Establishing a Business in a Dubai Free Zone

A Free Zone constitutes a defined geographical area or jurisdiction within the UAE, authorized to engage in specific trading activities or designated sets of actions. Initiating a business setup in Dubai’s Free Zones necessitates obtaining a license. The issuance of Free Zone licenses in Dubai and the UAE hinges upon the specific business activities undertaken by the company.

Dubai Free Zone licenses are granted based on the distinct business operations undertaken by the company. Furthermore, the emergence of novel Free Zone regions is underway, implying a prospective increase in the overall count of Free Zones in the ensuing years.

 

The Free Zone Authority (FZA) holds jurisdiction over activities pertinent to Free Zone entities, encompassing license issuance and operational oversight. The legal framework governing mainland UAE companies does not apply to Free Zone enterprises. A compelling advantage of embarking on a business setup in Dubai’s Free Zones is that foreign investors can enjoy full ownership rights. Beyond ownership, these zones extend financial benefits such as complete tax exemptions, 100% repatriation privileges, and the absence of foreign exchange constraints.

Upon approval, your company is granted a Dubai Free Zone license by the Free Zone Authority, with options including Trade License, Industrial License, Service License, or National Industrial License. These licenses can be renewed annually, contingent upon the validity of the lease agreement.

It is imperative to select a Free Zone jurisdiction aligned with your business type. Your chosen Free Zone should align with your business activity category. While offshore companies share certain advantages with Dubai’s Free Zone entities, they are not identical in nature.

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