How to Set Up a Company in Dubai Free Zone (Simple 2025 Guide)

Thinking about business setup in Dubai and not sure where to start?
Dubai free zones are one of the easiest ways to open a company in the UAE. You can get 100% foreign ownership, quick licensing, and a simple process compared to many other countries.

In this guide, I’ll walk you through the steps in clear, simple language.

1. What is a Dubai Free Zone?

A free zone is a special business area with its own rules and its own authority.
If you open your company there, you usually get:

• 100% foreign ownership
  
• 0% personal income tax, and often low or no corporate tax for many activities
  
• Full repatriation of capital and profits
  
• Easy customs for imports into the free zone
  
• Fast company setup and visa support 

Important note:
A free zone company cannot trade directly in the UAE mainland without a local distributor, an agent, or a mainland branch.

2. Is a Free Zone Right for You?

A Dubai free zone can be a good fit if:

• You sell outside UAE (export / online / international clients)
  
• You run consulting, IT, media, trading, e-commerce, or similar services
  
• You want full ownership and a simple setup
  
• You don’t need a big retail shop on mainland streets
  

If you want a physical shop, clinic, or restaurant in the city, you usually need a mainland license instead.

3. Step-by-Step: How to Set Up a Company in a Dubai Free Zone

Different free zones have slightly different rules, but the main steps are very similar. Official UAE guidance also follows this structure. 

Step 1: Decide your business activity and legal structure

First, be clear on:

• What you will do (consulting, trading, e-commerce, media, logistics, etc.)
  
• Who owns the company (you alone, or partners, or another company)
  

Common legal forms:

• FZE (Free Zone Establishment) – one shareholder
  
• FZCO / FZ-LLC (Free Zone Company) – two or more shareholders
  
• Branch – branch of an existing local or foreign company
  

Your activity decides:

• Which license type you need (trading, service, industrial, etc.)
  
• Which free zone is best (for example, DMCC for commodities, DIFC for finance, media zones for media companies). 

Step 2: Choose the right free zone

Dubai has 20+ free zones, each focused on certain industries. Examples:

• DMCC – trading, commodities, crypto, many services
  
• JAFZA – logistics, manufacturing, large trading
  
• DIFC – finance, banks, fintech
  
• Dubai Internet City / Media City – tech, media, marketing
  
• IFZA, Meydan, DSO and others – general trading, services, start-ups

Compare:

• License packages and renewal fees
  
• Visa quota (how many visas you get)
  
• Office options (flexi-desk, shared office, private office, warehouse)
  
• Extra services (banking support, online setup, etc.)
  

Step 3: Check visa and office needs

Ask yourself:

• Do you need a UAE residence visa?
  
• How many staff do you plan to hire in year 1–2?
  
• Do you need a warehouse or shop, or is a flexi-desk enough?
  

Most free zones offer:

• 0-visa, 1-visa, 2-visa, 3-visa (or more) packages
  
• Flexi-desk or shared office for small startups
  
• Larger offices or warehouses for growing companies

Step 4: Reserve your trade name

You must pick a company name and get it approved by the free zone.

Basic rules:

• Name must be unique
  
• No offensive words
  
• Avoid political or religious terms
  
• Often you must add “FZE” or “FZ-LLC” at the end
  

The free zone checks and then issues a trade name reservation. 

Step 5: Prepare documents and get initial approval

You (or your consultant) submit:

• Passport copies of owners and manager
  
• Passport-size photos
  
• Business plan (sometimes simple)
  
• Application form from the free zone
  
• Existing company documents if you open a branch
  

The free zone reviews and gives initial approval so you can move to registration and licensing. 

Step 6: Sign incorporation documents and pay fees

Next, you:

1. Sign the Articles / Memorandum of Association and other incorporation forms
   
2. Confirm office / flexi-desk lease with the free zone
   
3. Pay the license and registration fees (often one package price)
   

After this, the free zone issues:

• Incorporation documents
  
• Lease agreement
  
• Payment receipts
  

Step 7: Get your trade license and establishment card

Once everything is approved, the free zone issues:

• Your trade license (main company document)
  
• Company registration certificate
  
• Establishment card (needed for visas in many zones)
  

Now your company is legally formed in the free zone.

Step 8: Open a corporate bank account

With your license and company docs, you can open a UAE corporate bank account.

Banks may ask for:

• Trade license and registration docs
  
• Passport and visa copies
  
• Business plan and source of funds
  
• Office lease agreement
  

Different banks have slightly different KYC requirements, so it helps to prepare a simple but clear profile of your business. 

Step 9: Apply for visas (if needed)

Through the free zone, you can apply for:

• Investor / partner visas
  
• Employee visas
  
• Sometimes dependent visas (family), subject to rules
  

Visa steps usually include:

• Entry permit
  
• Medical test and biometrics
  
• Emirates ID
  
• Visa stamping on passport
  

Many free zones allow you to process company setup and visas in parallel. 

4. Compliance Tip: Product Registration in Dubai

If your company will import or sell products in the UAE (for example food, cosmetics, supplements, detergents, some consumer goods), you must also look at product registration dubai requirements.

Key points:

• Many products must be registered with Dubai Municipality before you can sell or advertise them
  
• This includes food and beverages, cosmetics, health supplements, detergents, and other consumer products
  
• After approval, each product gets a registration certificate, which may be checked during customs clearance 

Basic steps (high level):

1. Make sure your trade license covers the right activity (e.g. “trading in cosmetics”)
   
2. Create an account on the Dubai Municipality / Montaji system
   
3. Submit product details, labels, ingredients, and test reports (if required)
   
4. Pay the registration fees
   
5. Wait for approval and keep your certificates updated
   

This is separate from company formation, but both are needed if you plan to trade regulated products.

5. How Much Does It Cost and How Long Does It Take?

Costs and timelines change by free zone and package, but in general: 

• Timeframe:
  
  • Simple service / consultancy set-ups can be done in a few days to a couple of weeks (if documents are ready)
    
  • Adding visas, special approvals, or big offices can take longer
    
• Cost (very rough ranges):
  
  • Small “no-visa” or “one-visa” startup packages can start around AED 8,000–15,000+ per year in some zones
    
  • More premium or industry-specific zones with multiple visas and larger offices can go much higher
    

Always check the latest fees on the free zone’s own website or with a licensed business setup advisor, because packages change often.

6. Common Mistakes to Avoid

1. Choosing the wrong free zone
   – Pick a zone that fits your industry and target market.
   
2. License activity not matching real business
   – If your activity is “consultancy”, don’t do full trading without the right license.
   
3. Underestimating visa and office needs
   – Plan your team and space for at least the next 1–2 years.
   
4. Ignoring compliance
   – For products, make sure you handle Dubai Municipality and other authority approvals early.
   
5. Not planning banking
   – Some sectors are “high risk” for banks. Prepare clear documents about your business model and funds.
   

FAQ

1. Can a free zone company sell in Dubai mainland?

Not directly.
You usually need a local distributor, agent, or mainland branch to trade physically in the mainland. 

2. Do I need a local partner in a free zone?

No.
Free zones normally allow 100% foreign ownership, unlike many traditional mainland structures. 

3. Can I get a residence visa from a free zone company?

Yes, most free zones allow investor and employee visas, based on your license type, office size, and package. 

4. Do I need product registration if I only provide services?

Usually no.
Product registration is for companies that import, manufacture, or sell physical products that need approval (like food or cosmetics). Service-only businesses normally just need the correct service license.