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What No One Tells You About Free Zone Company Formation in Dubai

Many entrepreneurs start their free zone business setup Dubai based only on package price. Later, they realise that a few overlooked details affect banking, visas, renewals, and long-term flexibility.

Here are important realities you should know before starting your free zone company formation in Dubai.

  1. The cheapest free zone can become expensive at renewal: Renewal costs, visa rules, and office requirements vary significantly across free zones. What looks affordable today may cost more in the long run.
  2. Your business activity wording affects bank account approval: A small mistake in selecting or describing your business activity can delay or complicate corporate bank account opening.
  3. Not all free zones support Stripe, PayPal, or payment gateways smoothly: Payment gateway compatibility depends on the jurisdiction and license structure you choose.
  4. Visa eligibility depends on the office package, not just the license: Flexi-desk, shared desk, or office space directly impacts how many visas you can apply for.
  5. The wrong free zone choice can lock you in for a year: Once registered, switching free zones is neither quick nor simple. The initial decision matters more than most people realise.

Get the right recommendation before you begin your free zone company formation in Dubai.

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    Freezone Company Setup in Dubai Step-by-Step Process

    No 1

    Choose Your Free Zone & Activity

    Select the Free Zone that best suits your business type and industry.

    No 2

    Reserve Your Trade Name

    Secure a unique company name approved by the authorities.

    No 3

    Submit Required Documents

    Provide passport copies, application forms, and any supporting paperwork.

    No 4

    Obtain Your Business License

    Get your Free Zone license issued within a few working days.

    No 5

    Open Bank Account & Process Visas

    Complete post-license formalities, including corporate bank account setup and visa applications.

    Timeline: Most Free Zone company setups are completed within 7–10 working days, depending on the Free Zone and business activity.

    Types of Free Zone Licenses
    License TypeCoversBest Suited For
    Commercial LicenseImport, export, trading, distributionTrading companies, retail, wholesale businesses
    Service / Professional LicenseConsultancy, IT, marketing, design, educationConsultants, freelancers, service-based businesses
    Industrial LicenseManufacturing, processing, packagingFactories, manufacturers, food & beverage producers
    Holding LicenseAsset management, shareholdingInvestors, holding companies, corporate groups

    Not sure which free zone license cost suits your business? Contact Us for free expert guidance.

    Free Zones Covered

    Dubai Airport Free Zone

    DAFZA is one of Dubai’s most advanced free zones, strategically located next to Dubai International Airport. It is ideal for logistics, aviation, and trading companies looking for seamless global connectivity.

    Jebel Ali Free Zone

    JAFZA is the UAE’s largest free zone, situated near Jebel Ali Port. It is perfect for import-export, shipping, and manufacturing businesses seeking access to international markets.

    Dubai Silicon Oasis

    DSO is a hub for technology and innovation, making it the preferred choice for IT startups, software developers, and tech-driven enterprises. It offers state-of-the-art infrastructure and affordable licensing.

    Meydan Free Zone

    Meydan Free Zone is located near Downtown Dubai and offers cost-effective licensing packages. It is ideal for entrepreneurs, freelancers, and SMEs across multiple industries.

    Dubai World Trade Centre

    DWTC Free Zone provides a prestigious business address and world-class facilities for international companies. It is especially attractive for events, exhibitions, and global trading firms.

    IFZA Dubai

    IFZA is known for its affordable business setup packages and wide range of license options. It caters to international investors and SMEs looking for flexibility and cost efficiency.

    Dubai Media City

    DMC is a creative hub designed for media, marketing, and advertising companies. It is home to leading international broadcasters, publishers, and digital media agencies.

    Dubai Internet City

    DIC is the leading technology park in the Middle East, hosting global IT giants and startups. It is perfect for companies involved in software development, e-commerce, and digital services.

    Dubai International Financial Centre

    DIFC is a world-class financial hub offering independent regulatory frameworks and global connectivity. It is best suited for banks, investment firms, and financial service providers.

    Dubai Gold and Diamond Park

    This free zone is dedicated to jewelry trading and manufacturing. It is ideal for goldsmiths, jewelers, and diamond merchants operating in Dubai’s luxury market.

    Dubai International Academic City

    DIAC is home to international universities, training institutes, and research centers. It is the preferred destination for higher education and academic investments in the UAE.

    Dubai Logistics City

    Also known as Dubai South, this free zone is built for logistics, cargo, and aviation businesses. It offers excellent warehousing, distribution, and supply chain facilities.

    Shams Free Zone

    Shams Free Zone in Sharjah is a fast-growing hub for media, creative, and freelance professionals. It offers cost-effective packages for startups and digital businesses.

    RAKEZ Free Zone

    RAKEZ provides affordable business setup options with flexible office solutions. It supports industries such as manufacturing, trading, and education.

    Kizad Free Zone

    Kizad is a large industrial free zone located between Abu Dhabi and Dubai. It is ideal for logistics, heavy industries, and large-scale manufacturing.

    Ajman Free Zone

    Ajman Free Zone offers budget-friendly business setup packages and simple licensing procedures. It is a popular choice for SMEs and traders.

    Ajman New Ventures Free Zone

    This newly emerging free zone in Ajman provides opportunities for startups and entrepreneurs. It is designed to support small businesses with low-cost setups and flexible licensing.

    Myths vs Facts About Free Zone Company Formation in Dubai
    Myth Reality
    Free Zone companies can’t do real business Free zone companies trade internationally every day across services, e-commerce, consulting, and global trade
    Bank accounts are impossible to open With the right activity structure and documentation, corporate bank accounts are very much achievable
    You must live in the UAE to start You can complete most of the free zone company formation process remotely
    Free Zone is only for small businesses Startups, consultants, trading firms, and even global companies operate from UAE free zones
    Free Zone setup is always the cheapest option The right free zone depends on your activity, visa needs, and long-term plan – not just the initial cost

    “Still unsure whether Free Zone or Mainland is right for you? Talk to our experts for personalized advice.”

    Testimonials

    Bharat Gaur

    It was an amazing experience for me to open my furniture business setup with you. Thank you all and special thanks to the business banking team who opened my business bank account smooth. You are the best business setup company in Dubai and UAE. Too simple and easy

    Bharat Gaur

    Mikhael Glen Lataza

    The best partner to start your business in Dubai or anywhere in UAE. This company provides the fastest service for the best price. Totally recommended.

    Mikhael Glen Lataza

    Omran Al Farsi

    The Manager Ziad is very proffessional and he helped me in every step from scratch to fully operational to setup my company “Unified Home” for technical services contracting. He answered all my questions and went above and beyond with his excellence in service and co operative team. I highly recommend (Assertive Zone) for people who want to invest and start their business journey successfully without regulatory or legal issues

    Omran Al Farsi

    FreeZone Company Setup in Dubai FAQs

    The cost of free zone business setup in Dubai depends upon the Free Zone, license type, and business activity chosen.

    Yes, Dubai free zones allow 100% foreign ownership, tax benefits, and full repatriation of profits, making them ideal for international investors.

    Dubai Silicon Oasis (DSO) and IFZA Dubai are among the most popular Free Zones for startups, especially in tech and service industries.

    Commonly required documents include a passport copy, application form, business plan, and proof of address. Some free zones may ask for additional documents.

    Mainland companies can trade freely across the UAE, while free Zone businesses enjoy tax benefits but are limited to operating inside their Free Zone or internationally.