Quick summary

• Free Zone licenses offer 100% foreign ownership, tax benefits, and industry-specific advantages.
• Over 30 Free Zones in Dubai cater to various sectors, including technology, media, and finance.
• License types: Commercial, Service, and Industrial.
• Setup time: As quick as 3–5 working days with flexi-desk and visa options.
• Ideal for Startups, freelancers, SMEs, and international traders.

Complete guide to free zone license in Dubai

Looking to start a business in Dubai with 100% ownership and zero hassle? A Free Zone license might be your best option. Dubai offers over 30 specialized Free Zones, each designed to support specific industries from tech and media to logistics and finance. This guide walks you through everything you need to know about getting a Free Zone license in Dubai, including types of permits, setup process, benefits, costs, and eligibility so you can launch with clarity and confidence.

What is a free zone license in Dubai?

A Free Zone license is a business license issued by a Free Zone Authority (FZA) in Dubai. It enables investors and entrepreneurs to establish a company within a designated Free Zone area, benefiting from 100% foreign ownership, customized office packages, and tax incentives.

There are three main types of Free Zone licenses:

• Commercial License: For trading, import/export businesses.
• Service License: For professional services and consultancy.
• Industrial and Manufacturing License: For manufacturing or light industrial activities.
• Media License: suitable for media related companies.
• Freelancer License: Ideal for freelancers.
• Educational License: For educational purposes.

Why choose a free zone license?

Here are the top reasons why entrepreneurs prefer Free Zone licenses in Dubai:

• 100% foreign ownership.
• Full repatriation of profits & capital.
• low custom tariff, 0 to 5% for almost all goods.
• Low inflation rate .
• Fast company registration (3–5 days).
• Flexi-desk and virtual office options.
• Low-cost packages for startups and freelancers.
• Residency visa eligibility for investors and employees.
• No personal income tax.

Popular free zones in Dubai

Free Zone	Industry Focus
DMCC (Dubai Multi Commodities)	Trading, commodities, fintech
Dubai Silicon Oasis (DSO)	Technology, electronics, IT
Dubai Airport Free Zone (DAFZA)	Aviation, logistics, electronics
Dubai Media City (DMC)	Media, PR, publishing
Dubai Internet City (DIC)	Software, telecom, digital services
Dubai International Financial Centre (DIFC)	Banking, finance, legal
Jebel Ali Free Zone (JAFZA)	Manufacturing, trading, logistics

Step-by-step process to get a free zone license in Dubai

1. Choose the Free Zone
Select a Free Zone that suits your business activity and industry.

2. Choose Business Activity
Decide what you want to do trading, consultancy, IT services, logistics, etc. Each Free Zone has a list of permitted activities.

3. Select Legal Structure

• Free Zone Establishment (FZE – 1 shareholder).
• Free Zone Limited Liability Company.
• Free Zone Company (FZC – 2+ shareholders).
• Branch of an existing local or foreign company or free zone entity.

4. Reserve Trade Name
Pick a unique trade name that matches your activity. It will be subject to the approval of the Free Zone authority.

5. Submit Application and Documents

• Passport copy.
• Visa or entry stamp (if in UAE).
• Passport-size photo.
• Application form.
• Business plan (for some zones).
• Copy of commercial license/registration certificate (if shareholder is an entity).

6. Sign Legal Documents
Free Zone authority will prepare and provide:

• Memorandum of Association (MOA).
• Lease agreement (for office or flex-desk).
• Licensing documents.

7. Receive License and Start Operations
Once approved, you’ll receive your Free Zone license and can start running your business.

Visa options with free zone license

You can sponsor:

• Yourself (Investor/Partner Visa).
• Employees.
• Family members (spouse, children, dependents).

The number of visas you can apply for depends on:

• Your license package.
• Office space size.

Most Free Zones allow 1 to 6 visas with a flexi-desk.

Renewal & compliance

Free Zone licenses are valid for 1 year and must be renewed annually. Renewal includes:

• License renewal fee.
• Office/flex-desk renewal.
• Updated tenancy contract.
• Visa renewals (if applicable).

Some Free Zones also require:

• Basic accounting and audit reports (depending on activity).
• VAT registration (if applicable).

FAQs About free zone license in Dubai

1. What’s the key difference between Free Zone and Mainland?
Mainland allows full access to the UAE market; however, the Free Zone is limited unless a branch is open.

2. Are Free Zone licenses more affordable than Mainland?
Generally, yes. Free Zones offers budget-friendly packages with flexi-desks.

3. Can Free Zone companies serve Mainland clients?
Only via a branch.

4. Is Free Zone setup ideal for e-commerce?
Yes, if targeting international markets. Choose Mainland for local delivery.

5. Do Free Zone companies pay corporate tax?
Yes, if profits exceed AED 375,000 unless exempted by the Free Zone.

6. How fast can I get a Free Zone license?
Usually within 3–5 working days.

7. Do I need an office in a Free Zone?
Yes, but a flexi-desk or virtual office is often sufficient.

8. Can I switch to Mainland later?
Yes, but it requires restructuring, re-licensing, and relocation.

9. Which setup is better for long-term growth?
The Mainland is better suited for UAE-wide operations; the Free Zone is ideal for global and lean setups.

Ready to launch your free zone business in Dubai?

A Free Zone license in Dubai gives you the freedom, flexibility, and ownership you need to grow your business globally without heavy overheads or long timelines. At Kanoony, we guide you from idea to license helping you choose the best Free Zone, submit paperwork, and even open a bank account.