Silver oak UAE

0507580404 Get a Quote Get a Quote

    Free Zone Setup

    UAE Free Zone Business Setup: Your Gateway to Global Trade and 0% Tax Starting a business in a UAE Free Zone is the most

    Free Zone Setup
    Business Corporate Dubai Free Zone

    Free Zone Setup

    Moinuddin By Moinuddin December 04, 2025

    UAE Free Zone Business Setup: Your Gateway to Global Trade and 0% Tax

    Starting a business in a UAE Free Zone is the most strategic and cost-effective route for international entrepreneurs, startups, and service providers. Free Zones offer many incentives, including 100% foreign ownership and flexible tax advantages.

    With over 40 free zones across the seven Emirates, the choice can be complex. The right Free Zone for you depends entirely on your budget, activity, and desired location whether it’s the premium prestige of Dubai or the high value of Ras Al Khaimah (RAKEZ) and Sharjah.

    We specialize in guiding you through this landscape, ensuring you choose the free zone that guarantees compliance and long-term financial benefits.

    Core Benefits of a UAE Free Zone Company

    Regardless of the Emirate you choose (Dubai, Ajman, Sharjah, or RAK), all Free Zone companies enjoy these key advantages:

    • 100% Foreign Ownership: Complete autonomy and control over your business without the need for a local sponsor or partner.
    • 0% Corporate Tax: Free Zone entities that qualify as a Qualifying Free Zone Person (QFZP) can benefit from a 0% Corporate Tax rate on qualifying income.
    • 100% Repatriation of Profits: Full freedom to remit your capital and profits back to your home country.
    • Quick Setup Process: Licensing can often be secured in just 3 to 7 working days with streamlined documentation.
    • Flexible Office Options: Choose from cost-effective Flexi-desk packages, shared offices, or dedicated premium offices.
    • VAT and Customs Duty Exemptions: Most goods imported into the Free Zone are exempt from customs duties, and there is simplified compliance for re-export.

    Choosing the Right Free Zone: Dubai, Sharjah, Ajman, & RAKEZ

    While the core benefits are uniform, each Free Zone offers unique specialized infrastructure, cost structures, and prestigious locations. We compare some of the most popular options below:

    1. Dubai Free Zones (DMCC, IFZA)

    Dubai offers world-class infrastructure and global prestige, though typically at a higher initial cost.

    • Dubai Multi Commodities Centre (DMCC): Located in Jumeirah Lakes Towers (JLT). DMCC is ranked globally for its infrastructure and is ideal for commodity trading, crypto, fintech, and large-scale enterprises seeking a premium, reputable address.
    • International Free Zone Authority (IFZA): Known for its flexibility and speed. IFZA is one of the most cost-effective options in Dubai, perfect for startups, consultants, and e-commerce with low physical office requirements.

    2. Ras Al Khaimah Economic Zone (RAKEZ)

    RAKEZ is one of the most versatile and value-added Free Zones in the UAE, appealing to a many of business models.

    • Value and Versatility: RAKEZ is highly competitive on price while offering solutions for nearly every sector, from General Trading and Consulting to Heavy Manufacturing.
    • Specialized Zones: RAKEZ is segmented into six specialized zones (Industrial, Business, Media, etc.), allowing you to choose an environment tailored to your operational needs.
    • Cost Efficiency: RAKEZ offers some of the most affordable starting packages for 1-visa and 0-visa setups outside of Dubai, making it an excellent choice for budget-conscious SMEs.

    3. Sharjah Free Zones (Shams, SPC Free Zone)

    Sharjah is the cultural and media hub of the UAE, offering affordable setups focused on creative and knowledge industries.

    • Sharjah Media City Shams: A top choice for media, creative, e-commerce, and digital service providers. Shams is known for its fast setup and strong support for individual entrepreneurs and freelancers.
    • Sharjah Publishing City (SPC Free Zone): Focused on publishing, education, and digital content creation. SPC offers a wide range of activities and highly competitive pricing.

    4. Ajman Free Zone (AFZ)

    Ajman is a historical and highly competitive Free Zone in the Northern Emirates, known for cost-efficiency and logistics support.

