In the United Arab Emirates, a free zone is a geographical area or territory that is permitted to engage in a specific trade activity or collection of activities. The establishment of a business in the Dubai Freezone necessitates the acquisition of a license, which is granted based on the company’s specific business operation.
The Free zone License in Dubai is granted based on the company’s specific business operation. The Free Zone Authority (FZA) is the governing body in charge of activities such as license issuance and activity in a Free Zone. The commercial laws that apply to mainland UAE companies do not apply to free zone companies.
Why Establish a Business in the Dubai Free Zone?
One of the most appealing aspects of establishing a business in the Dubai Freezone is that foreign investors can own 100 percent of the company. Aside from full ownership benefits, Dubai’s free zone company creation offers monetary benefits such as complete tax deductions, 100 percent repatriation benefits, and no foreign exchange constraints.
When your company is permitted for a Free Zone business, the Free Zone Authority issues it one of the Dubai Freezone licenses, such as a Trade License, an Industrial License, a Service License, or a National Industrial License. As long as the lease agreement is in effect, these free zone licenses in Dubai/UAE can be renewed annually.
To do business in any of the UAE Free Zones, all businesses, regardless of legal framework or scale, must have a valid trade license. Among the Dubai Freezone Licenses that are issued include, Professional License – Required for service-oriented businesses and consultancies.
Industrial license – Required for manufacturers, importers, and exporters. General Trading License – The General Trading license allows the trader to exchange a broad range of products and services. Warehousing license – the investor can obtain this license in order to meet various warehousing requirements such as storage.
Dubai free zone license and visa costs
The cost of forming a business in one of Dubai’s free zones varies depending on the package you choose. The cost of a free zone license in Dubai in tandem with the number of services you need, the size of your facility, and the number of employees you have. If you’re searching for the cheapest free zone license, establishing a company in a free zone is often the most cost-effective method of company creation in Dubai.
Flexi-desk package, which includes a service license, use of a common area workspace, and eligibility for two visas, starts at AED 18,000 per year. However, the cost can vary with a change in specifications like an increase in the number of visas and desks among other things.
A number of licenses are provided in Dubai to start a new business in the free zone. Obtaining the required license depends on the type of business that is being planned by the investor to set up within a free zone. The following types of licenses are provided are available for business entities within the Free zones of Dubai.
Types of Free Zone license in Dubai
To start a successful business in the Dubai Freezone, you should know about the type of licenses available to entrepreneurs based on the nature and requirements of their business.
Here are 4 types of business licenses to start a business in the Dubai free zone:
1. Commercial license for free zones
The business entities which are involved in trading activities within and outside the UAE will need to apply for a commercial license. Having a commercial license comes with its benefits and one of the many benefits is that one can at least engage in a maximum of 10 activities under a single commercial license. Some of the activities allowed under a commercial license in the Free zone are:
- Computer Software Trading
- Plastic Bags & Containers Trading
- Medical Gas Trading
- Agricultural Pesticides Trading
- Acids & Alkaline Trading
- Wooden Products Trading
- Pipes & Fittings Trading
- Food & Beverages Trading
- Audio-Visual, Recording Equipment & Accessories Trading
- Perfumes & Cosmetics Trading
2. Industrial license for Free zone
The authorities in the United Arab Emirates have granted certain rights to companies that have obtained industrial licenses. The aim is to encourage industries and increase investment in the industry. In order to acquire an industrial license, the company must have a physical existence within the country. The industrial license is given to different sectors within the free zone, some of which are:
- Garments Manufacturing License
- Pastry & Sweets Manufacturing
- Fabrics & Textiles Embroidering
- Carpets Manufacturing
- Mineral Water Bottling
- Fishing Net Making
- Uniforms Manufacturing
3. Professional license for Free zones
These Licenses are required by professionals, service providers, artists, etc. Professional License is for those who share their expertise as a service. Any individual or business involved in the use of people’s intellectual abilities will need to obtain a Professional License in order to offer their services in Dubai and the rest of the UAE.
If there is more than one male owner, the business would be known as a Civil Works Corporation. Consultants, auditors, and lawyers may obtain professional licenses in Dubai. IT service providers, mechanics, and craftsmen, among others, can apply for a UAE Technical License.
An ex-pat with a technical degree will own 100% of the company and be eligible to become the ultimate owner. The activities allowed under the professional license are:
- Electronic Engineering Consultancy
- Mechanical Engineering Consultancies
- Science & Technology Consultancy
- Immigration Consultancy
- Corporate Services Provider
- Educational Consultancies
- Health Awareness Consultancy
- Marketing Research & Consultancies
- Project Management Consultancy
- Media Consultancy
- Event Management Consultancy
- Travel & Tourism
4. Trading license for business entities in Free Zones
This is another type of Free zone license in Dubai that can be applied for by the investor with the main activities falling under it is the import and export of goods. This license is also given for the purpose of distribution and storage-related activities. This license is also available for the distribution of goods within the UAE market if it is to be carried out through a local distributor.
Benefits of obtaining a free zone license in Dubai
The investor enjoys many benefits that come with the free zone license. Many such benefits are:
- Free zone companies are ideal for foreign investors who seek 100% foreign ownership.
- Free zone regions have tax exemption benefits. They are devoid of corporate tax, Income tax, and personal tax.
- Free zone jurisdictions do not have foreign exchange restrictions.
- Hassle-free employee recruitment formalities
- Investors can enjoy complete repatriation benefits in terms of profit and capital.
- Free zone entities are devoid of export and import charges.
- Enjoy logistic advantage
- Ideal for start-up ventures, and small and medium business establishments. Free zone regions mainly have full-fledged offices and workspaces.
- Well-equipped and ample communication facilities
Get Your Free Zone License in Dubai
Shuraa Business Setup (India Branch) can assist you in getting your business licenses in the shortest time possible which is 24 working hours. Apart from this, we help businesses with their banking, working space, PRO, visa, and other sorts of needs.
Feel free to contact our expert consultants at