Dubai Free Zone - Company Formation
LAST UPDATED: 10/09/2024
Dubai freezone company formation remains one of the most highly demanded types of business setup in UAE.
Dubai freezone company setup gives a number of advantages:
- It is easier to open a bank account for a Dubai company
- The company is more recognized locally and globally
- Higher chances of getting resident visas for certain “high risk” nationalities
- Possibility to rent an office in well-known business districts
Dubai Multi Commodities Center
Key features:
| Established | 2002 |
| Licenses types | Service, Trading, Investment |
| Facilities | Flexi-desks, Offices |
| Visas | 3 visas with flexi desk, multiple visas with office |
| Setup time | 3 days registration, 2 weeks pre-approval |
DMCC stands for Dubai Multi Commodities Center. It is by far one of the most well-known and highly reputable Free Zones in UAE. It’s the world’s biggest Free Zone, which was 5 times awarded as a “Global Free Zone of The Year” by Financial Times.
It’s home of Dubai gold and commodities exchange, Dubai diamond exchange and Dubai pearl exchange. DMCC also has Tea and Coffee centers, promotes trading of agro commodities and metals.
DMCC is located in the area of Jumeirah Lakes Towers, which has both commercial and residential towers and looks like a city within a city. It has 2 metro stations and a convenient access to the main highways of Dubai.
+ Pros
- Highly reputable and recognized free zone
- Big range of business activities
- Central location
- Cons
- One of the most expensive Free Zones
- Company setup process takes longer than in other Free Zones
- Annual audit is required
Dubai South (DWC, Dubai World Central)
Key features:
| Established | 2006 |
| Licenses types | Trading, Consultancy, Industrial |
| Facilities | Flexi-desks, Offices, Warehouses |
| Visas | 2-3 visas with flexi desk, multiple visas with office |
| Setup time | 1 day registration, 1 week pre-approval |
We think that this Free Zone is one of the best choices if you want to register your company in Dubai. It is located right next to the new Al Maktoum airport and Expo 2020 site. It is about 30 min. drive from the down town of Dubai. A metro line is under construction and is going to be finished within less than a year.
Dubai South consists of a few modern buildings, where you can either have a flexi-desk - desk in a sharing office, or an executive office. Even warehouses are available there.
It would be good to mention that the business center of Dubai South provides virtual office services such as phone calls pickup, mail forwarding and meeting rooms. We have seen people really using the flexi-desk facility unlike in remoted Free Zones.
+ Pros
- The most cost-efficient Free Zone in Dubai
- Part of Expo 2020 site
- Low cost of the resident visas
- Cons
- Health insurance is required for resident visa
- Annual audit starting from year 3
- Educational degree is required for resident visas of business owners
Dubai Technology Entrepreneur Center (DTEC)
Key features:
| Established 2 | 2005 |
| Licenses types | IT, sofware, online business |
| Facilities | Flexi-desks, Offices |
| Visas | 1-2 visas with flexi desk, multiple visas with office |
| Setup time | 2-3 days registration, 1 week pre-approval |
DTEC or Dubai Technology Entrepreneur Center is located in Dubai Silicon Oasis and is a very unique startup hub in the whole UAE.
If you visit DTEC, you will be surprised how modern and ergonomic the whole premises look like: you will see comfortable co-working spaces, chill-out hubs, thinking and networking areas, cafes and even games areas within the same space. It looks like no other Free Zone in Dubai!
DTEC is a Free Zone dedicated only to IT related licenses. It has only 9 business activities, but you can include into your license up to 5 of them which is quite impressive.
+ Pros
- The cheapest package for visa eligible company in Dubai
- No restrictions on nationalities
- Modern infrastructure: ready to use flexi-desks, offices, meeting rooms, cafes inside the premises
- Cons
- Only professional business activities related to IT
- Need to upgrade the company into Dubai Silicon Oasis Free Zone after 3 years
- Annual audit is required
Dubai Airport Free Zone (DAFZA)
Key features:
| Established | 1996 |
| Licenses types | Trading, Consultancy, Industrial |
| Facilities | Flexi-desks, Offices, Warehouses |
| Visas | 3 visas with flexi desk, multiple visas with office |
| Time-frame | 1 day registration, 1 week pre-approval |
DAFZA or Dubai Airport Free Zone is situated next to Dubai International Airport. Dubai Airport Free Zone is the best choice for logistics or transportation companies, who need to re-ship their goods though UAE, but not necessarily do the import into the UAE.
The Free Zone offers 24/7 customs clearance center, fitted and furnished offices up to 60 sq meters and brand-new warehouses in DAFZA industrial park.
