By Sakanihomes
Free zone company setup in Dubai: Step-by-step guide
If you're looking to start a business in Dubai, setting up in a free zone could be your most strategic move. With over 40 free zones across the UAE, these jurisdictions offer 100% foreign ownership, tax incentives, and simplified setup processes — making them ideal for entrepreneurs, freelancers, and international firms.
In this guide, we break down everything you need to know about setting up a free zone company in Dubai in 2025.
What is a free zone company in Dubai?
A free zone company is a business registered within a designated economic zone that offers regulatory and tax benefits. These zones are established to attract foreign investment and are governed by independent authorities.
You can register as:
A Free Zone Company (FZC or FZCO) if you have two or more shareholders
A Free Zone Establishment (FZE) if you’re the sole owner
The structure depends on how many shareholders your business has.
Benefits of setting up in a Dubai free zone
Some of the key advantages include:
100% foreign ownership
No customs duties for trade within the zone
Full repatriation of profits and capital
Corporate tax exemptions (subject to 2024/2025 corporate tax rules)
Quick and easy company registration
Access to co-working spaces, private offices, and warehouses
Eligibility for residence visas
Support services from the free zone authority
These perks make Dubai free zones a top choice for startups, SMEs, and international companies.
Popular free zones in Dubai
Each zone is industry-specific, so choosing the right one depends on your business activity.
Some of the most well-known zones include:
DMCC – Ideal for trading, commodities, and crypto businesses
DIFC – Best for financial services, fintech, and legal firms
Dubai Media City – Great for content creators, marketers, and publishers
Dubai Internet City – Tailored to IT, SaaS, and digital startups
Dubai Silicon Oasis (DSO) – Focused on tech, electronics, and innovation
JAFZA – Suited for logistics, shipping, and industrial firms
Always verify that your specific business activity is allowed in the zone you choose.
Free zone vs mainland vs offshore: What’s the difference?
Here’s how they compare in plain terms:
Free zone companies
Can operate within the free zone and internationally
Cannot do business directly with the mainland unless through a distributor or with extra licensing
Offer full ownership and tax incentives
Usually require only a flexi-desk or small office to start
Mainland companies
Can operate anywhere in the UAE
Can take on government contracts and local clients freely
Require physical office space
Subject to UAE corporate tax laws
Offshore companies
Cannot operate in the UAE market or issue visas
Often used for holding assets or international business
No physical presence required
Step-by-step guide to setting up in a free zone
Choose your free zone Make sure it matches your industry and activity type.
Select a legal structure Decide between FZE (one owner) or FZC (multiple owners).
Reserve your company name Most free zones let you check availability online.
Submit your application This includes passport copies, business plan (if needed), and application forms.
Choose a workspace You can opt for a shared desk, private office, or warehouse.
Pay your fees Costs vary based on the number of visas and office space needed.
Receive your license Once approved, you’ll get your license and can open a corporate bank account and apply for visas.
Setup usually takes between 5 to 14 business days.
How much does it cost to set up a free zone business?
Here’s a rough estimate of startup costs in 2025:
No visa package: AED 8,000 to 15,000
One to two visa package: AED 15,000 to 25,000
Dedicated office + multiple visas: AED 30,000 to 60,000 or more
Some zones offer special deals for startups, freelancers, or women-owned businesses.
Who should consider a free zone setup?
You’re a good fit for a free zone if:
You plan to work with international clients
You run an online or service-based business
You don’t need a retail storefront
You want 100% ownership and a cost-effective setup
You work in trading, consulting, logistics, tech, media, or finance
If you do need to rent or operate from a commercial unit in Dubai (like a shop or office outside the free zone), a mainland license or dual licensing option may be more suitable.
Important licensing tip
Not all free zone licenses allow you to rent offices or retail units outside the zone. If you plan to lease a space in a mainland area like Business Bay or Jumeirah, you may need:
A mainland license, or
A free zone license with a DET permit or mainland branch approval
Before signing a lease, make sure your license is compatible with the property’s zone classification.
Sakani’s platform lets you filter commercial listings by license type, so you can avoid costly mistakes.
Final thoughts
Dubai’s free zones offer one of the easiest and most cost-effective ways to launch a business in the UAE. Whether you're a solo consultant or an international brand, there’s a zone that fits your needs.
And when it’s time to choose a space, Sakani helps you find properties that match your license type, business activity, and budget — so you can focus on growth, not red tape.