Dubai is one of the world’s leading cities and a global business hub that hosts and supports all kinds of businesses and investors from all over the world. It has created a strong infrastructure that positions it as the best city for investment and expansion. For this reason, Dubai also became the first place that gathers over 30 Free Zones that are designed to attract all types of business investments and investors by providing them with premium benefits such as 100% ownership, tax exemptions, capital gain repatriation, and a lot of other business facilities. This guide will explain:

• What is the Dubai Free Zone?
• What are the types of Free Zones in Dubai?
• Dubai Free Zone Business Setup Benefits?
• What is the best free zone to start a business in Dubai?
• What is the cost and process of opening a company in the Dubai Free Zone?

What is the Dubai Free Zone?

The term Free Zone or Free Trade Zone in Dubai refers to a specific area where you can open your company and operate in the same area. This means that the Dubai free zone is a designated area where you can set up your business and operate within the same free zone, with other free zones, online, or outside the country by transacting with the rest of the world.

Every free zone differs from the others, as they provide different services, benefits, and procedures.

What are the types of free zones in Dubai?

Dubai free zones in Dubai are classified by different factors. These include:

• Designated & Non-Designated Free Zones: Designated Free Zones are those that are gated and have their own procedures and processes of operation and provide great benefits such as: Duty exemption in import/export and corporate tax exemptions on qualified activities such as Jebel Ali Free Zone (JAFZA), Dubai Airport Free Zone (DAFZA), and Logistics District Free Zone. Contrary to Non-Gated Free Zones which have different rules of operation in VAT, Import/Export, and corporate tax. But still these free zones offer strong benefits such as 100% ownership, corporate tax exemption, and a simplified company setup process. Examples include Meydan Free Zone, IFZA Free Zone, DMCC Free Zone, and Internet City.

To explore which specific free zone aligns best with your business activity, here’s a complete list of free zones in Dubai along with their specializations and advantages.

What are the benefits of setting up a company in Dubai Free Zone?

Free Zones in Dubai are international business gateways that offer competitive benefits for entrepreneurs and investors who want to expand and setup successful businesses.

• 100% Ownership: Free Zones in Dubai allow 100% ownership without the need of a local partner or service agent.
• Duty Exemptions: This applies to logistics and import/export of goods. There will be 0% duty on imported goods to the free zone.
• TAX Benefits: A lot of Dubai Free Zones offer 0% corporate tax on qualifying income and 0% on personal income tax.
• Free Capital Repatriation: Any investor in Dubai can move and repatriate his capital and profits without any restriction.
• Office and Company address: Free Zone allows you to open a company with a virtual office, flexy desk, office, and warehouse.
• Easy Business Setup and Company Formation: Although free zones in Dubai have different business setup processes, they make it simple, easy, and have less documentation.
• Advantageous location: Dubai free zones are situated near to airports and ports. This facilitates the shipping of goods and smooth business operation.

What is the best free zone to start a business in Dubai?

Choosing the best free zone to start a business and setup your company depends on different factors. Dubai is a hub of more than 30 free zones, and every free zone is designed to meet specific needs and requirements. They are also made to support specific types of businesses and industries. If you are a startup and you want to grow your trading, consulting, finance, IFZA Dubai is the best free zone for you. Meanwhile, if you are into gold and precious metal trading, DMCC is the leading free zone that is designed for commodities trading. But if you are into logistics and import/export, JAFZA and DAFZA are the ideal locations for such businesses.

Note: Please consult with a business setup advisor in order to help you choose the right free zone for your business.

What is the cost and process of Opening a Company in Dubai Free Zone?

Cost and process of opening a company in Dubai Free Zone differs from one to another. Some free zones offer full business setup packages, while others have standard packages that can  be customized as per your requirements.

• Dubai Free Zone Business Setup Cost: The cost of business setup in the free zone ranges from 12500 AED to 35000 AED depending on the free zone, license type (Commercial, Professional, Trading, E-Commerce, or Consulting), and external approvals if required.
• What is the process of opening a company in Dubai Free Zone.
• Choose the right free zone
• Select your business activity
• Reserve Trade Name
• Sign the resolution and MOA
• Prepare the lease agreement
• Submit the documents and issue the license
• Get a Residence Visa and Open a Business Bank Account

For a deeper breakdown of pricing and relevant authorities, you can refer to our detailed article on Dubai free zone license cost and expected fee structure.

If you are thinking of starting a business in Dubai and incorporate a company in one of the best and leading free zones in Dubai, you have to consult with our business setup experts at Assertive Zone. We are the best business setup consultancy in Dubai. Contact us: +971502835397‪/ +971506129267 / inquire@assertivezone.ae

Finally, Dubai is the best city that attracts entrepreneurs and investors who are willing to relocate, expand, and setup their companies in Dubai. Its Free Zones positioned it as the best global hub in the world while they offer great and competitive benefits. From 100% ownership, tax benefits, capital gain repatriation, and full business support services. If you choose the right free zone, you will have access to the global market, networking, and scale your business successfully.

FAQs:

What is the cost of Dubai Free Zone trade license? The cost of the trade license and business setup in Dubai ranges from 12500AED to 35000 AED.

Can I open a company in Dubai free zone online? Yes, you can open your company in the free zone online. But make sure that the free zone has full online process before starting.

Do I need office to open a company In the free zone? Most of Dubai free zones do not require a physical office to setup a company in Dubai. You can incorporate it virtually.

What is the best free zone in Dubai?. Every free zone differs from one to another and each one has its own benefits. You must consult with a business consultant to help you choose the best free zone.

Do free zone companies pay tax in Dubai? This depends on their business operations and business activities. There are many types of tax exemptions in Dubai.

Can I sell goods from my free zone company to another company in Dubai? Yes you can sell your goods in Dubai and whole UAE.

Can I have a residence visa if I open a company in Dubai Free Zone? Of course, you can have your own residence visa if you setup your company in the free zone.