Your Solution for Freezone Companies in Dubai

A Free Zone is a designated area in the UAE that offers special tax, legal, and ownership benefits for foreign businesses. Free zone companies can be fully foreign-owned and enjoy tax exemptions. However, they are restricted from trading directly with the UAE market unless they work with a local distributor. Each free zone often caters to specific industries, providing services and facilities that suit businesses like logistics, media, or technology.

Setting up in a free zone comes with many benefits. You can fully own your business without needing a local partner. Free zones offer 0% corporate and personal income tax, and you can send all your profits back to your home country. The business setup process is faster and simpler, with reduced paperwork, and there’s no customs duty on imports and exports within the free zone.

First, choose the right free zone for your industry. Then, decide on your business activity, like trading or consulting, and choose whether to set up as a single or multi-shareholder company. After registering the company by submitting documents such as passport copies and business plans, lease office space, apply for the required business license, and get visas for yourself and employees. The free zone authority will guide you through each step.

Yes, free zone companies are subject to VAT in the UAE, which stands at 5%. However, specific designated free zones—referred to as “Designated Zones”—are treated as being outside the UAE for VAT purposes in relation to the supply of goods. This means that goods can be moved between these designated zones and outside the UAE without being subject to VAT, although VAT applies to services provided within these zones. Understanding VAT applicability and ensuring proper documentation is key to avoiding penalties.

Common types of licenses include trading, service, industrial, and e-commerce licenses. Some free zones also offer freelancer licenses for individual professionals. The license you need depends on your business activities, and certain free zones provide specialized licenses for industries like media or healthcare.

Free zone companies enjoy simplified visa processes for owners, employees, and dependents. The number of visas you can get depends on the size of your office space. A small office may allow 1-3 visas, while larger spaces offer more. You can also sponsor family visas for dependents if you meet the government’s requirements.

Yes, but the process requires meeting mainland regulations. You would need to open a branch or completely relocate the company, which might involve partnering with a local sponsor who will hold 51% ownership of the mainland branch. The licensing and legal framework are different, so be prepared for additional costs and legal steps.

The main difference is that free zone companies can be fully foreign-owned, whereas mainland businesses usually require a local partner holding 51% of the shares (except for certain activities). Mainland companies can trade freely within the UAE, while free zone companies are limited to their zone and international trade unless they work with a mainland distributor. Additionally, tax regulations, licensing procedures, and business scope can vary between the two.

The specific documents vary by free zone, but generally, you will need a copy of your passport, a business plan, proof of address, bank reference letters, and a visa application (if applicable). In some cases, you may also need to provide financial statements or certificates of good conduct. For corporate shareholders, additional documents such as a certificate of incorporation and board resolution may be required.

Most free zone business licenses are valid for one year and need to be renewed annually. Renewal involves submitting the necessary documents and paying the renewal fees. Failure to renew can result in penalties or the suspension of your business activities within the free zone.