up a business in a UAE-free zone offers many advantages, like full ownership, tax breaks, and an easy setup process. With more than 40 free zones, picking the right one is key to achieving your business goals.
This guide has covered the essentials of Free Zone Company Setup, including the types of licenses and the steps involved. For a hassle-free setup, Shuraa Business Setup is here to help.
We make the business Setup process straightforward and efficient so you can focus on growing your business. Reach out to Shuraa Business Setup today to start your journey.
