skip to Main Content

The idea of a “Free Zone” has been established internationally as a model to develop and promote business in many countries. Since UAE Free zones are offering 100% foreign ownership, Zero tax and customs privileges which make the UAE free zones the most favorable locations in the Middle East for international operations and appeals many in Free zone company formation in UAE.

There are two main types of free-zone corporate sectors:

Free Zone Establishment (FZE)
Free Zone Company (FZC)

The main difference between an “Establishment” and a “Company” is the number of shareholders required. An “Establishment” is a single-shareholder (either a person or a company) while a “Company” is actually a Limited Liability Company and generally requires 2 or more shareholders.

Both offer the same operational benefits. Although depending on the Free Zone, there may also be differences in the share capital requirements like some free zones don’t even require any share capital.

Types of License Available in Dubai Free Zone

Normally, Dubai Free Zones offer the following types of business licenses:

Trading License: This type of license allows company to carry out trading activities like buying, import & export and selling of limited number of goods and commodities.

General Trading License: This type of license will allow company to deal with trading of all types of goods with some exemption on banned goods and products that need special approvals.

Service License: This type of license is issued to companies which deal with consultancy, accountancy, etc. services.

Industrial License: This type of license allows the company to carryout manufacturing, packaging and processing in Dubai free zone (Office rent for trade license).

Key Benefits of Free Zone Company Setup in UAE:
100% Foreign Ownership (no local partner or sponsor required)
No corporate tax for 50 years and can be renewable for an additional 50 years
Duty free goods importing into the free zones
Easy recruitment procedures, work permits and visas
Facility to own the properties
Renewal fees are moderate for free zone company formation
Business confidentiality is strictly maintained
Allowed to open bank account in Dubai
No restriction for doing more than one activity
Can wind up business at your discretion
List of Free Zones in UAE
Dubai Airport Free Zone
DMCC Free Zone
DMC Free Zone
Hamriyah Free Zone (HFZ)
Fujairah Free Zone
Ajman Free Zone
Dubai World Center Free Zone
Jabel Ali Free Zone (JAFZA)
RAK Free Zone (RAKFTZ)