Tips For Starting A Free Zone Business In Dubai

  • Post category:UAE

Free zones areas are economic zones where products and services can be exchanged, frequently at advantageous tax and customs rates.

Free zones and offshore companies are often confused with each other. This, however, is not at all accurate. Onshore organizations that meet specific requirements can conduct business in Dubai as free zone companies. On the other hand, offshore businesses are exclusively founded to conduct business outside of their country of registration or primary ownership.

Tips For Starting A Free Zone Business In Dubai


Doing market research

Understand the demand for your goods and services in Dubai and the neighboring regions. Consider the competition in your field to find weaknesses and opportunities. Consider how regulations and social customs might affect how your business operates.

Selecting the most suitable Free Zone

Based on your industry focus, target market, and business requirements, research the various free zones in Dubai. Consider elements like the facilities, infrastructure, accessibility to ports or airports, and particular advantages that each free zone offers. Calculate how much it costs to open and run a business in each free zone.

Creating an effective business plan

Describe your company’s aims, objectives, and growth strategies. Provide thorough cash flow forecasts, budgeting, and financial projections. Make sure your marketing plan, competitive advantages, and target market are all clearly stated. If you need funding, present your business plan to financial institutions or potential investors.

Preparing the documents

Get the application forms, business plan, lease agreement, and copies of passports that are needed for company registration.

Send your application to the appropriate free zone authority and follow their registration requirements.

Understanding the legal requirements

Study the laws that control companies in Dubai, including those related to licenses, permits, and regulations.

To make sure you comply with local laws and regulations, speak with business consultants or legal advisors. Based on your preferences for ownership and liability, choose the most suitable business structure.

Getting funding

Determine how much money you’ll need for a startup and explore the financing options that are available in Dubai, like bank loans, venture capital, and angel investors.

To attract investors or lenders, prepare a strong case for the company and financial projections. 

Take into account different funding options, such as grants or subsidies from the government for particular industries.

Getting the required Permits 

To conduct lawful business within the free zone, you must apply for the necessary business licenses and permits. You might require trade licenses, commercial licenses, professional licenses, or specialized permits, depending on the nature of your business.

Make sure to follow all regulations and renew licenses as needed to prevent fines or interruptions to your business operations.

Getting an office space

Depending on your company’s needs and available funds, choose appropriate office space or facilities inside the free zone. Consider things like the size of the office, the facilities, the location, and the ease of access for both clients and staff.

To cut expenses, look into the flexible office options that the free zone offers, such as virtual offices, co-working spaces, and serviced offices.

Opening a corporate bank account in the Dubai Free Zone

To handle your company’s finances, open a corporate bank account with a trustworthy Dubai bank. Understand about the rules and requirements that banks have for foreign companies that operate in Dubai.

Establish online banking services and explore financial offerings like business loans and trade finance that are suited to the requirements of UAE-based enterprises.


Interact with the business community through exhibitions, industry associations, and networking events in the free zone and the wider Dubai ecosystem.

To expand the scope and capabilities of your company, form alliances or joint ventures with suppliers, service providers, and other companies. Use social media and digital platforms to advertise your company and establish connections with potential clients locally as well as internationally.

Reach out to us at Relin Consultants – Leading Global Business Set Up Partners for Dubai company registration.


What is the price to establish a Free Zone business in Dubai?

Dubai is still regarded as one of the most affordable locations to launch a business, despite its high initial setup expenses. Establishing a business in a Free Zone can begin as little as AED 4000. The annual cost of a Trading, Service, or Industrial license ranges from 10,000 to 50,000 AED.

Which is the cheapest Free Zone company in Dubai?

IFZA (International Free Zone Authority) is the least expensive free zone in Dubai. For AED 12,900, IFZA provides a cheap company license in Dubai that doesn’t require a visa.

Do Businesses in Freezones Pay Taxes?

Based on their qualifying income, Free Zone Businesses and Qualifying Free Zone Persons may be subject to a corporate tax of 0% or 9% as of June 2023.

What are the disadvantages of Free Zone in Dubai?

Limitations on Onshore Expansion One of the drawbacks of operating a free zone company in Dubai is being restricted to the specific free zone’s commercial activities. Entry into additional UAE markets is prohibited. This may be extremely restrictive, particularly if the business plans to serve the whole UAE market.