360° Company Formation Services

Freezone Company Formation in Dubai

UAE free zones provide businesses with a competitive edge by enabling entrepreneurs to operate businesses within specialized zones, which were established to nurture innovation and growth.

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Free Zone Jurisdictions in the UAE

The UAE has industry-specific free zones. These include the industries of trading, technology, design, finance, and others. 
Among the 40+ free zones that we work with are

International Free Zone Authority

Located in Dubai International City, offers cost-effective business setups tailored for commercial and professional services. Known for its affordability and efficiency, IFZA is popular among small and medium-sized enterprises.

Dubai Multi Commodities Centre

Located in Jumeirah Lakes Towers is one of the most successful free zones in the UAE, attracting companies in the trade and commodity sectors, particularly those dealing in precious metals like gold and diamonds.

Abu Dhabi Global Market (ADGM)

Located on Al Maryah Island is a premier financial center in Abu Dhabi, known for its world-class regulatory framework and support for the financial services sector.

Dubai International Financial Centre

Located in Dubai’s Trade Center, offering a supportive environment for finance, fintech, and professional services. DIFC follows international regulatory standards and has a separate judicial framework, creating an ideal environment for global financial companies.

Meydan Free Zone

Located in Nad Al Sheba provides flexible office solutions and a range of business activities across various sectors, including finance, media, trading, and tourism.

Sharjah Publishing City (SPC)

Located in Al Zahia, Sharjah, focuses on publishing, e-commerce, and media, offering specialized infrastructure for freelancers and companies in creative industries.

Ras Al Khaimah Economic Zone

Located in Ras Al Khaimah, RAKEZ, supports industries such as manufacturing, trading, and industrial services, offering affordable licensing options and dedicated zones for specific sectors.

Ajman Free Zone

Located in Ajman, it caters to a wide range of industries, including trading, manufacturing, and service sectors like consultancy and advertising.

Sharjah Research, Technology, and Innovation Park

Dedicated to fostering innovation and research in technology, making it ideal for companies focused on scientific research, R&D, and advanced technologies.

Dubai Airport Free Zone

Located next to Dubai International Airport, is ideal for logistics, aviation, electronics, and IT businesses. DAFZA provides companies with tax benefits and fast-track customs processes.

Jebel Ali Free Zone

Situated near Jebel Ali Port, is one of the oldest and largest free zone in the UAE, supporting logistics, manufacturing, and large-scale trading operations.

What is a Dubai Free Zone Company Setup?

Free zone company formation in Dubai provides a cost-effective and business-friendly environment. These specialized zones attract international investors by offering world-class infrastructure, tax benefits, and flexible licensing options.

The Dubai free zone company setup cost varies based on the free zone, business activity, and license type. Whether you are launching a trading, service, or industrial business, business setup in Dubai-free zones ensures customized solutions for entrepreneurs.

With competitive Dubai-free zone company setup costs, simplified licensing procedures, and numerous incentives, a Dubai-free zone license provides a gateway to global markets while ensuring compliance with UAE regulations.

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Free Zone Company Structures

UAE Free Zone companies offer flexible ownership and structural options depending on the business activity and number of shareholders. These structures are designed to support operational ease within the designated Free Zone and facilitate 100% foreign ownership, making them attractive to entrepreneurs and international investors seeking streamlined business setup and tax advantages.

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Free Zone Establishment (FZE)

A single-shareholder company, could either be an individual or a corporate entity. The key feature of this form is the 100% foreign ownership, along with the company's limited liability, hence, it is suitable for a single investor.

Free Zone Company (FZCO)

A company with 2 to 50 shareholders, either individuals or corporate entities. Like the FZE, it offers 100% foreign ownership and limited liability but is designed for small partnerships or joint ventures.

Free Zone Limited Liability Company (FZ LLC)

An FZ LLC offers flexible ownership (up to 50 shareholders), limited liability, foreign ownership, and greater freedom in free zones with expanded partnership opportunities.

Type of Dubai Freezone Licenses

Commercial License

Allows companies to trade, export, and import a wide range of goods, it is suitable for general trading or specialized trading.

Service License

For companies offering services rather than tangible goods, this license covers professional services such as consulting, marketing, IT, and other advisory activities.

Industrial License

Companies involved in light or heavy manufacturing, production, and assembly, are often granted access to warehousing and manufacturing facilities within the free zones.

General Trading License

Enables businesses to trade in multiple, unrestricted products within the same license, for companies dealing in diverse types of goods without specific limitations on categories.

Freelance License

Tailored for individuals offering freelance services, this license allows a person to operate as a self-employed professional in various fields such as media, design, IT, and education.

