Tips for Starting a Business in Dubai Freezone

by Zaara 15, Jun 2020

Tips for Starting a Business in Dubai Freezone

Dubai is offering substantial opportunities for investors or businessmen who want to set their organization in Dubai. Whether it may be the foreigners or the localities the zone-wise categorization of Dubai made the place a renowned business hub. Due to the commerciality and the tax flexibility of the UAE government, many investors are eagerly waiting for the incorporation of business in Dubai. Company setup in different zones required different aspects. Starting up a business in Dubai Freezone shows many advantages for those who want to start a business in Dubai Freezone.

Setting up a business in a free zone is comparatively easier than conducting business in other regions. Because Free zone authorities require minimum paperwork for company setup within a lesser time span, there are some key steps to consider while starting a business in a free zone.

Key Points to Setup a Business in Dubai Freezones

  1. Determining the type of legal entity that you want to set up
  2. Decide on a trading name that shouldn't imitate.
  3. Apply for a business license
  4. Choose a place for your business that should be feasible for clients or customers.
  5. Get pre-approvals, register your business and get your licence

We have explained every point in detail below.

1.Determining the Legal Entity

The first part of your company set-up is deciding the type of legal entity of your business. For free zone, two types of company’s setup are available:

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

All free zones must not be registered in both types of companies. The differences between FZ LLC and FZE is the number of shareholders and the nature of the shareholder.

Dubai Multi Commodities Centre (DMCC) allows forming a limited liability company, which can be a newly formed entity with single or multiple shareholders or a wholly-owned subsidiary of local or foreign companies.

2.Trade Name Registration

After deciding the type of legal entity you should consider a trading name for your business, you should collect the allowance from the Department of Economic Development or the free zone authority for the name of your business, and check whether the name has already been registered.

In general, for DED to approve the proposed trade name, the essential requirements are that the trade name:

  • It must be followed by the legal requirements of the company, for example (LLC, FZE, DMCC, etc.)
  • It shouldn't violate public morals or hurt public sentiments.
  • The company shouldn't be registered with the same name previously.
  • Should not contain names of any religion, or governing authority, nor names or logos of any external bodies.

3.Application for a Business License

A license is the most significant part of conducting business. It can be a troublesome process for the investors who are newly setting up their company and are not acquainted with the laws and legal terms of the UAE. Our company Commitbiz provides every kind of assistance for business incorporation. Licensing is a major part of our company's service. As a consultancy service, Commitbiz is a renowned company for assisting to get the business license and make your incorporation hassle-free.

In DMCC, for a free-zone service, you can choose from over 600 business activities range starting from over 20 sectors such as constructions energy, commodities, healthcare, gold and diamonds, technology, FMCG, aviation, professional services, shipping, education, media, financial services and personal and community services.

4.Choose a Place for your Freezone Business

There are a lot of free zones in Dubai where an entrepreneur can set up their business. Every free zone is dedicated to business activity and therefore as a business person you can have a lot of options. You have to choose the Dubai free zone according to the product or service you want to sell in the market. For instance, if you are looking for a media license, you will have to contact the authorities at the Dubai Media City free zone, while those interested in outsourced operations would have to look at the Dubai Outsourcing City. 

5.Pre-approval and Registration of the Business

For free zone company set up, there are certain rules governed by the respective free zones. To get the required approvals, you need to apply for the license and other legal formalities with the documents. The list of documents varies from one business activity to another, and the type of business and the requirements of the free zone authority.

Documents Required for Pre-Approvals for Opening a Free Zone Business in Dubai 

  • Colour copy of shareholder(s) passport and visa if applicable
  • Application form
  • Business plan
  • Copy of existing trade licence/registration certificate (if you are an existing company, applicable for a local company only)
  • Specimen signature of the company’s shareholder/s and the appointed Manager/Director for the new company
  • Audited financial reports of 2 years or certificate of reference from a personal bank of the individual shareholder
  • NOC from current sponsor (for individuals)
  • Unit title deed
  • Letter of Intent
  • Registry Identification Code Form (RIC) for Manager/Director (Original and notarized)

Our expert consultants at Commitbiz can guide companies in the process of business setup in a free zone. We can provide our clients with relevant insights about the ground reality and help in accelerating the process without any hassles. Please feel free to contact us for any queries regarding setting up a business in Dubai. 


1. Do we require a ‘No Objection Certificate’ (NOC) for a Dubai Freezone business?

Yes, NOC is a must for an individual.

2. Do we need a Registry identification Code Form in a company set up in Dubai Freezone?

Yes, it is required for the Director/Manager.

3. What are the two types of legal entities allowed in a Freezone company in Dubai?

The two types are as follows:

  • Free Zone Limited Liability Company

  • Free Zone Establishment.

4. Is the Unit Title Deed required for business set up in Dubai Freezones?

Yes, the Unit Title Deed is essential.

5. Do we have to provide a copy of the existing trade license for the Dubai free zone company formation?

Yes, it must be submitted and is applicable only for local existing companies.

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