How to start a business in Dubai Freezone : Ultimate Guide 2024

How to start a business in Dubai Free Zone

Table of Contents

Are you planning to expand your business in Dubai? Or do you want to open a company in the UAE but do not know how to do so? This guide will explain how to start a business in Dubai Freezone.

Dubai is an attractive city for foreign investors because of its stable economy. Starting a business in the Dubai Freezone is a cost-effective opportunity for business owners. These Free Zones in Dubai offer a unique chance for anyone dreaming of running their own company.

These economic zones providing lots of advantages like 100% ownership of business, offering helpful tax conditions. Free Zone company registration in Dubai process is straightforward. This is why Dubai Free Zones are becoming a popular choice for new businesses.

What is a Free Zone Company in Dubai?

A Free Zone Company is a type of business that you can start within any of the special Free Trade Zones in the UAE. These zones make it easier to do business. They offer perks like lower taxes, and foreign people can fully own them. It differs from the UAE Mainland.

If you are the only owner, your business is a free zone establishment (FZE). If you have partners, it is known as a Free Zone Company (FZC). Let us look at the benefits. Then, we can move on to how to start a business in Dubai Freezone.

Benefits of setting up a company in Dubai Free Zone

There are a number of benefits of doing Free Zone business in Dubai, because of many favorable factors. Dubai Free Zone company registration is also easy and hassle-free and this is one of the major benefits of setting up business in Dubai Free Zone.

1. Complete ownership of business

You do not need a local partner from the UAE to start a business in a Free Zone. Thus, you can own it yourself with 100% ownership and make all the decisions. The control is all yours. It is easier to run your business plans the way you want.

2. Full profit repatriation

If your business makes money, you can return it to your home country. No rules say you must keep some cash in the UAE, which is great because you can use your profits to support your family or invest back home. Hence, you should know how to start a business in Dubai Freezone.

3. Low corporate tax

One of the best things about Free Zones is that you don’t have to pay much tax, unlike other countries. Only 9% corporate tax on your profits means you have more money to grow your business or to save. You don’t have to pay the tax if your profit is up to AED 375,000/-. The 9% corporate tax will be charged if the profit exceeds AED 375,000/-.

4. Simplified import and export process

Bringing goods into a Free Zone or sending them to other countries is usually easier and cheaper. You don’t have to pay the extra fees that you might pay in other parts of the country. Which makes trading a lot simpler and can help you save money. It is essential to know how to start a business in Dubai Freezone.

5. Ideal location

Free Zones are often near airports and seaports, making sending and receiving goods easy. Being so close to these transport hubs means you can move your products quickly and easily.

6. Worldwide connectivity

Dubai is a hub for international trade. It has big airports and harbors connecting to many parts of the world. Your business can reach customers far and wide.

7. Simple company registration process

Setting up your business in a Free Zone is usually quick and manageable. RFZ can help you through the process. You can start your business faster.

Free Zone Company Formation in Dubai – Business Setup Process


There are over 50 Free Zones in the UAE, and Dubai is home to 30+ Free Zones. Every Free Zone is different depending on many factors. These include the type of license, business complexities, and nature of the work. Let us discuss how to start a business in Dubai Freezone.

The following is the basic process of Dubai Free Zone company formation:

1. Choose your Business Activity

Every Free Zone sets rules about the work activities you can include under one business license. One common rule they all follow is that you can’t mix selling goods with providing services on the same license.

If you want to sell products, you need a Trading or Commercial License. If you want to offer services or advice, you need a Service License. If you are manufacturing something, you need an industrial license.

2. Choose a Free Zone

Every Free Zone in the UAE allows certain things and offers different kinds of office spaces. They also have different limits on the number of work permits. RFZ can guide you through choosing the perfect Free Zone. You should know how to start a business in Dubai Freezone.

3. Choose a Business Framework

You can establish the following types of legal business entity in a Free Zone:

  • Free Zone Company as a Limited Liability Company (FZC LLC)
  • Free Zone Establishment as a Limited Liability Company (FZE LLC)
  • Branch of an existing Company
  • Free Zone Company without the LLC designation
  • Free Zone Establishment without the LLC designation

4. Choose a Name for Your Business

It’s time to choose a name for your business. The UAE government has rules for which a company or business can choose a name. Pick a company name that does not upset people and does not contain any negative words.

5. Preparation of all required documents

The documents required for a Dubai free zone company registration are:

  • Passport Copy
  • Visa Copy
  • Emirates ID (if applicable)
  • Passport Size Picture With White Background

You may need to submit additional documents depending on the free zone you choose. Thus, you know how to start a business in Dubai Freezone.

6. Initial Approval and Get a License

The next step is to apply for the initial approvals for the company name, business activity, and structure.

7. Visa Application

After the initial approval, you can start filling out your visa application form. You can apply for residency visas for yourself and your employees.

8. Bank Account

After completing the residency process, you can open a corporate bank account in the Free Zone for your business. You can easily monitor your money, figure out taxes, and manage your cash. Now, you know how to start a business in Dubai Freezone

9. Office Space

In a free zone, you have the option of a virtual office or a physical office. It totally depends on the type of your company. With proper guidance from RFZ CSP, you can choose the one that fits best for you.

How much does it cost to start a company in Dubai Free Zone?

Business setup cost in Dubai

The company license cost starts at around AED 13,000, but depends on the Free Zone you choose. The cost for each Free Zone is different as each Free Zone has its own rules and offers various types of businesses you can start.

If you are wondering how much it costs to start a business in Dubai, you can get an estimation of the cost by using our company incorporation cost calculator.


1. What is a Free Zone license?

Ans: A free zone license is a document issued by the free zone authority that authorizes a business to conduct activities within the free zone. You can obtain a free zone license by submitting an application and supporting materials. The criteria may change based on the business’s intended activities and organizational form. Now, you know how to start a business in Dubai Freezone.

2. Which Dubai Free Zone should I choose for my business?

Ans: Your business activity, intended market, infrastructural needs, and budget all play a role in determining whether Dubai Free Zone is the best fit. Each free zone has its unique mix of benefits and expertise.


Ans: These steps explain how to start a business in Dubai Freezone:

  • Select your business activities
  • Choose the correct Free Zone
  • Decide a company name
  • Complete your license application
  • Submit your visa application
  • Open a bank account for your business.


Setting up a business in the UAE is an excellent opportunity for anyone wanting to start a new company. The Dubai Free Zones make it easier to do business. It is crucial to know how to start a business in Dubai Freezone.

Free trade zones in Dubai offer significant advantages like owning the company, tax ease, and setting things up smoothly. It is a friendly place for new businesses, helping them grow without complicated paperwork.

How to start a business in Dubai Freezone with RFZ

If you are planning for a business setup in Dubai Free Zone and are confused about the process, RFZ is the company that can assist you in finding the best type.

At RFZ, we offer personalized help according to the client’s requirements. We will give you trustworthy advice at every step of your business journey in the UAE. Are you ready to make your business dreams a reality? Partner with RFZ, and let us do it together.

For a free consultation, contact us at +971 4 589 0815. You can also send us a WhatsApp message at +971 4 589 0815 or email your questions to We are here to assist you!

Umber Awan
Umber Awan

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