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How to Set Up a Free Zone Company in Dubai

How to form a free zone company in the UAE. Covers zone selection, license type, visa quota, and document submission. Exact costs vary by zone and package.

Gov. fee

AED 6,000–20,000+ per year (varies by free zone and package)

Timeline

1–2 weeks (varies by free zone)

For

Business owners forming a UAE free zone company for export, consultancy, digital, or…

Steps

8

Start

Select the free zone that fits your business activity, target market, and budget.

Last updated: April 2026

  1. 1Choose Your Free Zone
  2. 2Choose License Type and Activity
  3. 3Choose Package and Visa Quota
  4. 4Reserve the Company Name
  5. 5Submit Application Documents
  6. 6Pay the Setup Fees
  7. 7Receive License and Documents
  8. 8Complete First Post-License Steps
See full step-by-step guide ↓

Step by step

1

Choose Your Free Zone

Select the free zone that fits your business activity, target market, and budget. Not all free zones accept all license types or activities. Costs, visa quotas, and physical office requirements vary significantly between zones.

Where to go

Free zone authority of your chosen zone

Address / portal

Each zone has its own portal — visit the zone's official website

Est. cost

No fee

Est. time

1–2 days (research)

Advice

Match the free zone to your business activity first, then compare costs and visa options. IFZA, RAKEZ, and SHAMS are commonly used by SMEs for consultancy and trading. DMCC suits commodities and crypto. JAFZA suits logistics and import/export with a JAFZA address requirement.

2

Choose License Type and Activity

Select the license type that matches your business: commercial (trading), professional or consultancy (services), or industrial (manufacturing). Then specify your business activity from the zone's approved list. The activity list varies by free zone — confirm your intended activity is available before proceeding.

Where to go

Free zone authority

Address / portal

Zone's official portal or customer service

Est. cost

No fee at this stage

Est. time

1 day

Advice

Most free zones allow multiple activities under one license for an additional fee. Confirm whether your intended combination is available in your chosen zone, and at what cost, before committing to the zone.

3

Choose Package and Visa Quota

Select the office arrangement and visa allocation for your company. Most free zones offer flexi-desk (shared or virtual address), dedicated desk, and full private office options. Each tier sets the maximum number of residency visas you can apply for on behalf of investors and employees.

Where to go

Free zone authority

Address / portal

Zone's official portal

Est. cost

Included in license package price

Est. time

1 day

Advice

Choose your visa quota based on how many people you realistically need to sponsor in the first 12 months. Upgrading your package after setup is possible but costs more than planning ahead. Some entry-level packages cap you at one or two visas.

Note

If you plan to hire employees before the end of your first license year, confirm the visa quota before paying. Downgrading to a smaller visa allocation after payment is generally not possible.

4

Reserve the Company Name

Submit your preferred company name to the free zone authority for approval. The name must not duplicate an existing company, must not include government or authority references, and must comply with UAE naming rules.

Where to go

Free zone authority

Address / portal

Zone's official portal

Est. cost

AED 100–500 (varies by zone; often included in the application fee)

Est. time

1–2 business days

Advice

Prepare two or three alternative names before submitting. Rules on trademarked terms and abbreviations vary by zone. Check the zone's naming guidelines before submitting to avoid a rejection that delays your timeline.

5

Submit Application Documents

Upload your incorporation documents to the free zone portal. Required documents typically include: shareholder passport copies, passport-size photos, and proof of residential address (utility bill or bank statement, usually within 3 months). Some zones require a business plan or an NOC if a shareholder is currently on a UAE visa.

Where to go

Free zone authority

Address / portal

Zone's official portal or customer service office

Est. cost

Application fee: AED 500–2,000 (varies by zone; often included in package price)

Est. time

1–3 business days for review

Advice

Prepare a clean, legible set of passport scans before starting. Some free zones require documents to be attested or notarized — check the zone's document requirements before uploading to avoid rejection.

Note

Documents not in English or Arabic typically require a certified translation. Confirm the zone's language requirements before submitting.

6

Pay the Setup Fees

Pay the license fee, office package cost, and any registration charges to complete your application. Some free zones consolidate all fees into one invoice; others bill license and office fees separately.

Where to go

Free zone authority

Address / portal

Zone's payment portal (online)

Est. cost

AED 6,000–20,000+ (total first-year package: license + office + registration fees, varies by zone)

Est. time

Payment processed same day

Advice

Request an itemized fee breakdown before paying. Common components: license fee, registration fee, office package, and establishment card. Confirm whether UAE VAT (5%) applies to any component.

Note

Most free zones do not refund fees once the application is submitted. Confirm the exact package, activity, and visa quota before paying.

7

Receive License and Documents

Once fees are cleared and documents approved, the free zone issues your trade license and incorporation pack. Documents typically include: trade license, certificate of incorporation, memorandum and articles of association, and share certificate.

Where to go

Free zone authority

Address / portal

Zone's portal (download) or counter collection

Est. cost

Included in Step 6

Est. time

1–5 business days after payment

Advice

Download and save all incorporation documents immediately. You will need them for bank account opening, visa applications, and any supplier or client contracts. Keep at least one set of certified copies.

8

Complete First Post-License Steps

After receiving the license, obtain your establishment card from the free zone authority (required before applying for investor or employee visas) and open a business bank account. Both require your trade license and incorporation documents.

Where to go

Free zone authority (establishment card); UAE commercial bank (bank account)

Address / portal

Zone's portal or office; bank branch or online application

Est. cost

Varies by free zone and next step

Est. time

Varies: bank account may take 2–6 weeks

Advice

Start the bank account process as soon as the license is issued — it takes longer than any other post-formation step. Some free zones have preferred banking partners that offer a faster account-opening process; check with your zone before approaching banks independently.

Overview

A UAE free zone company offers 100% foreign ownership and a simpler formation process than mainland. Free zone authorities — IFZA, DMCC, JAFZA, RAKEZ, and others — each set their own activity lists, office packages, and pricing. The zone you choose determines your annual cost, visa quota, and what your business is licensed to do.

Formation typically takes 1–5 business days once documents are submitted and fees are paid. Total first-year costs range from AED 6,000 to AED 20,000+, depending on the zone, office package, and number of licensed activities. A business bank account and establishment card are required after formation. Both depend on having the trade license and incorporation documents in hand.

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