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Free Zone Company Setup in Dubai

Legacy Partners helps entrepreneurs and international businesses register free zone companies in Dubai with 100% foreign ownership, fast licensing, and complete support through visa processing and corporate bank account opening. We work across Dubai's leading free zones, including DMCC, IFZA, Meydan, JAFZA, DIFC, and Dubai Internet City, to match you with the jurisdiction and license that fit your business activity.

What Is a Free Zone Company in Dubai

A free zone company is a business entity registered under one of Dubai's dedicated free zone authorities rather than the Department of Economic Development, offering distinct ownership and tax advantages designed to attract foreign investment.

100% foreign ownership, no local sponsor
Free zone companies are fully owned by foreign investors, with no requirement for a UAE national shareholder or local service agent.
Zero corporate and personal income tax (QFZP status)
Free zone companies that qualify as a Qualifying Free Zone Person (QFZP) benefit from a 0% corporate tax rate on qualifying income, alongside the UAE's standing 0% personal income tax.
Full profit repatriation
Free zone companies can repatriate 100% of profits and capital outside the UAE, with no restrictions on currency conversion or fund transfers.

Benefits of a Dubai Free Zone Setup

Free zones were built specifically to remove the friction that international investors face when entering a new market, and the advantages extend well beyond ownership.

Fast registration (2 5 working days)
Most Dubai free zone licenses can be issued within two to five working days once documentation is submitted, making it one of the fastest company formation routes available anywhere.
No import/export duty
Goods traded within free zones, or re exported outside the UAE, are generally exempt from import and export customs duty.
Flexi desk and office options
Free zones offer flexible office solutions, from flexi desks and shared workspaces to dedicated offices, allowing businesses to scale their physical footprint as they grow.

Popular Dubai Free Zones

Each Dubai free zone has its own licensing scope, cost structure, and industry focus, so choosing the right one has a direct impact on setup cost and long term flexibility.

DMCC (trading, commodities, technology)
DMCC is Dubai's largest free zone by company count, well suited to trading, commodities, and technology businesses, and consistently ranked among the top free zones globally.
IFZA (affordable, flexible licensing)
IFZA is known for cost effective packages and flexible license structures, making it a popular choice for startups, consultants, and small to mid sized trading businesses.
JAFZA (manufacturing, logistics)
JAFZA is located adjacent to Jebel Ali Port and is geared toward manufacturing, logistics, and industrial businesses that depend on direct port and shipping access.
DIFC (financial services)
DIFC is Dubai's dedicated financial free zone, home to banks, asset managers, fintech firms, and professional services companies operating under its own common law framework.
Dubai Internet City / Dubai Media City (tech and media)
Dubai Internet City and Dubai Media City are purpose built for technology and media companies, hosting a concentrated ecosystem of tech firms, agencies, and content producers.

Free Zone License Types

Commercial license
A commercial license covers trading activities, including the import, export, and distribution of goods.
Professional license
A professional license covers consultancy and service based activities, including IT, management, and specialist professional services.
Industrial license
An industrial license permits manufacturing, assembly, and light industrial or processing activities within approved free zone premises.
E commerce license
An e commerce license authorizes the sale of goods and services through online platforms and digital storefronts.

Free Zone Company Setup Process

Step 1: Business consultation
We assess your business activity, target market, and budget to identify suitable free zone options.
Step 2: Choose your free zone and activity
We help you select the specific free zone and confirm the correct business activity code for your license.
Step 3: Reserve your company name
We check availability and reserve your company name with the chosen free zone authority.
Step 4: Submit documents
We prepare and submit your incorporation application along with the required shareholder and company documents.
Step 5: Receive license approval
Once the application is reviewed and approved, your free zone trade license is issued.
Step 6: Visa and bank account assistance
We process your investor and employee visas and support your corporate bank account application with a suitable UAE bank.

