What is Free Zone Company in Dubai?

  • January 04, 2023
  • Dushyant Sharma
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Now, What is a Dubai Free Zone company? Or What is the procedure for Dubai Free Zone Company formation? To know such details, let us first understand the meaning of a Free Zone in the UAE. Dubai is a futuristic city built keeping in mind the forthcoming needs and requirements of Business enterprises. More than you, there are multiple Corporate entities registered with the UAE Authority, but what makes Foreign Corporate Giants stem their foot in Sand City? Let us look at them one by one.


About Free Zones

In Dubai alone, there are around 40 operating Free Zones. In addition, there are more Free Zones lined up for construction. Each of these Free Zones is designed with multiple commercial categories. The UAE Authority only offers corporate licenses to companies with those categories.

Why register in a Free Zone?

The main lurcation for establishing a Business in a Free Zones is that there are no restrictions on Foreign Ownership. Also, Companies are governed by an independent FZA, i.e., Free Zone Authority. This FZA Authority is responsible for issuing operating licenses as well as regulating the activities of the registered Corporate Entities within that Free Zone.

Is Free Zone an Offshore Company?

Since Dubai is a major business hub, it has become ideal for setting up a business in Dubai or its representative office in 40 different “Free Trade Zones” in the UAE jurisdiction. The Business can themselves identify the best Free Zone to conduct their Business in the region. Most people mistake a Free Zone Company for an offshore company. But with such similarities, each free zone has very differing characteristics.


Benefits of setting up a Company in a Free Zone

Every Dubai Authority must enable shareholders, directors, and employees to obtain residency visas in the island nation. Here, we have defined some of the benefits of registering a business in a Free Zone in the following points:

  • Complete Foreign Ownership, i.e., No requirement for a local sponsor to seek the company’s registration
  • Complete Repatriation of Business’s Capital as well as Profits
  • Complete exemption from the Corporate & Personal Income Tax
  • Authority puts no restrictions on currency exchange
  • Businesses can exhibit multiple licensable activities in the Free Zone
  • Dubai's Infrastructure offers abundant but inexpensive energy for business operations
  • In Dubai, there is a modern and efficient communication facility for quick transactions\
  • Dubai imparts the business cluster effect, which yields better logistic efficiencies
  • Serviced desks and offices for SMEs and Start-ups
  • You can easily avail of support services in Dubai from competent service providers


Some of the Principle Free Zones in Dubai

Every Business, whilst carrying out its activities, has a big influence on selecting the suitable Free Zone to meet its requirements. Some of the principal Free Zones and their licensing activities are defined in the following points:

  • Dubai Multi Commodities Centre: For Commodities Trade and Exchanges across International waters and boundaries
  • Jebel Ali Free Zone or JAFZA: This Free Zone holds expertise in the following services:
    • Trading
    • General Trading
    • Service
    • Logistics
    • Industrial
  • Dubai International Financial Centre: This Free Zone is specifically known as the Hub for the following:
    • Banking
    • Financial Services
    • Legal
  • Dubai World Central: Are od specialization includes:
    • Aviation
    • Logistics
    • Light Industry
    • Ancillary Services
  • Dubai Knowledge Park: Known for setting up enterprises for the following:
    • Human Resources Management
    • Training & Personal Development
    • Dubai Internet City: For Internet and Tele-communication services
    • Dubai Media City: For media-related activities in the Island City
  • Dubai Silicon Oasis: Famous for enterprises dedicated to the following sectors:
    • Information Technology
    • Telecom Engineering
    • Electronic Engineering
  • Dubai Healthcare City: For Medical services, such as:
    • Healthcare
    • Medical Education and Research
    • Pharmaceuticals
    • Medical Equipment
    • Ras Al-Khaimah: General Trading services, such as:
    • General Trading
    • Service Sector
    • Industrial Workspace
    • Educational Instituiton
  • Fujairah Creative City: For the following areas:
    • Media
    • Consulting
    • Communications
    • Design and Technology

For company registration in Dubai, Free Zone Company setup or registration, connect with the Incorporation Experts at Registrationwala. 

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Dushyant Sharma
Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.

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