Step by Step: UAE Free zone Company Formation Process

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Indeed, the business is booming all across the UAE. It is also the flourishing business hub of the Middle East. Are you also thinking about establishing a business setup in UAE free zone? The UAE free zone is your ideal location to start a company if you wish to take a path to never-ending prosperity.

Notably, the UAE is one of the most trending locations among entrepreneurs. Owing to this, the region has seen massive economic advancements that have benefitted both the locals and the foreigners alike.

Moreover, UAE, particularly is one of the most developed cities in the region which offer innumerable entrepreneurial benefits. These benefits make this city, one of the most reliable cities in the world, if your wish to embark on the path to prosperity. Some of them include the following:

  • World-class infrastructures
  • Low taxation
  • Global connectivity
  • Flourishing economy

What is a Free zone Company?

It should be noted that free zones are more commonly referred to as “free trade zones”. These jurisdictions are popularly known to be reliable economic zones as they allow goods and services trading at favored tax and customs rates.

Furthermore, it is a common misconception that free zone and offshore companies are more or less the same thing. This is not the case in reality. Evidently, a business setup in UAE free zone is an onshore business entity that can proceed with its business operations by meeting some set certain criteria.

On the other hand, offshore companies are established with the sole aim of operating outside their registered jurisdiction or primary ownership location.

In UAE, the free zones are popularly known to deal with general trade, services, and other industrial sectors. In addition to that, some of the free zones in the UAE cater to specific industries and sectors. These essentially include the following:

  • UAE Healthcare City (DHCC) – for the health and wellness industry
  • UAE CommerCity – for the e-commerce industry
  • Sharjah Publishing City (SPC) – for the printing and publishing industry
  • UAE Internet City (DIC) – for the tech industry
  • UAE Knowledge Park (DKP) – for the HR and training industry

Process of Business Setup in UAE Free zone

To establish a business in the UAE’s free zone, the entrepreneurs need to keep a steady and a systematic approach. It is essentially a step-wise process, which involves the following:

  • Choose the license type and the business activity
  • Opt for the most suitable free zone
  • Select a corporate structure
  • Find a trade name and prepare the relevant documents
  • Apply for the initial approval
  • Sign the relevant legal documents for company formation
  • Establish an appropriate business location
  • Collect the business license

Setting up a business in a UAE free zone can be an attractive option for entrepreneurs due to various benefits, including tax exemptions, 100% foreign ownership, and simplified business processes. While the specific steps may vary depending on the free zone and the type of business, the general process typically involves the following steps:

  1. Choose the Right Free Zone:
    • Research and select a free zone that aligns with your business activities and requirements. Each free zone may have specific regulations and advantages, so choose one that best suits your needs.
  2. Select the Type of Company:
    • Determine the legal structure of your business (e.g., Free Zone Company, Free Zone Establishment, or branch of a foreign company). The type of license you need will depend on your business activities.
  3. Trade Name Reservation:
    • Choose a unique and appropriate name for your business and check its availability. Once selected, you may need to reserve the trade name with the relevant free zone authority.
  4. Submit Application:
    • Prepare and submit the application form along with the required documents. Commonly required documents include:
      • Passport copies of shareholders and managers
      • Business plan
      • NOC (No Objection Certificate) from current sponsor, if applicable
      • Specified application form

Prosperous Perks of Business setup in UAE Free zone

Complete business ownership

Free zones let foreign investors get 100% ownership of their company.

Full profit repatriation

A business setup in UAE free zone can expel all their profits outside the UAE. This further allows them the right to transfer 100% of their capital to their place of origin without any other requirements.

0% corporate tax

The UAE laws clearly state that companies are not required to pay corporate tax from their business revenue. This eventually allows them to keep all your profits.

Simplified import and export process

Unlike the mainland, free zones are absolutely exempted from all customs duties.

Strategic location

Free zones are strategically located near seaports, airports, and national borders. Inevitably, this significantly improves the perks of trading.

Global connectivity

UAE has major seaports and airports that enable you to trade locally and internationally with ease. The location provides you easy access to distributors and manufacturers in the MENA region as well as South Asia.

Thriving ex-pat entrepreneurs

Next, we all know that UAE is one of the world’s most popular transit destinations. Therefore a business setup in UAE free zone, attracts millions of tourists and investors alike. Moreover, it is home to a multi-national community and provides thriving opportunities for you to connect with a global business community.

Range of business activities

Following the entrepreneurial opportunities, the free zones eventually also allow you to commence a wide range of business activities.

Time-saving and simple registration process

Last, but not least, the entire process of obtaining a license is fairly swift and easy. As an investor, you can get easy access to free zone business formation and convenient administrative services.


In conclusion, if you are looking for a progressive path to prosperity, then you should explore the opportunity of a business setup in UAE Free Zone. Identifying the progressive zone can indeed be a burden, but here at GCC Solutions, we are committed to making the process easier for you.

We look after all the necessary protocols and the required pre-approvals that further assist you in getting your business license in an effective and hassle-free manner. Get in touch with our corporate consultants today and explore your path to prosperity in the UAE Free Zone. We’re waiting to hear from you!

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