Table of Contents
What Is A Free Zone?
Dubai has created economic zones that have ample business opportunities with ideal locations
and convenient services. These economic areas are called free zones as they come with a variety
of privileges including tax incentives, ownerships, and other benefits. From e-commerce to
freelance opportunities, these zones have a variety of options for business owners.
What Is The Different Between The Mainland And The Free Zone?
Free zones or mainland, both have their benefits and limitations.
Business setup on the mainland
1) Investors can enjoy full legal ownership of their business. However, they may have to
seek help from a local Emirati partner.
2) Investors can select any geographical location to start or expand their businesses.
3) Investors are allowed to participate in trade freely without any restrictions. In addition to
these, they can also select from an extensive range of businesses.
4) For mainland businesses, investors need to have an office space if they require visas for
employees. The number of visas depends on the size of the workspace.
For businesses in free zones
- Free zones allow 100% ownership of their companies. They can work without working with local partners.
- Unlike the mainland, free zones offer certain business opportunities including media, marketing, trading, and others.
- Free zones offer modern and well-equipped office spaces with amazing facilities.
Can You Do Business In The Mainland If You Have A Free Zone Company?
Free zone companies can expand their work in mainland by fulfilling certain conditions.
Free zone company owners need to involve a local agent, distributor, or any company to obtain a
mainland license. The license has to be acquired from the Department of Economic Development (DED) or any local authority.
Benefits Of Starting A Business In Free Zone Dubai
Are you all set to start a business in a free zone? Here are the amazing benefits:
100% Foreign Ownership: Investors can enjoy 100% ownership of their businesses in Dubai.
Customs: Investors in free zones can trade internationally with amazing custom benefits. Each
step comes with ease.
Facilities: Dubai-free zones offer top-tier infrastructure facilities including modern warehouses,
spaces, advanced amenities, and an exciting atmosphere.
Setup: Investors can undergo an easy process to set up the business such as selecting the name,
making payments, and arranging documents.
Networking: Dubai has a diverse population. Expats from different parts of the world settle in
Dubai for jobs and businesses. Therefore, investors can enjoy collaborations and networking
opportunities.
Free Zones in Dubai
Some of the popular free zones in Dubai are:
- Jabal Ali Free Zone (JAFZA)
- Dubai Silicon Oasis (DSO)
- Dubai Internet City (DIC)
- Dubai Multi Commodities Centre (DMCC)
- Dubai Airport Free Zone (DAFZA)
Free Zone And LLC-What Is The Difference?
Ownership
Investors can enjoy 100% foreign ownership of a company in a Dubai-free zone. You can fully
own your business without the help of any sponsor.
The case is similar with LLC companies too. As per the law, investors can own a 100% share of
the company in the UAE (with no need for a local sponsor).
Business opportunities
Both free zones and LLCs have a diverse range of business activities for investors to see.
Investors can explore opportunities in media, technology, finance, logistics, trade, and others.
Location
LLC companies enjoy more flexibility in terms of location. These companies can operate
anywhere in the UAE. On the other hand, Free Zones need to have their physical presence within
the specific free zone. They need to seek services from a local distributor or agent to conduct
business outside that zone.
Legal structure and governance
Free zone companies follow free zone regulations. They follow regulations issued by authorities
of that zone. On the contrary, LLC companies operate under the UAE federal laws and
regulations issued by local government authorities.
Types Of Free Zone License
In free zones, investors can kick-start their businesses by obtaining business licenses. If you want
to begin your venture, you can apply for the following license types:
- Trading license
- Commercial license
- Industrial license
- Service license
- Media license
- Freelance license
- E-commerce license
- Tech license
- Manufacturing
- Healthcare
- License for Education
- License for real estate
- Logistics and freight
- Event management
- Consultancy
Tips To Get A Free Zone License In Dubai
Obtaining a free zone license requires a few necessary steps. Once you complete the steps, you
can ace the application and get your hands on your license. Here are the steps:
1. Select the right free zone
Explore details about each free zone and select the one that best aligns with your business
activities.
2. Select your business type
After you select the zone, decide the type of business activities you want to conduct.
Choose a company name
After that, select the name of your business/company. Select the name that matches your
business type and business ethics.
3. Submit the application
Submit the application along with these formalities:
Passport copies of business owners and managers
Proposed business activities
Application form
Business plan
The lease agreement for the workplace is in the free zone you have selected.
4. Check the legal structure and share capital
Ensure that you complete the legal matters of your companies.
5. Get initial approval
Submit the documents for initial approval.
6. Lease agreement
After that, sign the lease agreement for your office space or warehouse within the free zone.
7. License insurance
You will receive your business license from the free zone activity once the formalities are
fulfilled and the application is approved.
8. For renewal
The tenure of a free zone license can vary with the free zone. Investors can renew the license
using the following steps:
- Submit the renewal application
- Pay renewal fee
Get help from an experienced Dubai Business Expert
We have assisted many entrepreneurs with launching a business in Dubai and the UAE. It saves you a tremendous amount of time and budget if you go through the entire procedure right the first time. This requires knowledge and experience and the right contacts. Book an appointment to discuss the possibilities for you to start a profitable business in Dubai!