Aug 11, 2025

Step-by-step guide to business setup in Dubai free zone

Step-by-step guide to business setup in Dubai free zone

Quick summary

Step-by-step guide to business setup in Dubai free zone

Setting up a company in a Dubai Free Zone is one of the most efficient ways to launch your business in the UAE. Whether you’re a first-time entrepreneur or an international company, Free Zones offers clear benefits: 100% ownership, low taxes, flexible visa options, and a fast registration process. In this step-by-step guide, we’ll walk you through everything you need to know from choosing the right Free Zone to receiving your license and starting operations.

Why choose a Dubai free zone?

Here’s why thousands of entrepreneurs choose Free Zones in Dubai:

Step-by-step process to set up a free zone company in Dubai

Step 1: Choose the right free zone

Free ZoneFocus Area
DMCCTrading, commodities, crypto
DICTech, software, IT
DMCMedia, PR, advertising
DAFZAAviation, logistics
SHAMSFreelancers, startups
IFZAGeneral services and trading

Step 2: Define your business activity

Your activity determines your license type and eligibility.
Common license types:

Step 3: Select a legal structure

Depending on the number of shareholders:

Step 4: Reserve a trade name

Choose a business name that:

It will be subject to the approval of the Free Zone authority.

Step 5: Submit application & documents

DocumentPurpose
Passport copyID verification
Entry visa / stampIf applying from within UAE
Passport-size photoFor license & visa file
Business planRequired in some Free Zones
Application formProvided by Free Zone Authority
Copy of commercial license/registration certificate and other corporate documentsIf shareholder is an entity

Step 6: Sign legal documents

Step 7: Receive your license

Once all documents and payments are processed, your company will receive:

Step 8: Apply for a residency visa

You can now apply for:

Visa quotas depend on the Free Zone and the size of the office.

Free zone license renewal process

Free Zone licenses must be renewed annually. Renewal requires:

Frequently asked questions (FAQs)

  1. How long does it take to set up the Free Zone?

    Typically, 3 to 5 working days, depending on the zone and documents.

  2. Can I own 100% of my Free Zone company?

    Yes, all Free Zones allow full foreign ownership.

  3. Do I need to live in Dubai to start a Free Zone company?

    No, many zones allow remote setup.

  4. Which Free Zones are best for small businesses?

    SHAMS, IFZA, and RAKEZ offer low-cost options and multi-activity licenses.

  5. Can I sell in the Dubai Mainland with a Free Zone license?

    Only by opening a Mainland branch.

  6. Are Free Zone companies taxed?

    Yes, corporate tax applies to profits above AED 375,000 unless exempt.

  7. Can I upgrade my business license later?

    Yes, most Free Zones permit the addition of new activities or modifications to existing structures.

  8. What if I want to close my company?

    You must apply for deregistration and liquidation, cancel your visas, and settle any outstanding liabilities.

Launch your Dubai business with confidence

Setting up in a Free Zone gives you more than just a license, it gives you full ownership, tax efficiency, and the freedom to grow globally with minimal hassle. You get faster approvals, lower overheads, and access to a thriving ecosystem of investors, partners, and customers. It’s the most innovative way to enter the UAE market while keeping control of your business. Partner with Kanoony for a Smooth, Strategic Setup.At Kanoony, we guide you from start to success from choosing the right Free Zone to handling documents, securing visas, and opening your business bank account.

Book your free consultation today!

No hidden fees. Just flexible options.

Kanoony’s packages are designed around your needs. Choose what works for
you and get started with a free consultation today.

  • Essential

    2,999/mo
    • Business Setup & Renewal
    • Company Amendment
    • Residency Visa
    • Relationship Manager
    • Bank Account
    • Accounting: 10 transactions
    • Corporate Tax Registration
    • Corporate Tax Filing
  • Plus

    5,999/mo
    • Business Setup & Renewal
    • Company Amendment
    • Residency Visa
    • Relationship Manager
    • Bank Account
    • Accounting: 20 transactions
    • Corporate Tax Registration
    • Corporate Tax Filing
    • VAT Registration
    • VAT Filing
    • Lawyer Consultation: 4 x 15min
    • Contract Drafting & Review: 4 pages
  • Premium

    14,999/mo
    • Business Setup & Renewal
    • Company Amendment
    • Residency Visa
    • Relationship Manager
    • Bank Account
    • Accounting: 50 transactions
    • Corporate Tax Registration
    • Corporate Tax Filing
    • VAT Registration
    • VAT Filing
    • Lawyer Consultation: 12 x 15min
    • Contract Drafting & Review: 12 pages
    • Will Registration
    • Legal Translation: 48 pages
    • Legal Notices: 4
    • Legal Templates: 500+
    • Notary Public Appointment
    • Discount on Additional Services: 20%
  • Essential

    2,499/mo
    • Business Setup & Renewal
    • Company Amendment
    • Residency Visa
    • Relationship Manager
    • Bank Account
    • Accounting: 10 transactions
    • Corporate Tax Registration
    • Corporate Tax Filing
  • Plus

    4,999/mo
    • Business Setup & Renewal
    • Company Amendment
    • Residency Visa
    • Relationship Manager
    • Bank Account
    • Accounting: 20 transactions
    • Corporate Tax Registration
    • Corporate Tax Filing
    • VAT Registration
    • VAT Filing
    • Lawyer Consultation: 4 x 15min
    • Contract Drafting & Review: 4 pages
  • Premium

    12,499/mo
    • Business Setup & Renewal
    • Company Amendment
    • Residency Visa
    • Relationship Manager
    • Bank Account
    • Accounting: 50 transactions
    • Corporate Tax Registration
    • Corporate Tax Filing
    • VAT Registration
    • VAT Filing
    • Lawyer Consultation: 12 x 15min
    • Contract Drafting & Review: 12 pages
    • Will Registration
    • Legal Translation: 48 pages
    • Legal Notices: 4
    • Legal Templates: 500+
    • Notary Public Appointment
    • Discount on Additional Services: 20%