How to Register a Company in UAE Free Zone

The United Arab Emirates (UAE) is a global business hub, drawing entrepreneurs and investors worldwide. Setting up a company in one of UAE’s numerous free zones is a common option for foreigners. UAE free zones provide multiple advantages, including 100% foreign ownership, tax exemptions, and simplified business setup processes. In this guide, we will cover this process as part of this comprehensive guide on registering a company in a UAE free zone. Our guide aims to help you understand more about them to simplify your experience for business setup in the UAE free zone.

Guide to Business Setup Process in UAE Free Zone

1. Know the Types of Free Zones in the UAE

There are over 40 free zones across the UAE, each offering tailored industry licenses or general business permits for specific sectors or providing general business licenses. Some of the well-known free zones include:

• Dubai Multi Commodities Centre (DMCC Free Zone)
• Jebel Ali Free Zone Area (JAFZA)
• Abu Dhabi Global Market (ADGM Free Zone)
• Ras Al Khaimah Economic Zone (RAKEZ)
• Dubai Silicon Oasis Free Zone

2. Determine an Appropriate Free Zone

Choosing an ideal UAE free zone company setup is critical to business success, so carefully consider all relevant factors when choosing the appropriate free zone for registration of your company in UAE. Among them are:

Nature of Your Business: Different free zones specialize in specific industries (e.g., Dubai Internet City for IT companies), while location plays an important role. Proximity to airports or seaports and your target market, as well as set up and operational costs, vary significantly among free zones, which should also be considered before selecting one for business operations.

Facilities and Services Offered: Office Spaces, Warehouses, Business Support Services, as well as Visa Allocation depending upon Your Company Type & Size

Research various free zones and compare their offerings until you find one that suits your business needs best. 

3. Determine Your Business Activity

Once your primary business activity has been defined, determine the licenses available through free zones following it – free zones usually offer three primary forms:

Trading License: For import, export, and distribution activities; Services License: For service-oriented businesses; Industrial License: For manufacturing and processing activities

4. Determine Activity Permissibility

To meet specific requirements, you must select your activity within a free zone. Choosing your company name requires adhering to specific rules. Names should not have been registered previously and should contain neither offensive or profane language nor names of well-known organizations or abbreviations; full names rather than surnames should be used when entering information for registration.

5. Establish the Legal Structure 

Free zones offer various legal structures, such as:

As part of their business expansion strategy, existing foreign businesses may wish to establish an FZE (single shareholder company) or an FZC (multiple shareholders; usually two to five).  The branches of foreign company structures offer more options.

6. Determine Your Structure And Submit Documents

Determine and submit to the free zone authority all documents related to your structure choice as soon as possible, for instance, the following ones.

• Completed application form; business plan (some free zones require this)
• Passport copies of shareholders and managers
• CV or resume of shareholders and managers
• CV of bank reference letters for them (for UAE residents only)
• No Objection Certificate from current sponsor (NOC)

7. Secure Office Space

Free zones require companies to have a physical presence within them; there are usually various options available when choosing office space options in free zones. Options often include:

Flex desks or shared workspaces, serviced offices, unfurnished offices, and warehouse space are available to trade and industrial companies alike.

8. Pay Registration Fees

The typical costs associated with setting up a free zone company include: Registration Fee, License Fee, and Facility or Office Rental Charges may all apply (depending upon their respective states of operation)

• Fees associated with free zones vary considerably and depend on company type, activity level, and office size. 
• Be prepared to pay these upfront as part of the registration process.

9. Acquire Initial Approval

Once you have submitted and paid the necessary fees for a free zone application, they will review your documents and issue an initial approval or No Objection Certificate (NOC). 

10. Open a Corporate Bank Account

Once approved, you can open a corporate bank account. Individual bank requirements will differ but generally include the following: Initial Approval or No Objection Certificate from the free zone and passport copies of shareholders and signatories; Company documents (e.g., articles of association); Bank forms and KYC documents. Before selecting a bank for your company, conducting extensive research on them and their requirements is wise.

11. Complete Registration and Acquire License

Once your bank account has been opened, return to the free zone authority to finalize the registration process:

• Provide proof of capital deposit (if applicable) 
• Sign the final company documents (and receive your license and associated documents)

12. Secure Visas

With your UAE free zone company setup done, the next step should be applying for residence visas for yourself (as the company owner) and your employees. The number of available visas depends on their type, size, and free zone regulations.

• Entry Permit Application
• Status Change (for applicants already present in the UAE) Medical Fitness Test Emirates ID Registration
• Visa Stamping

Congratulations on successfully registering your free zone company.

Tips to Facilitate an Easy Company Setup in UAE Free Zone

Conduct Your Research: Carefully investigate various free zones to locate the ideal space for your business. 

Engage Professional Assistance: Consider engaging a local business setup consultant as your guide throughout this process of setting up your business in a free zone.

Plan Your Budget: Be mindful of all costs involved with setting up in a free zone, from setup fees and operational expenses to any hidden charges or hidden costs that might emerge during setup. 

Prepare for the Future: When selecting your free zone and company structure, remember your long-term business goals.

Opening a Free Zone Company with NH Management

Business setup in a UAE-free zone offers numerous advantages, specifically for foreign investors hoping to establish themselves in this dynamic market. While the process may appear daunting initially, breaking it into manageable steps makes it more manageable and doable.

As regulations and procedures can differ between free zones or change over time, it’s always advisable to contact relevant authorities or consult with a local business setup expert like NH Management. Lastly, the UAE remains an attractive option for global entrepreneurs and investors for many reasons. By setting up your company in one of UAE’s free zones, you’re positioning yourself to take advantage of all this dynamic region offers. Book a discovery call with our business consultants at info@nhmnagement.com or call +971 4 222 13 227 to learn more.