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Points to remember before Setting up a Company in the Free Zone, Dubai

company formation in dubai freezone

Dubai is appearing as the business-friendly state in the world especially over the past few years it has received massive boost particularly in the field of business. Nowadays it is considered as a business centre for investors across the globe. In the start investors were confused about whether to invest in Dubai or not, the reason behind this confusion was the sharing 51% assets with the local Emirati partner commonly called a sponsor. Immense efforts required by the foreign investor from launching to running the successful business, the sponsor will enjoy the 51% profit and also investor will be required it has consent from sponsor to made certain decisions like hiring staff, sponsorship for visas for employee etc.

Jebel Ali Free Zone was launched in 1985 which change the impression of Dubai. Now foreign investors can own complete 100% assets of his business.

Benefits of Company Formation in Free Zone

Complete business setup in Dubai free zone will be owned by investor instead of sharing it with the investor. As the name suggests it is the tax-free zone. Satisfactory import/export services. Visa validity for the family of staff and investor lasts up to 3 years. Due to the absence of No mainland labor rules induction of staff is comparatively high. Process for the document clearance is quite easy and stress-free.

Significant Key Points before selecting Free Zone:

  •  Location

Commonly free zones are situated next to ports or airports, some of them are located within ports, however, some of them provide direct access to road network toward Emirates.

  • Licensing

Duration for the issuance of License vary from zones to zone, some of them provide instant outcome after the submission of application however on other hands some took about 30–40 days for the completion of a process.

  • Facilities &Infrastructure

State of the art infrastructure &facilities is provided in the free zones with great which play a key role in the attracting investors.

  • Free Zone significance

It is esteemed to have a business setup in Free Zone, regardless that entire process is very expensive. There are about 20 Free Zones located in Dubai, each having its own licensing body.

Important Steps before Launching Company

In order to launch a company in Dubai Free Zone, an office should be established in Dubai.

Selecting License type

Every free zone has its own authority for the provision of license. The name of License can differ but the procedure of adopting are similar to each other.

Requirement of Distributor

You are not authorized to conduct business directly in the UAE market, for this purpose assistance of the registered agent is required. Import taxes will be applied to each kind of sales.

Professional Services

You can provide services mentioned in your trade license. It covers services for industrial consulting, management, and real estate consultations within the Free Zones. Apart from this, you can also make sure your involvement in event exhibition organization, cleaning services, advertising/marketing etc.

Industrial Services

You need an industrial license to import raw materials, to manufacture the business-specific products and also for the export and distribution of the finished product. In case you own 51% ownership then you are also eligible for a national industrial license. This license will provide you with the same status as local have in UAE.


This license will provide you permission to run online business setup in UAE like E-commerce services this includes online trading or online stores.


The logistic license is required to provide logistic service which includes Cargo (air, land, and sea), from warehousing to package then storing, further shipment, transportation to distribution.

Permit for Free Lance working

To pursue your career as a freelance expert, a freelance permit will be required which will make you eligible to conduct activities as the sole expert, it will also permit you to conduct business with your name rather than a brand.

List of Free Zones in Dubai

  1. Jebel Ali Free Zone or JAFZA
  2. Dubai Technopark
  3. Dubai Airport Free Zone or DAFZA
  4. Dubai multi commodities Centre (DMCC)
  5. Jumeirah Lake Towers Free Zone (JLT Free Zone)
  6. Dubai Silicon Oasis (DSO)
  7. Dubai Flower Centre (DFC)
  8. Dubai Internet City (DIC)
  9. Dubai Media City (DMC)
  10. Dubai Knowledge Village (DKV)
  11. Dubai Outsource Zone (DOZ)
  12. Dubai Biotechnology & Research Park (DUBIOTECH)
  13. Dubai Studio City (DSC)
  14. Dubai International Academic City (DIAC)
  15. International Media Production Zone (IMPZ)
  16. Energy and Environment Park (EnPark)
  18. Gold and Diamond Park (GDP)
  19. Dubai Cars and Automotive Zone (DUCAMZ)
  20. Dubai Textile City
  21. I. Dubai World Central — Logistics City
  22. Dubai World Central — Aviation City
  23. International Humanitarian City (IHC)

FAR Consulting Middle East

FAR Consulting Middle East is working to support potential business investors in their journey toward Business setup Dubai. We can provide the necessary assistance for company formation in free zone Dubai. You can contact us to discuss your business ideas at