Overview of UAE Free Zone Business Setup
The UAE has gained a reputation of being a global business hub, offering entrepreneurs and foreign investors a chance to build a business in a country with a lot less red tape than other regions. There are over 40 free zones in the country, making business setup in UAE free zone a lucrative option for individuals.
Business setup in Dubai free zone is also a good option as the Emirate is regarded as one of the best places in the country to set up a business, as it houses over 20 free zones, each one offering unique benefits.
Free zones follow their own set of rules, are designed for operational flexibility, have no corporate tax, and are strategically located near ports and airports for easier access to international markets. They also allow foreigners complete ownership of their business.

Benefits of Free Zone Company Setup in UAE

100% Foreign Ownership

Full Repatriation of Profits & Capital

Zero Corporate & Personal Tax

Customs Privileges in Designated Zones
Trading in a free zone is much cheaper than on the mainland because companies in designated free zones are exempt from paying import duties at customs.

Simple Import-Export Procedures

World-Class Infrastructure & Business Facilities
UAE free zones offer advanced infrastructure and modern, state-of-the-art facilities to businesses. They offer warehouses, offices, and land plots. A business setup consultant in Dubai can help find a space that suits your needs.

Features of Free Zone Company Formation

Quick Company Formation in 3–5 Days

Wide Range of Business Activities

Cost-effective Setup & Renewal

Dedicated Office or Flexi Desk Options

Access to Business Support Services

Dubai Investor Visa / UAE Residency Visa

No Restrictions on Currency Movement
Cost of Starting a Business in UAE Free Zone
Momentum offers competitively priced packages for business setup UAE freezone. Each package offers services like license registration, visa applications, and opening a bank account. We also offer accounting services, handling all the financial recordkeeping for your business so that you can focus on your core activities.
Sharjah Freezone
- - Up to 5 shareholders
- - 100% Foreign Ownership
- - Mix & Match 5 Business Activities
- - Free Lease Agreement
- - Unlimited Co-Working Space
*T&C Applied
Rakez Freezone
- - Up to 5 shareholders
- - 100% Foreign Ownership
- - Mix & Match 5 Business Activities
- - Free Lease Agreement
- - Unlimited Co-Working Space
*T&C Applied
Types of Free Zone Licenses in UAE

Commercial License
For trading, retail, and general business

Professional License
For consultancy, IT, media

Industrial License
For manufacturing, packaging, logistics

E-commerce License
For online businesses
Business Legal Structures for Free Zone Companies
Documents Required for
Business Setup in Dubai Free Zone
For Individuals
- Passport copy
- Visa & Emirates ID (if available)
- Passport-sized photograph
- Application form/KYC
For Corporates
- Parent company license & MOA
- Board resolution & POA
- Passport copies of directors/shareholders
Steps to Start a Free Zone Business in UAE
Choose the Free Zone & Business Activity
Reserve Trade Name
Submit Application & Documents
Pay License Fee
Sign Lease Agreement
Receive Trade License & Start Operations
Why Choose Us for UAE Free Zone Company Setup

End-to-End Support

Registered Agent for Top Free Zones

Transparent Pricing & Custom Packages

Free Consultation
FAQ
How to start a business in a Dubai free zone?
What is the best location for a business setup in Dubai?
Dubai free zones offer incentives like minimal tax obligations, 100% foreign ownership, no custom duties, advanced infrastructure, and complete repatriation of profits and capital. This makes them a good location for setting up a business.
How much is a free zone license in Dubai?
A free zone license in Dubai can cost around AED 5,500 to AED 15,000. Hiring a business setup consultant can make the application process more streamlined.
Is Dubai free zone tax free?
Dubai free zones are generally exempt from taxes, as long as a business generates revenue that is considered to be “qualifying income”. Any income that is not qualifying will be taxed at 9%.
What are the benefits of a free zone?
Free zone businesses have many advantages like 100% foreign ownership, 100% repatriation of capital and profits, no taxes, and a simpler business setup process than on the mainland.
How much does a free zone company cost in UAE?
It costs around AED 10,000 to AED 30,000 to set up a free zone company in the UAE. Working with a business setup UAE free zone expert can be a cost-effective way to avoid unnecessary expenses.
Can a freezone company do business in Dubai?
Until recently, free zone businesses were not allowed to trade on the Dubai mainland. Now free zone companies will be allowed to do business on the mainland with a license from the DET (Department of Economy and Tourism).
How many years is free zone visa in Dubai?
The free zone visa in Dubai can be issued for one to three years, but the duration of the visa depends on the type of employment contract and the location of the free zone.
Can you own 100% business in Dubai?
Can a free zone company open a bank account in Dubai?
Free zone companies can open a bank account in Dubai, but the process can be complex. It is recommended to work with a business setup consultant with knowledge of local business rules and good relationships with banking institutions to make the process easier.
How do Dubai free zones work?
Free zones in Dubai follow distinct rules separate to those on the mainland. They are special economic areas designed to promote business activities and international market access.
What is qualifying income for free zone?
Qualifying income is the income generated by free zone businesses that is not subject to taxation. It can be income earned from trading with other free zone businesses and/or certain qualified activities.
What is the difference between free zone and LLC in Dubai?
Free zone companies are set up in a designated area and are generally only allowed to operate within certain local areas. LLCs are registered on the mainland and have full operational flexibility in their activities.