Freezone Company Formation

Freezone Company Formation
In The UAE

Setting up a company in a UAE freezone means full ownership, zero corporate tax, and easy banking solutions. Business setup in Dubai is made easier with Startup Works, helping entrepreneurs choose the right free zone based on their goals, whether it's cost-saving, location, or business activity. From paperwork to license approval, we handle it all so you can focus on growing your business.

Startup Works assists clients in selecting the most suitable free zone, preparing and submitting the required documentation, and obtaining the necessary licenses. Our deep understanding of the intricacies of different free zones enables clients to make informed decisions, fostering global growth and expansion.

UAE freezone company setup: Advantages

Company registration in one day

Low setup fees

100% Foreign Ownership

100% Capital & Profit Repatriation

Value Added Tax (VAT) Exemption for Designated Freezone

Easy corporate Bank Account opening

Regulatory body in charge of freezone company formation

Free zones companies are regulated by the local government in each respective emirate. Hence, each free zone has its own set of procedures and restrictions. An independent Free Zone Authority (FZA) governs each free zone.

It is the agency responsible for issuing FTZ operating licenses and assisting companies with establishing their business in the FTZ. Entities established in free zones shall be subject to the laws and regulations governing the respective free zone authorities.

UAE freezone business activities

Broadcast Management

Activities include radio broadcasting, TV broadcasting, and web streaming, requiring specific package approval.

Consultancy

Encompasses business, lifestyle, investment, legal, and human resource consulting services.

Education and Training

Available under visa-eligible packages.

Event Management

Covers conference organization and theatre production.

Film, Production, and Post-Production

Licenses for film, art, and video production, as well as post-production activities.

Industrial

Covers manufacturing and raw goods processing.

IT Services

Includes e-commerce and other ICT activities.

Media and Marketing Services

Covers advertising, PR, and research.

Music and Entertainment

Includes music production, promotion, and theme park management.

New Media

Activities such as photography, web design, and digital media services.

Publishing

Involves directories, books, magazines, and online content, with special approvals required.

Trading

Encompasses import/export transactions.


How to Set Up a Freezone Company in the UAE

  1. Choose Your Business Activity & Legal Entity
    Decide whether you want an FZE single‑owner company, FZCO with multiple shareholders, or a branch. Pick the business activities that match licensing requirements and growth goals.

  2. Select the Optimal Free Zone Authority
    Compare zones like DMCC, IFZA, Meydan, RAKEZ, and DAFZA based on minimum capital, industry focus, visa quota, and cost.

  3. Reserve Your Trade Name & Obtain Pre‑Approval
    Submit your preferred trade names and business activity for evaluation. Obtain preliminary approval from the Free Zone authority.

  4. Collect & Submit Documents
    Typically required: passport copies, shareholder visa/ID proof, business plan, application form, signatures and notarised documents.

  5. Sign Lease & Receive License
    Lease a flexi‑desk or office within the Free Zone. Pay fees and receive your trade license, usually within 5–7 business days.

  6. Apply for Establishment Card & E‑Permit
    After license, get your establishment card. Then obtain the e‑permit needed for visa applications.

  7. Process Residence Visa and Emirates ID
    Complete medical fitness tests, biometrics, and visa stamping. This typically takes 1–3 business days.

  8. Open Corporate Bank Account
    Once your Emirates ID is issued, apply for a business bank account. Many free zone service providers assist in banking setup.

Estimated total timeline: 10–21 working days depending on free zone and document completeness.

Comparison of Top UAE Free Zones for Freezone Company Formation

Use this guide to compare share capital and setup cost benchmarks across leading free zones, helping you choose the ideal zone for your business.

Free Zone Min Share Capital Estimated First-Year Setup Cost (AED) Ideal For Notes
DMCC Free Zone AED 50,000 per company (min AED 10,000 per shareholder) AED 50,000–60,000 (license, office, MOA) Commodities, trading, premium services Leading business hub in Dubai
Meydan Free Zone AED 1,000–5,000 typical AED 12,000–25,000 estimated E-commerce, digital startups, SMEs Strong SME and digital ecosystem
JAFZA (Jebel Ali Free Zone) No fixed minimum; capital must match activity scope AED 20,000–40,000+ depending on license type; up to AED 60,000+ for industrial/logistics setups Logistics, manufacturing, large-scale trade Hosts over 9,500 companies globally
DAFZ (Airport Free Zone) AED 1,000 per shareholder (min AED 1k) AED 15,000–25,000 (license & flexi desk) Logistics-linked SMEs Airport proximate and cost-effective
RAKEZ Usually AED 1,000+ (no official minimum) AED 6,000–20,000 (license + office) Light industry, export SMEs Highly cost-effective incentives
Ajman Free Zone (AFZA) AED 1,000+ (budget threshold) AED 6,000–13,000 depending on package Budget-conscious SMEs, virtual set-ups Virtual desk options available

*Share capital must be proportionate to licensed activities and may not always be required — check each free zone’s official guidelines.

Frequently Asked Questions

Do I need to be in the UAE to open a Free Zone company?

No, most UAE free zones allow remote company setup. You can complete the process online with scanned documents, and some zones don’t require physical presence.

What is the difference between a Free Zone and Mainland company?

Free Zone companies are limited to operating within the Free Zone or internationally, while Mainland companies can do business anywhere in the UAE. Free Zones offer 100% ownership and simplified setup.

Can I open a corporate bank account with a Free Zone license?

Yes, once your Free Zone company is licensed, you can apply for a UAE business bank account. Requirements may vary based on your business activity and bank policies.

How long does the Free Zone company formation process take?

Depending on the Free Zone and the documents provided, it typically takes 3 to 7 working days to get your license issued.

Is there a minimum capital requirement for Free Zone companies?

Many Free Zones do not require a minimum capital deposit. However, some may have nominal requirements depending on the business activity.

Do I get a visa with my Free Zone company?

Yes, most Free Zone company packages include eligibility for one or more residency visas for shareholders and employees.

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