Incorporation of a Free Zone Company in Dubai

The incorporation of a Free Zone Company has its own perks and privileges. You can own your business 100%. There is no tax regime to put restrictions on the business operations and the scope of business. Multiple currencies can be used for managing multiple transactions. The presence of special economic zones or Free Zones provide a very eye-catching opportunity to those who would want to benefit from this setup.

There are many Free Zones in the UAE which have been established for purpose of promoting international business activities in the region supported by the world class infrastructure of the UAE.

Classification of Free-Zone Companies



Free Zone Establishment (FZE) is a company owned by just one person or one organization.

Free Zone Company (FZC): Free Zone Company is essentially a Limited Liability Company which is going to have at least 2 partners.

The policies of some Free Zones may differ from each other but the contrast is not going to be too big like some Free Zones may ask for capital requirement whereas others won’t. However, the benefits offered by Free Zones are likely to remain on the higher side.

The biggest advantage of forming a company in a Free Zone is that you can own the business 100%. You will be operating in a tax-free environment. The trade can happen between the Free Zones and as well as globally. No duties levied on imports and exports of products. On the other hand, 5% duty will be levied on trade deals between Free Zone Companies and Dubai Mainland Companies. If a Free Zone Company wants to sell its products in Dubai Mainland, it will have to do it via distributors or other service channels.

There are a number of Free Zones in Dubai which include Dubai Multi Commodity Center (DMCC), Jebel Ali Free Zone (JAFZA), Dubai Airport Free Zone (DAFZ), Ajman Free Zone (AFZ) etc.

All Free Zones have their own set of requirements which are placed on potential entrants but the differences are not too great. Now it depends on the nature of a business and the operational requirements of the business that are going to determine which Free Zone is going to suit the needs of their business or brand.

Advantages of a Free Zone Company

  • Exemption from 51% local ownership requirement; you can fully own your business
  • A tax-free environment
  • Lax or very low import and export duties
  • A world-class and ever-improving infrastructure supporting business activities
  • A very modern transportation system available for meeting commuting requirements
  • A large pool of multinational talent available for recruitment
  • Strategic location for your business
  • A business friendly environment offering innumerable growth opportunities
  • Visa valid for three years for investors, staff, and family
  • Customized and predesigned warehousing and office facilities
  • Ease of opening of bank accounts
  • Become a part of international trade and business


  • Industrial licenses for industrial units and manufacturing activities
  • Professional licenses for offering professional services
  • Commercial licenses for trade-related business
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