If you want to set up your own business in the UAE, setting up in a Free Zone can be one great way to do it. These areas are great for conducting business and have many advantages that help you set up and expand your business more easily.
Here in this blog, we will make everything clear—what is a Free Zone, why is it advantageous, and how you can begin easily step by step.
Therefore, what is a UAE Free Zone?
Free Zone is a special business strip in the UAE where foreign businesspeople can establish a company with numerous advantages. You own the entire company (no local sponsor required!), tax benefits, and state-of-the- art offices. Each Free Zone specializes in various sectors such as technology, trading, logistics, and media, so you can pick one that is best for your business.
Why We Love Free Zones (And You May Too)
Here’s why Free Zones are such a big hit:
1. 100% Business Ownership
You’re in charge. There’s no need to introduce a local partner to co-own.
2. No personal or business tax.
Save more of your money! Most Free Zones offer:
3. 0% corporation tax (on certain profits)
No personal income tax
4. Bring Your Profits Home with Ease
You have the liberty of moving money abroad without any limitation.
5. Simple & Quick Installation
Less paperwork. Faster approvals.
6. Many choices for working spaces
You can pick what works best, from virtual offices to big warehouses.
7. Visa Support
Obtain visas for yourself, your workers, and even for your relatives.
8. No Currency Restrictions
Spend whatever money you wish in your business activities.
9. Industry-Specific Benefits
Each Free Zone is specialized in a particular industry, so you will be with like-minded people.
Who Should Watch Free Zones?
Honestly? Practically any individual who wishes to do business in the UAE. But particularly:
- Startups and solo entrepreneurs
- Freelancers and remote employees
- Small and medium-sized enterprises
- Internet businesses and online shopping websites
- Enterprises entering the UAE from abroad.
Step-by-Step Guide to Starting in a UAE Free Zone
Step 1: Identify the Correct Free Zone.
Consider a Free Zone that fits your type of business, budget, and your future plan. Here are some of your options:
Meydan Free Zone
Suits: Businesses in the technology and internet industry
Why It’s Helpful: You can do all of it online.
IFZA Global Free Zone Authority
Attire: Typical businesses and start-up firms.
Why It’s Good: Low-cost plans with adjustable licenses.
RAKEZ – Ras Al Khaimah Economic Zone.
Suits: Industry, manufacturing, and commercial firms.
Reasons for Its Advantages: Ample warehouse space and low-cost rental land.
Ajman Free Zone
Suits: Small and medium businesses
Advantages It has low-startup costs and easy registration processes.
Complete the Tip: Make sure you choose the right Free Zone that caters to your business type, as well as your preferred
sales region.
Step 2: Select What You Will Do
What does your business do? Is it manufacturing, consultancy, online services, or trading? That will decide what type of
license you require.
• Commercial License – for buying and selling goods
• Service License – for consultancies, agencies, etc.
• Industrial License – for manufacturing or production
Step 3: Select a Business Name
Choose something that represents what you do. Simply do not choose something that is religious or offensive. The Free
Zone has to approve it.
Step 4: Select the Type of Company
You’ll register as:
- A Free Zone Company (FZ LLC or FZE)
- A foreign subsidiary of a parent company (overseas or UAE)
- Sole establishment (depending on the Free Zone)
Step 5: Send the Paperwork.
They tend to request:
- Passport copies (owners + managers)
- Proof of address (bill or statement)
- Business plan (occasionally)
- NOC (No Objection Certificate) if you are presently in the UAE with some other sponsor.
Step 6: Get Your License
Once you’ve been accepted, you will be issued your trade license. You’re in business, congratulations!
Step 7: Choose Your Office
Choices vary from:
- Virtual office (no physical space required)
- Shared workspaces
- Personal workspaces
- Industrial units or warehouses
Select what best suits your team size and your visa needs.
Step 8: Request Your Visa
Most Free Zones have a quota of visas. You can be issued with visas for:
- You (the owner)
- Your employees
- Your spouse and children
Step 9: Open a Business Bank Account
Visit a UAE bank and get a business account in your trade license's name. Each bank will have its own requirements of what you will need, so do call ahead first.
What is the setup cost of a Free Zone Company in the UAE? Expected Free Zone Company Setup Costs (UAE)
1. Trade License – 10,000 – 25,000 AED Per Year Free Zone and type of business activity determined. Few Free Zones offer start-up packages with subsidized rates.
2. Office Space – 5,000 – 30,000 AED Per Year Involving flexi desk solutions, co-working, private office, or warehouse Varied depending on size, location, and internal policies of the Free Zone.
3. Visa (Per Person) – 3,000 – 6,000 AED This covers Emirates ID, medical, visa stamping, and processing. There will be a limit for the number of visas as well as discussion as to who may in fact obtain them, depending on the type of
Office, you are getting and Free Zone regulations.
4. Business Bank Account Setup- Are Subject to Banks & Fees
Some banks charge account opening fees or minimum balances before they will open the account for your business. Depending on which bank you want to proceed with, you will have to choose it based on your business
and expected activity.
Pro Tip: Some Free Zones have packages that come with office space, visas, and licenses—typically
Pro Tip: If you are on a tight budget, go for Free Zones such as IFZA or Ajman. They are cost-effective and provide good options.
Some Additional Tips from Taxtube
Ask the Experts: Taxtube can help you choose the best Free Zone for you and manage all the paperwork.
Understand What You’re Getting: Free Zones may be cheaper but offer fewer visa places or smaller offices.
Plan for Growth: Choose a configuration that will facilitate expansion in the future.
Final Thoughts
Establishing a company within a UAE Free Zone is one of the simplest and
most affordable methods of company formation here. You are fully in control, you enjoy good tax advantages, and a simple setup procedure. It is perfect for start-ups, freelancers, or even big businesses who wish to grow.
If you are interested in conducting business in the UAE, a Free Zone is worth considering.
Need a Hand Getting Started?
At Taxtube, we have assisted numerous entrepreneurs and businesses in establishing in the UAE Free Zones. We make it easy and simplify it for you—from selecting the appropriate Free Zone to handling licenses, visas, and bank
accounts.
Ready to begin your UAE business venture? Contact Taxtube today for a consultation. Let’s get your business up and running!
06 October 2025 