Free Zone vs Mainland: Which Should You Choose

FactorFree ZoneMainland
Foreign ownership100%100% (most activities)
Trade directly in UAE marketRestrictedYes
Government contractsNot eligibleEligible
Office requirementFlexi desk options availablePhysical office generally required
Setup speedTypically fasterTypically longer
Best suited forInternational trade, consulting, holding structuresBusinesses trading directly across the UAE

Free Zone Company Setup Cost in Dubai

Free zone company setup costs in Dubai vary by jurisdiction, license type, and visa quota, with entry level packages available in the lower thousands of dirhams and costs scaling up with additional visas or premises.

Why Choose Legacy Partners for Your Free Zone Setup

Legacy Partners is a multi disciplinary professional services firm operating across the UAE, GCC, India, and UK, giving free zone clients access to company formation, tax, audit, Virtual CFO, and corporate advisory support from one team. We hold direct working relationships with Dubai's leading free zone authorities, allowing us to match your business activity to the right jurisdiction and move applications through efficiently, with ongoing VAT and corporate tax support once your company is operational.

Frequently Asked Questions

The right free zone depends on your business activity, budget, and whether you need direct access to UAE mainland trading, and our team recommends the best fit after a short consultation on your specific activity.

Not exactly. Free zone companies can trade internationally and within other free zones, and can also sell into the UAE mainland market through a local distributor or by obtaining a dual license where applicable.

Free zone visa costs vary by jurisdiction and visa type, and are generally quoted as part of your overall license package based on the number of visas required.

Yes. It is possible to convert or expand from a free zone structure to a mainland license as your business grows, and our team can guide you through that transition when the time comes.

A free zone company is a UAE legal entity incorporated with one of Dubai’s free zone authorities, holding a trade licence issued by that authority rather than by the Department of Economy and Tourism. Each zone maintains its own registry, activity list, office rules and visa allocation. The company can contract, invoice, open a bank account and usually sponsor residence visas.

he difference is shareholder count. An FZE, or Free Zone Establishment, has one shareholder. An FZCO or FZ LLC, meaning Free Zone Company or Free Zone Limited Liability Company, has two or more, whether individuals, corporate entities or a mix. All are limited liability entities. Terminology varies between authorities, so the same structure carries different labels in different zones

Onshore. A free zone company is a resident UAE entity with a UAE trade licence, a physical address and tax registration obligations. Offshore companies are a separate category of non resident vehicle used for holding assets, with no residence visa eligibility and no trading licence. The phrase “offshore free zone company” conflates two different things and is worth avoiding

es. Most Dubai free zones licence branches of existing UAE or foreign companies. A branch is not a separate legal entity, it carries the parent’s name and liability, and it is generally restricted to the parent’s activities. It avoids share capital requirements and can be quicker where the parent’s documents are already attested, but it exposes the parent directly

Each zone’s own authority regulates licensing, registration, leasing and, in most zones, employment registration and immigration processing. Financial free zones such as [DIFC] operate their own courts and civil and commercial laws. Federal law still governs corporate tax, VAT, anti money laundering and beneficial ownership reporting, so free zone status does not remove federal obligations.

It depends on the zone. Many Dubai free zones require share capital to be declared only, with no obligation to deposit or block funds. Others set a minimum evidenced by a bank letter, and financial and industrial zones tend to set higher thresholds. In some zones the declared capital also affects visa allocation, so confirm before choosing.

Yes. Free zones allow 100% foreign ownership with no UAE national partner or local service agent. A small number of regulated activities in specialist and financial zones carry additional conditions. Note that mainland UAE now also permits full foreign ownership for most activities, so ownership alone is no longer a reason to prefer a free zone

No. Free zone companies require no local sponsor, local partner or local service agent. The historical 51% UAE ownership rule applied to mainland companies and has itself been removed for most mainland activities. If a provider tells you a sponsor is needed for a free zone entity, that is not correct.

Yes, most zones permit corporate shareholders, whether UAE or foreign. The corporate shareholder’s documents, typically the certificate of incorporation, memorandum, board resolution and register of directors, need to be apostilled or attested for UAE use. Some zones cap the number of layers of corporate ownership or require disclosure up to the ultimate beneficial owner.
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