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Setup Company in Dubai Free zone


Last Updated on February 28, 2024 by Kanakkupillai

Due to the simplicity of conducting business and starting a firm, it provides to international and local investors. Dubai has been one of the most appealing commercial locations for new enterprises. The five simple processes to establish or launch a business in the Dubai Free Zone are below.

What does a Dubai free zone firm do?

An organisation located in a free zone, a unique economic zone where investors can have a special tax-free status and trade circumstances are favourable enough for any investor to readily launch their firm or company and run the business. This is known as a free zone corporation in Dubai. A sponsor, agency, etc., imposes no limits, and the investor owns the entire business.

The five stages for launching a business in the Dubai Free Zone

With minimal paperwork and time requirements, Dubai has made it very simple to establish a business in the Dubai-free zone. And this has made it one of the favourite destinations for investors and entrepreneurs.

Here are 5 simple steps involved in the procedures for starting a business in the Dubai Free Zone:

1. Choose the legal entity type:

Choosing the kind or legal form of the business entity is the first stage in establishing a firm in the Dubai Free Zone. In the Dubai Free Zone, a business entity may be one of the following two kinds of corporations:

  • Free Zone Establishment Free Zone Company(FZ Co.) or
  • Free Zone Limited Liability Company (FZ LLC) (FZE)

The number of shareholders and whether or not each shareholder is a natural or legal person determines how the two types of corporations differ from one another, as mentioned earlier. Not all free zones may register both kinds of businesses. It varies from one free zone to another.

Many of the current domestic and international businesses established branches in these free zones, which also helped in increasing the attraction factor and credibility of Free Zone.

2. Making a trade name choice:

The promoters must choose the legal structure for the company or entity and the trade name under which they will operate and establish their identity in the market.

The promoters are advised to confirm if the selected name is permissible under local legislation or whether it has already been registered by another party or a company with the relevant free zone authority or the Department of Economic Development.

3. A business licence application:

Depending on the type of business the promoters want to run in the free zone, the next stage is to apply for a business licence, which is a mandate.

The following considerations should be made, according to the Department of Economic Development, when selecting a trade name:

  • The name picked must be consistent with the legal form of the company,
  • must not have been previously registered,
  • must be compatible with the necessary kind of activity and
  • must comply with its legal status without containing the names of any religion,
  • The name of the governing body or the names or logos of any external bodies

A promoter can open a firm in several free zones to boost a particular commercial activity. Businesses can be started in various industries, including finance, education, retail, hospitality, and media. And this has no effect.

4. Choosing an office location for the company:

The promoters can choose to purchase or lease the office space in the free zones. Before a firm opens for operation, the type of business activity it desires to engage in and the number of people it wishes to retain will determine the office space needed. Office spaces can be as little as a flex desk (20–30 square metres) to as large as 2000 square metres across numerous levels.

5. Pre-approvals, business registration, and licence acquisition:

Any company founded in a free zone is subject to the regulations of that free zone. The promoters must apply with the proper paperwork to get the required permissions. The type of business the promoters want to start, how the business entity is set up, and the specific requirements set forth by the free zone authorities will all influence the list of papers. The set of papers and procedures a promoter must provide and adhere to is shown below as an example:

  • Initial approval:

The following papers must be presented to the authorities to receive the initial approvals:

  • filled-out application
  • business strategy and a proper business plan
  • a duplicate of the business licence or registration certificate if the business is already registered (it is applicable in the case of a local company only)
  • coloured copies of the shareholders’ passports and those of the newly appointed director or manager
  • sample signatures of the new firm’s director or manager and the shareholders of the company
  • Two years’ worth of the business entity’s audited financial records or a letter of recommendation from the shareholder’s bank.
  • Certificate of non-objection from the existing sponsor (in the case of individuals)
  • Deed of Unit Title and Letter of Intent
  • Form for Registry Identification Code (RIC) for Manager/Director (Original and notarized).

Less paperwork is required in the case of a freelancer, such as:

  • CV
  • Reference Letter from Bank
  • Registry Identification Code Form (RIC) for Registration, which should include an Original and notarized Application for Registration


The promoter must pay both the registration fee and the licencing charge after receiving the initial permissions from the authorities. The licensing cost will be established based on the business activity that the promoter hopes to engage in. The following papers must then be supplied to register.

  • Application for registration that has been completed Board Resolution appointing Manager/Director which is Notarised and attested
  • Given to the Manager or Director is a power of attorney (PoA) which is Notarised and attested
  • Board Memorandum of Association, MoA and Articles of Association, AoA which is Notarised and attested
  • Manager/sample Director’s signature, which is Notarised and attested
  • a passport-size picture of the director or manager which is Notarised and attested
  • details about share capital
  • Visa and licencing procedures
  • Lease documents created by the authority
  • A business licence is given
  • processing of visas begins

It should be emphasised that authorisation from outside authorities will be necessary in unusual circumstances.

The tax benefits that firms enjoy, the simplicity of re-exporting, the stable economy, and the convenience of doing business that it provides to new enterprises are all reasons why establishing a business in the Dubai free zone is so appealing.

A robust business plan founded on thorough research is also necessary. With the correct training, diligence, and experience, company owners may launch and expand a prosperous small business. Here are several justifications for you to consider establishing a business:

Owners of businesses can make more money and enjoy greater freedom and independence. Increased income potential may result from producing money through regular business sales, capital gains and royalties or establishing additional income sources. Entrepreneurs can take advantage of the existing U.S. tax laws since these revenue sources may be taxed at various rates. A business has the potential to provide more income than regular employment if it is managed well.

Within the corporation, you have only yourself to answer to. Being your boss is arguably the biggest benefit of establishing your own business. Since you are the one who hires and fires employees, your job security is unaffected. You have total control over all crucial business choices because this is your “baby.” Now is your chance to create a company in your image. This is especially crucial for you if you have a lot of creative ideas and are an original thinker. You get to pick the firm name, the address, the people who work there, the tools they use, etc. You may choose your working hours when you are your employer.

Working a 55-hour week is an option, or you can decide on the spur of the moment to take a few days off. There is no one else you have to answer to but your consumers, thus you are the only one who can decide.

Wanting to create something that represents you certainly had a significant role in your choice to launch your own business. Your company’s image is a blank canvas that you may decorate in any way you choose. You may promote your company in any way you see proper, so how clients view your company is entirely up to you. Creative decisions must be made about colours, brand designs, space, furnishings, etc. You have complete creative freedom over these choices and wish to put your unique imprint on them.

As a business owner, you will have control over your company’s goods and/or services. You can make the necessary modifications immediately if anything isn’t working or may use better, which means you have control over the quality of your products. Additionally, you will engage with your clients more and be able to connect with them on a personal level. You’ll be able to directly hear what their wants and demands are. This will allow you and your team to enhance the features and quality of any goods or services you may be supplying. Customers will be more loyal to you, and your firm will grow when they see their requirements have been met.


Kanakkupillai is your reliable partner for every step of your business journey in India. We offer reasonable and expert assistance to ensure legal compliance, covering business registration, tax compliance, accounting and bookkeeping, and intellectual property protection. Let us help you navigate the complex legal and regulatory requirements so you can focus on growing your business. Contact us today to learn more.