How to Obtain a Free Zone Company Setup License in Dubai?

Dubai Freezone Company Registration Process


Dubai, with its strategic location, robust infrastructure, and business-friendly policies, has emerged as a thriving global business hub. The city offers several free zones, providing numerous incentives for entrepreneurs and businesses seeking to establish a presence in the region. A Free Zone Company Setup License in Dubai grants foreign investors the opportunity to own, operate, and enjoy tax benefits in a designated area. This article will guide you through the process of obtaining a Free Zone Company Setup License in Dubai.

1. Understanding Free Zones in Dubai

Dubai has more than 30 free zones catering to various industries such as technology, finance, media, and logistics. Free Zones are designated areas where businesses can operate with 100% foreign ownership and enjoy tax exemptions on import and export duties, personal income taxes, and corporate taxes. A business setup in Dubai free zone entails scouting all the free zones in Dubai to find one that’s suited to your business. Each free zone has its unique set of rules and regulations, so it’s essential to choose one that aligns with your business objectives.

2. Selecting the Right Free Zone

The first step in obtaining a Free Zone Company Setup License is to research and select the most suitable free zone for your business activities. Consider factors such as the type of business you intend to establish, the target market, proximity to customers and suppliers, and the available facilities and infrastructure. Some popular free zones in Dubai include Jebel Ali Free Zone (JAFZA), Dubai Multi Commodities Centre (DMCC), Dubai Internet City (DIC), and Dubai Media City (DMC).

3. Determining the Business Activity

Before starting the licensing process, you must decide on the specific business activities your company will engage in. Dubai’s authorities have a comprehensive list of permitted business activities, and it’s crucial to ensure your chosen activities are listed and comply with the regulations of your chosen free zone.

4. Legal Structure of the Company

The next step entails the determination of the legal structure of your company. Common options for foreign investors in Dubai’s free zones are:

a. Free Zone Limited Liability Company (FZ-LLC): Suitable for individual entrepreneurs or companies with multiple shareholders, where the liability of each shareholder is limited to the capital invested. Many a Dubai free zone company setup costs do not go overboard, owing to the inherent economic benefits of the FZ-LLC structure.

b. Free Zone Establishment (FZE): Ideal for single shareholders or sole proprietorships with full control over the business.

c. Branch of a Foreign Company: For companies that wish to extend their existing business to Dubai’s free zones without forming a new entity.

5. Preparing the Necessary Documentation

To initiate a business setup in Dubai free zone, you will need to gather and submit certain documentation. The exact requirements are bound to vary depending on the chosen free zone and company type, but generally, you will need:

a. Passport copies and passport-sized photographs of shareholders and managers.

b. Business plan detailing the company’s activities, projected finances, and growth strategy.

c. Memorandum of Association (MOA) and Articles of Association (AOA) for FZ-LLCs.

d. No Objection Certificate (NOC) from your current sponsor, if you are already operating in the UAE.

e. Any other specific documents requested by the free zone authority.

f. Choosing the Trade Name

Selecting a unique and appropriate trade name is crucial, for it plays a significant role in your company’s branding and identity. Ensure the chosen name is compliant with the naming guidelines of the chosen free zone and doesn’t infringe on any existing trademarks.

6. Applying for the License

Once you have gathered all the required documents and chosen the trade name, you can submit your license application to the respective free zone authority. The application process usually involves filling out the necessary forms and paying the relevant fees.

7. Obtaining Approvals and Licenses

After submitting your application, the free zone authority will review it and conduct the necessary due diligence. If everything is in order, you will receive preliminary approval to proceed with the company setup process. Next, you will need to obtain other licenses and approvals, such as a company registration certificate, Chamber of Commerce registration, and establishment card for employees.

8. Renting Office Space or Flexi-desk Facility

Most free zones in Dubai require companies to have physical office space within the free zone premises. You can either rent a full-fledged office or opt for a more cost-effective flexi-desk facility, which provides shared office space with minimal amenities.

9. Visa Processing

Once you are through the Dubai Freezone company registration, you can apply for residence visas for yourself, your partners, and your employees. Visa processing can be time-consuming, involving medical tests, Emirates ID registration, and other formalities, but it’s crucial to ensure compliance with UAE’s visa regulations.


A business setup in Dubai Free Zone offers numerous advantages, including 100% foreign ownership, tax exemptions, and world-class infrastructure. By selecting the right free zone, understanding the licensing process, and completing all necessary documentation, you can smoothly navigate the company setup procedure and unlock the immense business potential Dubai has to offer. Remember to seek professional assistance and guidance to ensure compliance with all regulations and laws, making your journey towards obtaining a Free Zone Company Setup License in Dubai a successful and rewarding experience.

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