    • Cost-Leadership: AFZ (Ajman Free zone) often features some of the lowest license fees in the UAE, making it a primary choice for cost-conscious startups.
    • Industry Focus: It provides strong support for trading, industrial, and manufacturing activities due to its proximity to Ajman Port.

    The Free Zone Company Setup Process

    The process is designed to be fast and hassle-free, especially with expert guidance. We manage all paperwork for you.

    • Define Activity and Jurisdiction: Select your business activity and the most suitable Free Zone (e.g., Consultancy License in RAKEZ).
    • Trade Name Approval: We reserve your company name and secure initial approvals from the Free Zone Authority.
    • Document Submission: Provide minimal documentation (usually only passport copies, a photograph, and a completed application form).
    • Office & Payment: Select your office package (Flexi-desk or physical office) and finalize the payment.
    • License Issuance: The Trade License and corporate documents are issued, often within a week.
    • Post-Licensing: We assist with the mandatory [Corporate Bank Account Opening] and processing of your [UAE Residence Visa] and Emirates ID.
     
    free zone business setup in dubai

    Cost of Setting Up a Free Zone Business

    💸 Key Cost Factors in Free Zone Setup

    Cost FactorImpact on Price
    Visa RequirementThe biggest factor. A 1-visa package is significantly cheaper than a 3-visa package. Additional visas increase the total cost significantly.
    Office TypeFlexi-desk packages offer the lowest cost, while Dedicated Office space or private offices result in a substantially higher setup fee.
    Free Zone LocationDubai zones (like DMCC) are generally premium-priced, while zones in RAKEZ and Sharjah offer higher value and more cost-effective packages.

    Ready to Launch Your Global Business?

    Choosing the right Free Zone is the most critical step to maximizing your profits and ensuring legal compliance. As your Business Setup Consultant in Dubai, I provide a comprehensive, guaranteed-price package that covers licensing, visas, banking assistance, and VAT Registration and Accounting & Auditing Services.

    Book Your FREE Consultation with Moin Uddin!

    Contact me today for a personalized assessment and a fixed, transparent quote based on your specific business activity.

    This section answers the most common and important questions investors have regarding the Ajman Free Zone, and other uae free zones covering costs, residency, and operational compliance.

    FAQs (Affordability & Compliance)

    • What is the cheapest Free Zone setup package available in the UAE?
      The lowest-cost packages, which often start around AED 8,000 to AED 12,000 for a 0-visa license, are typically found in cost-effective jurisdictions like Ajman, RAKEZ (Ras Al Khaimah), and certain Sharjah Free Zones (e.g., Shams). These packages usually include a Flexi-desk or virtual office arrangement and are ideal for non-resident investors or international holding companies.
    • Can a Free Zone company sell directly to customers in Dubai Mainland?
      No. A Free Zone company cannot sell goods or offer services directly to customers or businesses within the UAE Mainland. To operate legally outside your Free Zone premises, you must:
      Establish a branch office in the Mainland (DED).
      Appoint a registered Mainland distributor or agent to conduct sales on your behalf.
    • Do I have to pay VAT if I operate a Free Zone company?
      Yes. If your taxable supplies (sales into the UAE Mainland) exceed the AED 375,000 mandatory threshold, you must register for and charge 5% VAT. However, sales between Free Zone companies or sales for export are generally zero-rated or outside the scope of VAT. We provide full assistance with [VAT Registration] and compliance.
    • Is the 0% Corporate Tax rate guaranteed for Free Zone companies?
      The 0% Corporate Tax rate applies only to profits derived from Qualifying Income. This generally includes income derived from international trade and specific activities within the Free Zone. If a Free Zone company earns income from the UAE Mainland (non-qualifying income), that income will be subject to the standard 9% Corporate Tax rate above the threshold. We assist in structuring your business to maximize your qualifying income.
    • Can I open a corporate bank account without a physical office?
      Yes. You can open a corporate bank account with a Flexi-desk package. However, banks in the UAE follow strict KYC (Know Your Customer) rules. They will closely examine your business plan, shareholder profile, and transaction purpose. We provide full assistance to ensure your application is Corporate Bank Account ready, regardless of your office package.
    Tags: