What is Freezone in Dubai? All You Need To Know


These demarcated areas in the UAE allow 100% foreign ownership in most cases is dedicated to specific industries. Further, they were created to support and encourage strategic development in key industries such as finance. Similarly, a freezone in the UAE is usually built with public funds and has modern facilities.

In this article, we will make sure you understand everything about these designated areas in the UAE and why they are so revolutionary. In the same vein, the freedom of the free zones in Dubai attracts companies from all industries; encourages them to register and start new companies. Moreover, these areas unburden companies from restrictions. Let us observe:

What is a Free Zone?

These are geographical areas within the UAE and are located or designated anywhere within the country. Similarly, large trading and manufacturing companies have the opportunity to relocate and incorporate here. Therefore, they guarantee massive savings on the export and transport of goods to other countries.

In the same vein, a certain business can move their production means to another country and import the resulting product to the freezone in Dubai without paying taxes or customs duties. Moreover, in this case, the organization’s profits remain in the free zone and take advantage of low-tax policies.

Standard company activities in the different free zones involve the packaging and sorting of individual products into smaller quantities or individual packages, the storage and handling of goods in warehouses (often rented out by them or the free zone), and the inspection of distribution and freight centers.

On the other hand, a free port zone is the same but connected to the sea or an airport. Similarly, it was created to unburden organizations from all types of government restrictions; thus, allowing the free flow of products and goods. Similarly, it allows the export of goods and tax-free imports, while guaranteeing tax exemptions.

These benefits encourage companies to settle here from a tax, investment, and financial viewpoint. In addition, regulations on bank transactions, requirements for workers, and trade barriers are also relaxed within a freezone in the UAE.

How to Start a Business in a Dubai Free Zone?

Start a Business in a Dubai Free Zone

If you want to start a business in a free zone area and enjoy all the advantages they have to offer; you will be glad to hear this process takes 5 simple steps.

Decide Your Business Activity

There are massive company activities that you can choose from and you are able to choose multiple activities under one license. In the same vein, your business activities will allow you to determine both the cost of your application and what business suits your company’s needs.

Choose Your Company Name

Deciding on a business name is a challenging process anywhere in the world. However, there are certain rules in the UAE in regards to naming conventions; this is a task you will want to solve as early in the process as possible.

There are various factors you must pay attention to when it comes to choosing your business name:

  • Business names cannot contain religious references.
  • Or references to any known organizations (for instance, “Mafia” or “FBI).
  • Offensive language is also forbidden.

Similarly, as there are other things to have in mind in the naming process; in Connect Free Zone we will assist you to decide a compliant name and check if it is available to register.

Complete the Paperwork & Submit Your Application

In order to set up in a freezone in Dubai, you need certain standard documentation such as shareholder passport copies, application forms, and similar. On the other hand, some free zones in the UAE will require you to provide a business plan. Similarly, it is a good idea to partner up with a company formation specialist; we can ensure everything is in place before you make your decision, this way you avoid unnecessary delays.

License Notification & Opening Bank Account

You will receive a notification as soon as the government entity in charge approves your application; this way you can collect your company documents and start working. With this documentation, you can open a bank account and start trading.

Visa processing

In conclusion, the final step in the business creation process is the visa and immigration processing. Similarly, we can also take care of this process on your behalf; assisting you with your application and liaising with the government bodies in charge.

Why Set Up in a Freezone?

Business organizations registered outside Dubai or UAE free zones cannot be owned by a foreign national. That is to say, at least 51% ownership by the foreign individual and 49% by the foreign national is compulsory. This is one of the main reasons why investors choose the UAE for investment.

Apart from this reason, there are many advantages or benefits for start-ups establishing in a freezone in Dubai. The broad spectrum of opportunities and lucrative incentives are what make the UAE free zones so popular for establishing a business. Likewise, let us observe the reasons why you should consider establishing your company in the UAE.

A Massive Range of Licenses & Activities

A business in a freezone in the UAE is allowed to engage in various activities with multiple types of licenses. In the same vein, the only thing in the UAE free zones is not allowed to, is to engage is in the insurance field.


A freezone company is protected by a high level of privacy adopted in this country about the identity of its directors, owners, and business activities within international practices.

Bank account & Registered Office

Freezone companies are able to have a registered office where they want to establish their company. In addition, you can also open a bank account outside the UAE.

It takes approx. 7 days to complete the free zone registration process, and around 14 to 21 days to obtain a residence visa when you decide to work with us. We are a registered organization; we are well informed about business regulations and formations rules in the Middle East, we have also been helping companies in the UAE for more than 2 decades.

Setting up your company in the UAE is good for your business; with lower incorporation overheads, business-friendly regulations, and a hassle-free administration. In addition, if you are searching for a business partner that can help you in the company formation process in the UAE and starting your business; in Connect Free Zone, we are here to help you.

How Many Freezones in the UAE?

