Dubai Free Zone – Company Formation

Dubai Free Zone - Company Formation

Forming a Free Zone company in Dubai continues to be one of the most sought-after business setup options in the UAE.

Setting up a company in a Dubai Free Zone offers several key advantages:

Simplified process for opening a corporate bank account
Enhanced local and international recognition of the company
Better chances of securing UAE resident visas for individuals from certain “high-risk” nationalities
Opportunity to rent office space in prestigious and well-known business districts

Doing Business in the UAE

Free zones, company registration, licensing, bank accounts and taxes

Dubai Multi Commodities Center

Key features:

Established	2002
Licenses types	Service, Trading, Investment
Facilities	Flexi-desks, Offices
Visas	3 visas with flexi desk, multiple visas with office
Setup time	3 days registration, 2 weeks pre-approval

DMCC, or Dubai Multi Commodities Centre, is one of the most prestigious and internationally recognized Free Zones in the UAE. It holds the title of the world’s largest Free Zone and has been named “Global Free Zone of the Year” five times by the Financial Times.

DMCC serves as the hub for key trading platforms such as the Dubai Gold and Commodities Exchange, Dubai Diamond Exchange, and Dubai Pearl Exchange. It also features dedicated Tea and Coffee Centres and supports the trading of agro-commodities and metals.

Strategically located in Jumeirah Lakes Towers (JLT), DMCC offers a vibrant mix of commercial and residential spaces, resembling a city within a city. With two metro stations and seamless connectivity to Dubai’s major highways, it provides businesses with unmatched accessibility and convenience.

+ Pros

Highly reputable and recognized free zone
Big range of business activities
Central location

– Cons

One of the most expensive Free Zones
Company setup process takes longer than in other Free Zones
Annual audit is required

Dubai South (DWC, Dubai World Central)

Key features:

Established	2006
Licenses types	Trading, Consultancy, Industrial
Facilities	Flexi-desks, Offices, Warehouses
Visas	2-3 visas with flexi desk, multiple visas with office
Setup time	1 day registration, 1 week pre-approval

Dubai South Free Zone is an excellent choice for entrepreneurs looking to establish their company in Dubai. Strategically located near Al Maktoum International Airport and the Expo 2020 site, it offers easy access to major transport links and is just a 30-minute drive from Downtown Dubai. Additionally, a new metro line is currently under construction and is expected to be completed within the year, further enhancing connectivity.

The Free Zone features a range of modern infrastructure options, including flexi-desks in shared offices, executive offices, and warehouse facilities. One of its standout features is the active use of its business center services—unlike in many remote Free Zones, the flexi-desk workspaces here are regularly used by entrepreneurs and small business teams.

Dubai South also offers comprehensive virtual office services, including call handling, mail forwarding, and access to meeting rooms—making it a flexible and practical choice for both local and international businesses.

+ Pros

The most cost-efficient Free Zone in Dubai
Part of Expo 2020 site
Low cost of the resident visas

– Cons

Health insurance is required for resident visa
Annual audit starting from year 3
Educational degree is required for resident visas of business owners

Dubai Technology Entrepreneur Center (DTEC)

Key features:

Established 2	2005
Licenses types	IT, sofware, online business
Facilities	Flexi-desks, Offices
Visas	1-2 visas with flexi desk, multiple visas with office
Setup time	2-3 days registration, 1 week pre-approval

DTEC, or Dubai Technology Entrepreneur Campus, is a standout startup hub located within Dubai Silicon Oasis. It’s one of the most innovative and dynamic Free Zones in the UAE, designed specifically to support tech-driven entrepreneurs and startups.

Walking into DTEC, you’re immediately greeted by a modern, ergonomic space that fosters creativity and collaboration. The campus features state-of-the-art co-working spaces, chill-out zones, dedicated networking and brainstorming areas, on-site cafes, and even game zones—all under one roof. It truly sets itself apart from any other Free Zone in Dubai with its vibrant, startup-friendly atmosphere.

DTEC is exclusively focused on IT and technology ventures. While it offers just nine business activities, you can include up to five of them under a single license, providing excellent flexibility for tech entrepreneurs looking to launch or grow their ventures in a supportive ecosystem.

+ Pros

The cheapest package for visa eligible company in Dubai
No restrictions on nationalities
Modern infrastructure: ready to use flexi-desks, offices, meeting rooms, cafes inside the premises

– Cons

Only professional business activities related to IT
Need to upgrade the company into Dubai Silicon Oasis Free Zone after 3 years
Annual audit is required

Dubai Airport Free Zone (DAFZA)

Key features:

Established	1996
Licenses types	Trading, Consultancy, Industrial
Facilities	Flexi-desks, Offices, Warehouses
Visas	3 visas with flexi desk, multiple visas with office
Time-frame	1 day registration, 1 week pre-approval

DAFZA, or Dubai Airport Free Zone, is strategically located adjacent to Dubai International Airport, making it an ideal choice for logistics, aviation, and transportation companies that rely on fast and efficient re-shipment through the UAE—without the need to import goods into the local market.

