Start Your Business in a UAE Free Zone

UAE Free Zones are specially designated economic areas that offer foreign investors a favorable environment to set up and operate businesses. These zones are structured to promote international trade, attract foreign direct investment, and support sector-specific growth.

business setup in uae freezone

Free Zone Business Setup

The United Arab Emirates is home to over 45 specialized free zones, each designed to attract foreign investment and support business growth across various sectors. These zones offer a range of benefits, including 100% foreign ownership, tax exemptions, full repatriation of profits, and simplified company setup processes.
With world-class infrastructure, industry-specific environments, and minimal bureaucratic hurdles, UAE free zones provide the ideal launchpad for startups, SMEs, and multinational companies looking to expand into the Middle East and beyond.
Whether you’re in tech, trade, media, logistics, or finance — there’s a UAE free zone perfectly suited for your business.

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Start your business in the UAE’s cheapest free zones with licenses from just AED 4,000 — affordable, fast, and hassle-free!
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Advantages of Setting Up a Business in a Free Zone

Choosing a Free Zone company setup in the UAE provides complete ownership, tax advantages, and a streamlined path to launch your business. Here’s why startups, freelancers, and international investors prefer the free zone option:

  • 100% Foreign Ownership — Full control without the need for a local partner.
  • Tax Exemptions — Enjoy zero corporate and personal income taxes.
  • Full Repatriation of Profits — Move your capital and earnings freely abroad.
  • Simplified Company Setup — Fast, easy registration with minimal paperwork.
  • No Currency Restrictions — Conduct business and transactions in any currency.
  • Customs Duty Benefits — Exemptions on imports and exports within the free zone.
  • Flexible Office Solutions — Options ranging from virtual offices to full-fledged facilities.
  • Easy Visa Processing — Efficient issuance of investor and employee visas.
  • Industry-Specific Zones — Tailored environments for sectors like tech, media, finance, and more.
  • Modern Infrastructure — Access to world-class facilities and business support services.
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Free Zone company setup in the UAE

List Of Top Free Zones In UAE

Here’s a list of some of the top free zones in the UAE, known for their business-friendly environments and industry focus:

  • Dubai Multi Commodities Centre (DMCC) — Leading hub for commodities trading and general business.
  • Dubai Airport Freezone (DAFZA) — Ideal for logistics, aviation, and import-export companies.
  • Dubai Internet City (DIC) — Focused on technology and IT firms.
  • Dubai Media City — Catering to media, advertising, and creative industries.
  • Jebel Ali Free Zone (JAFZA) — One of the largest, ideal for manufacturing and logistics.
  • Abu Dhabi Global Market (ADGM) — Financial free zone with international banking and finance focus.
  • Sharjah Media City (Shams) — Cost-effective hub for media and creative businesses.
  • Ajman Free Zone — Affordable and versatile free zone for SMEs and startups.
  • Ras Al Khaimah Economic Zone (RAKEZ) — Popular for manufacturing, trading, and services.
  • Fujairah Free Zone — Strategic location for shipping and logistics businesses.

List of Free Zones Across the UAE

A comprehensive list of Free Zones across the UAE, categorized by emirate. Each of these zones is tailored for specific industries like media, tech, manufacturing, logistics, education, healthcare, and more.

Top UAE Free Zone Offers with Packages

SHAMS Free Zone

(Sharjah Media City)

starting from

AED 5,750

  • Ideal for media, consultancy, and digital businesses
  • Includes license for 1 shareholder
  • No office required
  • Fast online setup

*T&C Apply

IFZA Dubai

(International Free Zone Authority)

starting from

AED 12,900

  • Wide range of activities including commercial, service, and consultancy
  • Includes 1 visa + office option
  • Remote setup available
  • Prestigious Dubai location

*T&C Apply

RAKEZ

(Ras Al Khaimah Economic Zone)

starting from

AED 11,800

  • Great for trading, services, and manufacturing
  • Includes flexi-desk and 1 visa
  • Access to warehouses and industrial facilities

*T&C Apply

Ajman Free Zone

(AFZ)

starting from

AED 8,500

  • Suitable for SMEs and entrepreneurs
  • Includes license + 1 visa
  • Affordable and quick registration

*T&C Apply

UAQ FTZ

(Umm Al Quwain Free Trade Zone)

starting from

AED 8,000

  • Ideal for e-commerce, small trading, and consultancy
  • License includes 1 visa
  • Budget-friendly and low documentation

*T&C Apply

Fujairah Creative City

(Fujairah)

starting from

AED 14,000

  • Focus on media, IT, and consultancy businesses
  • Includes 1 visa + shared office option
  • No physical office required

*T&C Apply


UAE Free Zone Comparison Table (2025)

Feature / Free Zone

SHAMS (Sharjah Media City)

Ajman Free Zone

RAKEZ (Ras Al Khaimah)

IFZA (Dubai)

DMCC (Dubai)

