Dubai Free Zone Company Setup: Things to Know

From time to time, the UAE government has been introducing new amendments for making the process of free zone company formation easier and smoother. Whether it is the mainland or free zone, starting a business in Dubai is always a cool decision. But, when it comes to free zones, you’ll not need a local sponsor or UAE national as in the mainland. One of the major knots of the mainland company formation is the need
for a local sponsor. In free zones, it is cooler that you can have 100% ownership and this looms large as a sweet spot of free zone company formation. There are numerous free zones in the UAE. Each one has different sets of requirements and legal structures. Each free zone is kept for different business activities.

business setup in Dubai Freezone

Free Zone Corporate Entities

There are two types of free zone corporate entities. They are;

  1. Free Zone Establishment (FZE)
  2. Free Zone Company(FZC)

These are special economic areas where an investor can have special tax fee status and trade conditions. The major difference between FZE and FZC is in the number of shareholders. ‘Establishment’ is a formation of a single shareholder whereas a ‘company’ generally demands two or more shareholders.

Perks of Free Zone Company Formation in the UAE

  • Complete foreign ownership as no local partner is required.
  • Investors are bound to pay no taxes as the free zones provide a tax-free environment
  • Zero limits on fund transfer and foreign currency exchanges
  • 3years visa for investors, employees, and family members
  • No duties being charged on any kind of goods.
  • Free zones are strategic locations that facilitate better growth
  • Hassle-free procedure while applying for a business license.
  • Abundance of office spaces
  • Great transport and road connectivity
  • 100% repatriation of profit
  • Better warehouse facilities
  • Easy availability of virtual offices
  • Easy to obtain visas for skilled workers more economically
  • Works all day long as there are no time restrictions
  • Easy to open and maintain a bank account

Requirements of a Free Zone Company Formation

Type of company

The first step towards starting a free zone company is that you need to fix the type of company, so as the free zone. The free zone may vary according to the type of company you are heading to.

Trade name

A trade name is the identity of your business and it should be according to the conventions mentioned by the free zone that you are operating.

Business license

The next step toward creating a free zone company is applying for a business license. There are various licenses for different free zones The three types of licenses are

  • Commercial license
  • Professional license
  • Industrial license

Office space

Once the license has been obtained, you need to fix the office space. You can either own an office or can take it for rent.


The investors need to get all the approvals from different authorities before a license can be issued. This process approximately takes 2-3 weeks. The whole process of starting a company takes approximately four weeks. You can have your free zone formation within 4 weeks. Forming a free zone company is as simple as it.

Documents Required for Free Zone Company Formation in Dubai

The documents needed for each free zone may vary. Here is an estimated list of documents needed for free zone company formation.

  • Application license form.
  • Business card.
  • Business plan outlay.
  • MOA(Memorandum of Association) and AOA(Articles of Association)
  • Passport copies.
  • Banking reference and license of the partners existing business if required.

Free Zone Company Formation through Al Arabiya

Al Arabiya has been a pioneer in hassle-free company formation. Our experienced bunch of consultants and employees work closely with the authorities to make
everything smoother. You can have your free zone license within a few days through us. Contact us to know more about free zone company formation.

Contact today for free consultation!!!!