+ Pros
- Well-developed infrastructure for trading
- 24/7 customs services and rapid cargo clearance
- Dedicated logistics center
- Cons
- No small size of offices or warehouses
- Audit requirement from second year
- Mandatory to provide personal bank statement for company setup
Dubai Silicon Oasis
Key features:
| Established | 2004 |
| Licenses types | Trading, Consultancy, Light industrial |
| Facilities | Flexi-desks, Offices, Warehouses |
| Visas | 1-2 visas with flexi desk, multiple visas with office |
| Setup time | 3 days registration, 1 week pre-approval |
Dubai Silicone Oasis is a Free Zone fully owned by Dubai government. It is meant to become a "technology oasis" by supporting technology-based businesses.
Today DSO is a technology park which hosts more than 2 000 companies. It is also a residential district with about 60 000 tenants.
DSO's facilities include "Plug and Play" offices, Light industrial units, conference rooms. Offices are fully fitted, connected to Internet and VoIP, have 24 hour security. DSO's range of high quality facilities would suit small businesses or big enterprises.
+ Pros
- Developed Zone with offices and residential area
- Affordable office rent
- Cons
- Flexi-desk or virtual offices are not available
- Remoted from central Dubai
Jebel Ali Free Zone (JAFZA)
Key features:
| Established | 1985 |
| Licenses types | Trading, Consultancy, Industrial |
| Facilities | Offices, Warehouses |
| Visas | Multiple visas with office |
| Time-frame | 3 days registration, 2 weeks pre-approval |
Jafza or Jebel Ali Free Zone is the oldest and the biggest free zone in UAE.
JAFZA is located in the Dubai Emirate. It has its own sea port, which is the busiest port of the whole country.
A lot of well-known food and consumer goods manufacturers are located in JAFZA, thanks to its wide range of warehouses and industrial licenses.
Jafza offers trading or manufacturing business activities, but if you plan to open a service providing company, it has to be a branch of a Mainland entity.
+ Pros
- Big choice of trading activities, up to 12 product categories per license
- Biggest UAE sea port within the Free Zone
- Warehouses and plots of land
- Cons
- No professional service activities (available only for branches of UAE companies)
- Personal presence for company registration is required
- Flexi-desks are often not available - need to rent physical offices
Dubai free zone company setup cost is higher than in nearby Emirates, but there is a value for your money. Any business consultants in Dubai would be able to confirm that.
If you set up business in Dubai free zone you would not need to search for other solutions. It’s stable, reputable and efficient.
FAQ
-
How much does it cost to open a free zone company in Dubai?
The cost of opening a free zone company in Dubai varies significantly based on the chosen free zone, the type of business activity, and the specific requirements of the investor. In Dubai free zones, company registration fees and obtaining necessary licenses start from USD 7,000 and can amount to USD 15,000 and more if you set up a big company with many employees and a large office.
Note that usually the setup costs already include the rent of a flexi desk or dedicated office space. If your budget is rather limited, you can think of northern emirates as their free zone authorities charge about USD 4,000-5,000 for a basic setup.
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How to open a free zone company in Dubai?
Below is a step-by-step instruction on how to open a free zone company in Dubai:
- Choose the free zone most suited to your business activity.
- Decide on a company name ensuring it adheres to the naming regulations of the chosen free zone.
- Prepare the documents:
- Passport copies of the company's shareholders and directors
- Completed application form for the specific free zone
- Business plan (if required by the free zone).
- Additional documents that may be required depending on the free zone and your business activity
- Apply for a license depending on your business activity:
- Trading or Commercial License
- Service or Consultancy License
- Industrial License
- Etc.
- Select office space: a physical office, warehouse, or choose a flexi-desk option within your chosen free zone
- Pay the fees: one-time registration fee, annual license fee, and any other related fees such as office rent
- Obtain visa (if relocating): If you're planning to stay in Dubai, apply for a visa through your free zone. This also applies to any employees you plan to hire.
- Open a bank account: Once you have your license and all related documents, approach a local bank to open a corporate bank account.
The whole process of setting up a company in the UAE may be a challenge, from selecting among around 50 free zones to opening a bank account. We understand that your case is unique, and it may be a lot easier and cheaper to open your company with the help of an experienced consultant. Contact Emirabiz for a smooth and fast company setup in the UAE.
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Which is the cheapest freezone in the UAE?
There are about 50 free zones in the UAE and each tends to specialize on a certain business activity or types of services, has its own rules and peculiarities. Choosing a free zone that is best and cheaper for you may be a challenge. That is why it is advisable to consult with a professional agency, like Emirabiz.
For a basic setup, the cheapest free zone in Dubai may be considered Meydan Free Zone. As for the entire UAE, the cheapest setups offer the UAQ and RAKEZ free zones, depending on a business activity and the number of visas.
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