AED 5,750

AED 6,000

AED 6,100

AED 12,900

AED 13,000

0 – 6

0 – 5

0 – 6

0 – 6

1+

Flexi desk, shared office

Shared, private

Flexi, warehouse, offices

Smart/Flexi desk

Serviced offices

Sharjah

Ajman

Ras Al Khaimah

Dubai

Dubai (JLT)

āœ…

āœ…

āœ…

āœ…

āœ…

Media, consulting, trading

Trading, services

Industrial, services

Wide variety

Wide variety

Budget-friendly

Cost-effective

Industrial strength

Modern & flexible

Premium

No (most cases)

No (basic license)

Yes (certain activities)

No (initially)

Yes

FZCO, FZE

FZC, FZE

FZC, FZE

FZCO

FZ-LLC, Branch

Startups, media professionals

SMEs, traders

Industrial units, logistics

Startups & SMEs

Premium firms

Notes:

  • License Cost includes base business license with minimal visa allocation and no physical office.
  • Visa packages increase the total cost depending on the number of visas and office requirements.
  • All free zones offer easy repatriation of profits, no personal income tax, and import/export duty exemptions within the zone.
  • Most free zones allow multi-year licenses with discounts for 2–5 year commitments

How to Establish Your Business in UAE Free Zones

Choose the Right Free Zone

Evaluate your business needs—industry focus, location, facilities, and costs. Different free zones specialize in sectors like tech, media, logistics, or finance. Pick one that aligns with your business goals.

Select Your Business Activity

Define the specific business activities your company will engage in (e.g., trading, consulting, manufacturing). This determines the license type you’ll apply for and ensures compliance with free zone regulations.

Choose a Legal Entity

Decide on the legal structure—Free Zone LLC, branch of a foreign company, freelance permit, etc. Your choice impacts ownership, liability, and operational scope.

Reserve Your Trade Name

Propose a company name that complies with free zone naming rules (no offensive or restricted words). Submit it for approval to reserve it officially.

Submit Application & Documents

Complete the application form and provide necessary documents like passports, business plan, proof of address, and sometimes reference letters or bank statements, depending on the free zone requirements.

Sign the Lease Agreement

Most free zones require a physical or flexi-desk office space. Choose and sign a lease agreement for your office facility to fulfill licensing conditions.

Pay Fees & Obtain Initial Approvals

Pay the required fees for your license, registration, office lease, and visas. After payment, the free zone authority reviews and grants initial approval to proceed.

Receive Your Business License

Once all paperwork is verified and approvals are in place, you receive your official business license, authorizing you to legally operate within the free zone.

Apply for Visas and Open a Bank Account

With your license, apply for investor and employee visas as needed. Also, open a corporate bank account to handle your business finances smoothly.

Business License Options in UAE Free Zones


1

Commercial License

For companies involved in trading activities, including import/export, general trading, and buying/selling goods.

2

Service License

Issued to businesses offering professional services such as consulting, marketing, IT services, education, and maintenance.

3

E-commerce License

For businesses operating online stores or digital services, including online trading, marketing, and consultancy.

4

Freelance License

Designed for individual entrepreneurs and freelancers providing professional services, such as writers, designers, consultants, and IT professionals.

5

Media License

Tailored for media, advertising, and creative industry businesses involved in film, TV, radio, publishing, and digital content creation.

6

Industrial License

For companies involved in manufacturing, processing, assembling, or packaging of goods within the free zone.

7

Educational License

For institutes and organizations providing educational and training services.

Types of Legal Entities for Free Zone Companies


How To Set Up A Business in UAE Free Zone

In-Depth Guide to Navigating UAE Free Zones

TUAE Free Zones are not just about low-cost business setup—they’re hubs of innovation, industry-specific networking, and global trade opportunities. Whether you’re a startup, tech firm, manufacturing unit, or service provider, free zones offer tailor-made ecosystems to support your business growth.

Strategic Industry-Focused Zones

Many free zones in the UAE are industry-specific, providing targeted resources and communities:

  • Dubai Internet City (DIC) – For IT and tech companies
  • Twofour54 – For media, gaming, and digital content creators
  • Masdar City – Focused on renewable energy and clean tech
  • Jebel Ali Free Zone (JAFZA) – Ideal for logistics, shipping, and industrial operations
  • Dubai Healthcare City – Specializes in medical and wellness industries

This specialization allows companies to benefit from cluster economies, industry events, skilled talent, and sector-specific partnerships.

Global Connectivity & Market Access

UAE Free Zones are strategically located near ports, airports, and major highways, offering seamless import-export access to:

  • GCC countries
  • Africa
  • South Asia
  • Europe

Zones like JAFZA (next to Jebel Ali Port) or RAKEZ (near Ras Al Khaimah Port) cater to companies focused on global distribution and logistics.

Digital-First Business Environment

Most UAE Free Zones offer fully digital portals to streamline:

  • License applications
  • Visa issuance
  • Renewals and amendments
  • Document submissions
  • Government services (like immigration and labor)

This digitization reduces paperwork, speeds up processing, and allows you to manage your company remotely.

