Free Zone Company Setup in Dubai, UAE

Setting up a business in a Dubai Free Zone is a streamlined process that can be broken down into several key stages:

Step-①: Define Your Business Focus:

• Identify your business activity: Free zones specialize in different sectors (e.g., media, technology, trading, logistics). Research which activities are permitted in your chosen free zone.
• Align with free zone offerings: For example, Dubai Media City supports media ventures, while Jebel Ali Free Zone is ideal for trading and manufacturing. Ensure your activity aligns with your business goals and free zone regulations to prevent future delays.

Step-②: Select the Ideal Free Zone:

• Explore your options: Dubai offers over 20 free zones, each with unique advantages such as tax benefits, full ownership, and strategic locations near ports or airports.
• Consider your specific needs: Choose a free zone based on your business type, budget, and infrastructure requirements. Dubai Internet City suits tech startups, and Dubai Healthcare City is perfect for medical businesses.
• Compare and decide: Evaluate licensing costs, available facilities, and visa quotas. Contact the free zone authority for detailed information.

Step-③: Choose Your Company Name:

• Ensure uniqueness and compliance: Select a company name that adheres to free zone naming guidelines, avoiding offensive terms, religious references, or names similar to existing entities.
• Submit options for approval: Most free zones require 3-5 name options. For instance, in Dubai Multi Commodities Centre (DMCC), names must reflect your business activity.
• Verify availability: Check name availability through the free zone’s online portal and secure approval for a smooth process.

Step-④: Prepare and Submit Application Documents:

• Gather essential paperwork: This typically includes a completed application form, passport copies of shareholders, a business plan, and proof of address.
• Be aware of additional requirements: Some free zones may request a No Objection Certificate (NOC) or financial statements.
• Ensure accuracy: All documents must be accurate and meet specific requirements to avoid rejection. Digital submission is often available for convenience.

Step-⑤: Obtain Initial Approval:

• Receive confirmation: After document review, the free zone authority will issue initial approval, confirming acceptance of your business activity and name.
• Understand the timeline: This process usually takes a few days to a week. Dubai South, for example, offers fast-track approvals for logistics firms.
• Respond promptly: Address any feedback from the authority quickly to maintain momentum.

Step-⑥: Pay Registration Fees:

• Fulfill financial obligations: After initial approval, pay the necessary registration and licensing fees.
• Anticipate varying costs: Costs range from AED 10,000 to AED 50,000 annually, depending on the free zone and business type. Licensing in Dubai Airport Free Zone might be higher due to its prime location.
• Secure proof of payment: Payments can often be made online or at the free zone office. Retain receipts for subsequent steps.

Step-⑦: Acquire Your License and Registration:

• Finalize your legal setup: Upon payment clearance, you will receive your business license and company registration certificate. This typically takes 1-3 days.
• Understand license types: Licenses come in various types (commercial, industrial, professional) based on your business activity. Dubai Design District (D3) offers tailored licenses for creative businesses.
• Safeguard these documents: Keep these documents secure as they are crucial for banking and visa applications.

Step-⑧: Open a Corporate Bank Account:

• Establish financial operations: With your license, open a corporate bank account in the UAE.
• Choose your banking partner: You can select from local banks like Emirates NBD or international banks like HSBC.
• Provide required documents: Submit your license, registration certificate, and shareholder passports. Some banks offer free zone-specific packages with favorable fees. This account will facilitate transactions, payroll, and visa deposits.

Step-⑨: Apply for Visas:

• Secure employee and residency visas: Apply through your free zone authority. The number of visas depends on your license and office space (e.g., a flexi-desk may offer 1-3 visas).
• Prepare documentation and fees: Submit passport copies, photos, and fees (approximately AED 3,000-5,000 per visa).
• Understand processing times and validity: Processing typically takes 5-10 days. Approved visas grant 2-3 years of residency, renewable as needed.