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Freezone Company Setup in the UAE: Fast, Affordable, and 100% Foreign-Owned
In 2025, many new startups, entrepreneurs, and businesses are popping up in the UAE’s free zones and collecting market share or carving out a new niche for themselves.
If you have been dreaming about being one of these businesses but don’t know how, this article is for you. Today, we look at what you need to know about free zone registration in UAE so you can start doing business.
What is a Freezone Company?
The UAE has over 40 free zones and each has its own regulatory authority. For instance, the Dubai International Financial Centre (DIFC) is regulated by the Dubai Financial Services Authority, etc.
A freezone company is one that is registered with one of these authorities and operates primarily inside the free zones and can also serve international customers.
That means they are unable to offer goods or services to customers in the mainland or the rest of the UAE without a local agent. This has several pros and cons, let’s have a look.
Pros of Establishing a Free Zone company
- Full Foreign Ownership: No local partner needed; you maintain 100% control.
- Tax Advantages: Enjoy exemptions from corporate taxes.
- No Customs Duties: Goods move in and out of the free zone without import/export taxes.
- Relatively simple startup: Establishing a business in a free zone is often easier than on the mainland
Steps to register a Free zone Company
Setting up a Free zone company in the UAE is a fair bit easier than setting one up in the mainland. Here are the key steps involved.
1. Choose a business activity: What is the nature of your business? Consulting? Tech? Services? This will inform which free zone you register in.
2. Decide on your business structure: Free zone companies are usually either free zone limited companies or free zone Establishments.
3. Pick a trade name: This is the unique name of your business, attached to all licenses and by which you are registered. Ensure it follows appropriate regulations.
4. Apply for your business license: To operate in your chosen free zone, you need a license, and it depends on the type of activity conducted.
5. Obtain Initial Approval: At this point, you apply for approval to operate from the free zone authority with the right documents – flexi desk set up.
6. Final registration and Licensing: For the final step, you pay your registration and license fees, and you submit the final required documents.
How long does Free Zone registration in UAE take?
With FVR Corporate Services’ fast-track support, freezone registration in UAE is very quick, ranging between three to seven working days pending document readiness, funds, office space availability, and approval.
What is the Cost of Free Zone registration in the UAE?
This varies largely based on the business and free zone. Here are the general ranges
- Trade/Professional License: AED 5,750 – AED 25,000
- Company Registration Fee: AED 3,500 – AED 10,000
- Name Reservation Fee: AED 620 – AED 2,000
- Initial Approval Fee: AED 1,000 – AED 3,000
- Office Space (flexi desk to private office): AED 4,000 – AED 50,000+
- Immigration Card Establishment: AED 2,000 – AED 3,000
- Visa Allocation: AED 1,000 – AED 2,500
- Partner Visa: AED 3,500 – AED 6,000
- Medical Test & Emirates ID (per person): AED 1,000 – AED 1,500
Why Should You Trust FVR With Your Corporate Needs:
The UAE is a big place, and there are over 40 free zones. FVR Corporate services ensures expedited company registration for every free zone in the UAE.
We offer bespoke solutions in:
- UAE Entity Setup Guidance
- Registration Authority Advisory
- Regulatory License Applications.
Feel free to contact us for a free consultation!
Frequently Asked Questions (FAQs)
1: Do free zone companies pay corporate taxes?
A: Free zone companies are exempt from corporate taxes and customs duties
2: Do I need a physical office to register a free zone company?
A: This can be a flexible requirement depending on the free zone. Some require dedicated office spaces, whereas for some, a flexi desk setup suffices.
3: Can expats have 100% ownership of free zone companies?
A: Yes, Expats can have 100% ownership of free zone companies
4: Are there minimum share capital requirements for free zone companies?
A: This depends on the free zone, for example, in the DMCC, the minimum share capital is AED 50,000, and in the DAFZA, it is AED 1000.