The United Arab Emirates (UAE) is one of the Middle East’s most powerful business hubs, and its Free Zones offer significant benefits to investors. Establishing a company in a Free Zone is attractive due to tax advantages, 100% foreign ownership, low setup costs, and simplified trade processes.
Advantages of a Free Zone Company
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100% foreign ownership
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Corporate and income tax exemptions (for a specified period)
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VAT benefits
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Easy setup (usually 1–2 weeks)
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International trading opportunities
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Full profit repatriation
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Modern infrastructure and logistics support
Major Free Zones in the UAE
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Dubai Multi Commodities Centre (DMCC)
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Jebel Ali Free Zone (JAFZA)
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Dubai Internet City (DIC)
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Abu Dhabi Global Market (ADGM)
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Sharjah Media City (Shams)
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Ras Al Khaimah Economic Zone (RAKEZ)
Each Free Zone caters to specific industries. For example, DIC is ideal for tech companies, while DMCC is popular for gold, coffee, and diamond trading.
Steps to Establish a Free Zone Company
1. Choose the Right Free Zone
Select a Free Zone that matches your industry—trade, technology, media, manufacturing, or finance.
2. Decide on the Company Structure
Common types include:
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Free Zone Establishment (FZE) – Single shareholder
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Free Zone Company (FZC) – Multiple shareholders
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Branch Office – A branch of your existing company
3. Prepare the Required Documents
4. Name Approval and License Application
Obtain approval for your chosen trade name, then apply for a business license.
License types:
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Trading License
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Service License
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Industrial License
5. Rent an Office
Free Zones offer both virtual and physical office options.
6. Open a Bank Account
Set up a UAE corporate account for international transactions.
Costs
Costs vary depending on the Free Zone, office type, and license category. On average:
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Setup: $5,000–$15,000 USD
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Renewal: Similar annual fees
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Office rent varies
Important Considerations
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Selling to the UAE mainland from a Free Zone requires an additional license.
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Visa quotas depend on office size.
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Monitor license and visa renewal dates.