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Co-Founder & CEO movingo
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Author
Iakov Kukushkin
Copywriter, Journalist
Jul 15, 2025
Opening a company in a Dubai Free Zone is one of the best ways to start a business in the UAE. Over 300,000 companies took advantage of all the benefits that these areas have to offer last year. But what exactly are they?
We'll talk about that in this article, as well as some of the restrictions businesses face in Free Zones. We'll also give you a simple guide on how to get started. Let's dive in!
We'll talk about that in this article, as well as some of the restrictions businesses face in Free Zones. We'll also give you a simple guide on how to get started. Let's dive in!
- What is a Free Zone in Dubai?
- Why set up a business in Free Zones over Mainland? Benefits of doing business in Dubai Free Zone
- How to start a business in a Dubai Free Zone
- Documents required to start a business in Free Zone
- Cost to open a company in Dubai Free Zone
- Dubai Free Zone business ideas
- How to qualify for Dubai's Free Zone corporate tax exemptions
- Tips for success in business setup in Dubai Free Zones
- FAQ around starting a business in Dubai Free Zones
What is a Free Zone in Dubai?
Dubai has special areas called Free Zones where businesses can operate tax-free for up to 50 years if they follow certain rules. Each of the more than 20 Free Zones in Dubai is designed for a specific industry, such as technology, trading, media, or logistics.
These zones offer many benefits, but there are also some restrictions. Businesses can only operate within the Free Zone, conduct business-to-business transactions within the UAE, or access international markets. However, Free Zones are still one of the top choices for starting a business in the UAE, and there's a good reason for that.
These zones offer many benefits, but there are also some restrictions. Businesses can only operate within the Free Zone, conduct business-to-business transactions within the UAE, or access international markets. However, Free Zones are still one of the top choices for starting a business in the UAE, and there's a good reason for that.
Why set up a business in Free Zones over Mainland? Benefits of doing business in Dubai Free Zone
- 100% foreign ownership
- Full repatriation of profits
- No personal taxes, 0-9% Corporate Tax, 0% personal income tax, 0% dividends tax (in most cases, if you meet some criteria)
- No customs duties on imports/exports within the Free Zone (for some business types)
- Quick setup and simple legal process
- No need for a physical office in many cases (flexi-desk available)
Starting a business in the Mainland is a bit more complex and expensive, but it gives you access to a wider range of customers. Before you start a business, it's important to choose the right place for your business — it depends on the regulations and business opportunities in that area, taxes, and even your residency.
We have created a special table to help you compare these two types of UAE jurisdictions.
We have created a special table to help you compare these two types of UAE jurisdictions.
With more than 40 jurisdictions in the UAE, the advice of an expert before starting is very helpful. No matter what kind of business you want to start or where you want to start it, we can help. Sign up for a free into call, and we will guide you it to find the perfect solution for you.
How to start a business in a Dubai Free Zone
If a Free Zone format is right for you, how do you start a business there? Here's a quick guide on how to do so quickly and seamlessly.
1
Make a draft
Write a business plan for your new business.
Write a business plan for your new business.
2
Turn it into a masterpiece
Send us this description by email. We can study it and clarify the details.
Send us this description by email. We can study it and clarify the details.
3
Сhoose a jurisdiction
Based on your goals and the information we have in our database on all the free zones in the UAE, we'll find the best spot for you.
Based on your goals and the information we have in our database on all the free zones in the UAE, we'll find the best spot for you.
4
Activity selection
We'll compile a list of activities that your company can perform. This is important because a separate business license is required for each activity.
We'll compile a list of activities that your company can perform. This is important because a separate business license is required for each activity.
5
Company name registration
We will assist you in selecting a company name that adheres to local naming regulations and reserve it on your behalf.
We will assist you in selecting a company name that adheres to local naming regulations and reserve it on your behalf.
6
Get a license
Once we have gathered all the necessary documents and submitted the application, we will arrange for your business license. If needed, we can also help you find office space.
Once we have gathered all the necessary documents and submitted the application, we will arrange for your business license. If needed, we can also help you find office space.
7
Additional consultations
We'll give you free advice. This advice will be on taxes, reporting, bookkeeping, and running your business in general. We'll make sure you don't get scared when you start.
We'll give you free advice. This advice will be on taxes, reporting, bookkeeping, and running your business in general. We'll make sure you don't get scared when you start.
Yeah, it's that simple. You don't have to spend time studying and comparing the differences of each Free Zone. As we mentioned before, choosing the right location for your business is super important. You can see for yourself by reading our client's story. He had trouble finding employees because they started in the wrong place.
Documents required to start a business in Free Zone
You’ll typically need:
✅ passport copy;
✅ passport photo 33 x 44 mm;
✅ portrait picture with passport;
✅ full names of every shareholder’s mother and father;
✅ shareholder's complete home address;
✅ phone number of each shareholder;
✅ every shareholder’s religion;
✅ every shareholder's educational qualifications, including profession and country of diploma issuance;
✅ every shareholder’s marital status;
✅ last visit arrival stamp;
✅ 3 potential company names in the order of priority
If you're opening as a corporate shareholder, you'll also need company documents (e.g., Certificate of Incorporation, Board Resolution).
