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Today, Dubai has approximately 45 free zones in total, with more being under construction.
Free zones can be found in each of the seven Emirates, but Dubai boasts by far the largest share. UAE-free zones offer excellent business opportunities, world-class amenities, and a variety of other benefits for entrepreneurs from all over the world. Each free zone is run by an independent free zone authority that is responsible for allocating Dubai free zone licenses and providing office space and other amenities. Free zones are generally exempt from taxes as well as import and export duties.
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This first step obtaining a UAE freezone license can often be carried out online from abroad. However, once a prospective business owner has chosen a specific free zone, such as Dubai free zone, and provided all the necessary information and documentation, the free zone administration will take care of issuing the business license.
The licenses offered vary from free zone to free zone. The type of license required is determined by the business activity.
The most common types of licenses are:
Dubai or UAE business licenses in any free-zone are usually valid for one year. In some cases, the validity may last up to three years. If the validity of a Dubai free zone license expires soon, you should renew it as soon as possible. Otherwise, you will end up getting hefty fines, and it will affect your business operations. The prices and conditions for issuing and renewing business licenses vary from free zone to free zone.
Determine the type of business activity you intend to engage in in your chosen free zone. Business activities such as food trading, marketing or management consulting, or IT are allowed in each free zone.
Select a specific free zone in the UAE based on your business activities. Always choose three unique names for your company and submit them for approval.
Next step is to prepare the required documentation. All the necessary documents, which may include passport copies of all the shareholders, application forms, business plans, etc.
The Free Zone Authority of the selected free zone will review your application. After verification, you will receive your free zone business license.
Free-zone businesses are subject to a limited number of resident visas. In a free zone company setup, the exact number of resident visas depends on the specific free zone.
It is very challenging to open a corporate bank account in the UAE. Banks will require the presentation of some personal and business-related documents.
The advantages of a free zone company setup in the UAE are numerous. However, there are also some limitations to be considered.
Freezone company setups offer a limited number of resident visas. However, the exact number of resident visas depends only on the specific free zone where you will start your business setup. If you anticipate hiring a larger number of international employees, you will require a mainland license.
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