Business setup in UAE free zones is one of our most demanded services. And there is no doubt about it; the country has proven its dedication to global compliance and corporate standards. Therefore, it makes the UAE stand out of the list of solely “offshore” areas.

Here are other key things you must know about them:

  • Any Freezone in Dubai is compliant with economic requirements.
  • There are no limitations on transferring funds out of the country.
  • You can open corporate accounts in any of the government financial entities.
  • You fully own your company without a local agent or partner.
  • UAE residence for your business employees and for yourself.
  • No requirement of personal presence for renewal or setup.

We offer you suitable packages for any company from the cheapest business formation in the UAE to the prestigious renowned freezone in Dubai for company setup.

4.1. UAQ FTZ – Umm Al Quwain Free Zone

Umm Al Quwain Free Zone area suits perfectly businesses or start-ups moving to the UAE for the first time to test the local market.

This freezone in the UAE is located between Ras Al Khaimah and Ajman; it is a quiet and small but quickly developing area. Similarly, keep in mind that you can run your company regardless of your company incorporation place because you do not need to visit the free zone. It remains the legal location of your registration.

On the other hand, the corporate bank account is opened in a branch of any bank you like.

4.2. RAKEZ – Ras Al Khaimah Economic Zone

The Ras Al Khaimah Economic Zone was founded after the merge of 2 free zones; RAK investment authority and RAK free trade zone; which made the free zone area really huge. On the other hand, it is one of the most popular free zones in the UAE; even individuals who have not heard about free zones in the country know about it.

This is one of the few areas having industrial land for development and tailored warehouses. In addition, you can also build or rent labor accommodation. It is also located near RAK airport and has a seaport nearby.

RAKEZ has a massive variety of business activities; you will find what you need. In other words, incorporating a company in RAKEZ Freezone starts with security approval for all countries; which may take a few days to complete. Subsequently, the business is registered within a week.

4.3. SAIF – Sharjah Airport Free Zone

The Sharjah Free Zone is located next to Sharjah international airport. Similarly, it is one of the oldest free zones in the UAE with the most developed infrastructure: land, offices, and warehouses can be leased for any company. It was established in 1995 and is host to more than 6,500 companies.

SAIF’s location is perfect for logistics and manufacturing companies who are considering establishing in a freezone for a reasonable budget.

If you are looking for business setup services in the UAE, you may want to check SAIF as a good option.

Benefits of Business Setup in a Free Zone

Benefits of Business Setup in a Free Zone

If you want to set up a business in this beautiful country, there are several reasons to choose a free zone.

Easy Setup

When you work with us, the freezone set-up process is easy and straightforward. However, the application procedure will always depend on your business activity and chosen free zone; but in some cases, you just need to provide basic information such as business documentation and passport copies. This whole process usually takes a week or two.

On the other hand, some freezones in the UAE also provide you with virtual and Flexi-desk packages; this will allow you to take advantage of the free zone facilities.

Tax and Duties

This is one of the most important reasons to choose a free zone in the UAE: The tax plan. Setting up in a free zone and benefitting from the 0% personal and corporate tax; your company is also exempt from VAT, which is currently at 5%. In other words, free zone companies are also exempt from export and import taxes too as well as being able to trade with no currency restrictions.

Foreign Ownership

As we mentioned earlier, another important benefit of setting up in a free zone is foreign ownership. Most entrepreneurs and investors from abroad wishing to business set up in Dubai Mainland must partner up with a local partner to start. This is not the case in the UAE free zones, if you work with us and set up your business here, you will retain full ownership.

How Can We Assist You to Setup Your Business in a Freezone?

We want you to successfully and easily establish your company in the country’s freezones. Therefore, that is why we offer you the best discounts, packages, and pricing if you want to set up your company in any of the UAE free zones or Mainland. In the same vein, we also offer you sponsorship services so you can establish in Dubai Mainland hassle-free.

Starting a company in a new market may be a complicated process; especially if you are on your own. Therefore, we also will allow you to set your company in the best free zones in the United Arab Emirates.

With us, you will discover what is the best location for your company. Likewise, we ensure you take advantage of all the jurisdiction’s benefits. In Connect Free Zone we compare free zones’ rules, prices, regulations, and locations regarding your company’s PRO services.

Would you like us to assist you in establishing your company in any UAE freezone? If you want your business to be successful and set up hassle-free in the UAE; or if you have additional questions. You can send an email to contact@connectfz.com.


Harneet Bhatia

Harneet-Bhatia-imgHarneet BhatiaShe is a renowned Business Sales and Golden Visa Expert, specializing in facilitating business setups in Dubai. With a comprehensive portfolio of services, she adeptly assists clients in navigating the complexities of corporate bank account creation, addressing fines issues, and managing visa services. Her expertise extends to providing VAT services and obtaining necessary DM approvals, ensuring a seamless and efficient process for her clients.

Contact Us Now