How to start a business in a Dubai free zone

Dubai is a great destination not only for tourism but also for Business. Are you looking to get into the gifts business? Do you need to start a company in Dubai? Let’s start reading this article.

Dubai is known as the city of gold and the center of Business in the Middle East. A business-friendly tax system, impressive infrastructure, and multiple free zones make Dubai a strategic magnet for entrepreneurs. So if you are looking for a business environment in Dubai, this city is where around 3 million people grow up in the business world. Last year, the startup pledged nearly 400 million investments in the UAE.

What is Dubai Freezone?

Free zones (also known as free trade zones) boost international Business by offering 100% expatriate property and administrative convenience in one window. In the UAE, the lines install to ports or industrial specialty. The UAE is a business center, and over the years, the country’s economic development has close ties to the entrepreneurial spirit of the UAE.

The UAE has more than 40 “free zones” for foreign startups. Some offer new, clearer business procedures, corporate tax exemptions, and more straightforward paperwork. Most importantly, these companies are 100% foreign-owned and can get more information from business formation consultants in Dubai.

Sharjah Media City (SHAMS) is now one of the newest business arrangement services and the most promising free zone in the United Arab Emirates and is a 20-minute drive from Dubai. The only free zone where companies can combine their trade and services with the same license.

Why Should You Do Business in Dubai Freezone?

The UAE Free Zone Company Formation caters to entrepreneurs looking to start their own business without a local sponsor. This type of business formation encourages foreign investment with the cheapest formation process and lower overhead costs.

It fits their needs. As there are many free zones in the UAE, choose the best free zone license according to your business needs.

Limitations For Business setup in Dubai Freezone

Free zone companies are not allowed to deal directly with the UAE market. The Free Zone can only start local businesses through locally appointed distributors.

  • Local businesses have a 5% duty

You must understand the incentives and free zone concerns associated with starting a business in a region where business rules and laws apply. It will help you make the right decisions when planning to start a business. Creating a free zone means you can work without strict customs requirements and other restrictive structures. It means you are exempt from regional laws, which can be very friendly with businesses and organizations.

The authorities in this region will help you manage your business as part of their incentive to encourage them to thrive. Therefore, there is no need to worry that your Business will always be the agency’s focus as long as you follow their directions when doing Business in this area. You can easily find the time to find a workforce that meets the company’s needs and its business operating policies and objectives.

How to Start Business in Dubai Freezones?

Suppose you want to start a business in the Dubai Free Zone. In that case, the most important thing is to know the variety of areas, which are divided into different business clusters, to gain industry knowledge and get connected quickly. There are three ways to start a business in the UAE: Free Zones, Non-Free Zones, and Overseas. The free zone divides into specific zones, which apply different rules and regulations. So one has to review various protocols for starting a business in the Dubai Free Zone.

Requirements to start Freezone Business

FZE or FZC is a limited liability company subject to the free zone’s rules and regulations in which you can find it. The provisions of the UAE Commercial Companies Act (CCL) do not apply.

Below is the list of documents you have to submit for business setup in Dubai Freezone-

  • Address Proof
  • Bank Reference Letter
  • CV having your professional history
  • Passport copy
  • UAE visa
  • Company Application Form

As soon as a legal presence in the free zone establishes, the company must lease the premises or land and obtain an operating permit from FZA. Different types of licenses apply to various kinds of free zones. Companies with commercial and industrial rights can only do Business in free zones or outside the country.


There are many advantages to starting a business in the free zone. The UAE Free Zone offers a bespoke advisory service providing clear instructions and guidance for savvy investors looking to launch on land or sea in the Emirates.