How to Set Up a Business in Dubai Free Zone: Step-by-Step
A complete walkthrough of registering your company in a Dubai free zone — costs, timelines, documents, and which zone is best for your business.
Dubai's free zones are one of the most attractive business environments in the world: 100% foreign ownership, 0% corporate tax (within the free zone threshold), 0% import/export duties on goods within the zone, and a streamlined company registration process. In 2026, there are over 30 active free zones in Dubai, each targeting specific industries.
Why Set Up in a Free Zone?
- 100% foreign ownership — no need for a UAE national partner (unlike older mainland setups)
- Full profit repatriation — move all profits out of the UAE freely
- 0% corporate tax on qualifying income (the UAE's 9% CIT applies above AED 375,000 profit)
- Simple visa processing — free zone companies can sponsor employee and investor visas directly
- Single-window registration — most free zones handle licensing, visas, and office in one process
Top 5 Free Zones for 2026
- DMCC (Dubai Multi Commodities Centre, JLT): World's largest free zone; best for trading, commodities, and professional services. Setup from AED 18,000/year.
- IFZA (International Free Zone Authority, Dubai Silicon Oasis area): Most affordable for startups and small businesses. Setup from AED 12,500/year including visa.
- Meydan Free Zone: Fast-growing, Dubai city centre location. Good for consultancies and digital businesses. Setup from AED 12,900/year.
- Dubai Internet City (DIC): Best for tech companies and startups. Home to Google, Microsoft, and Cisco regional offices. Premium location and costs.
- DIFC (Dubai International Financial Centre): For financial services, fintech, and law firms. Regulated by its own DFSA authority. High setup costs but premium prestige.
6-Step Registration Process
- Choose your free zone and activity — each zone has a list of permitted business activities; check your activity is allowed before proceeding
- Reserve your company name — submit 3 options; names cannot duplicate existing companies or include offensive or religious terms
- Submit your application — apply online through the free zone portal with shareholders' passport copies and personal details
- Pay the licence fee and select your office package — flexi desk (virtual), shared desk, or private office; pricing varies significantly
- Receive your trade licence — typically 2–7 working days after payment
- Open a corporate bank account — UAE banks require 4–6 weeks and significant documentation; start this process immediately after licence issuance
Required Documents
- Passport copies of all shareholders and directors (coloured, full pages)
- Proof of address (utility bill or bank statement, last 3 months)
- CV/resume of each shareholder
- Business plan (required by some zones and all banks)
- No-objection letter (if currently on UAE employment visa)
Timeline and Banking
Company registration typically takes 3–10 working days from application to trade licence. The bottleneck is almost always banking — UAE banks have strict KYC requirements, and account opening can take 4–8 weeks. Emirates NBD, Mashreq Neo, and RAKBANK are commonly recommended for free zone companies. Fintech alternatives (Wio, YAP) open faster but have transfer limits.
Mainland vs Free Zone