How to Set Up a Company in the Dubai Free Zone?

Gayatri Pandey

General Manager

August 18, 2025

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What is the Dubai Free Zone?

Dubai free zones are special economic zones offering tax concessions and customs duty benefits to expatriate investors.

They are designed to attract foreign investment and promote business activities by providing a business-friendly environment.

The process, while streamlined, requires attention to detail to ensure compliance with local regulations.

Here’s an updated guide to help you navigate the process efficiently:

Step 1: Identify the Industry of Your Business Activity

Identifying your business activities is crucial for determining the right business license and free zone for your business setup, as some free zones cater to specific industries and sectors like technology, media, logistics, trade, and design.

If your business is freelancing, note that not all free zones offer freelance permits.

In comparison, setting up a free zone company provides more options.

Step 2: Select Your Ownership Structure

Determine the legal form of your business. If it is a sole proprietorship, then Free Zone Establishment (FZE) will be suitable. Otherwise Free Zone Limited Liability Company (FZ LLC) is available for multiple shareholders.

Step 3: Reserve a Company Name

Submit a unique name that complies with UAE regulations to the relevant freezone authority.

Step 4: Fill Your License Application

Prepare and submit the necessary documents for the appropriate business license:

Filled application form
Business plan copy
Passport copies of shareholders
Address Proof
No Objection Certificate (if applicable)

The review process typically takes about a week, but additional documents may be required depending on the freezone.

Step 5: Rent an Office

Most free zones require you to have an office within the free zone.

Options range from flexi-desks to full-fledged commercial offices. Secure the lease and obtain the tenancy contract - Ejari.

Step 6: Obtain Your License and Permit

Pay the necessary fees to receive your permit and license.

Step 7: Open a Corporate Bank Account

Open a corporate bank account to ensure the specific financial protection needed for business transactions.

Make sure it is tailored to your free zone business operations. Be prepared for a thorough KYC (Know Your Customer) process and confirm you meet the bank's eligibility criteria.

Step 8: Visa and Immigration

Start the visa application process for your investor or residence visa and your employees’ visa.

Benefits of Setting Up a Company in a Dubai Free Zone

1. 100% Foreign Ownership

Free zone companies can be entirely owned by foreign investors without the need for a local sponsor.

2. Tax Exemptions

Enjoy full exemptions from import and export taxes, personal income taxes, and corporate taxes.

3. Simplified Business Setup

The setup process is streamlined, with dedicated support from free zone authorities.

4. World-Class Infrastructure

Free zones offer state-of-the-art facilities and infrastructure to support various business activities.

5. Strategic Location

Dubai's strategic location provides excellent connectivity by air, sea, and land, facilitating global trade.

6. Comprehensive Support Services

Free zones provide business support services, including networking opportunities, administrative support, and access to professional services.

How long does it take to set up a free zone company in Dubai?

The timeframe for the setup varies based on several factors, including the chosen freezone, the type of business activity, and the efficiency of the setup process.

Generally, it can take anywhere from a few weeks to a few months to complete the process.

Some free zones offer expedited services that can significantly reduce the time. It is essential to consult with the specific free zone authority and business setup consultancy for accurate and up-to-date information about the timeline.

Choose RadiantBiz to Set Up Your Business in the UAE

Our professionals are among the pioneers of the industry, and we are well-versed in local guidelines, laws, regulations, and procedures, preventing unlawful practices mistakenly incurred by your business.

RadiantBiz tailors holistic services for business requirements, offering complete solutions, from company setup and license documentation to visa processing and office setups, saving you time, energy, and resources.

We customize our solutions as each business has different problems; our teams work on an individualized basis.

Our approach lies in building trust and a long-term relationship based on the foundation of transparency and integrity.

All services emphasize efficiency and reliability. With our proactive mindset, we guarantee on-time delivery of our services.

We don’t leave you after setup support; our services include running business operations.

On the whole, opting for RadiantBiz gives you access to the right mix of knowledge, customer-centric approach, effectiveness, and an easy follow-up process.