5 Easy Steps to Start a Company in Dubai Free Zone

Vaibhav Rathi

03 Apr, 2025

Introduction

The procedure of starting a business in a Dubai Free Zone is broken down into five easy phases, making it incredibly simple to complete. Aspiring business owners should first choose their desired Free Zone based on their intended commercial operations. Second, they must select a business structure and legal entity that complements their objectives. The next step is to obtain the necessary licences and permits to ensure compliance with local laws. The next step is to establish a physical address within the selected Free Zone, frequently through flexible leasing options. Because of the ease of conducting business and starting a firm that Dubai offers to global and local investors, it has been one of the most appealing commercial destinations for new businesses. The five simple processes to incorporate a business or launch a business in the Dubai Free Zone are outlined in this article.

What is a Free Zone Company in Dubai?

An organization located in a free zone, a special economic zone where investors can get a special tax-exempt status and the business conditions are favourable enough for any investor to start their own firm, a free in Dubai easily. The area is known as the Corporation. There are no limits imposed by any sponsor, agent etc., and the investor is the complete owner of the business.

What Are The 5 Steps to Start a Company In Dubai Free Zone?  

Due to the minimal paperwork and time requirements, Dubai has made it relatively simple to establish a business in the Dubai-free zone. Here are five simple procedures for starting a business in the Dubai Free Zone:

• Decide on the legal entity type: The first step in establishing a business in the Dubai Free Zone is to decide on the kind or legal form of the business entity. A corporate organisation may operate in the Dubai Free Zone as either a Free Zone Limited Liability Company (FZ LLC) or a Free Zone Company (FZ Co.).

Free Zone Establishment (FZE)

How the two firms differ from one another depends on the number of shareholders and whether each shareholder is a natural person or a legal entity. Not all free zones may register both types of enterprises; it is conceivable. From one free zone to the next, it differs.

Many of the present domestic and international enterprises opened branches in these free zones.

• Choosing a trade name: The promoters must choose a trade name under which to conduct their business in addition to deciding on the sort of business entity. The promoters are advised to confirm if the chosen name is permissible under local legislation or whether another party has already registered it with the relevant free zone authority or the Department of Economic Development.

According to the Department of Economic Development, the following considerations should be made when selecting a trade name in Dubai. Here is the following:

• It must conform to the legal form of the company, must not be already registered, must be compatible with the required type of activity, and must comply with its legal status without any religion, name of the governing body. , or the names or logos of any external bodies
• Apply for a business licence: Depending on the type of business the promoters want to run in the free zone, the third step is to apply for a business licence. A promoter can open a firm in any of the various free zones that are focused on boosting a particular commercial activity. Businesses can be started in the financial, educational, retail, hotel, and media industries.
• Deciding on the location of the company’s offices: The promoters might choose to buy or rent office space in the free zones. The type of business activity a company chooses to pursue, and the number of employees it wishes to retain will decide the office space required before it begins operations. A flexible desk can be as little as 20 to 30 square metres and as large as 2000 square metres spread out over several floors.
• Any business established within a free zone is governed by its rules. In order to receive the necessary approvals, the promoters must submit an application with the needed documentation. The list of documents will depend on the kind of business the promoters intend to launch, how the business entity is set up, and the particular regulations established by the free zone authorities.
• Initial approval: To obtain the initial approvals, the authorities must be provided with the following documents.

Filing the application 

Business plan

• A copy of the business licence or registration certificate if the company is already registered (this requirement only applies to local businesses).
• Coloured copies of the shareholders’ passports and those of the newly appointed director or manager
• Sample signatures of the new firm’s director/manager and the shareholders of the company
• Two years’ worth of the business entity’s audited financial reports or a letter of recommendation from the shareholder’s personal bank.
• In the case of people, a letter stating that the present sponsor has no objections
• Entity Title Deed Registry Identification Code Form (RIC) for Director/Manager (Original and Notarized) Letter of Intent

Registry Identification Code Form (RIC) (Original and Notarized)

• Registration: The promoter has to pay both the registration fee and license fee after obtaining the preliminary approval of the authority. The licence fee will be established based on the commercial activity that the promoter hopes to engage in. The following documents must then be supplied in order to register:
• Filled out the registration application
• (Notarized and attested) Board resolution appointing the Manager/Director
• Given to the manager or director and notarized and attested, a power of attorney
• Noted and attested MoA and AoA Board
• Manager or Director’s sample signature, notarized and attested
• Manager or director’s passport-size photo that has been notarized and authenticated
• Information on share capital Visa and licencing requirements;
• A business licence is issued
• The authorities create the lease documentation
• It should be highlighted that authorization from external authorities will be required in extreme instances.

Conclusion 

Entrepreneurs can confidently navigate the journey and position their businesses for growth in Dubai’s dynamic and competitive business environment by carefully choosing the Free Zone, choosing the best legal structure, securing a physical presence, and successfully registering the business entity.

The tax benefits, the simplicity of re-exporting, the stable economy, and the convenience of doing business provide all reasons why establishing a business in Dubai free zone.

Frequently Asked Questions

Read Our Article: Procedure for Company Formation in Dubai