Business Support Services

Free zone authorities provide in-house support for:

  • PRO and visa services
  • Legal advice and documentation
  • Banking introduction letters
  • Accounting and audit guidance
  • Office setup and expansion consulting
  • Licensing upgrades or downgrades

These services are often bundled or subsidized to support new businesses.

Workspace Flexibility

Free Zones in the UAE offer tiered office solutions to suit businesses at every stage:

  • Smart/Flexi Desks – For freelancers and startups
  • Co-working spaces – For early-stage teams
  • Private Offices – For SMEs and consultancies
  • Warehouses & Manufacturing Units – For industrial setups

You can often scale your office type without changing your license.

Tailored Visa Packages

Most free zones offer custom visa quotas, depending on the size of your workspace. Common packages include:

  • 0 Visa Package – Ideal for holding companies or remote startups
  • 1-3 Visa Packages – For solo entrepreneurs and small teams
  • Multi-Visa Packages – For growing companies needing larger staff

Visas include employee sponsorship, family visa support, and investor residency options.

Regulatory Simplicity with International Standards

UAE Free Zones operate under independent authorities, allowing them to:

  • Set their own business regulations
  • Offer simplified company laws
  • Register 100% foreign-owned entities
  • Protect IP rights and data
  • Provide dispute resolution and arbitration services

Many free zones follow international standards of legal and financial transparency, especially those catering to global investors.

Competitive Edge for Startups & SMEs

Compared to the mainland, Free Zones offer:

  • Lower startup costs
  • No need for local sponsors or Emirati partners
  • Minimal audit requirements (depending on activity)
  • Easy exit and liquidation processes
  • Incubator and accelerator access in tech-focused zones

These advantages make Free Zones a go-to choice for lean, high-growth businesses.

Additional Services You May Not Know About

  • Dual-licensing in select zones for expanded business reach
  • Investor protection and arbitration services
  • IP registration for tech or content creators
  • Licensing for offshore activities (e.g., international consulting)
  • Hybrid models that allow free zone presence + mainland trade

Required Documents for Setting Up a Business in the UAE Free Zone

Setting up a business in a UAE free zone involves submitting various documents to comply with legal and regulatory requirements. The exact documents may vary by free zone and business type, but generally include:

1. Passport Copies

  • Valid passport copies of the shareholders, partners, and directors are essential for identity verification and processing visas.

2. Passport-Sized Photographs

  • Recent color photographs of shareholders and managers, typically with a white background, are required for official documents and ID cards.

3. Proof of Residence

  • A valid residential address proof (such as a utility bill or tenancy contract) from the home country or UAE, depending on the free zone requirements.

4. Completed Application Form

  • The free zone authority provides a specific company registration application form that must be duly filled and signed by the applicant(s).

5. Business Plan

  • Some free zones require a brief business plan outlining your business activities, market strategy, and financial projections, especially for startups and service-based companies.

6. No Objection Certificate (NOC) from Current Sponsor (if applicable)

  • For UAE residents employed under another sponsor, a NOC or sponsorship release letter may be needed to set up a new business.

7. Memorandum of Association (MOA) or Shareholders Agreement

  • Legal documents that define the ownership structure, responsibilities, and rights of shareholders. Some free zones draft these for you, while others require submission.

8. Initial Approval Certificate

  • This is the preliminary approval from the free zone authority to proceed with company registration after the initial review of your application.

9. Office Lease Agreement

  • Proof of your office space rental within the free zone is mandatory. Options often include physical offices or flexi-desks.

10. Bank Reference Letter / Bank Statements (sometimes required)

  • Certain free zones request financial documents or bank references to verify financial standing or source of funds.

Note:

  • The exact list and requirements can vary between free zones.
  • Some free zones also require additional documents based on your business activity, such as professional qualifications or industry-specific licenses.
  • All documents not in Arabic or English typically need to be legally translated and attested.

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Frequently Asked Questions

A free zone in the UAE is a designated area where foreign companies can set up businesses with 100% ownership and enjoy tax benefits and other incentives.

Free zones offer advantages such as 100% foreign ownership, tax exemptions, repatriation of profits, and simplified business setup procedures, making them attractive for international businesses.

UAE free zones accommodate various sectors including trading, manufacturing, services, technology, media, healthcare, education, logistics, and more.

The typical steps involve choosing a free zone, selecting a business activity, applying for a license, leasing office space (if required), obtaining necessary approvals, and completing registration with relevant authorities.

No, free zones allow 100% foreign ownership, eliminating the need for a local sponsor or partner.

Each free zone has its own regulations and requirements, so it’s essential to research and understand the rules related to your chosen free zone and business activity.

Costs vary depending on the chosen free zone, business activity, office space requirements, and other factors. Common expenses include license fees, visa costs, and office rent.

Generally, businesses registered in a free zone are restricted to operating within that specific free zone or interacting with entities outside the UAE through local distributors or agents.

The timeframe can vary depending on the chosen free zone and the completeness of your documentation. On average, it can take anywhere from a few days to a few weeks to complete the setup process.

Free zones often provide support services such as business centers, networking opportunities, legal and administrative assistance, banking facilities, and access to skilled professionals.

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