FAZAK
The Owner's Choice
We offer comprehensive services that help you make informed decisions and achieve your financial goals.
FAZAK
The Owner's Choice
We offer comprehensive services that help you make informed decisions and achieve your financial goals.
FAZAK
The Owner's Choice
Free zones are special economic areas in the UAE designed to encourage foreign investment with attractive incentives. Free zone company registration in Dubai is a popular choice for entrepreneurs who want 100% foreign ownership, zero taxes, and simplified setup procedures. When you register a company in a Dubai free zone, you deal with the free zone authority – a one-stop hub that handles licensing, visas, and all regulatory aspects within that zone. There are over 30 free zones across the UAE (with more than 20 in Dubai alone), each catering to different industries and offering various packages. Whether you’re an e-commerce startup, an import-export trader, a freelancer, or even a crypto business, there’s likely a free zone that fits your needs.
The main advantages include full foreign ownership (no local sponsor needed at all), 0% corporate and income tax (guaranteed for decades in many zones), and 100% repatriation of capital and profits. Free zones also typically impose no customs duties on import/export within the zone. The paperwork is usually minimal – many free zones do not require a detailed audit or large paid-up capital to start (for example, some allow starting with as low as AED 1, or no specific capital). They also allow flexible office solutions: you can start with a flexi-desk (a shared office facility) rather than renting a full office, which saves cost. Another benefit is speed: setting up in a free zone can be very quick, sometimes in 3-5 days with the right documents, since the zones are practiced in efficient processing. Additionally, free zone companies can sponsor residence visas for owners and employees just like mainland companies, which means you and your staff can get UAE residency through the company.
While each free zone has its nuances, the general process is: 1) Choose the free zone that matches your business requirements (consider industry focus, location, costs, etc. – for example, DMCC is great for commodities and trading businesses, Dubai Internet City for tech companies, Sharjah Media City (SHAMS) for media and creative ventures, etc.). We help in this selection by providing you comparisons. 2) Submit an application form with proposed company name and activity, and passport copies of shareholders. Many zones will do a quick pre-approval or name check. 3) Pay the initial fee (often a registration fee or first installment of license). 4) Sign incorporation documents. Some free zones don’t even require personal visit for signing; others may ask you to come and sign in front of officials or notarize documents if you’re abroad. 5) Once processed, the free zone issues your Business License along with other incorporation docs like Certificate of Formation and Shareholder Certificate. At this point, your company is legally established. 6) If your package includes visas, you can then proceed to apply for residence visas through the free zone’s immigration channel. We will handle all coordination with the free zone staff during this process, ensuring your documents (like business plan or NOC from current sponsor if needed) are in order. Some free zones require a minimum share capital to be shown (e.g., depositing AED 50k and getting a bank letter) but most in Dubai do not; if required, we’ll assist with opening an interim bank account for the deposit.
There is no one-size-fits-all; each free zone has its own perks. For instance, Dubai Multi Commodities Centre (DMCC) has a strong reputation and allows a wide variety of businesses, but it has higher fees and requirements (like a real office and audited reports). Dubai South (near Al Maktoum Airport) is great for logistics and aviation-related companies. Dubai Internet City and Dubai Media City are prestigious and place you among industry giants, though costs are higher. Newer free zones like IFZA, Shams, or Meydan offer very competitive pricing and are general-purpose (open to many business types) – these have become popular for small businesses because of low cost and quick setup. We keep tabs on the latest offers from zones. For example, some free zones might include 1 or 2 visa quotas in their package, others might offer installment payment plans. Our guidance will ensure you get the best value. It’s also worth noting that while your business will be registered in a free zone, you can still do business globally without issue, and even in the UAE you can trade with other companies or individuals provided services are rendered in the zone or via distributors (for goods). Free zone companies often sell to the mainland by appointing a local distributor who handles the importing and invoicing inside UAE (if it’s goods). For services, many free zone companies sign contracts with UAE clients – legally the client might need to self-account for VAT as import of service, but practically it’s common and workable. We explain these do’s and don’ts to ensure you remain compliant with your free zone status and still capture the market you want.
