Did you know you can establish a company in the UAE without needing a local sponsor and enjoy 100% ownership, zero corporate tax, and easy repatriation of profits?
That’s the power of a Freezone Company Setup in UAE.

Over the past decade, free zones have attracted thousands of entrepreneurs and investors who want to operate in a globally trusted business hub like the UAE while enjoying regulatory flexibility and tax advantages.

In this complete guide, you’ll learn:

• What a freezone company is and how it works
• Why foreign investors prefer free zones
• Step-by-step process to start your company
• Setup costs for Dubai, RAK, Sharjah, Ajman, and Fujairah
• The difference between free zone and mainland companies
• Pro tips to save time and money during registration

Let’s explore how you can set up your own business in a UAE free zone the right way.

A freezone company is a business established within a designated area in the UAE that operates under a specific free zone authority. Each free zone is governed by its own set of rules and provides specialized facilities and licensing options to support different business sectors.

Key Benefits of Setting Up in a Free Zone

• 100% foreign ownership (no local sponsor required)
• Zero personal and corporate tax (for eligible entities)
• Full repatriation of profits and capital
• No import or export duties within the free zone
• Simplified company registration process
• Access to world class infrastructure and logistics hubs
• Easy visa process for investors and employees

Free zones are ideal for entrepreneurs in trading, consultancy, media, e-commerce, logistics, and technology.

Limitations to Consider

• Cannot trade directly within the UAE mainland without a distributor or dual license
• Visa quota limits may apply based on office space
• Each free zone has its own rules, fees, and permitted business activities

Understanding these factors helps you choose the right free zone and business model.

There are more than 45 free zones across the UAE, each catering to specific industries. Here are some of the most popular ones:

Each zone has its own licensing authority, requirements, and cost structure, so choosing the right one depends on your business activity, target market, and budget.

When setting up your company, you can choose from several legal structures depending on your ownership and business type:

• Free Zone Limited Liability Company (FZ-LLC): A separate legal entity with individual or corporate shareholders.
• Branch of a Foreign Company: An extension of an existing overseas company, ideal for international firms expanding into the UAE.
• Freelancer Permit: Available in select free zones for individuals offering professional or creative services.
• Holding Company: Suitable for asset management, investment holding, or intellectual property ownership.

Setting up a company in a UAE free zone is straightforward if you follow the right process. Here’s a detailed breakdown:

• Step 1: Choose Your Business Activity and Free Zone
  Select your business activity from the list approved by the chosen free zone (such as consultancy, trading, or IT services). Each zone caters to specific sectors, so this choice determines where you should register.
• Step 2: Reserve Your Trade Name
  Choose a unique company name that follows UAE naming rules. The name must not include offensive words or religious references.
• Step 3: Prepare Required Documents
  Typical documents include:

• • Passport copies of all shareholders
  • Passport-size photos
  • Business plan (for certain activities)
  • Proof of residence (utility bill or tenancy contract)
  • NOC (if shareholder is a UAE resident under another sponsor)
• Step 4: Apply for Initial Approval
  Submit your application to the respective free zone authority. Once approved, you can move to the next stage.
• Step 5: Lease Office or Flexi Desk
  Every free zone requires a valid address. You can choose between:
  • Flexi desk (shared space)
  • Virtual office
  • Dedicated office or warehouse (depending on your needs)
• Step 6: Pay Fees and Obtain License
  Pay the required fees for registration, licensing, and office space. Once payment is made, the free zone authority will issue your trade license.
• Step 7: Apply for Visas
  You can apply for investor, partner, and employee visas based on your company’s visa quota. The process includes medical testing, Emirates ID registration, and residency stamping.
• Step 8: Open a Corporate Bank Account
  Use your trade license to open a bank account with a UAE-based or international bank.

Processing Time:
Most UAE free zones complete registration and licensing within 4 to 10 working days, depending on documentation and approvals.

The cost of setting up a free zone company in the UAE varies depending on several factors such as your chosen free zone, the type of business license, the number of visas required, and the kind of office space you select.

For example, if you choose to establish your company in the RAK Free Zone (RAKEZ), you can expect an average setup cost ranging from AED 11,000 to AED 14,000, which usually includes the trade license, registration, and a flexi desk option along with one visa.

In Sharjah Media City (SHAMS), the cost is among the most affordable in the country, starting from around AED 8,050 for a basic business license package. This is ideal for entrepreneurs who don’t require visa allocation or physical office space during the initial stage.

If you prefer Ajman Free Zone, setup packages typically fall between AED 10,000 and AED 13,000. These packages generally include business registration, a license, and one visa. Ajman is especially popular among startups and small business owners for its low cost and simplified process.

For those who want a Dubai-based presence at a competitive rate, IFZA Dubai is an attractive choice. The setup cost begins at approximately AED 12,900, which covers registration and licensing without the requirement for an office lease. IFZA has quickly become a top choice for SMEs looking to benefit from Dubai’s reputation while maintaining cost efficiency.

Meanwhile, Fujairah Creative City Free Zone offers a balanced option for media professionals and online entrepreneurs, with packages starting from around AED 11,500, usually inclusive of one visa and the business license.

These prices are estimates and may vary depending on your specific activity type, visa quota, and additional services required. Some free zones also offer seasonal promotions or bundled packages that can significantly reduce setup expenses. It is always advisable to consult an experienced business setup consultant, like Nines Consultancy, to get a tailored quote that fits your business model and growth plans.

• Passport copies of shareholders and managers
• Passport-size photographs
• Business plan (for certain activities)
• NOC from current sponsor (if applicable)
• Proof of residence
• Application forms provided by the free zone authority

Here’s why entrepreneurs and investors prefer free zones:

• Full control and ownership of your business
• No requirement for a local sponsor or partner
• Access to modern infrastructure and international markets
• Strategic global connectivity via seaports and airports
• Tax-free environment for most business activities
• Quick setup process with simplified documentation
• Networking opportunities within free zone communities

• Start with a flexi desk or virtual office instead of a full physical space
• Select cost-efficient free zones such as RAK or Ajman for smaller budgets
• Choose a single-activity license initially and upgrade later
• Avail multi-year license packages for discounts
• Use promotional offers during new business setup campaigns
• Partner with a licensed consultancy like Nines Consultancy to handle paperwork efficiently and avoid hidden costs

Setting up a freezone company in the UAE is one of the smartest decisions for investors and entrepreneurs seeking international reach, flexibility, and tax-friendly policies. With over 45 zones to choose from, world class infrastructure, and transparent regulations, the UAE continues to be one of the world’s most business friendly destinations.
Whether you’re launching a startup or expanding globally, partnering with a trusted consultancy like Nines Consultancy ensures a smooth and compliant setup from start to finish.
Ready to start your UAE business journey?
Contact our experts today for a free consultation and receive a tailored quote that matches your business goals.