Opening a Company in Dubai Free Zone: Everything You Need to Know

Opening a Company in Dubai Free Zone: Everything You Need to Know
26 January 2024

Today, many entrepreneurs are seeking opportunities to expand their businesses in the global market. Countries with a favorable business environment and advantageous tax conditions are becoming preferable for entrepreneurs worldwide. Dubai's free zones attract attention due to simplified registration and tax rules, as well as a range of other benefits. In this article, we will explain why opening a company in Dubai in a free zone is a lucrative decision.

What are Free Zones?

Free zones are special economic activity zones with simplified rules for registration and taxation. They provide entrepreneurs with a set of advantages, making them attractive for business.

Advantages of Registering in Dubai Free Zones

100% Foreign Capital and Full Ownership

Unlike registering a local company in the UAE, which requires a local partner, companies in free zones can be fully owned by foreign investors. This gives businessmen greater freedom in managing their enterprises.

Tax and Duty Exemptions

Companies registered in Dubai's free zones are exempt from customs duties and have low corporate tax rates, ranging from 0% to 9%. This significantly reduces business costs and creates favorable conditions for company development. Note: VAT is applicable if the company's activities are conducted within the UAE and targeted at the UAE market.

Simple Registration Process

The company registration process in Dubai's free zones is simple and can be completed in one to two working days, depending on the free zone and its workload. In most cases, the registration period does not exceed one week.

Fast Visa Issuance

Companies in Dubai's free zones ensure fast visa issuance for both employees and shareholders. This facilitates staff movement and management, providing an easy way to attract international specialists.

Convenient Access to Infrastructure and Services

Free zones are located near major airports, ports, and highways, providing convenient access to high-quality services. Businesses in free zones can easily access banking, legal, consulting, telecommunication, and logistics services.

Various Types of Licenses

Dubai's free zones offer various types of licenses, including trading, manufacturing, services, and more. This allows companies to choose a suitable license type according to the nature of their business.

Wide Range of Industries

Dubai has around 50 free zones catering to various business sectors, including trade, IT, manufacturing, a wide range of services, and more. This enables entrepreneurs to choose a free zone that suits their business activities.

Procedure for Opening a Company in Dubai Free Zone

To open a company in Dubai's free zone, an entrepreneur should follow specific steps:

Choose a Free Zone

Dubai has over 40 free zones, each oriented toward specific types of businesses. The entrepreneur should select a zone that matches their business activities.

Company Registration

Gather all necessary documents, such as passport copies, a detailed business description, proof of address, etc., and register the company in the chosen free zone.

Obtain a License

The entrepreneur needs to obtain a business license. Depending on the type of activity, multiple licenses may be required.

Open a Bank Account

To open a bank account in a local bank, the entrepreneur must provide identification, a license copy, office lease agreement, and other required documents.

Visa Processing

The cost and conditions for obtaining visas may vary in different free zones. The entrepreneur will need to process visas for themselves and their employees.

Office Space Rental

To register a company in a free zone, office space must be rented. Often, a simple workstation is sufficient.

Opening a Company in Dubai Free Zone: Everything You Need to Know

Popular Dubai Free Zones

  • Dubai Multi Commodities Centre (DMCC): Focused on trade and precious metals.
  • Dubai Silicon Oasis (DSO): Specialized in technology and IT companies.
  • Jebel Ali Free Zone (JAFZA): The largest free zone, oriented toward manufacturing and logistics.
  • Dubai Internet City (DIC): Focused on IT companies.
  • Dubai Airport Free Zone (DAFZA): Geared towards logistics and transportation companies.

Choosing a specific free zone depends on the nature of the business and its requirements. Each zone offers unique benefits and conditions for business development.

Documents for Opening a Company in Dubai Free Zone

To open a company in Dubai's free zone, entrepreneurs typically need the following documents:

  • Passport: Copy of the businessman's passport.
  • Company details: Company name, business description, company address, and other details.
  • Business plan: In some cases, a business plan may be required.
  • Lease agreement: Signing an office space lease agreement within the free zone.
  • Banking documents: Documents for opening a bank account.
  • Other documents: Additional documents may be required depending on the free zone's requirements and the type of activity.

Important Points when Opening a Company in Dubai Free Zone

  • Minimum capital: Minimum capital requirements may vary in different free zones.
  • Permitted activities: Each free zone has its list of permitted business activities.
  • Rental fees: The cost of renting office space within the free zone may differ.
  • Document requirements: Each free zone establishes its document requirements.
  • Registration costs: Expenses for company registration and maintenance may vary.


Opening a company in Dubai's free zone is a promising decision for those aiming to expand their business abroad. Since each free zone has its rules and requirements, it is essential to conduct a thorough analysis and choose the most suitable zone for your business. If you are interested in opening a company in one of Dubai's free zones, contact Vision Prime specialists, and we will be happy to assist you in this process. Write to us, and we will provide a unique proposal for establishing a company.