DAFZA offers a range of tailored facilities, including a 24/7 on-site customs clearance center for seamless cargo handling. Businesses can choose from ready-to-use, fully furnished office spaces of up to 60 square meters, as well as modern, high-spec warehouses located within the DAFZA Industrial Park—designed to support smooth operational workflows and global connectivity.

+ Pros

Well-developed infrastructure for trading
24/7 customs services and rapid cargo clearance
Dedicated logistics center

– Cons

No small size of offices or warehouses
Audit requirement from second year
Mandatory to provide personal bank statement for company setup

Dubai Silicon Oasis

Key features:

Established	2004
Licenses types	Trading, Consultancy, Light industrial
Facilities	Flexi-desks, Offices, Warehouses
Visas	1-2 visas with flexi desk, multiple visas with office
Setup time	3 days registration, 1 week pre-approval

Dubai Silicon Oasis (DSO) is a government-owned Free Zone designed to foster innovation and support technology-driven businesses, making it a true “technology oasis” in the region.

Today, DSO stands as a thriving technology park, home to over 2,000 companies. In addition to being a business hub, it also serves as a vibrant residential community with around 60,000 residents.

DSO offers a wide range of high-quality facilities, including fully equipped “Plug and Play” offices, light industrial units, and modern conference rooms. All office spaces come fully furnished, with high-speed internet, VoIP connectivity, and round-the-clock security. Whether you’re a startup or a large enterprise, DSO provides the ideal environment for growth and innovation.

+ Pros

Developed Zone with offices and residential area
Affordable office rent

– Cons

Flexi-desk or virtual offices are not available
Remoted from central Dubai

Jebel Ali Free Zone (JAFZA)

Key features:

Established	1985
Licenses types	Trading, Consultancy, Industrial
Facilities	Offices, Warehouses
Visas	Multiple visas with office
Time-frame	3 days registration, 2 weeks pre-approval

Jafza, or Jebel Ali Free Zone, is the oldest and largest free zone in the UAE.

Located in the Emirate of Dubai, Jafza boasts its own seaport—Jebel Ali Port—the busiest in the country, providing unmatched connectivity and logistical advantages.

Many renowned food and consumer goods manufacturers have established operations in Jafza, attracted by its extensive range of warehouses and industrial licenses.

The free zone supports both trading and manufacturing activities. However, if you’re planning to start a service-based business, it must operate as a branch of an existing Mainland company.

+ Pros

Big choice of trading activities, up to 12 product categories per license
Biggest UAE sea port within the Free Zone
Warehouses and plots of land

– Cons

No professional service activities (available only for branches of UAE companies)
Personal presence for company registration is required
Flexi-desks are often not available – need to rent physical offices

Setting up a company in a Dubai free zone may come at a higher cost compared to neighboring Emirates, but it offers excellent value for money—a fact any experienced business consultant in Dubai can confirm.

By choosing a Dubai free zone for your business, you gain access to a stable, reputable, and efficient environment, eliminating the need to look elsewhere for better solutions.

FAQ

How Much Does It Cost to Open a Free Zone Company in Dubai?

The cost of setting up a free zone company in Dubai depends on several factors, including the specific free zone, the nature of your business activity, and your operational requirements. Generally, company registration and licensing fees start from around USD 7,000 and can exceed USD 15,000 for larger setups with multiple employees and bigger office spaces.

Most setup packages include the cost of a flexi-desk or dedicated office, making it a convenient all-in-one solution. However, if you’re working with a tighter budget, consider free zones in the Northern Emirates, where basic setups are available for approximately USD 4,000 to 5,000.

How to Open a Free Zone Company in Dubai: Step-by-Step

Choose the Right Free Zone
Select a free zone that aligns with your business activity and future goals.
Select a Company Name
Ensure the name complies with the naming rules of your chosen free zone.
Prepare Required Documents
- Passport copies of shareholders and directors
- Completed application form
- Business plan (if required)
- Any additional documents specific to your activity or free zone
Apply for the Relevant License
Depending on your business activity, choose one of the following:
- Commercial/Trading License
- Service/Consultancy License
- Industrial License
- Others (based on sector)
Choose Your Office Space
Options include flexi-desk, dedicated offices, or warehouses.
Pay the Fees
This includes a one-time registration fee, annual license fee, and office rent.
Apply for Residency Visa
If you’re relocating to Dubai, apply for your visa through the free zone. The same applies to any staff you plan to hire.
Open a Corporate Bank Account
Once your company is set up and licensed, you can approach a local bank to open your business account.

Setting up a business in one of Dubai’s approximately 50 free zones can be complex. From choosing the right zone to navigating licensing and banking, the process involves many steps. To simplify things and potentially reduce costs, consider working with experienced consultants like Emirabiz for a smooth and efficient setup.

Which Is the Cheapest Free Zone in the UAE?

With nearly 50 free zones across the UAE, each with its own focus, pricing, and regulations, choosing the most cost-effective one can be overwhelming. For a basic and budget-friendly setup in Dubai, Meydan Free Zone is often considered one of the most affordable.

If you’re open to setting up outside Dubai, the cheapest free zones in the UAE are typically found in the Northern Emirates—UAQ Free Trade Zone (Umm Al Quwain) and RAKEZ (Ras Al Khaimah Economic Zone) are popular for low-cost, entry-level business formations.

Business Setup