✅ passport copy;
✅ passport photo 33 x 44 mm;
✅ portrait picture with passport;
✅ full names of every shareholder’s mother and father;
✅ shareholder's complete home address;
✅ phone number of each shareholder;
✅ every shareholder’s religion;
✅ every shareholder's educational qualifications, including profession and country of diploma issuance;
✅ every shareholder’s marital status;
✅ last visit arrival stamp;
✅ 3 potential company names in the order of priority
If you're opening as a corporate shareholder, you'll also need company documents (e.g., Certificate of Incorporation, Board Resolution).
Cost to open a company in Dubai Free Zone
Before you start, you should check your budget. How much you can spend in the future depends on a few things:
Anyway, start a business in Dubai Free Zone will cost you AED 15,000 and more for a basic setup with no office and up to AED 50,000+ for a larger business with multiple visas and a physical office.
- The Free Zone you choose
- Number of visas required
- Office or flexi-desk options
- Business activity type
Anyway, start a business in Dubai Free Zone will cost you AED 15,000 and more for a basic setup with no office and up to AED 50,000+ for a larger business with multiple visas and a physical office.
Feel free to get in touch if you need help with the cost or paperwork. We'll be happy to assist you.
Dubai Free Zone business ideas
Looking for ideas? These are some of the best-performing business types in Free Zones:
🔹 E-commerce and dropshipping
🔹 IT and software development
🔹 Digital marketing services
🔹 Trading and import/export
🔹 Online education and coaching
🔹 Crypto and blockchain services (in regulated zones like DMCC)
🔹 Media production and content creation
🔹 Logistics and shipping
🔹 Management consultancy
🔹 Health and wellness services
This is just a quick list to think about. If you want more info, we've got an article about the 35 best ways to start a small business in Dubai and another one on how to make some money online.
🔹 E-commerce and dropshipping
🔹 IT and software development
🔹 Digital marketing services
🔹 Trading and import/export
🔹 Online education and coaching
🔹 Crypto and blockchain services (in regulated zones like DMCC)
🔹 Media production and content creation
🔹 Logistics and shipping
🔹 Management consultancy
🔹 Health and wellness services
This is just a quick list to think about. If you want more info, we've got an article about the 35 best ways to start a small business in Dubai and another one on how to make some money online.
How to qualify for Dubai's Free Zone corporate tax exemptions
As of 2025, the standard Corporate Tax in the UAE is 9%, but Free Zone companies can still be exempt if:
✅ They operate only inside the Free Zone or do business outside the UAE
✅ They don’t deal directly with Mainland UAE clients (or do so via special rules)
✅ They meet the “Qualifying Income” conditions set by the UAE Ministry of Finance
✅ They maintain proper accounting records and meet substance requirements
✅ Their annual taxable profit is less than AED 375,000
We have a detailed guide that covers everything you need to know about exemptions and other important information about this tax. An even more reliable way to understand and keep up with the latest regulatory updates is to use professional tax advisors' services.
✅ They operate only inside the Free Zone or do business outside the UAE
✅ They don’t deal directly with Mainland UAE clients (or do so via special rules)
✅ They meet the “Qualifying Income” conditions set by the UAE Ministry of Finance
✅ They maintain proper accounting records and meet substance requirements
✅ Their annual taxable profit is less than AED 375,000
We have a detailed guide that covers everything you need to know about exemptions and other important information about this tax. An even more reliable way to understand and keep up with the latest regulatory updates is to use professional tax advisors' services.
Tips for success in business setup in Dubai Free Zones
- Choose the right Free Zone for your activity – It saves you money and legal hassle.
- Understand visa limits – Some licenses allow 1 visa, others 6 or more. Choose based on your team size.
- Check the location and facilities — Free Zones can be very different in what they offer. Some have great warehouse facilities, but others might not have any at all.
- Start small – Many Free Zones offer low-cost starter packages.
- Stay compliant – File renewals and reports on time to avoid fines.
- Use a professional business setup service – It saves time, avoids mistakes, and speeds up your launch.
movingo is an all-in-one platform for company formation, visas, and everyday legal in the UAE. We're here to help you and ensure that you don't encounter any roadblocks on your journey. Check out this
FAQ around starting a business in Dubai Free Zones
It usually costs AED 15,000 ($4,100), depending on the Free Zone and visa needs.
Dubai South and IFZA often offer the lowest-cost packages for startups and freelancers.
You can’t trade directly with the Mainland without a local distributor or agent.
Free Zone companies offer 100% ownership but limited trade rights; LLCs can trade in the Mainland but need a local partner.
Choose a Free Zone, select your activity, submit documents, pay fees, and get your license. Or just text us and we’ll guide you through it.
Only in designated areas and with approval; otherwise, property ownership is limited.
Yes, if the company meets qualifying criteria and doesn’t trade with the Mainland.
They can operate within the Free Zone or internationally, but Mainland trade needs a special setup.
E-commerce, IT services, and trading are among the most profitable sectors.
Free Zone establishment has a single shareholder; a Free Zone company can have multiple shareholders.
Usually between 3 to 10 business days.
Yes, once your license and company documents are issued.
Yes, if they meet the UAE’s tax exemption rules for Free Zones.
Only through a local agent or by opening a branch on the Mainland.
Commercial, service, industrial, and freelance licenses, depending on the activity.
Yes, but you need Free Zone authority approval and may need to update your license.
Yes, freelancers are usually limited to specific sectors and may have visa or activity restrictions.
In fact — no. Learn more about it in our article.
It’s a a unified ID system for businesses in Dubai, whether they're in Free Zones or on the Mainland.
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