Free Zone Setup Process
What is a Free Zone?
A designated geographic area within the UAE where companies can operate with special regulatory and tax benefits. Each free zone is governed by its own authority and regulations.
Major UAE Free Zones
Dubai: JAFZA (logistics, trading), DMCC (commodities, crypto), DIC (technology), DIFC (financial services), Dubai Silicon Oasis (technology), DAFZA (aviation, logistics).
Abu Dhabi: ADGM (financial services), KIZAD (manufacturing, logistics), Masdar City (clean technology), Twofour54 (media and creative).
Other Emirates: SAIF Zone (Sharjah), RAKEZ (Ras Al Khaimah), Hamriyah Free Zone (Sharjah industrial), Ajman Free Zone, Fujairah Free Zone.
Setup Process
Step 1: Choose the Right Free Zone - Consider industry specialization, costs, location, infrastructure, and activity availability.
Step 2: Submit Application - Complete application form, submit passport copies and photos, provide business plan if required, submit bank reference letter.
Step 3: Get Initial Approval - Free zone authority reviews application. Approval typically within 1-3 business days. Application ID assigned.
Step 4: Sign Lease Agreement - Choose office type (flexi-desk, office, warehouse). Sign lease agreement. Pay lease and registration fees.
Step 5: Receive License - Free zone issues trade license. Typically within 1-5 business days. Certificate of incorporation provided.
Step 6: Open Bank Account - Use license and incorporation documents. Meet bank compliance requirements. Provide UBO and KYC documentation.
Step 7: Process Visas - Apply for investor/employment visas. Medical fitness test. Emirates ID application. Residency visa stamping.
Free Zone Company Types
FZE (single shareholder), FZCO (2-50 shareholders), Branch of Foreign Company, Representative Office.
Costs
Setup: AED 12,000-50,000+. Annual renewal: AED 10,000-35,000+. Visa: AED 3,500-7,500 per visa. Office: AED 8,000-25,000 per year (flexi-desk).
Visa Allocation
Flexi-desk: 1-3 visas. Small office: 2-5 visas. Larger offices: more visas based on size. Each visa requires medical, Emirates ID, and insurance.