Find Your Perfect Dubai Company Formation
Business Setup in Dubai Free Zone
Navigate Dubai’s business landscape with ease. Our tools and expert recommendations help you choose the ideal freezone for your company’s success.
Why Choose Freezone Company Formation in Dubai?
When you choose a freezone business setup in Dubai, your company is incorporated under a free zone authority rather than the Department of Economy and Tourism. This structure is suitable if your business operates internationally, or through appointed mainland distributors.
100% Foreign Ownership
Full foreign ownership without the need for a local sponsor, ideal for international founders and holding companies.
Business-Friendly Environment
Eligibility for 0% corporate tax on qualifying income and exemption from customs duty for import/re-export activities.
Independent Regulatory Authority
Each free zone acts as a single regulatory body, simplifying the business setup process and reducing bureaucracy.
Faster Setup Process
Benefit from faster approval turnarounds and license processing compared to mainland business setups.
Get a Personalized Recommendation
Not sure where to start? Use our AI-powered tool to find the perfect freezone for your business based on your specific needs.
Company Formation:
Dubai Free Zones vs Mainland
There are key differences between the jurisdictions. Generally, free zones offer more flexibility, cheaper setup costs, and faster license issuing times.
| Feature | Free Zone | Mainland |
|---|---|---|
| Ownership | 100% foreign ownership permitted | 100% ownership allowed for most activities |
| Licensing authority | Registered with a free zone authority | Registered with the Department of Economy and Tourism |
| Market access | Operations within the free zone and internationally | Operations across the UAE |
| Mainland trading | Permitted through appointed distributors | Permitted directly |
| Business activities | Limited to approved free zone activities | Wider range of activities available |
| Office requirement | Flexi-desk or office accepted | Physical office mandatory |
| Setup timeline | Faster approval process | Longer approval timelines |
| Visa eligibility | Based on package and office size | Based on office size |
| Customs duty | Exemptions within the free zone | Duties apply on imports |
| Corporate tax | 0% eligibility on qualifying income | Subject to standard tax rules |
| Best suited for | International and service-based businesses | Mainland-facing businesses |
What is the Dubai Freezone Business Setup Cost?
Starts From AED 12,000
When you plan freezone business setup in Dubai, the cost typically includes:
For most activities, freezone company formation in Dubai cost starts from AED 12,000. Your final cost can only be confirmed after reviewing your business activity, free zone eligibility, and visa requirements to ensure regulatory compliance and banking readiness.
Trade license and registration fees charged by the free zone authority
Shareholder incorporation and establishment charges
Office or flexi desk requirements mandated by the free zone
Visa allocation and processing costs for shareholders and employees
Your Dubai freezone business setup cost depends on the free zone you select, your business activity, chosen legal structure, and the number of visas you require.
Can a free zone company do business in mainland Dubai?
With a free zone company, you can operate within the free zone and internationally. To do business directly in mainland Dubai, you need an appointed local distributor or an additional licensing structure.
Which free zone is best to set up a business in Dubai?
The right free zone depends on your business activity, target market, visa needs, and compliance requirements. Freezone business setup in Dubai should be planned based on regulatory suitability rather than cost alone.
How to Set Up a Business in a Dubai Freezone
Setting up a business requires careful planning and correct activity classification. Our consultants can assist you at every stage of the process.
1. Select a Free Zone
Your choice of a free zone will depend on your business activity, target market, and budget. Free zone companies in Dubai can only trade with the mainland through a local partner, so most free zone businesses cater to an international customer base.
2. Pick a Legal Structure
You can choose between:
- Free Zone Establishment with a single shareholder
- Free Zone Company with multiple shareholders
- Branch of a foreign or UAE company
Your choice affects shareholder liability, documentation requirements, and how banks assess your company during account opening.
3. Apply for Trade License
Your trade license defines exactly what you are legally permitted to do. Common license categories include:
- Professional licenses for consultancy and services
- Commercial licenses for trading activities
- Industrial licenses for manufacturing or processing
- E-commerce licenses for online business models
Your activities must align precisely with what you intend to do in practice. Overly broad or misaligned activities will create banking and compliance challenges.
4. Get a Visa
Once your license is issued, the next step in freezone company formation in Dubai is getting your visa and sponsoring dependents and your employees, if you plan to hire any. Eligible entrepreneurs can also apply for the Golden Visa, which provides long-term residency without the need for a sponsor.
5. Open a Bank Account
Opening a corporate bank account in the UAE is a compliance driven process, and you are required to meet strict due diligence standards set by local banks. During the review, banks will assess your:
- Business activity
- Nationality
- Shareholder profile
- Source of funds
- Expected transaction volumes
When you structure your company correctly at the business setup stage, you significantly improve your chances of securing corporate bank account approval without delays or repeated compliance queries.