Dubai Free Zones - Benefits, Setup, Cost and More

by Vidhya Sethuraman 14, Feb 2023

Free Zone Company in Dubai is a special economic area where an investor can have special tax fee status and trade conditions are such that any investor can manufacture.

What is a Free Zone in Dubai?

A free zone in Dubai is a specifically designed region of the city where foreign-owned companies are allowed to operate with 100% foreign ownership and with less regulation of commerce and business than the rest of the city.

An investor can have a specific tax fee status, and trade circumstances are such that any investment can produce in a free zone company in Dubai.

How Do Free Trade Zones Work?

These areas are intended to draw in international investment and encourage the city's economic development.

There are various free zones in Dubai, each having a distinct purpose and set of businesses they serve. Free zone operations provide businesses with perks, including tax exemptions, less bureaucracy, and access to specialized infrastructure and support services. There are more than 30+ free zones in Dubai.

  • The foreign investor enjoys complete ownership of the company. Assigning the shares to a UAE local sponsor is not required.
  • Free zone companies can do business within the jurisdiction of the particular free zone and outside UAE.
  • Certain Free zone jurisdictions are exempted from Audit preparation
  • A physical office space requirement is not obligatory for a Free zone company. There are facilities like virtual offices.
  • Dubai free zone allows three types of business entities which are FZE, FZC and branch office
  • In free zones, foreign ownership is possible irrespective of the nationality of the investor. 
  • Dubai, UAE free zones do not have any currency regulations. This makes financial transactions easier. 
  • The Dubai free zone company formation procedures are simple.
  • Dubai, UAE free zones have the most updated communication systems with impeccable infrastructure. Free zones enjoy cost-effective and plentiful energy.

How Does Incorporating a Business in a Free Trade Zone Work?

To incorporate a business in any free zone, you will have to follow the below steps.

  • Choose a business activity – First thing you have to do is select a business activity. You can carry out B2B businesses in free zones and do not require a local agent
  • Find a Suitable Free Zone – Find the best free zone for your business. Free zones are economic zones that are dedicated to particular business activity.
  • Choose a trading name – Choose an appropriate trade name for your business and get approval from the free zone authority.
  • Submit necessary documents – Make sure you submit all the necessary documents and proceed with the registration
  • Apply for a license – Depending upon your business activity, get an appropriate license.
  • Open a business bank account – Opening a bank account makes your business transactions much more effortless.

The cost of setting up a business in free zones depends on the free zone, the activity you choose etc. However, the price starts from AED 12,900. To get more details, check our pricing page.

Understood on How a Free Trade Zone Works? Contact Commitbiz to Start a Business

Hiring a business consultant can be a good idea when starting a business in Dubai free zones. A business consultant can provide valuable advice and guidance on various aspects of starting and running a business, such as essential research, which works well, etc.. They can also help you navigate the local business landscape and culture and connect you with valuable networks and resources.

That being said, choosing the right business consultant for your needs is essential. Look for a consultant with relevant experience and expertise in your industry and a track record of success. There is where Commitbiz comes in. With years of experience, we make the setup process seamless. Contact us today.


What is a free zone?

A free zone is an economic zone for business operations.

How many free zones are there in Dubai?

Dubai has more than 30 free zones.

Is setting up a business in Dubai free zone costlier?

No, free zones are quite cost-effective.

Is incorporating a business in Dubai free zones profitable?

Yes, the scope of business in Dubai free zones are enormous.