How to Get a Free Zone License in Dubai: Step-by-Step Business Setup Tips

Starting a business in the UAE has never been more appealing, especially with the simplified process of getting a free zone license in Dubai. Free zones offer 100% foreign ownership, tax exemptions, and streamlined regulations that attract entrepreneurs from around the world.

Here’s a complete step-by-step guide to help you understand how to obtain a Dubai free zone license and get your business up and running in no time.

1. What Is a Free Zone in Dubai?

A free zone is a special economic area in Dubai designed to encourage foreign investment. These zones offer exclusive benefits such as zero corporate tax, full ownership, and easy repatriation of profits.

Dubai has over 30 free zones, each catering to different industries like media, finance, IT, logistics, and healthcare.

2. Why Choose a Free Zone License?

Obtaining a free zone license in Dubai brings multiple benefits for entrepreneurs:

• 100% ownership without needing a local sponsor

• Full repatriation of profits and capital

• No import or export duties

• Fast-track visa and company registration process

• Access to world-class infrastructure

These advantages make free zones an ideal choice for startups, SMEs, and international investors.

3. Choose the Right Free Zone

Select a free zone that aligns with your business activity. For example:

• Dubai Internet City – for tech companies

• Dubai Media City – for media, marketing, and publishing

• Jebel Ali Free Zone (JAFZA) – for logistics and manufacturing

• Dubai Multi Commodities Centre (DMCC) – for trading and financial services

Each free zone has its own authority, setup process, and pricing.

4. Select Your Business Activity

Your chosen business activity must match the free zone’s permitted list. This could include trading, consultancy, industrial, or service-based activities. Misalignment may result in license rejection or future legal issues.

5. Decide on Company Structure

Common legal structures in Dubai free zones include:

• FZ-LLC (Free Zone Limited Liability Company)

• Branch Office

• FZE (Free Zone Establishment – single shareholder)

Your choice affects ownership, documentation, and capital requirements.

6. Apply for Initial Approval

Submit a business plan and necessary documents such as:

• Passport copies of shareholders

• Proposed company name

• Proof of address

• Business activity details

• Visa application form (if required)

Once approved, you'll receive initial confirmation to move forward.

7. Select and Lease Office Space

Most free zones require a physical office. Options include:

• Flexi-desks (shared desks)

• Private offices

• Warehouses or retail units

Leasing space within the free zone also validates your license eligibility.

8. Finalize Documentation & Pay Fees

Prepare and submit final documents:

• Memorandum of Association (MOA)

• Shareholder resolutions

• Tenancy contract

• Passport-size photos

• Payment of license and visa fees

Costs vary by zone but typically range between AED 12,000 to AED 50,000.

9. Collect Your Free Zone License

After document verification and payment, you’ll receive your free zone license in Dubai—usually within 3–10 business days. This officially registers your company and allows legal operation within the free zone.

10. Apply for UAE Residency Visas

Once licensed, you can sponsor yourself, employees, and family members under UAE residency. Visa quotas depend on your leased space size and license type.

Final Thoughts

Getting a free zone license in Dubai is one of the smartest ways to launch a business in the UAE. The clear legal framework, 100% ownership, and strategic location offer unmatched advantages for entrepreneurs. Whether you're launching a tech startup or opening a trading company, Dubai’s free zones make it easy to go global.