A free zone license is given to companies that wish to conduct business as per the regulations of the UAE’s free zone authorities. For entrepreneurs exploring how to start a business in Dubai, we have flexible set up options, industry specific facilities and in many cases full foreign ownership which we can arrange. We at RKDCS will help you out in determining what best suits your business and also we have a free zone company registration guide which will take you through the main steps before you apply.
What Is a Free Zone License?
A free zone license is issued by the UAE free zone authority for conduct of certain business activities. What you get with the license, company structure, and facilities is based on which zone you have chosen and your business model.
If you are into research of what is a free zone company in UAE, what you will find out is that it is a business which operates in a specified free zone and is subject to that zone’s regulations. For guidance on how to start a business in Dubai, RKDCS can help you compare the available options.
Types of Free Zone Licenses
We see the following free zone license types UAE include:
Trading license: For authorized purchase, sale, import, and export activities.
Service license: For professional, advisory and related services.
Industrial license: For those which are approved in manufacturing, processing, or industrial.
E-commerce license: For certain online trading activities.
Available programs and license options may differ by free zone. Choose a license which includes the services your company will use.
Benefits of a Free Zone License
A free trade zone license may provide 100% foreign ownership, easy registration processes, flexible office space options, and access to industry specific facilities. Also these benefits may make a free trade zone license a good option for startups.
Tax treatment requires separate assessment: A free zone company does not by default get 0% corporate tax on all income. Qualifying Free Zone entities must meet certain criteria.
Free Zone vs Mainland License
When it comes to free zone vs mainland Dubai, compare what is best for your trade, your customer base, office needs and licensing.
Free trade zone companies in most cases work within the scope of what is authorized for them which includes international business. For the mainland UAE market access sometimes requires a permit, a license, or a main branch. Mainland companies as a rule may serve customers all over the UAE which is subject to what their company does and what they are licensed to do.
RKDCS can help you assess whether free zone registration or a business setup service in mainland better matches your plans.
Free Zone License Cost in the UAE
The cost varies by free zone, business activity, license type, number of visas, office or flexi-desk needs, registration fees, and also any extra approvals. Also there is no single cheapest option for every business.
To find the cheapest free zone in UAE is the cheapest for your needs. Compare the total first year cost and annual renewal fees which may not be reflected in the advertised entry level price. Also ask for a breakdown before you commit to a package.
Free Zone License Requirements UAE
Requirements differ by authority and activity. For example:
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Passport copies of shareholders and managers
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Proposed company name and business activities
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Application and incorporation documents
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Contact details and ownership information
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Office, flex space, or facility details as required.
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For certain additional approvals of regulated activities which apply.
A free zone license without office which does not include office features may be included in some packages or flexible workspace options, but what is included is at the discretion of the authority and activity.
Documents Required
Prepare the required valid identification, company application forms, put forth your proposed trade names, share holder details and any other supporting docs which the chosen free zone may ask for. Also may be that corporate share holders will require to produce additional company info. Go over the present checklist directly with the relevant authority before you submit your application.
Step-by-Step Process to Get a Free Zone License
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Select your business type and appropriate free zone.
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Select your business structure and name.
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Confirm office, facility, and visa requirements.
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Submit the application and supporting documents.
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Get required approvals and pay applicable fees.
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Receive your license and complete the rest of the setup requirements.
This process is an overview of the general concepts; specific steps will vary by free zone.
For our freezone company formation services we at RKDCS will compare options and put together the registration process for you. Also we have experience in a business setup company in Dubai which includes explaining practical requirements for your specific business activity.
Best Free Zones in Dubai and the UAE
The best free zones in Dubai vary by your industry, budget, and what facilities you require as well as the make up of your customer base. In Dubai some zones are dedicated to tech, trade, media, and financial services. Also across the UAE other zones may be better suited for manufacturing, logistics, or very specialized uses.
Compare which options are best for you in terms of permitted activities, office choices, visa rules, fees, and renewal costs when you are choosing a location. At RKDCS we can help you out in our free zone company formation services which also includes evaluation of your best options.
Free Zone License Renewal Dubai
A free zone is subject to renewal as per the issue authority’s rules. For renewal we pay fees, update company info, have valid premises plans, and include any other required support docs.
Before the expiration date begins the process and at the same time check in with your current requirements which your authority will have input on. RKDCS we put you in touch with resources for renewal planning as well as related admin issues.
Frequently Asked Questions
What are the benefits of a free zone license in the UAE?
Benefits of which may be full foreign ownership, sector specific facilities and flexible set up options. Tax benefits are based on fulfillment of the relevant legal criteria.
What is the difference between a free zone and a mainland license?
A free zone license issues a mainland license which is done via the appropriate mainland authority. What mainly differ between them is regulation, market access, premises, and type of activities.
Can I get a free zone license for 100% foreign ownership?
Many in the UAE have full foreign ownership which is subject to the free zone’s rules and the company structure.
How to transfer a free zone license to mainland?
A free zone license is in general not for transfer to a main land license. You will have to set up or register a suitable main land entity or branch and get the required approvals. Confirm the route with the authorities.
How much does a free zone license cost?
Costs break down for each authority, business activity, facility, visa requirement, and other fees. We can put together a custom quote based on what you need.