Contact FAZAK Business Setup to identify the perfect free zone for your venture and get your company registered with ease. With our experience, you’ll have your free zone company up and running in no time, enjoying all the benefits and freedom that come with it.
A free zone company is intended to operate within the free zone or internationally. It cannot directly conduct commercial business in the Dubai mainland (i.e., with UAE consumers or in the local market) without some intermediary. However, there are ways to work with the mainland: for trading physical products, a free zone company can appoint a UAE mainland-registered distributor or agent to sell its goods in the local market and pay any applicable duties. For providing services, a free zone company can render services to mainland clients, but the client might have to account for UAE VAT under reverse charge. Many free zone companies also simply open a branch office in mainland if they grow to need local market presence. Note that free zone companies can do business with other free zone companies or with clients overseas freely. And free zone companies can participate in UAE tenders if allowed, by either getting a permit or through an agent. If the mainland market is your primary target (like running a shop or restaurant for local customers), then setting up a mainland LLC is usually better. We can also later assist in expanding your free zone company into the mainland if needed.
Dubai has some relatively low-cost free zones. For instance, Meydan Free Zone and IFZA (International Free Zone Authority) currently offer some of the most affordable packages, starting from around AED 10k or even less for a no-visa license. Sharjah Media City (SHAMS) is another extremely affordable option (their license packages start around AED 5,750 for a zero-visa media license, making it one of the cheapest in the entire UAE). Ajman Free Zone and UAQ Free Trade Zone also have budget-friendly setups in the ~AED 12k range. The “cheapest” can depend on your needs – if you need a visa, some zones include it free, others charge extra. Also consider renewal fees, not just first year. We keep an updated list of promotions and will guide you to the most cost-effective choice (see the dedicated section on Cheapest Free Zones in UAE below for more details on this topic).
It’s typically very quick. Many free zones in Dubai can process a company registration in 5 to 7 working days, sometimes faster if all documents are ready. For example, IFZA and Shams have been known to issue licenses in 2-3 days in some cases. Zones like DMCC might take a bit longer (1-2 weeks) because of more thorough checks and requirements (they may need a visit for paperwork and have several steps). The timeline often depends on how quickly you can provide the required documents (passport copies, etc.) and sign the incorporation papers. Some delays can happen if the proposed company name needs changes or if a security approval (background check) for shareholders takes time – but typically for most nationalities, that’s quick. We’ll give you a timeline estimate at the outset. If you have a tight launch schedule, let us know – we can suggest the fastest jurisdictions and also expedite processes wherever possible.
Many free zones do not require annual audit reports to be submitted, especially for small companies. For instance, free zones like IFZA, Shams, UAQ FTZ, etc., do not ask you to file an audit for license renewal. However, some of the more established free zones (e.g., DMCC, JAFZA, Dubai Airport Free Zone) do require companies to upload or submit audited financial statements each year as part of renewal or compliance. Even in those zones, very small companies sometimes get exceptions, but it’s generally in their regulations to have an audit. Regardless of the requirement, it’s good practice to maintain proper accounts. If your chosen free zone mandates audits, we can help connect you with audit firms at reasonable cost. If you prefer to avoid the hassle of audits entirely, we’ll steer you towards a free zone with no audit requirement. Keep in mind, separate from the free zone authority rules, if your company becomes VAT-registered or falls under corporate tax, you’d need proper books for government tax filings – but that’s a statutory requirement, not a free zone rule per se.
Direct “transfer” of a company license from a free zone to mainland isn’t possible; they are different jurisdictions. What you can do is open a branch of your free zone company in the mainland if you want a presence there, or close the free zone company and establish a new mainland company when the time is right. Transferring between free zones is also not a straightforward transfer; it usually involves closing in one and opening in another, though sometimes authorities might ease the process. If you foresee needing to operate in both free zone and mainland, another strategy is to set up a dual structure: e.g., keep a free zone company for international business and set up a small LLC for local business, and have them work together. We can advise on the best approach if expansion is on your mind. Some free zones do collaborate (for example, two free zones under the same emirate might allow some conversion of license type), but generally, treat each license as separate. The good news is, setting up a new entity in UAE is not too difficult when that time comes, and we’ll be here to assist then as well.