Media License

Media licenses cater to businesses in the media, advertising, entertainment, and publishing sectors.

E-commerce License

Ideal for businesses operating online, this license enables companies to sell goods and services through e-commerce platforms.

Educational License

This license is issued for companies in the education and training sector, covering schools, training centers, and consultancy services within the educational domain.

Warehousing License

Warehousing licenses allow companies to lease warehousing facilities for storage, distribution, or logistics activities.

Dubai Free Zone Company Setup Process

General Timeline: 1 to 4 weeks

Step 01 - Takes 1 to 2 days

 Choose the Free Zone and Business Activity

Determine the appropriate free zone based on your business activity (e.g., trade, manufacturing, consulting). Each free zone specializes in different sectors, so selecting one that aligns with your industry ensures you get the best resources and support.

Step 02 - Takes 1 to 3 days

Submit the Initial Application and Name Reservation

Submit an application to the chosen free zone authority with details on your business activity, structure, and preferred company name. At this stage, a trade name is also reserved.

Step 03 - Takes 3 to 5 days

Prepare and Submit Required Documents

Gather required documents, which typically include passport copies, a business plan, No Objection Certificates (if needed), and shareholder details. Some free zones may require additional paperwork, such as bank reference letters.

Step 04 - Takes 1 to 2 days

Sign Legal Documents and Pay Fees

After initial approval, sign legal documents like the Memorandum of Association (MOA), Articles of Association (AOA), and any required agreements. Pay relevant licensing fees based on the type of business activity and license.

Step 05 - Takes 3 to 5 days

Obtain the License 

Upon successful review, the free zone authority issues the trade license, officially establishing the company as an authorized entity.

Step 06 - Takes 1 to 2 weeks

Visa Processing and Bank Account Setup

Apply for residency visas for shareholders and employees, and begin the corporate bank account opening process. The timeline for visa processing and account opening can vary based on free zone requirements and bank processing times.

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Comparison of Free Zone Jurisdictions

Dubai vs UK

Feature United Arab Emirates (UAE) United Kingdom (UK)
Number of Free Zones Over 46 major free zones 12 investment zones (newly introduced in 2023)
Business Ownership 100% foreign ownership 100% foreign ownership
Tax Benefits 0% corporate tax (under AED 375,000), no personal tax 19% corporate tax, 20% personal tax (basic rate)
VAT 5% VAT (some free zones have exemptions) 20% VAT (standard rate)
Regulatory Framework Industry-specific regulators (e.g., DIFC, DMCC) UK government and local authorities regulate
Ease of Setup Quick licensing (often within a week) Can take several weeks or months
Banking & Compliance Strict banking compliance, strong financial networks UK banks are strict, compliance-heavy
Access to Local Market Limited (requires local distributor/mainland license) Direct access to UK and EU markets
Visa Sponsorship Can sponsor employees and family visas No automatic visa benefits, separate application
Types of Businesses Ideal for trading, tech, finance, crypto, etc. Focus on manufacturing, R&D, high-tech
Real Estate & Office Space Dedicated office spaces in free zones Can operate remotely or in business hubs

Freezone Company Formation Cost

The cost of free zone company formation in the UAE varies depending on the type of license and free zone chosen. 

For free zone company formation in Dubai, understanding the Dubai free zone company setup cost is crucial for businesses planning to establish operations in these zones. Below are the estimated costs for setting up a business in popular free zones:

  • DAFZA: Starts from £4303
  • RAKEZ: Starts from £1291
  • JAFZA: Starts from £2582
  • DMCC: Starts from £4518
  • SRTIP: Starts from £1075
  • IFZA: Starts from £2775
  • SPC: Starts from £1479
  • DIFC: Starts from £15806
  • Meydan Free Zone: Starts from £2689
  • ADGM: Starts from £15806
  • Ajman Free Zone: Starts from £1195
In addition to the Dubai free zone license cost, businesses must consider other potential expenses, including office space, which can vary based on location and size. 
Local sponsor fees (if applicable), visa processing fees, and permit costs also contribute to the overall free zone company formation cost. Businesses should also consider free zone company formation packages offered by business setup consultants.

Why Should You Choose Us

RadiantBiz offers expert guidance and an individually tailored solution for developing your business in the UAE. We ensure a smooth process with our broad experience in setting up businesses. We also offer post-setup guidance. We accompany you on your entrepreneurial journey ensuring business success and growth through our expertise in every business department.

  • Expert Advice
  • Bespoke Solutions
  • Broad Experience
  • Post-Setup Support
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